01 The Organisation Flashcards
What is a hierarchical structure?
This is an organisational structure that usually shows a single group or person at the top with levels of power below them.
Describe formal structure.
- Deliberately constructed
- To link individuals in an established network of relationships
- To group together the tasks required to fulfil organisational objectives
- Ability to allocate authority to ensure certain tasks are performed
- To coordinate the objectives of separate departments
- To enable the flow of work
Describe informal structure.
- Informal structure is prevalent in all organisations
- May supplement and improve the formal structure
- Informal organisation is made up of:
- Groups or cliques
- Informal customs
- Informal channels of communication
What influences organisational structure?
- Size
- The nature of the work
- The environment it operates in
- How old the company is
- Culture
- Leadership
What is Span of Control?
Span of control (or span of management) isthe number of subordinates who report directly to a manager or leader. The more employees assigned to a manager, the wider their span of control.
Describe a tall structure.
A tall organisation is one which has a large number of levels of management hierarchy
Describe a flat structure.
A flat organisation is one which has a small number of levels of management hierarchy.
What is delayering?
Delayering is the reduction of the number of management levels from bottom to top.
Describe the advantages of a tall structure?
- There is a narrow span of control i.e., each manager has a small number of employees under their control. This means that employees can be closely supervised.
- There is a clear management structure.
- The function of each layer will be clear and distinct. There will be clear lines of responsibility and control.
- Clear progression and promotion ladder.
Describe the disadvantages of a tall structure?
- The freedom and responsibility of employees (subordinates) is restricted.
- Decision making could be slowed down as approval may be needed by each of the layers of authority.
- Communication has to take place through many layers of management.
- High management costs because managers are generally paid more than subordinates. Each layer will tend to pay it’s managers more money than the layer below it.
Describe the advantages of a flat structure?
- More/Greater communication between management and workers.
- Better team sprit.
- Less bureaucracy and easier decision making.
- Fewer levels of management which includes benefits such as lower costs as managers are generally paid more than worker.
- Wide span of control.
Describe the disadvantages of a flat structure?
- Workers may have more than one manager/boss.
- May limit/hinder the growth of the organisation.
- Structure limited to small organisations such as partnerships, co-operatives and some private limited companies.
- Function of each department/person could be blurred and merge into the job roles of others.
Describe the advantages of organisational structures?
- Authority and responsibility and clearly defined.
- Clearly defined promotion path.
- There are specialists managers and the hierarchical environment encourages the effective use of specialist managers.
- Employees very loyal to their department within the organisation.
Describe the disadvantages of organisational structures?
- The organisation can be bureaucratic and respond slowly to changing customer needs and the market within which the organisation operates.
- Communication across various sections can be poor especially horizontal - communication.
- Departments can make decisions which benefit them rather than the business as a whole especially if there is Inter-departmental rivalry.
What are organisational values?
Values guide decision-making and a sense of what’s important and what’s right.
