Improving Organisational Design Flashcards

1
Q

What does organisational design show?

A

Structure and Hierarchy

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2
Q

What does an organisational chart set out?

A

Who has authority and responsibility to make decisions

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3
Q

What does an organisational chart show?

A

Who individual employees are accountable to and who employees are responsible for

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4
Q

What is a ‘tall’ structure?

A

Organisations with lots of levels

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5
Q

What do tall structures have?

A

Long chains of command

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6
Q

What is the chain of command?

A

The path of communication and authority up and down the hierarchy

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7
Q

Why can tall structures affect communication? 2 reasons

A

Messages can take a long time to get from each side of the hierarchy.
Decisions take a long time to make.

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8
Q

What is a ‘flat’ structure?

A

Organisations with only a few levels in their hierarchy

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9
Q

What can flat structures lead to?

A

Managers getting overwhelmed by too many people reporting to them.

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10
Q

What is the span of control?

A

The number of people who report directly to a manager

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11
Q

What can happen if the span of control is too wide?

A

Managers can find it hard to manage effectively

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12
Q

What kind of span of control do tall structures have?

A

Narrow

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13
Q

What can happen if the span of control is too narrow?

A

Workers can become demotivated

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14
Q

What is delayering?

A

Removing parts of the hierarchy

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15
Q

What can delayering do? 3 benefits

A

Create a flatter structure with wider spans of control.
Lower costs
Improve communication

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16
Q

What is 2 disadvantages of delayering?

A

Can cost businesses money and managers can end up stressed If you overdo it.

17
Q

What does delegation rely on?

A

Trust between the 2 parties

18
Q

What is delegation?

A

Giving responsibility for decision-making to people below you

19
Q

What is the amount of delegation influenced by?

A

The nature and culture of the business

20
Q

What do centralised structures keep?

A

Authority for decisions at the top

21
Q

What is a centralised structure?

A

All decisions are made by senior managers at the top of the business

22
Q

What are 3 advantages of centralisation?

A

Managers have experience
Consistent decisions are made
No consultation

23
Q

What are 3 disadvantages of centralisation?

A

Not many people are expect in all aspects
Excluding employees can be demotivating
Slow to notice consumer trends

24
Q

What are decentralised structures?

A

Authority shared out to more junior employees

25
Q

What are 3 advantages of decentralisation?

A

Motivates employees
Can use knowledge of their sector
Quick

26
Q

What are 3 disadvantages of decentralisation?

A

Not enough experience
Inconsistencies
May not be able to see overall situation and needs of a business

27
Q

What can affect whether a business uses a centralised or decentralised approach? 4 points

A

Size
Nature
Culture
Objectives of a business

28
Q

Why may business centralise? 2 reasons

A

Save money in a more competitive market and can result in a flat and wide structure

29
Q

Why may businesses decentralise? 2 reasons

A

Creates more levels of authority
Increase amount of delegation