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
What is flat strucutre?
Fewer levels of management usually with decentralised approach.
2 advantages of flat structure?
Fast decision making
Encourages creativity as employees have more autonomy
2 disadvantages of flat structure?
May not provide career advancement
Lacks clear hierarchy
what is a matrix structure?
Where employees report to both functional manager and project manager.
2 Advantages of matrix
New skills sets
Collaboration due to departments.
2 disadvantages of matrix
Unclear hierarchy
Requires extremely good communication
Why would centralised have faster decision making?
Top layer consists of fewer staff to communicate to and they are higher skilled.
Why is centralised more consistent?
More experience and skilled staff make all decisions.
Why may people not be motivated in centrilised?
They lack authority.
Why will workers be more motivated as decentralised?
They feel more empowered as they take initiative
Why is not having a need to check with top layer management useful?
Seize opportunities faster.
