1.4.3 Flashcards
What is organisation structure?
Outlines reporting relationships, roles and responsibilities of employees in organisation.
Why do business need to decide which structure is best for them?
Helps promote clarity and accountability.
What is hierarchy?
Refers to levels of authority within a organisation.
What is chain of commad?
Formal line of authority that flows down from top management to lower levels.
Why is a chain of command useful?
Establishes clear communication within organisation.
What is span of control?
Number of people someone is personally responsible for.
What is a narrow span of control
More layers of management, less people to be responsible and accounted for.
What is a centralised structure?
Decision making is concentrated from the top of organisation ( senior managers )
What is a decentralised structure?
Decision making is spread throughout the organization with lower levels of employees having more authority.
What does decentralised decision making mean?
Flexibility and innovation
What does centralised decision making promote?
Consistency and control
What are 3 types of organisational structure?
Tall
Flat
Matrix
What is a tall structure?
Multiple levels of management and centralised decision making approach.
2 advantages of tall structure?
Promotes specialization within each department
Career advancement
2 disadvantages of tall structure?
Communication barriers
Decision making can be slow
