1.4.3 Organisational Design

• What does 'organisational design' refer to in business terms?

  Shaping structure and culture
• The hierarchy, departments, and roles within an organization are part of its structure
• A flat organizational structure is often adopted to encourage innovation and teamwork.
• Match the organizational design element with its description:

  Structure ↔️ Hierarchy and roles within an organization

  Culture ↔️ Values and norms of the organization

  Strategy ↔️ Goals and objectives of the organization

  Processes ↔️ Tasks and workflows within the organization

  Technology ↔️ Digital tools supporting operations
• Restructuring from a hierarchical to a flat organization is often done to encourage innovation
• What is the primary importance of organizational culture in organizational design?

  Promotes employee engagement
• Steps in the process of restructuring an organization:

  1️⃣ Define objectives

  2️⃣ Analyze current structure

  3️⃣ Develop new design

  4️⃣ Implement changes

  5️⃣ Evaluate effectiveness
• A company with a flat organizational structure typically has fewer layers of management.
• The structure element of organisational design defines hierarchy, departments, and roles
• Culture in organisational design reflects values, norms, and behaviors.
• What does the strategy element of organisational design guide?

  Goals and objectives
• The processes element of organisational design defines task completion and workflows
• What does the technology element of organisational design incorporate?

  Digital tools and systems
• A company restructuring from a hierarchical to a flat structure illustrates the application of organisational design elements.
• Match the organisational structure with its key features:

  Hierarchical ↔️ Clear levels of authority

  Functional ↔️ Organised by departments

  Matrix ↔️ Multiple managers

  Flat ↔️ Few levels of hierarchy
• The functional organisational structure is organised by departments based on function
• What type of organisational structure has few or no levels between management and staff?

  Flat
• A volatile market requires a flexible organisational structure that can pivot quickly.
• Organisational design shapes an organisation's structure and culture
• What are the key elements of organisational design mentioned in the study material?

  Structure, culture, strategy, processes, technology
• The matrix organisational structure can lead to confusing reporting lines and potential conflict.
• What is an example of a factor that influences organisational design?

  Strategy
• A matrix structure encourages knowledge sharing
• In a flat structure, there are few levels between management and staff.
• A flat structure promotes quick decisions
• Large corporations typically have more layers of management
• A volatile market necessitates a flexible organisational structure.
• Cloud computing facilitates remote collaboration
• Highly skilled staff require less oversight
• Steps for optimising organisational design:

  1️⃣ Align structure with objectives

  2️⃣ Enhance efficiency

  3️⃣ Improve communication

  4️⃣ Boost employee motivation

  5️⃣ Increase adaptability
• Match the strategy with its example in optimising organisational design:

  Centralisation ↔️ Large government agencies

  Decentralisation ↔️ Google

  Formalisation ↔️ Retail franchises
• Centralisation results in clear decision-making
• Decentralisation empowers employees
• Formalisation ensures consistent operations but may hinder innovation.