Define organisational design .

Organisational design outlines the reporting relationships, roles and responsibilities of employees in an organisation.

A hierarchy is the levels of authority within an organisation, ranking positions from top to bottom .

A bureaucracy is an organisation with many levels of authority , which makes decision-making and communication time-consuming.

Define chain of command .

The chain of command is the formal line of authority flowing down from top management to lower-level employees; it defines who reports to whom .

Define span of control .

Span of control is the number of employees a manager can effectively manage .

What does a narrow span of control mean for layers of management?

A narrow span of control means there are more layers of management .

What does a wide span of control mean for layers of management?

A wide span of control means there are fewer layers of management .

Define a centralised structure .

In a centralised structure , decision-making authority is concentrated at the top , with senior management making most decisions.

Define a decentralised structure .

In a decentralised structure , decision-making authority is distributed through the organisation, giving lower-level employees more delegated power.

Give one benefit of centralisation and one of decentralisation.

Centralisation promotes consistency and control ; decentralisation promotes flexibility and innovation .

Describe a tall organisational structure.

It has many management levels , narrow spans of control , a long chain of command and centralised decision-making.

Describe a flat organisational structure.

It has few management levels , wide spans of control , a short chain of command and decentralised decision-making.

Give one advantage of a tall structure.

It provides a clear hierarchy of authority (it also promotes specialisation and offers career advancement).

Give one disadvantage of a tall structure.

Decision-making can be slow as information passes through many layers (it can also create communication barriers and bureaucracy).

Give one advantage of a flat structure.

Faster, more efficient decision-making (it also promotes collaboration and encourages creativity and innovation).

A well-designed organisational structure promotes clarity, efficiency and .

A well-designed organisational structure promotes clarity, efficiency and accountability .

True or False? A wider span of control always means a manager is more effective.

False. It depends on the manager's context — a span that is too wide can overload the manager and weaken communication.

Define functional organisational design .

Functional organisational design groups employees into functions (such as finance, HR and marketing) according to their expertise .

What is one danger of a functional structure?

Functional areas may focus only on their own area and lose touch with the objectives of the business as a whole.

Define product-based organisational design .

Product-based organisational design splits the business into divisions based on individual products or product lines , each handling its own marketing, operations and finances.

Give one advantage of a product-based structure.

It promotes cross-functional collaboration (it also allows specialisation and coordination of multiple projects).

Give one disadvantage of a product-based structure.

It can create conflicts over priorities and resources (and confusion over roles when several managers are involved).

Define regional organisational design .

Regional organisational design groups workers by geographical location , helping a business respond to the needs of customers in diverse areas.

Define matrix organisational design .

Matrix organisational design is a flexible model where employees report to more than one manager — usually a functional manager and a project/product manager.

In a matrix structure, who might an employee report to?

Both a functional manager (e.g. Head of Marketing) and a project or product manager .

Give one benefit of a matrix structure.

It encourages innovation and faster problem-solving .

In a matrix structure, employees often work in project made up of staff from different functions.

In a matrix structure, employees often work in project teams made up of staff from different functions.

True or False? In a matrix structure, employees report to only one manager.

False. They report to more than one manager — typically a functional manager and a project or product manager.

True or False? Functional design is the most common model of organisational design.

True. Functional design is the most common model, grouping staff by their area of expertise .

What is an adaptive organisation ?

One able to change its structure in response to external factors, or built to handle external changes easily.

Give two external factors that might prompt a business to change its structure.

Market conditions and technology advances (also changes in legislation).

Delayering means removing unnecessary management levels from a structure, improving communication and cutting costs.

How does a flatter structure help decision-making?

It enables faster decisions , reduces wage costs and improves accountability.

Why might a growing business adopt a decentralised structure?

To give regional teams more autonomy to respond to local needs.

How can a matrix structure increase innovation?

Cross-functional collaboration encourages fresh ideas and agile problem-solving.

Why should a business align its structure with its strategy?

So that staff roles and responsibilities support the business's strategic direction.

The appropriateness of an organisational structure depends on the and unique characteristics of each business.

The appropriateness of an organisational structure depends on the context and unique characteristics of each business.

True or False? There is one best organisational structure suitable for all businesses.

False. The best structure depends on each business's context — its culture, leadership style and employee capabilities.

A LevelBusinessAQAFlashcards6. Human Resource Management6.3 Organisational Design

6.3 Organisational Design (AQA A Level Business): Flashcards

Exam code: 7132

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FrontPrinciples of Organisational Design
Define organisational design.

