organisational design

Cards (15)

  • Structure:
    •hierarchy
    •chain of command
    •span of control
    •centralised and decentralised
  • •Organisational design refers to a diagram or chart which shows the lines of authority and layers in the hierarchy of the business.
  • •A hierarchy is a system in a business where employees are ranked due to their status and authority
  • •The chain of command in a business is the flow of information power and authority through the organisation •Those at the top have more power and authority
  • •This is a number•An employee that works as a Head of Department in a school may have 6 teachers working for them.  Their span of control is therefore 6. 
  • span control- •In a hierarchy it’s the number of people that a manager is responsible for. 
  • Decentralisation – where a business divides up the organisation of its business into areas 
  • Centralisation – where a business has its organisation of management and administration at one central head office
  • advantages of centralised- managers get a overview of the whole business to ensure that decisions are consistent
  • Disadvantages of centralised- it can exclude employees from decision making which can be demotivating
  • disadvantages of decentralised- lack of consistency across different departments or regions, higher costs due to duplication of resources such as IT systems
  • organsisatiol charts show- 1.Names of departments e.g. production, finance, marketing and HR
    2.Job roles e.g. Directors, Managers, supervisors
    3.Responsibilities and accountability e.g. definition of duties
  • •In a tall structure there maybe lots of opportunity for promotion• Information takes a long time to get from the bottom to the top of the organisation, it takes a long time for decisions to be made
  • Advantages of a tall hierarchical structure- •Supervisors normally have a small span of control so they can get to know their subordinates really well
  • Disadvantages of a tall hierarchical structure- •Lots of layers and a long chain of command can mean that the business is very inflexible