The Value of Changing Organisational Design (AQA AS Business): Revision Note
Exam code: 7131
Why change the organisational design?
When there is a change in external factors (market conditions, technology advances, or changes in legislation), businesses may need to reassess their current structure
An adaptive organisation will be able to change their structure in response to external factors, or build an organisational structure which is easily able to handle external changes
Influences on organisational structures
Reason | Explanation | Example/Impact |
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Improve efficiency |
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Respond to growth or change |
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Increase innovation |
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Adapt to external pressures |
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Align structure with strategy |
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The appropriateness of an organisational structure depends on the context and unique characteristics of each business
Factors such as organisational culture, leadership style and employee capabilities should also be taken into account when selecting and implementing a new organisational structure
Example: Marks & Spencer
Problem: M&S faced falling profits and customer dissatisfaction
Response: It restructured by removing management layers and shifting more decision-making power to store-level staff
Result: Improved responsiveness to local demand and a leaner cost base
Examiner Tips and Tricks
In questions about HR challenges, use specific examples like seasonal contracts or training needs – avoid vague points like “it’s difficult
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