S11 Organisational structure: effect on production and efficiency (10 marks) · Industrial Technology Timber

S11 · Organisational structure: effect on production and efficiency (10 marks)

Fits: 2024 Q16(b) (10). Also 2015 Q16(a) · 255 words · 7 chunks

S11.1 · ThesisThe organisational structure of a furniture business strongly influences how it organises production and how efficiently it operates. Hierarchical structures favour standardised, high-volume efficiency, and flat structures favour flexibility and speed of response.S11.2 · DecisionsDecision-making: in hierarchical Organisation A, approvals for new products, machinery or schedule changes pass through several managers, which slows responses. In flat Organisation B, the owner decides immediately, so it can change a job or accept a custom order the same day.S11.3 · SpecialiseSpecialisation and production: Organisation A can afford specialised departments (design, CNC programming, assembly, finishing, quality control) and mass-production equipment, producing large volumes at low unit cost. Organisation B's few multi-skilled workers do many tasks and suit one-off custom pieces, but at a higher cost per unit.S11.4 · QualityQuality control: A can run formal QC with inspectors, standards and documented procedures, giving consistency. B relies on the owner's personal checks, which are flexible and personal but less systematic and harder to keep consistent as it grows.S11.5 · ResourcesResources and cost: A's extra management layers add overhead costs, and communication can be slow or distorted. B has low overheads and direct communication, but limited capital limits investment in efficient technology such as CNC routers.S11.6 · InnovateInnovation and motivation: B's workers often have more autonomy and job satisfaction, encouraging ideas. A can fund research and development, but rigid procedures may discourage individual initiative.S11.7 · JudgementOverall, the hierarchical structure is more efficient for high-volume, standardised production, while the flat structure is more efficient for small-batch, customised work. Each firm is most efficient when its structure matches its market.

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