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Organisational Design - Coggle Diagram
Organisational Design
Decentralisation-a type of business organisation where decision making is pushed down the chain of command away from the centre of the organisation.
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Centralisation-a type of business organisations where major decisions are made at the centre or core of the organisation and then passed down the chain of command.
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Organisational chart-a diagram that shows the different job roles in a business and how they relate to each other.
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Advantages of centralisation-senior management has more control, communication may improve and in times of crisis a business may need strong leadership by a central group of senior managers.
Tall structures-managers have a tighter control over their subordinates and costs will be higher since there are more managers.
Advantages of decentralisation-it empowers and motivates workers, reduces the stress and burdens of senior management and allows managers to concentrate on more important tasks.
Hierarchy organisation: directors, managers, team leaders, supervisors, professionals, operatives and general staff.
Types of Organisational structures: Tall structures-long chain of command but a narrow span of control.Flat Structures-fewer layers in the hierarchy, chain of command is short but the span of control is wide.Matrix structures-getting people from different areas in the business to form a project team.
Flat structures-communication is better as the chain of command is short and decision making may be quicker because approval from senior managers is not required.
Matrix structures- this fits with some of the motivational theories however the method often needs expensive support systems.