Designing Organizational Structure: Authority and Control
15 important questions on Designing Organizational Structure: Authority and Control
What is a flat organisation?
What are some of the problems that tall organisations may experience?
Communication, motivation and cost problems.
Communication: Communication takes longer when the chain of command longer is. Decision making gets slower
Distortion: A message has a different meaning by the time it reaches the top as people interpret messages to their own needs and interests.
Deliberately manipulation of information: Managers may manipulate information to their own interests.
Motivation: The taller the organisation gets the worse the motivation gets - less responsibility lays with each manager.
Bureaucratic costs: Managers cost a lot of money.
What is the "principle of minimum chain of command"?
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What is meant with span of control? What is the advantage of this?
The number of employees can increase while the number of managers remains the same -> Saves the company costs for managers.
What is the advantage of decentralising authority in tall organisations?
How do you call a form of organizational structure in which people can be held accountable for their actions because they are required to act in accordance with rules and standard operating procedures?
How do you call the authority a person possesses because of his or her position in an organization?
What are the advantages and disadvantages of bureaucracy?
- Organisational levels are clearly defined
- No questions about each person's role in the organisation
- Individuals are held accountable for their actions
- Separates the position from the person
Disadvantages:
- Bureaucratic organisations often become tall, centralised and inflexible.
- Decision making slows down
- Members often rely too much on rules and rely on managers to make decisions
How do you call the state of opposition that occurs when two or more people have different views of what another person should do and, as a result, make conflicting demands on the person?
What is management by objectives?
How do you call the uncertainty that occurs for a person whose tasks or authority are not clearly defined?
How do you call the process of giving employees throughout an organization the authority to make important decisions and to be responsible for their outcomes?
How do you call work groups consisting of people who are jointly responsible for ensuring that the team accomplishes its goals and who are empowered to lead themselves?
How do you call formal work groups of employees from across an organization's different functions that are empowered to direct and coordinate the value-creation activities necessary to complete different programs or projects?
How do you call workers who are employed for temporary periods by an organization and who receive no indirect benefits such as health insurance or pensions?
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