1.2.1
Organisational Structure
Organisational Design
Organisational Design
Organisational design involves making sure that an organisation is designed appropriately to increase its chances of meeting its aims and objectives. When leaders are planning the design of their organisation, they will consider several factors:


Spans of control
Spans of control
- Spans of control are the number of people who report directly to a supervisor or manager.
- Businesses with tall hierarchies have narrower spans of control so employees can be monitored more closely.
- Businesses with flat hierarchies have wider spans of control and it can be harder to monitor employees as closely as each manager will manage and lead a larger group of employees than in a business with a tall hierarchy.


Hierarchies
Hierarchies
- Hierarchies are the levels and layers of management. Tall hierarchies have many layers of management and flat hierarchies have few levels.
- Communication can be more difficult in a tall hierarchy as there are more layers for the communication to pass through.
- Tall hierarchies provide promotional opportunities for employees as there are more layers and therefore a greater number of promotional opportunities throughout the business.


Delegation
Delegation
- Delegation refers to a manager passing responsibility or authority to an employee below them in the hierarchy.
- Delegation can reduce the workload of managers which allows them to focus on their own tasks.
- Delegation can empower and motivate employees and prepare them for promotional opportunities in the future.
- Delegation may require a business to invest in and provide employee training to ensure that employees have the necessary skills to complete a task.


Centralisation and decentralisation
Centralisation and decentralisation
- Centralisation and decentralisation refer to the decision making power within the business and how this power is held by employees.
- In centralised businesses, decision making power is helped by a small number of people who make decisions and then share these with other staff.
- In decentralised businesses, decision making power is distributed throughout the business to staff with appropriate skills and expertise.
1Exploring Business
1.1Features of Business Organisations
1.2Organisation of Businesses
1.3Business Environment
1.3.1External Influences
1.3.2Political & Legal Change
1.3.3Economic Environment
1.3.4Social & Technological Environment
1.3.5Lifestyle & Technological Environment
1.3.6Corporate Social Responsibility
1.3.7The Competitive Environment
1.3.8Innovation
1.3.9Risk & Uncertainty
1.3.10Porter's Five Forces
1.3.11SWOT Analysis
2Marketing Campaigns
2.1Marketing
3Business Finance
3.1Sources of Finance
3.2Financial Planning
3.3Financial Statements
4International Business
4.1Globalisation
4.2International Business
4.3International Economic Environment
4.4Factors Affecting International Business
5Principles of Management
5.1Management & Leadership
5.2Theories of Motivation
6Business Decision Making
6.1Business Principles & Practices
6.2Quality Management
6.3Human Resources
6.4Documents & Business Decisions
Jump to other topics
1Exploring Business
1.1Features of Business Organisations
1.2Organisation of Businesses
1.3Business Environment
1.3.1External Influences
1.3.2Political & Legal Change
1.3.3Economic Environment
1.3.4Social & Technological Environment
1.3.5Lifestyle & Technological Environment
1.3.6Corporate Social Responsibility
1.3.7The Competitive Environment
1.3.8Innovation
1.3.9Risk & Uncertainty
1.3.10Porter's Five Forces
1.3.11SWOT Analysis
2Marketing Campaigns
2.1Marketing
3Business Finance
3.1Sources of Finance
3.2Financial Planning
3.3Financial Statements
4International Business
4.1Globalisation
4.2International Business
4.3International Economic Environment
4.4Factors Affecting International Business
5Principles of Management
5.1Management & Leadership
5.2Theories of Motivation
6Business Decision Making
6.1Business Principles & Practices
6.2Quality Management
6.3Human Resources
6.4Documents & Business Decisions
Unlock your full potential with Seneca Premium
Unlimited access to 10,000+ open-ended exam questions
Mini-mock exams based on your study history
Unlock 800+ premium courses & e-books