16 - Organisational Design

The number of subordinates a person directly controls in a business is called:

• Hierarchy

• Organisational Structure

• Chain of Command

• Span of Control

The three types of organisational structures are:

• Tall, Flat, Decentralised

• Flat, Centralised, Matrix

• Tall, Flat, Matrix

• Hierarchy, Matrix, Central

An advantage of a wide span of control is:

• Less stress involved for each employee

• Allows subordinates to benefit from job enrichment

• Delayering is a much easier process

• Less chance of redundancies being made

An advantage of a tall hierarchy is that it provides:

• Closer links with customers

• More opportunities for promotion

• Less risk of poor motivation

• Better communication

The power to make decisions over what a business does is known as:

• Authority

• Leadership

• Motivation

• Delegation

Managers passing tasks to subordinates is known as:

• Job share

• Delegation

• Workload

• Authority

A hierarchical organisation is one that has:

• A high number of layers of management

• Few managers

• A large number of employees

• Few layers of management

The process of flattening organisational hierarchies is known as:

• Outsourcing

• Team working

• Delegating

• Delayering

A common problem with a tall hierarchy is:

• Low costs

• Poor communication

• Poor productivity

• Poor quality

The way information is communicated up and down the hierarchy is through the:

• Internal appraisal system

• Employee newsletter

• Workforce planning system

• Chain of command