Business – 7.1 Organisational structure – Control, authority and trust | e-Consult
7.1 Organisational structure – Control, authority and trust (1 questions)
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| Aspect | Formal Controls | Relational Trust |
| Speed of decision‑making | Can be slow due to reporting layers. | Faster as employees act autonomously. |
| Consistency | High – clear standards and metrics. | Variable – depends on individual judgment. |
| Motivation | May reduce intrinsic motivation. | Boosts ownership and engagement. |
| Risk management | Provides clear accountability. | Relies on employee competence and honesty. |
In a dynamic environment, relational trust often proves more effective because it enables rapid response and innovation, though a baseline of formal controls is still needed to manage risk and ensure alignment with strategic goals.