Organisational Structures 3

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Questions and Answers

List 3 features of a Matrix organisational structure, including an advantage AND a disadvantage of the structure

A matrix organisational structure is one in which individuals work across teams and projects as well as within their own department.*****A matrix structure can help to break down departmental barriers, improving communication across the entire organisation.****However, members of project teams may have divided loyalties as they report to two managers.

What is Delegation?

This involves passing authority/responsibility for particular tasks and decisions to those below you in the organisational structure.

What is Empowerment?

It means giving employees the power to do their own jobs.

What is Delayering?

It's when a business is removing one or more levels of hierarchy from its structure. This normally means that the span of control for managers will increase. Signup and view all the answers

In which cases might a business need to delayer?

A business might use delayering to cut costs and/or improve communications. Signup and view all the answers

What are some advantages of changing organisational structures /delayering?

Moving to a tall structure will allow a business to have greater control over the activities of staff lower down in the organisation, meaning they can control processes and quality more effectively.****Delayering allows for more empowerment and better and quicker communication, leading to more motivated and productive staff. Signup and view all the answers

What are some disadvantages of changing organisational structures /delayering?

Not all organisations can run effectively with a flat or matrix structure, for example, those with staff who are low skilled and need more supervision. **** Matrix structures may be best suited to businesses in which staff spend most of their time working on projects. ****Delayering or moving to flat organisational structures can result in managers having excessive workloads and staff becoming less productive if they have not been trained well-enough to perform their wider roles. Signup and view all the answers

Give three reasons why a business may need to adapt or totally change their organisational structure

A business might need to change its organisational structure due to a change in its overall size. ****Businesses may make staff redundant or delayer in a time where they have a labour surplus. ****A business may also change their organisational structure in order to try and cut costs. ****A company may have people in different layers doing similar jobs therefore can remove a layer or redeploy staff to save on high end salaries. Signup and view all the answers

Give two reasons for empowering a workforce

Faster problem-solving as employees who are closer to the problems have the chance to find solutions*****Increased motivation of staff which can improve productivity Signup and view all the answers

Give two drawbacks of empowering a workforce

Staff being allowed to make decisions or undertake tasks for which they lack the necessary experience or training, increasing the risk of mistakes**** a lack of co-coordination across the business if decision-making does not take into account the wider context of the business’s activities. Signup and view all the answers

Study Notes

Matrix Organisational Structure

Combines functional and project-based departments, enabling employees to report to multiple managers.
Advantage: Enhanced collaboration and resource sharing across different projects and departments, leading to increased innovation.
Disadvantage: Can create confusion and conflict over priorities and responsibilities due to dual reporting lines.

Delegation

The transfer of authority to subordinates to perform specific tasks or make decisions, allowing managers to focus on higher-level functions.

Empowerment

The process of giving employees the autonomy and authority to make decisions related to their work, fostering engagement and accountability.

Delayering

The reduction of levels of hierarchy within an organisation, typically resulting in a flatter organisational structure; aimed at improving communication and efficiency.

Business Need for Delayering

Businesses may delayer to enhance responsiveness to market changes, reduce operational costs, or improve decision-making speed.

Advantages of Changing Organisational Structures / Delayering

Improved agility and flexibility, enabling quicker responses to market opportunities and challenges.
Enhanced communication and collaboration among team members, fostering a more cohesive work environment.

Disadvantages of Changing Organisational Structures / Delayering

Potential loss of leadership and support for junior staff, as fewer management levels may lead to increased workload on remaining managers.
Risk of uncertainty and resistance from employees during transitions, potentially affecting morale and productivity.

Reasons for Adapting or Changing Organisational Structure

To respond to external market pressures or changes in consumer preferences that affect business strategy.
Technological advancements may necessitate changes in processes and roles within the organisation.
Mergers or acquisitions may require a reevaluation of the structure to integrate different corporate cultures and systems.

Reasons for Empowering a Workforce

Enhances employee motivation and job satisfaction, leading to increased productivity.
Encourages innovation and improvement as employees are more likely to contribute ideas and solutions.

Drawbacks of Empowering a Workforce

Risk of decision-making inconsistency if employees lack sufficient experience or information.
Potential for conflict or confusion if empowerment is not clearly defined, resulting in overlap in responsibilities.