Organisational Design (Edexcel A-Level Business): Flashcards

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Centralisation and Decentralisation
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Centralisation

All authority at top; junior employees have no decision power

Decentralisation

Decision-making power spread throughout the organisation

Delegation

Passing authority down to subordinates

Authority vs responsibility when delegating

Subordinate gains authority; manager retains responsibility

Tall structure features

Long chain of command, narrow span of control, many levels

Flat structure features

Short chain of command, wide span of control, few levels

Matrix structure

Cross-functional project teams; report to multiple managers

Span of control

Number of people each manager supervises

Chain of command

Management levels between top and bottom of organisation

Economies of scale from centralisation

Bulk-buying & standardisation create cost savings

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