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Cards in this collection (38)

Define organisational design.
Organisational design outlines the reporting relationships, roles and responsibilities of employees in an organisation.
Define hierarchy.
A hierarchy is the levels of authority within an organisation, ranking positions from top to bottom.
Define bureaucracy.
A bureaucracy is an organisation with many levels of authority, which makes decision-making and communication time-consuming.
Define chain of command.
The chain of command is the formal line of authority flowing down from top management to lower-level employees; it defines who reports to whom.
Define span of control.
Span of control is the number of employees a manager can effectively manage.
What does a narrow span of control mean for layers of management?
A narrow span of control means there are more layers of management.
What does a wide span of control mean for layers of management?
A wide span of control means there are fewer layers of management.
Define a centralised structure.
In a centralised structure, decision-making authority is concentrated at the top, with senior management making most decisions.
Define a decentralised structure.
In a decentralised structure, decision-making authority is distributed through the organisation, giving lower-level employees more delegated power.
Give one benefit of centralisation and one of decentralisation.
Centralisation promotes consistency and control; decentralisation promotes flexibility and innovation.
Describe a tall organisational structure.
It has many management levels, narrow spans of control, a long chain of command and centralised decision-making.
Describe a flat organisational structure.
It has few management levels, wide spans of control, a short chain of command and decentralised decision-making.
Give one advantage of a tall structure.
It provides a clear hierarchy of authority (it also promotes specialisation and offers career advancement).
Give one disadvantage of a tall structure.
Decision-making can be slow as information passes through many layers (it can also create communication barriers and bureaucracy).
Give one advantage of a flat structure.
Faster, more efficient decision-making (it also promotes collaboration and encourages creativity and innovation).
A well-designed organisational structure promotes clarity, efficiency and .
A well-designed organisational structure promotes clarity, efficiency and accountability.
True or False?
A wider span of control always means a manager is more effective.
False.
It depends on the manager's context — a span that is too wide can overload the manager and weaken communication.
Define functional organisational design.
Functional organisational design groups employees into functions (such as finance, HR and marketing) according to their expertise.
What is one danger of a functional structure?
Functional areas may focus only on their own area and lose touch with the objectives of the business as a whole.
Define product-based organisational design.
Product-based organisational design splits the business into divisions based on individual products or product lines, each handling its own marketing, operations and finances.
Give one advantage of a product-based structure.
It promotes cross-functional collaboration (it also allows specialisation and coordination of multiple projects).
Give one disadvantage of a product-based structure.
It can create conflicts over priorities and resources (and confusion over roles when several managers are involved).
Define regional organisational design.
Regional organisational design groups workers by geographical location, helping a business respond to the needs of customers in diverse areas.
Define matrix organisational design.
Matrix organisational design is a flexible model where employees report to more than one manager — usually a functional manager and a project/product manager.
In a matrix structure, who might an employee report to?
Both a functional manager (e.g. Head of Marketing) and a project or product manager.
Give one benefit of a matrix structure.
It encourages innovation and faster problem-solving.
In a matrix structure, employees often work in project made up of staff from different functions.
In a matrix structure, employees often work in project teams made up of staff from different functions.
True or False?
In a matrix structure, employees report to only one manager.
False.
They report to more than one manager — typically a functional manager and a project or product manager.
True or False?
Functional design is the most common model of organisational design.
True.
Functional design is the most common model, grouping staff by their area of expertise.
What is an adaptive organisation?
One able to change its structure in response to external factors, or built to handle external changes easily.
Give two external factors that might prompt a business to change its structure.
Market conditions and technology advances (also changes in legislation).
Define delayering.
Delayering means removing unnecessary management levels from a structure, improving communication and cutting costs.
How does a flatter structure help decision-making?
It enables faster decisions, reduces wage costs and improves accountability.
Why might a growing business adopt a decentralised structure?
To give regional teams more autonomy to respond to local needs.
How can a matrix structure increase innovation?
Cross-functional collaboration encourages fresh ideas and agile problem-solving.
Why should a business align its structure with its strategy?
So that staff roles and responsibilities support the business's strategic direction.
The appropriateness of an organisational structure depends on the and unique characteristics of each business.
The appropriateness of an organisational structure depends on the context and unique characteristics of each business.
True or False?
There is one best organisational structure suitable for all businesses.
False.
The best structure depends on each business's context — its culture, leadership style and employee capabilities.

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