organisational design

• What influences the internal structure of a business?

  A number of factors including management views, communication systems, industry, traditions, and workforce skills
• What are the factors that determine a business's internal structure?

  • Views and philosophy of management
  • Need for different communication systems
  • Industry within which the business operates
  • Traditions of the business
  • Skills of the workforce
• How does a democratic leadership style affect a business's internal structure?


  It encourages workers to take responsibility
• What is the impact of communication systems on business structure?

  Controlled communication leads to many layers and narrow spans of control, while open communication results in a less hierarchical and more flexible structure
• How does the industry affect the internal structure of a business?

  Retailing encourages a hierarchical structure, while industries like software development have shorter chains of command
• What is a common characteristic of businesses that have been government-owned for many years?

  They often have a traditional hierarchical structure
• How does the skill level of the workforce influence organisational structure?

  A highly skilled workforce typically requires less supervision, leading to a flatter structure
• What does the term "layers of hierarchy" refer to?

  The management structure of an organisation indicating who is responsible to whom
• What is an example of a chain of command in an organisation?

  The police force's command structure from Chief Constable to Constable
• What determines the levels of responsibility in an organisation?

  The amount of control delegated from above and the business structure
• What does the span of control indicate?


  How many workers are directly responsible to a manager or supervisor
• What is a typical characteristic of a traditional hierarchical structure?

  Narrow span of control at the top and wider at the bottom
• What are the advantages of a traditional hierarchical structure?

  • Central control with clear responsibilities
  • Clearly defined paths of communication
  • Departments understand their position
  • Workers know their role in the structure
• What are the disadvantages of a traditional hierarchical structure?

  • Senior management distanced from implementers
  • Difficult vertical communication
  • Hampered inter-departmental communication
• What is meant by "delayering" in an organisational context?

  It refers to the removal of whole layers of hierarchy and management
• What are the advantages of a flatter organisational structure?

  • Increased motivation from delegation
  • Quicker decision-making
  • Faster communication with less distortion
  • Empowerment of workers
• What are the disadvantages of a flatter organisational structure?

  • Loss of central control
  • Different departments may not align objectives
• What is a matrix structure in organisational design?

  • Organises management across traditional departmental boundaries
  • Enables collaboration in project teams with specialists
  • Each team member has dual reporting lines
• What are the advantages of a matrix structure?

  • Allows contribution of specific skills to multiple projects
  • Breaks down communication barriers
  • Spreads ideas and innovation
  • Improves flexibility and motivation
• What are the disadvantages of a matrix structure?

  • Difficulty in defining main responsibilities
  • Potential strain from dual reporting
  • Can be expensive due to extra support systems
  • Coordination challenges across different departmental cultures
• What is the overall objective of alternative organisational systems?

  • To improve efficiency of the organisation
• What are examples of alternative structures within traditional hierarchies?

  • Cell working
  • Quality circles