Studied by 0 peopleWhat is organisational design?
The framework that provides a business with a structure to achieve its objectives
What is hierarchy?
The structure of the workforce showing who is accountable to whom
What are the levels of hierarchy?
Tall and thin - each superior is responsible for a few subordinates, which allows for close supervision and communication
Wide and flat - each superior is responsible for a large number of subordinates which requires greater delegation but fewer levels allowing for greater communication through the firm
What is chain of command?
The way authority and power is passed down the levels of hierarchy; the longer this is, the slower communication and potentially decision making
What is span of control?
The number of subordinates that a manager or supervisor is directly responsible for
Wide = many subordinates
Narrow = few subordinates
What is centralisation?
When the responsibility is maintained by a limited number of senior managers at the top of the hierarchy
What is decentralisation?
When the responsibility for decision-making is delegated to a number of middle managers throughout the hierarchy
What are some influences on delegation, centralisation and decentralisation?
Attitudes and priorities of leader and their preferred leadership styles
Organisational design
Skills and attitudes of the workforce
Nature of decisions to be made
Legal form
Business objectives
What is a matrix structure?
Where teams are put together from different functional areas to work on specific projects
What are advantages of a matrix structure?
Communication across functional areas
Range of viewpoints considered
Functions support and understand each other
Motivational
What are disadvantages of a matrix structure?
Potential loss of control
Dependent upon effective delegation
Teams may take time to work together effectively
Can cause conflict
What are some impacts on efficiency and motivation?
Speed of decision making
Flow of communication
Degree of supervision
Opportunities for promotion
Cross functional relationships
Clarity of roles
Employee motivation
Note
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