Organisational design

Question 1

What is organisational design

Answer 1

The framework that provides a business with a structure to achieve its objectives

Question 2

What is organisational structure

Answer 2

The way in which the workforce within a firm is organised, including job roles and communication flows

Question 3

What are organisational charts

Answer 3

Visual representations of the organisational structure

Question 4

What is authority

Answer 4

The power of an employee to instruct subordinates, make decisions and control the use of resources

Question 5

What is centralised authority

Answer 5

Maintained by a few at the centre of the organisation

Question 6

What is decentralised authority

Answer 6

Spread across the organisation

Question 7

What is responsibility

Answer 7

When an employee has a duty to ensure a task is carried out to an acceptable standard

Question 8

What is the chain of command

Answer 8

The way that authority and power is passed down the levels of the hierarchy, starts at the top and works its way down, the longer the chain of command the slower communication and potentially decision making, it is important that communication flows up and down

Question 9

What is the span of control

Answer 9

The number of subordinates that a manager or supervisor is directly responsible for

Question 10

What is a wide span of control

Answer 10

If a manager has many subordinates

Question 11

What is a narrow span of control

Question 12

How does the size of span of control effect supervision

Answer 12

A narrower span of control will result in higher levels of supervision as there is less subordinates to oversee

Question 13

What is delegation

Answer 13

The passing of authority down the hierarchy

Question 14

What are the benefits of delegation

Answer 14

Free up management time, motivate workers (job enrichment), decisions are made closer to grass roots

Question 15

What is hierarchy

Answer 15

The structure of the workforce within an organisation showing who is accountable to whom

Question 16

When does a tall and thin structure occur

Answer 16

Where each superior is responsible for a few subordinates allowing for closer supervision and communication between the two levels

Question 17

When does a wide and flat structure occur

Answer 17

Each superior is responsible for a large number of subordinates, requires greater delegation but fewer levels allowing for quicker communication through the firm

Question 18

What is centralisation

Answer 18

When the responsibility for decision making is maintained, by a limited number of senior managers, at the top of the hierarchy

Question 19

What are the features of centralisation

Answer 19

Few decision makers, decisions are made at the top of the hierarchy, speeds up decision making, maintains tight control and is a bureaucratic system

Question 20

What is decentralisation

Answer 20

When the responsibility for decision making, decisions made at many levels within the hierarchy

Question 21

What are the features of decentralisation

Answer 21

Delegates decision making, decisions made at many levels, frees up management time, motivates and reduces bureaucracy

Question 22

What is empowerment

Answer 22

Delegating responsibility to employees, allowing them to use their abilities and to have a greater say in the decision making process

Question 23

What is delayering

Answer 23

Reducing the levels in the hierarchy and hence chain of command by removing levels of management

Question 24

What are the influences on delegation, de/centralisation

Answer 24

Attitude to leadership, organisational design, nature of decisions, legal form, objectives, response to change in tech and degree of confidence in the economy

Question 25

What is a matrix structure

Answer 25

Where teams are put together from different functional areas to work on specific projects

Question 26

What are the advantages of a matrix structure

Answer 26

Communication across functional areas, range of view points, functions understand and support each other and its motivational

Question 27

What are the disadvantages of a matrix structure

Answer 27

Potential loss of control, dependent upon effective delegation, takes time to be familiar with each other and could potentially cause conflict