10.1c - Flexible Organisations Flashcards
Flexible organisation definition
An organisation that can quickly adapt to changes in the external environment in order to remain competitive
What structures can businesses put in place that enable them to respond quickly to changes?
- Organisational structures
- Employment contracts
- Flexible working options
- Effective knowledge and information management systems
Advantages of being a flexible organisation:
- Respond more quickly to market conditions
- More efficient use of resources
- Cut down on costs
- Reduce lead time
Disadvantages of being a flexible organisation:
- Operational pressures and meeting customer requirements
- Negative attitudes
- Culture change
Restructuring definition
Designing an appropriate organisational structure to meet the needs of a more flexible approach to the employment of staff
Delayering definition
Removing one or more levels of hierarchy
Advantages of delayering:
- Opportunities for better delegation and motivation
- Improved communication
- Remove departmental rivalry
- Reduce costs as fewer managers are required
Disadvantages of delayering:
- Not all organisations are suited to flatter structures
- Negative impact on motivation (people can become insecure about their jobs)
- Skill shortages (lose managers with valuable experience)
- Senior staff may have too wide spans of control
Flexible employment contract definition
Working arrangements that give some degree of flexibility about employee’s work
Examples of flexible employment contracts:
- Part-time
- Full-time
- Job sharing
- Zero hour contracts
Features of organic structures:
- Informality
- Flexible and fluid
- Decentralisation
- Find change easier to handle
- Flat structure
- Employees work in teams
Features of mechanistic structures:
- More formality and bureaucratic
- Centralised
- Greater resistance to change
- Tall structure
- Employees are specialised
Disadvantages of flexible working:
- Business can’t plan effectively if it is not sure when employees are working
- Business can’t judge the progress of someone working from home
