1.4.3= organisational design Flashcards
What factors influence organisational structure?
size of business
type of business
leadership style
competitive environment
What is a hierarchy?
A system in a business where employees are ranked due to their status and authority
What is a span of control?
The number of employees for whom a manager is responsible for
What are results of a narrow span of control?
allows closer supervision
more layers in hierarchy
helps more effective communication
What are results of a wide span of control?
gives subordinates independence
more appropriate if labour costs are significant
What is centralised and decentralised?
Centralised= authority should rest with senior managers
decentralised= delegate further down the hierarchy, junior managers get a say
What are pros and cons to centralisation?
Pros- easier to implant policy’s
quicker decision making
easier to control from centre
cons- reduce manager motivation
customer service misses flexibility
What are pros and cons to decentralised?
Pros- decisions made closer to the customer
able to respond to local circumstances
improved motivation
cons- harder to ensure consistent practises
decision ma\king is not strategic
Why change the organisational structure?
Reduce costs and complexity
Customer service improves
employee motivation needs boosting
What are 3 challenges to changing the organisational structure?
manager and employees resistance
potential problems with retention
costs like redundancies
What is delayering and what are the pros and cons?
Removing layers of management from the hierarchy
pros- lower labour costs, fast decision making and shorter communication paths
cons- decrease job security, power struggle
What is delegation and what are the pros and cons?
Assignment to others
pros- reduce manager stress+ workload
subordinates are motivated
good method of on-the-job training
cons- quality may suffer
increase stress for subordinates
