3.6.3 Improving Organisational Design

What does an organisational chart show?

• The number of employees in a company

• The hierarchy and authority within an organisation

• The financial status of a company

• The marketing strategies of a company

What is the term used for organisations with lots of levels in their hierarchy?

• Flat

• Wide

• Tall

• Narrow

What can be a consequence of having a too narrow span of control?

• Increased communication

• Demotivated workers

• Enhanced roles for employees

• Lower costs

What does delayering in an organisation lead to?

• A taller structure with narrow spans of control

• A flatter structure with wider spans of control

• Increased levels in the hierarchy

• More paperwork

What is delegation in the context of organisational design?

• Removing parts of the hierarchy

• Giving responsibility for decision-making to people below you

• Creating a flatter structure

• Increasing the number of levels in the hierarchy

What is a potential benefit of delayering?

• Increased costs

• More levels in the hierarchy

• Lower costs

• Narrower spans of control

What is a key factor that influences the amount of delegation in a business?

• The financial status of the business

• The nature and culture of the business

• The number of employees

• The marketing strategies

What are the advantages of centralisation?

• Business leaders have lots of experience in making business decisions.

• Managers get an overview of the whole business, so decisions are consistent throughout the business.

• Senior managers aren't biased towards one department so they can make the best decisions for the business as a whole.

• Senior managers can make big decisions quickly because they don't have to consult anybody else.

What is a disadvantage of centralisation?

• Not many people are expert enough to make decisions about all aspects of the business.

• Excluding employees from decision-making can be demotivating.

• The organisation reacts slowly to change, allowing its competitors to get ahead.

• All of the above

What is an advantage of decentralisation?

• Involvement in decision-making motivates employees.

• Employees can use expert knowledge of their sector.

• Day-to-day decisions can be made quickly without having to ask senior managers.

• All of the above