Recommend appropriate changes to WTZ's organisational structure to 'support growth and drive innovation' (line 89). Justify your recommendation.

Mark scheme

Marking points from the official mark scheme (May/June 2022). The mark or mark type is shown in brackets.

1. Definition of organisational structure: the internal, formal framework of a business that shows the way in which management is linked together, and how authority is passed through the organisation.
2. Span of control – number of subordinates reporting to each more senior manager, levels of hierarchy
3. Impacts communication – more hierarchical structure may suggest that communication is one-way and top-down.
4. Formal and informal
5. Delegation - passing authority down the organisational hierarchy
6. Centralised - keeping all important decision making powers with head office
7. Decentralised - decision making powers passed down the hierarchy to empower subordinates and area or product managers
8. Knowledge of different structures:
9. Functional - departments have clearly defined roles in a specialist area such as marketing
10. Hierarchical - consisting of multiple levels in which all members of the organisation, apart from one, are subordinate to someone else.
11. Matrix - structure that creates project teams that cut across traditional functional departments
12. Divisional - structure that organises activities around geographical areas or product groups
13. Application
14. Diversified nature of WTZ and possible link to product-based structure or geographic-based structure
15. WTZ has a hierarchical structure and therefore probably a tall structure
16. Difficulty of exerting control for directors as the business grows
17. Current structure as a weakness
18. Current hierarchical structure with functional areas of operations, human resources, marketing and finance
19. Innovations such as Hydrocamel and bricks made from waste plastic and rubber at WTZ and link to structure
20. Expansion abroad and link to structure
21. Possible takeover of Lacpac and previous takeover of MR
22. Analysis
23. Matrix structure bringing different functions together for individual projects could be beneficial for innovation as with the Hydrocamel and recycled bricks.
24. Structure by product could enable more targeted marketing to occur increasing sales ensuring strategy is developed by those with strong product knowledge.
25. Hierarchical/tall structure keeps control at the top, meeting objectives of Amandi. Enables consistent approach across the business so maintaining brand image.
26. Structure based on geography could bring benefits as WTZ expands abroad. Might enable decisions to reflect local/national differences so meeting needs of customers more effectively and resulting in increased sales.
27. Flatter structure might promote greater delegation and empower employees resulting in a more innovative culture.
28. Delegation empowers employees and may increase motivation resulting in higher productivity.
29. Decentralisation passes decision-making powers down the hierarchy to area or product managers and could lead to WTZ being more responsive to customer needs and increase sales.
30. Evaluation
31. A judgement about the most appropriate structure with supporting evidence.
32. Evaluation of the relative benefits/limitations of different structures
33. Elements that the judgement may depend on such as:
34. Difficulty of changing structure as it may also require a change in culture.
35. Attitude of directors such as Amandi.
36. Reaction of employees.
37. Key influence.
38. Importance of other factors driving growth and innovation such as culture.
39. Make no changes as the business has been innovative and successful as it is.