1.4.3 hierarchy and organisation Flashcards
what is hierarchy?
a system in a business where employees are ranked due to their status
what is chain of command?
is the path of authority, instructions are passed from the CEO downwards.
what are the roles within a business?
directors
managers
supervisors
team leaders
what is organisational structure?
each business has its own structure. the structure is which positions are arranged in the business
what factors affect a business’ organisational structure?
- levels of hierarchy
- span of control
- delegation
- authority
- decision making process
what is span of control?
the number of employees a manager is directly responsible for
what is delegation?
is the assignment of authority to another person to carry out specific activities
what is centralisation?
when the decision making process is done at the head office and other branches will follow the decision
pros and cons of centralisation?
\+ works well with standardisation \+ appropriate when workers are low skilled \+ suited for authoritarian leadership - employees don't feel valued - employees feel demotivated
what decentralisation?
decision making process is done by managers in different regions, functions and product categories
pros and cons of decentralisation?
+ appropriate for international and wide spread businesses
+ reduces workload for managers
+ flexible working
+ supports job enrichment
what is a tall structure?
lots of layers
long chain of command
narrow span of control
pros and cons of tall structures?
\+ managers have tighter control \+ clear promotional route \+ motivating - communication can be poor - expensive as there are a lot of managers
what is a flat structure?
few levels of command
wide span of control
fewer managers
pros and cons of a flat structure?
+ good communication
+ decisions made quickly
+ workers are more motivated, due to the lack of managers
- managers may lose control of the workforce
