organisational design

Question 1

what is organisational design?

Answer 1

the process of shaping a businesses structure so that it meets the aims and objectives of the business

Question 2

what is an organisational structure?

Answer 2

the formal layout traditional used

Question 3

what does an organisational structure allows stakeholders to see?

Answer 3

clear lines of communication and authority as well as helping to identify job roles

Question 4

what is an organisational chat and what does it show?

Answer 4

an organisational chart sets out who has authority and responsibility to make decisions. it shows who individual employees are accountable to and who employees are responsible for. the chart also shows how the organisation is divided up eg by department by product or by location

Question 5

what is a tall organisational structure?

Answer 5

organisations with lots of levels in their hierarchy are called ‘tall’.

Question 6

what is chain of command?

Answer 6

the path of communication and authority up and down the hierarchy

Question 7

does a tall organisational structure have a long or short chain of command?

Answer 7

long chain of command

Question 8

tall structure aspects
- promotional opportunities
- delegation
- span of control
- decision making
- communication

Answer 8

• more promotional opportunities as more levels but this means higher costs for the business
• less delegation required this could mean less stress for employees but may mean less motivation
• narrow span of control which means tighter control of employees
• decisions take longer to implement because there are more levels to go through
• information may be lost or misinterpreted in the layers of hierarchy

Question 9

what is a flat organisational structure?

Answer 9

flat organisations only have a few levels in their hierarchy. people are given more responsibility and freedom

Question 10

flat structure aspects
- delegation
- responsibility
- vertical communication
- labour costs
- decision making

Answer 10

• managers have less time per employee therefore delegation must be better
• employees are given more responsibility which can be motivation but can also lead to high levels of stress
• vertical communication is better as there are fewer layers
• reduced labour costs and better communication should lead to a more efficient business
• decisions can be made and implemented quicker

Question 11

what is delegation?

Answer 11

giving responsibility for decision making to people below you

Question 12

what do the managers need to be able to do before delegating responsibility?

Answer 12

the managers need to trust the people they are delegating responsibility to. the best managers know the strengths and weaknesses of the people below them and delegate the right work to the right people.

Question 13

what is the amount of delegation heavily influenced on?

Answer 13

the amount of delegation is heavily influence by the nature and culture of the business - eg if the business wants its employees to be loyal and feel valued, it will delegate lots oof responsibilities
a business that delegates a lot of responsibilities will need to have many levels of authority.

Question 14

advantages of delegation

Answer 14

• management time
• motivation
• local knowledge
• flexibility
• development

Question 15

limitations of delegation

Answer 15

• size of business
• customer expectations
• quality of staff
• confidentiality

Question 16

what is delayering?

Answer 16

removing parts of the hierarchy
it creates a flatter structure with wider spans of control

Question 17

what can delayering help with?

Answer 17

lowering costs. cutting management jobs can save a lot of money in salaries. it gives junior employees enhanced roles with more responsibility and can improve communication.
it can cost businesses money in the short term as the remaining staff need to be retrained in their new roles. if you over do it, managers can end up stressed and over worked with huge spans of control

Question 18

what are centralised organisations?

Answer 18

where decisions are made by a small group of managers at the centre or top of the structure

Question 19

advantages of centralisation

Answer 19

• senior managers can are big decisions quickly because they dont have to consult anybody else
• senior managers aren’t biased towards one department so they can make the best decisions for the business as a whole
• managers get an overview of the whole business so decisions are consistent throughout the business
• business leaders have lots of experience of making business decisions

Question 20

disadvantages of centralisation

Answer 20

• excluding employees from decision making can be demotivating
• the organisation reacts slowly to change allowing its competitors to get ahead. this is because the senior managers who make the decisions don’t spend time on the shop floor so they’re slow to notice consumer trends

Question 21

what is a decentralised organisation?

Answer 21

where decisions are made by employees or managers in different areas or locations

Question 22

advantages of decentralisation

Answer 22

• involvement in decision making motivates employees
• employees can use expert knowledge of their sector
• quicker response to market changes
• day to day decisions can be made quickly without having to ask senior managers

Question 23

disadvantages of decentralisation

Answer 23

• junior employees may not have enough experience to make decisions
• different units or levels of the organisation may pursue their own interested or agendas rather than the overall strategic objectives of the organisation

Question 24

definition of accountability

Answer 24

the acceptance of responsibility for one’s own actions

Question 25

definition of workload

Answer 25

the amount of work that a person or machine has to do within a particular period of time

Question 26

definition of span of control

Answer 26

the number of subordinates for whom a manager is directly responsible

Question 27

definition of chain of command

Answer 27

a hierarchy that outlines who reports to whom, as well as the roles each person has within the organisation

Question 28

definition of hierarchy

Answer 28

any system or organisation in which people or groups are ranked one above the other according to status or authority

Question 29

definition of responsibility

Answer 29

someone’s. duty to perform or complete a task

Question 30

definition of subordinate

Answer 30

someone who works for someone else. a lower ranking level employee in an organisation

Question 31

definition of communication

Answer 31

the process of sending and receiving information from one person to another using a channel of communication