Business Studies

explain how rational organisational design helps an organisation to cut costs and increase control?

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Left to its own devices an organisation can grow in unproductive ways.
jon.ellis
29 November 2011
For example, one part of a business (a business unit) could create lots of new jobs to meet customer demand, without recognising that these jobs already exist in another part of the business. The effect would be to duplicate costs.
jon.ellis
29 November 2011
Another thing to consider is hierarchy. How many levels are there in an organisation, from the top to the bottom. Are spans of control (the number of people reporting to manager) sensible. Without control, you could find lots of management jobs - diluting messages from the top of the organisation.
jon.ellis
29 November 2011
Adding centres of excellence (e.g. finance and HR) also allow costs to be shared across the organisation.
jon.ellis
29 November 2011
Hope this helps :)
jon.ellis
29 November 2011
Well every organisation want to earn profit through maximum utilization of the resources the organisation alwasy want to minimize the cost and produce better quality products in the market...if a organisation have sound infrastructure with latest equipments and technology it help the organisaiton to reduce the cost and greater controll on the organizational activities for example if organisation work on the ERP it reduce the paper work and maintain more accuracy in the work which leads to saving of the money by having only one time expenses 
satya
03 June 2015
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