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Questions and Answers
What is one advantage of flattening an organization like Rolls-Royce?
What is one advantage of flattening an organization like Rolls-Royce?
A flat structure can lead to higher staff morale due to increased supervision.
A flat structure can lead to higher staff morale due to increased supervision.
False
What potential effect on productivity can arise from staff being overstretched in a flat organization?
What potential effect on productivity can arise from staff being overstretched in a flat organization?
Lower productivity
If Warren East wants to ensure Rolls-Royce staff are accountable, he should opt for a ________ structure.
If Warren East wants to ensure Rolls-Royce staff are accountable, he should opt for a ________ structure.
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Match the following aspects of organizational structure to their implications:
Match the following aspects of organizational structure to their implications:
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What characterizes a tall organizational structure?
What characterizes a tall organizational structure?
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A flat organizational structure results in slower communication within the organization.
A flat organizational structure results in slower communication within the organization.
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What can be a motivating factor for employees in a tall organizational structure?
What can be a motivating factor for employees in a tall organizational structure?
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In a flat organizational structure, decision-making can be faster due to fewer levels of ______ involved in each decision.
In a flat organizational structure, decision-making can be faster due to fewer levels of ______ involved in each decision.
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Match the following characteristics with their related organizational structure:
Match the following characteristics with their related organizational structure:
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What is a potential disadvantage of a tall organizational structure?
What is a potential disadvantage of a tall organizational structure?
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Rolling back layers of management typically makes large organizations less competitive.
Rolling back layers of management typically makes large organizations less competitive.
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What impact does having a narrow span of control have on a manager's ability to supervise employees?
What impact does having a narrow span of control have on a manager's ability to supervise employees?
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Study Notes
Rolls-Royce Organizational Structure
- Rolls-Royce currently uses a tall organizational structure, with many layers and a narrow span of control.
- Two options are available: maintaining the tall structure or transitioning to a flatter structure.
- A tall structure, due to its many layers, allows for clear lines of responsibility and close supervision, which is beneficial for technical engineering tasks to minimize waste. Horizontal communication is easier in this structure due to narrower spans of control, which can ensure better communication especially in a company of 54,000 employees.
- Removal of senior managers might have led to the loss of valuable expertise and experience that could help improve profit.
- A tall structure allows employees clear promotional opportunities, which may enhance productivity and loyalty.
- A disadvantage of a tall structure is that it can be inflexible when reacting to market trends and communications are slower, thus potentially negatively impacting productivity and customer service.
- A tall structure is also expensive due to the need for numerous managers and supervisors.
Flat Organizational Structure
- Less levels of management involved in decision-making mean faster decision-making processes.
- Flat structure could potentially reduce wage costs and improve profitability.
- Flatter structures offer more opportunities for efficient decision-making by delegating more decision-making authority across wider spans of control. This can allow for better responsiveness to customer needs, potentially increasing market competitiveness.
- Decision-making can be faster due to a shorter chain of command.
- Flat structures can be more responsive to market changes.
- However, overstretching and overworking of staff is a potential disadvantage of a flatter structure, thus affecting productivity.
- Problems with staff morale or power struggles can arise from a lack of consistent supervision.
- A wider span of control can lead to managers losing touch with individual employees, causing low staff morale and poor productivity, increasing average costs.
Recommendation
- The best choice depends on Rolls-Royce's short-term goals (profit and cost reduction) and long-term objectives (control and accountability).
- A flatter structure might be preferable for cost-cutting and improving profitability.
- A taller structure might be chosen to maintain control and ensure accountability.
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Description
Explore the organizational structure of Rolls-Royce, focusing on the advantages and disadvantages of a tall structure versus a flatter structure. This quiz delves into the implications for communication, responsibility, and employee promotion opportunities within a large company.
