What is the definition of Organisational Structure?
Shows the different levels within an organisation commonly known as the hierachy within a business.
It defines tasks, responsibilities, work roles, relationships, and communication channels.
What does the formal organization chart illustrate?
- Levels of the hierarchy
- Chain of commands
- Span of control
It shows how formal relationships are organized within an organization.
Define Levels of the hierarchy in a business.
The order or levels of management in a firm, from the lowest to the highest rank
This structure is essential for understanding the management framework.
What is meant by Chain of command?
Demonstrates the different levels of hierachy that can be seen within an organisational chart.
Shows how authority and responsibility is delegated within a business.
It establishes the flow of decision-making and accountability.
Define Span of control.
The number of subordinates directly reponsible to a supervisor or manager.
Henry Fayol argued that it should be between 3 and 6.
What is the difference between Authority and Responsibility?
- Authority: Right to command and make decisions
- Responsibility: Duty to complete tasks and be accountable
Responsibility involves justifying actions taken.
What is Centralisation?
Keeping all important decision-making powers within head office or the center of the organization
It provides a clear and defined chain of command.
List the advantages of centralisation.
- Clear chain of command
- Greater consistency in decision-making
- Enhanced control by top management
- Strong decisions in times of crisis
These advantages facilitate efficient communication and coordination.
List the disadvantages of centralisation.
- Slower decision-making processes
- Limits decision-making authority of lower-level employees
- Creates inefficiencies and bottlenecks
These issues can hinder timely responses to market changes.
What is Decentralisation?
Decision-making powers are passed down the organization to empower subordinates
It allows for quicker responses to local issues.
List the advantages of decentralisation.
- Quicker responses to local issues
- Better adaptation to local conditions
- Encourages innovation
- Higher job satisfaction and morale
Decentralisation fosters a culture of creativity.
List the disadvantages of decentralisation.
- Coordination difficulties
- Inconsistent policy implementation
- Less central oversight and control
These can impact overall organizational effectiveness.
What are the characteristics of a Tall structure?
- Long chain of command
- More hierarchical levels
- Narrow span of control
This structure is often seen in larger organizations.
What are the characteristics of a Flat organization?
- Fewer hierarchical levels
- Short chain of command
- Wider span of control
This structure promotes quicker decision-making.
Define Matrix organisational structure.
Combines traditional departments with project teams
Individuals work across teams and projects as well as within their own department.
List the advantages of a matrix structure.
- Focus on tasks necessary for business success
- Flexibility and responsiveness to customer needs
- Motivation through varied tasks
This structure encourages employee development.
List the disadvantages of a matrix structure.
- Divided responsibilities
- Potential conflicts between project and departmental managers
- Heavy expenditure on support staff
These issues can reduce organizational performance.
