Improving organisational design.

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What does organisational design show?
Structure and hierarchy.
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What is a hierarchy?
A series of levels where each level has responsibility for and authority over the levels below.
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What does the organisational structure show?
Who employees are accountable to and who they are responsible for.
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What is a tall organisational structure?
A tall structure has long chains of command, this is when there are long paths of communication and authority up and down the hierarchy.
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How can tall organisational structures affect communication?
Messages take a long time to get from the top to the bottom. Decision take a long time to make.
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What is a flat organisational structure?
A flat organisational structure only has a few levels in their hierarchy, people are given more responsibility and freedom.
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How can flat organisational structures affect communication?
Messages can be sent to managers quickly, however, managers can be overwhelmed due to a large span of control.
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Disadvantage of a too wide span of control?
Managers are overwhelmed and find it hard to manage effectively.
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Advantage of a narrow span of control?
Managers can manage people below more closely.
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Disadvantage of a too narrow span of control?
Workers can feel demotivated as they feel they are being micro-managed.
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When is a wider span of control more appropriate?
When workers are doing the same routine tasks.
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What is de-layering?
Removing parts of the hierarchy to create a flatter structure with wider spans of control.
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Advantages of de-layering?
Can help lower costs of employing management, it gives employees further down the structure enhanced roles, it can also improve communication.
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Disadvantages of de-layering?
Remaining staff need to be trained in new roles, managers can end up stressed with huge spans of control.
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What is delegation?
The giving of responsibility for decision making to people below you.
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What is a centralised structure?
A structure where all decisions are made by senior managers at the top of the business.
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Advantages of a centralised structure?
Business leaders will have lots of experience, managers get an overview of the whole business so decisions are consistent, senior managers aren't biased towards one department, senior managers make decisions quickly as they don't need to consult.
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Disadvantages of a centralised structure?
Not many people are expert enough to make decisions about all aspects of the business, excluding employees from decision making can be de-motivating, the organisation reacts slowly to change as senior managers can notice consumer trends.
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What is a de-centralised structure?
A structure where authority is shared to more junior employees. Used by multinational firms to delegate power to regional managers.
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Advantages of a de-centralised structure?
Involvement in decision making motivates employees, employees can use expert knowledge of their sector, day-to-day decisions can be made more quickly.
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disadvantages of a de-centralised structure?
Junior employees may not have enough experience to make decisions, inconsistencies may develop between decisions of different employees, junior employees cannot see the overall situation and needs of the organisation.
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What is the impact of a centralised approach on the organisational structure?
A flat and wide structure is adopted as layers of middle management are no longer needed.
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What is the impact of a de-centralised approach on the organisational structure?
A structure with more levels of authority and increased amount of delegation will be adopted.
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Other cards in this set

Card 2

Front

What is a hierarchy?

Back

A series of levels where each level has responsibility for and authority over the levels below.

Card 3

Front

What does the organisational structure show?

Back

Preview of the front of card 3

Card 4

Front

What is a tall organisational structure?

Back

Preview of the front of card 4

Card 5

Front

How can tall organisational structures affect communication?

Back

Preview of the front of card 5
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