Organisational Design (Edexcel A-Level Business): Flashcards
📚Flashcards
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10 cards from this deck
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Practise the cards
10 cards from this deck
Centralisation
Centralisation
All authority at top; junior employees have no decision power
Decentralisation
Decentralisation
Decision-making power spread throughout the organisation
Delegation
Delegation
Passing authority down to subordinates
Authority vs responsibility when delegating
Authority vs responsibility when delegating
Subordinate gains authority; manager retains responsibility
Tall structure features
Tall structure features
Long chain of command, narrow span of control, many levels
Flat structure features
Flat structure features
Short chain of command, wide span of control, few levels
Matrix structure
Matrix structure
Cross-functional project teams; report to multiple managers
Span of control
Span of control
Number of people each manager supervises
Chain of command
Chain of command
Management levels between top and bottom of organisation
Economies of scale from centralisation
Economies of scale from centralisation
Bulk-buying & standardisation create cost savings
