1.4.3 Organisational design Flashcards
(13 cards)
What is a hierarchy in organisational structure
The arrangement of employees into levels of authority (e.g., directors → managers → supervisors → employees)
Define chain of command
The formal line of authority through which orders are passed down (e.g., CEO → Department Head → Team Leader)
What is span of control
The number of subordinates a manager directly supervises.
Wide span = More subordinates (flat structures).
Narrow span = Fewer subordinates (tall structures)
Contrast centralised vs. decentralised structures
Centralised: Decisions made by top management (e.g., Apple under Steve Jobs).
Decentralised: Authority delegated to lower levels (e.g., Google’s team autonomy).
What is a tall structure
Many hierarchy levels with narrow spans of control (e.g., traditional banks).
Pros: Clear promotion paths, tight control.
Cons: Slow communication, bureaucratic.
What is a flat structure
Few hierarchy levels with wide spans of control (e.g., startups).
Pros: Faster decisions, lower costs.
Cons: Overloaded managers, less supervision.
What is a matrix structure
Employees report to multiple managers (e.g., project teams in tech firms).
Pros: Flexible, cross-functional collaboration.
Cons: Role confusion, conflicts.
How does a tall structure affect efficiency and motivation?
Efficiency: Slower (more layers for approvals).
Motivation: Clear promotions but may feel restrictive.
How does a flat structure impact efficiency and motivation?
Efficiency: Faster decisions, adaptable.
Motivation: Empowering but fewer promotion opportunities.
Why might a matrix structure improve efficiency?
Combines expertise from different departments for complex projects (e.g., NASA).
A retail chain is struggling with slow decisions. Would flattening its structure help?
Yes – fewer layers speed up communication and reduce costs.
Why might a centralised structure demotivate employees?
Lack of autonomy → less creativity/job satisfaction.
When is a decentralised structure most effective?
In large, global businesses needing local adaptability (e.g., Unilever)
