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organisational design (organisational structures (an organisation…
organisational design
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tall structures
a taller structure has many layers in its hierarchy and a narrow span of control meaning there are less people to manage
advantages: easy to manage people, roles are clear + more opportunity for promotion
disadvantages: communication problems, slow decision making
flat structure
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advantages: easier decision making, few communication problems
disadvantages: unclear responsibilities, not much room for promotions
matrix structure
a structure in which teams of employees with appropriate skills are assembled to carry out particular tasks. employees are often from different functional areas meaning more expertise is brought
advantages: working in teams can motivate, quicker and better decisions are made.
disadvantages: workers have 2 managers to report to (team manager + functional manager) = confusion & team decisions can often take longer due to differing opinions from team members
centralized structure
is a structure of business where the decision making power and control remains in the hands of the top management level
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decentralized structure
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decisions are made locally meaning local managers have more responsibility meaning motivation increases
organisational design: creating the formal hierarchy that establishes who is answerable to whom throughout the organisation
functional structures are those which show the organisation divided into the function areas of marketing, finance, operations etc.
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span of control: the number of subordinates reporting directly to a manager. this may be narrow, if there are few subordinates, or wide if there are many reporting to a manager
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