1.4b managing people Flashcards
what is a business structure knows as & what does this word mean?
a hierarchy
↳ the levels of authority within an organization
how can business structure be drawn?
as an organisational chart
what is an organisational chart?
it explains the professional relationship, responsibilities and authority between employees
what is authority?
the powers in terms of decision-making that a worker has
the higher up the hierarchy the organisational chain…
the powers in terms of decision-making that a worker has
4 benefits of an organisational structure:
clear chain of command
↳ understand where decisions are made and how they are communicated
clear span of control
↳ know who reports to who
clarify job role
↳ responsibilities
clarify functional area
↳ HR, marketing, finance
what makes up a hierarchy?
the different layers which are based on skills and experience
what is each layer in a hierarchy given?
a dedicated responsibility
what must businesses determine about their structure?
the best structure for them to effectively implement their ideas and achieve their objectives
what is the chain of command?
the formal line of authority that flows down from the top management to lower-level employees
key features of a chain of command
-defines who reports to whom and who is responsible for making decisions
-helps to establish a clear communication channel
-helps to maintain accountability within the organization
what is the span of control?
refers to the number of employees that a manager or supervisor can effectively manage
(the principle that a manager can only effectively manage a limited number of employees)
a narrower span of control means…
that there are more layers of management
A wider span of control means…
there are fewer layers of management
what is centralised system?
decision-making authority is concentrated at the top of the organization with senior management making most of the decisions
what is a decentralised system?
decision-making authority is distributed throughout the organization, with lower-level employees having more decision-making power
benefits of a centralised structure:
-appropriate for situations where managers have the knowledge and workers are low skilled
-suited to authoritarian leadership styles
-suitable in times of crisis
benefits of a decentralised structure:
-appropriate where business is spread over a wide geographic area and local trends/needs are important
-effective at reducing workload of senior managers
-allows for flexible working conditions
what are the roles in a business organism?
-directors
-managers
-supervisors
-team leaders
directors
-employed to run the business
-the managing director may have ultimate authority but there will be a group of directors (board of directors) who will take responsibility for various functions of the business
managers
-take responsibility for managing and cotrolling an aspect of the business
-make the day-to-day decisions
-may be responsible for a department
-report to the directors
supervisors
-monitor and regulate work of other employees
-they may have delegated responsibility from a manager
team leaders
members of a team who take a leadership role to guide the work of the team and ensure employees are motivated and work effectively together
3 categories of staff
-professionals
-operatives
-general staff
professionals
-high levels of qualifications and experience
-posts involve a level of decision-making and responsibility
examples of professionals
doctors, architects
operatives
-skilled workers who are involved in the production of a product or the delivery of a service
-carry out the instructions of managers and supervisors
general staff
-roles carried out by workers with non-specific skills
-require limited experience, skill or training
examples of general staff
receptionists, labourers
what is delegation?
the process of passing down authority through the organisation
what is the use of delegation?
-can be used to lighten the workload of key personnel
-leads to job enrichment for junior members of staff
where may delegation be unsuitable?
in situations where junior employees don’t have the skills or in a crisis situation
overview of a tall organisational structure
-multiple levels of management
-more centralised decision making process
-long chain of command
-common in large organisations with complex operation
-narrow span of control
benefits of a tall organisational structure
clear hierarchy of authority
↳ defined roles and responsibilities
promotes specialisation and expertise within each department or function
more opportunities for promotion
↳ more motivation → productivity
narrow spans of control
↳ better supervision
drawbacks of a tall organisational structure
longer lines of communication
↳ communication is more complex, distortion of information
slower decision making
↳ information must pass through multiple layers of management
more layers of management
↳ higher costs
expensive because of lots of managers
overview of a flat organisational structure
-fewer levels of management
-more decentralised decision-making process
-short chain of command
-common in small organisations or start-ups
benefits of a flat organisational structure
quick decision making
↳ fewer layers & shorter chains of command
↳ employees have more autonomy to make decisions & adopt faster to market changes
improved employee collaboration and communication
↳ innovation/creativity
more financially efficient as less managers
more motivation
drawbacks of a flat organisational structure
lots of delegation may lead to over burdened employees
↳ less motivation, retention
↳ may require employees to take on multiple roles and responsibility
less promotion opportunities due to less layers
lack of well defined roles
↳ confused responsibility, leads to conflict
overview of a matrix organisation structure
-teams are created to run a project (HR, finance, marketing, sales) with a specialist team that operates inside the business
-team members may come from different disciplines
-the team will disband when the project is complete
benefits of matrix organisational structure
organisations are flexible
↳ adapt quickly to project/business conditions → allocate resources accordingly
efficiency
↳ expertise & skills can be shared across projects
collaboration
↳ projects have a holistic view as all functional areas are involved
drawbacks of matrix organisational structure:
confusion over roles and responsibilities
especially when multiple managers are involved
power struggles between functional area and project
requires a high degree of communication and coordination, which can be challenging
define motivation:
the willingness to work and achieve a given target or goal
define motivation:
the willingness to work and achieve a given target or goal
define motivation:
the willingness to work and achieve a given target or goal
define employee engagement
the contribution an employee makes towards their work
the scientific management school assumes that…
employees driven by financial incentives
the human relations school assumes that…
employees driven by the need to meet social needs
advantages of a motivated workforce:
-better productivity
-better quality
-lower levels of absenteeism
-lower levels of staff turnover
-lower training and recruitment costs
define employee turnover
the number of employees leaving the business
what did taylor believe that employees were motivated by?
wages
how are tasks distributed when following frederick taylor’s theory?
-workers are trained to perform only one task which they become very skilled at
-given elementary training
incentives: taylor’s theory
financial rewards
advantages of taylor’s approach:
increased efficiency → lowers costs
standardised procedures for everyone
→ reduce errors and inconsistencies
specialisation of labour → greater efficiency and productivity
improved training → better performance and job satisfaction
disadvantages of taylor’s approach:
overemphasis on efficiency → reduces worker satisfaction and creativity
limited applicability → this approach may not work for roles that require high levels of creativity, problem-solving, or interpersonal skills