1. 1.4.3 Organisational design

2. 1.4.3 Organisational design - syllabus Candidates should be able to: Define concepts relating to organisational structure (hierarchy, chain of command, centralised and decentralised) Analyse types of structure (tall, flat and matrix) Evaluate the impact of different organisational structures on business efficiency and motivation

3. Definition of organisational structure What is organisational structure? Why is this different to legal structures? What might cause the organisational structure to change?

4. Organisational chart An organisational chart is a diagram showing job titles, lines of communication and responsibility within a business What should it show?

5. Drawing an organisational chart Draw an organisational chart showing one person in charge, two directors and three other staff

6. This is a traditional organisational hierarchy Label your sheet How many staff report to the CEO? How many report to the Marketing and Operations Director? CEO (Plc/Ltd) or owner (sole trader) Finance and HR director Administrator Finance officer Marketing and Operations director Junior officer Traditional organisational structure

7. Elements of an organisational chart levels of hierarchy chain of command span of control delegation subordinate

8. Levels of hierarchy: tall structure – advantages and disadvantages

9. Levels of hierarchy: flat structure – advantages and disadvantages

10. Sketch a hierarchical structure and a and matrix structure

11. When is a matrix structure used?

12. Matrix structure – advantages and disadvantages

13. Centralised versus decentralised What do these terms mean?

14. Centralised structure – advantages and disadvantages

15. Decentralised structure – advantages and disadvantages

16. Change in organisational structure Why might an organisation change its structure? What is the process of flattening organisational hierarchies called? Why do firms delayer?

17. Impact of different organisational structures What is the impact of different organisational structures on business efficiency and motivation?