organisational design Flashcards
(26 cards)
What is an organisation structure?
The way in which a business is arranged to carry out its activities
Name three key functions of an organisation structure.
- Communication routes
- delegation of work
- control
What are layers of hierarchy?
The management structure that shows who is responsible to whom in an organisation.
What is the chain of command?
The path along which orders are passed down the hierarchy.
What determines levels of responsibility in an organisation?
The amount of control delegated from above within the hierarchy.
Define span of control.
The number of subordinates directly answerable to a manager.
What is the difference between wide and narrow span of control?
- Wide span: more delegation and trust
- Narrow span: tighter control and supervision.
Who is a line manager?
The person directly above an employee in the hierarchy.
Who is a subordinate?
An employee who reports to a line manager.
What is a traditional hierarchical structure?
A system with multiple levels
Name two advantages of a traditional hierarchical structure.
- Clear communication paths
- defined responsibilities.
Name two disadvantages of a traditional hierarchical structure.
- Bureaucratic delays
- poor interdepartmental communication.
What is an independent structure?
An informal or flexible structure often used in professional teams like lawyers or doctors.
What is a matrix structure?
A structure where teams from different departments work together on a project.
Give two benefits of a matrix structure.
- Better use of specialist skills
- improved innovation.
Name two problems with matrix structures.
- Communication challenges
- potential conflict between managers.
What is an entrepreneurial structure?
A structure where a few key people (often the owner) make all the major decisions.
What defines a tall organisation?
Many layers of hierarchy and a long chain of command.
What defines a flat organisation?
Few layers of hierarchy with wide spans of control.
List two advantages of a flat structure.
- Faster decision-making
- increased employee motivation.
List two disadvantages of flat structures.
- Potential lack of direction
- interdepartmental misalignment.
What is a centralised organisation?
A structure where key decisions are made by senior management.
Name one pro and one con of centralisation.
- Pro: Quick decision-making.
- Con: Can demotivate lower-level staff.
What is a decentralised organisation?
A structure where decision-making is delegated to lower levels of management.
