Organisational Design

Question 1

Organisational structure

Answer 1

outlines the reporting relationships, roles, and responsibilities of employees in the organisation

Question 2

Why need organisational structure?

Answer 2

helps to promote clarity, efficiency, and accountability

Question 3

Hierarchy

Answer 3

refers to the levels of authority within an organisation
-hierarchy usually includes top-level management, middle-level management, and lower-level employees

Question 4

Chain of command

Answer 4

the formal line of authority that flows down from the top management to lower-level employees

-helps establish a clear communication channel and helps to maintain accountability within the organisation

Question 5

Span of control

Answer 5

refers to the number of employees that a manager or supervisor effectively manages
-A narrower span of control means that there are more layers of management
- A wider span of control means that there are fewer layers of management

Question 6

Centralised structure

Answer 6

Decision-making authority is concentrated at the top of the organisation
-Senior management make most of the key decisions
Centralisation can promote consistency and control

Question 7

Decentralised structure

Answer 7

Decision-making authority is distributed throughout the organisation
- Lower-level employees have more decision-making power
- Decentralisation can promote flexibility and innovation

Question 8

Tall organisational structure

Answer 8

• multiple levels of command
• more centralised decision making
• long chain of command
• common in large organisations

Question 9

Pros of tall

Answer 9

Pros:
- clear hierarchy
- offers opportunities for career advancements
- promotes specialisation
INCREASES efficiency and motivation

Question 10

Cons of tall

Answer 10

• can create communication barriers
• decision making can be slow
• can lead to bureaucracy
  REDUCE efficiency and motivation

Question 11

Flat organisational structure

Answer 11

• fewer level of management
• more decentralised decision making process
• Common in small organisations

Question 12

Pros of flat

Answer 12

• promotes culture of collaboration and open communication
• decision making can be faster
• encourages creativity and innovation

Question 13

Cons of flat

Answer 13

• can lead to role ambiguities and unclear hierarchy
• not many opportunities for carrer advancement
• may require employees to take on multiple roles and responsibilities, leading to burnout and overwhelm

Question 14

Matrix organisational structures

Answer 14

• built around specific products or projects, e.g. KitKat has its team within Nestlé
• They combine the functional areas of a business (HR, finance, marketing, sales) with a specialist team that operates inside the business

Question 15

Pros of matrix

Answer 15

• Promotes cross-functional collaboration and communication
• Allows for specialisation and expertise within each functional area
• coordination of multiple projects

Question 16

Cons of matrix

Answer 16

• conflicts over priorities and resources
• create confusion over roles and responsibilities with multiple managers
• requires high degree of communication