|
|
Organisational design Centralised structure All the important decisions are taken by senior managers at high levels of the hierarchy often working in a head office De-centralised structure Decision-making powers are delegated to managers at lower levels of the hierarchy often acting as branch or divisional mangers Advantages – Centralised Centralisation enables quicker decision making. Advantages – Decentralised Enables workers and managers to gain greater levels of responsibility therefore linking into Herzberg’s satisfiers. Also enables mangers to focus on strategic decisions rather than tactical, day-to-day issues Organisational hierarchies A hierarchy describes the structure of the management of the business, from the top to the bottom of the business. The hierarchy is usually best understood by drawing an organisation chart showing which levels of management and employees report to whom. Hierarchy can be both formal and informal. In a formal hierarchy job roles are clearly defined Formal hierarchy – advantages Workers have a clear understanding of their roles, accountability and channels of communication Informal hierarchy – advantages Small or new businesses may not have a formal hierarchy because the business will evolve quickly and need to change. This allows a company to react quickly to changes. An informal hierarchy also helps a small business because it encourages workers to multi-task and take on a number of roles. This is important because there may not be enough work for each specific section of the business as it starts out. |