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Organisational Design

  • 7 subtopics
  • 21 things to know
  • Unit AS 1

What Organisational Design covers

Organisational design is examined in Unit AS 1, Introduction to Business. It covers hierarchy, span of control, chain of command and delegation, centralised, decentralised, tall, flat and matrix structures, centralisation versus decentralisation, delayering, and the effects of design, centralisation and decentralisation weighed, tall and flat structures weighed and outsourcing.

Where it is assessed

Unit AS 1

Introduction to Business, written examination, 20% of A level.

Check the CCEA specification ↗

The 7 subtopics

Each one has its own page. CCEA AS Business students sit this topic in the first year.

What you need to know

Answer each one before you reveal it.

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Key term

What is outsourcing, and what does a business gain from it?

Key term

Define a centralised organisational structure.

Key term

What is a decentralised organisational structure?

Key term

What does a flat structure do for communication, costs and employees, and what does it deny them?

Key term

What does decentralisation do for speed, motivation and local knowledge, and what does it risk?

Key term

What is the chain of command, what does delegation involve, and who stays responsible for a delegated decision?

Key term

What does organisational design involve in relation to hierarchy structure?

Key term

What characterises a centralised organisational structure?

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State three features of a tall organisational structure.

Key term

How does decentralisation enable faster local decisions?

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Explain how decentralisation can improve staff motivation.

Key term

Define a tall organisational structure.

Key term

How do tall structures facilitate supervision of employees?

Key term

What is outsourcing?

Key term

What are service companies in the context of outsourcing?

Key term

Define hierarchy in the context of organisational structure.

Key term

What type of span of control is associated with tall structures?

Key term

Why does decentralisation improve responsiveness to local market conditions?

Key term

How does centralisation help ensure consistency across an organisation?

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Why can communication be slower in tall organisational structures?

Key term

How can outsourcing to specialist providers lead to cost reduction?

Take Organisational Design further

The same content, four other ways.

Questions from this topic

Each one with the model answer underneath.

  1. 1

    What does organisational design involve in relation to hierarchy structure?

    Model answer

    Decisions about the levels of authority and responsibility within the business, typically arranged as a pyramid with senior management at the top.

  2. 2

    Define hierarchy in the context of organisational structure.

    Model answer

    The levels of authority and responsibility within an organisation, typically represented as a pyramid with senior management at the top.

  3. 3

    What aspect of organisational design concerns span of control?

    Model answer

    Decisions about how many subordinates each manager directly supervises.

  4. 4

    What happens to organisational structure when a manager has a wide span of control?

    Model answer

    There are fewer hierarchical levels, resulting in a flatter structure.

  5. 5

    Why does a wide span of control lead to fewer layers in an organisation?

    Model answer

    Because each manager supervises many subordinates, fewer management levels are needed to oversee the entire workforce.

  6. 6

    How does a narrow span of control affect the number of hierarchical levels?

    Model answer

    It results in more hierarchical levels and a taller organisational structure.

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Organisational Design revision questions

Is Organisational Design examined at AS in CCEA Business?
Yes. It sits in Unit AS 1, which you take in the first year, so it is on the AS paper as well as counting towards the full A level.
What does Organisational Design cover in CCEA AS-Level Business?
7 subtopics: hierarchy, span of control, chain of command and delegation, centralised, decentralised, tall, flat and matrix structures, centralisation versus decentralisation, delayering, and the effects of design, centralisation and decentralisation weighed, tall and flat structures weighed, outsourcing and centralisation, structure and outsourcing. Each one has its own page with questions and model answers.
How is Organisational Design organised?
By the CCEA 3210 specification, subtopic by subtopic, so it matches the order you are taught it in.

Every question in Organisational Design, on a schedule.

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