Discuss whether introducing a decentralised organisational structure will benefit HBG.

Mark scheme

Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.

1. [Knowledge] Organisational structure shows the lines of authority / chain of command in an organisation – also spans of control / levels of hierarchy / formal communication channels
2. [Knowledge] Definition of decentralised organisational structure
3. [Knowledge] Flatter structures as bureaucracies have been thinned
4. [Knowledge] Span of control likely to be wide
5. [Knowledge] May help development of junior managers
6. [Knowledge] Managers may take decisions that are not in the best interests of the whole organisation
7. [Application] Redundancy cost of removing three layers of middle management
8. [Application] Link between structure and falling sales/membership
9. [Application] Delegate greater authority to managers of buildings
10. [Application] Encourage two-way communication with employees
11. [Application] Reference to 2-month consultation
12. [Application] Reference to actions of manager at Oldbury Castle
13. [Analysis] A more centralised structure with a fixed set of rules and procedures in all areas of the firm might lead to rapid decision making being possible as there would be less discussion
14. [Analysis] Less consistent policies throughout the organisation. This could lead to conflicts and create confusion in the minds of consumers about the HBG brand
15. [Analysis] Senior managers at headquarters will be experienced decision-makers
16. [Analysis] They might make better decisions regarding HBG
17. [Analysis] Increased workload on remaining employees could lead to demotivation and increase in labour turnover
18. [Analysis] Cost of training for managers to enable them to deal with increased responsibility
19. [Analysis] A more motivated workforce contributing to greater productivity within the firm
20. [Analysis] Decision making in response to changes in local conditions may be quicker
21. [Evaluation] Did consultation ensure that employees supported the changes?
22. [Evaluation] Redundancies associated with removing layers of management conflicts with new emphasis on CSR
23. [Evaluation] Implementation depends on effective communication with employees to avoid industrial relations problems.