Organisational design

• Hierarchy is levels of the workforce within an organisation
• Chain of command is the route of communication as it travels down te levels of hierarchy.
• Span of control is the number of subordinates that a manager is in direct control of
• Tall structure is a business that has many levels in its hierrachy
• Flast structure is a business that has few levels in its hierarchy
• Matrix structure is where teams are put together from different functional areas to work on specific projects
• Centralised is a HR strategy where one responsibility for decision making is maintained by a limited number of management on top of the hierarchy.
• Decentralised is a HR strategy where the responsibility for decision making is delegated to a number of middle managers throughout the hierarchy.
• Features of a Tall Structure:

  1. autocratic as its one way communication
  2. chain of command is long
  3. span of control is narrow
  4. centralised
  5. close supervision (lack of trust)
  6. Hard HR
• Features of a Flat Structure:

  • Democratic/laissez-faire
  • chain of command is short
  • span of control is wider
  • decentralised
  • no close supervision (more trust)
• Advantages of a Tall Structure:

  1. small span of control means supervisors get to know their subordinates well.
  2. more opportunities in tall structures.
• Disadvantages of Tall Structure:

  1. lots of layers can mean business is very inflexible.
  2. communication within organisations are slow.
• Advantages of Flat Structure:

  1. Fewer layers are hierarchy means communication is fast.
  2. lots of delegation means staff are given greater responsibility.
• Disadvantages of Flat Structure:

  1. Staff can become overworked as there is less supervision causing more stress.
  2. Can create power struggle if manager is rarely around
• Advantages of Matrix Structure:

  1. Perfect to exploit specific skills of staff
  2. Ideal for a business that works on a project by project basis
• Disadvantages of Matrix Structure:

  1. Employees can have conflicts of interest across projects
  2. Staff can become stretched across projects, not focusing on their own
• Advantages of Centralised:

  1. Clear chain of command for executing decisions quickly
  2. Improves quality of work due to supervision
• Disadvantages of Centralised:

  1. Delays in work as dependant on flow of information
  2. Lack of employee loyalty due to rigidity of the work
• Advantages of Decentralised Structure:

  • Quick decision making
  • empowering employees give them a sense of importance
• Disadvantages of Decentralised:

  1. can be unhealthy competition and conflict
  2. lack of strong leadership