2.1 Internal Business - Organizational Structure Flashcards

1
Q

What is organisational structure?

A

Shows the levels of management and responsibility within a company.

Who is responsible for what, who is the boss of who.

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2
Q

What is Hierarchy?

A

Levels of authority - e.g. Finance manager reports to CFO

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3
Q

What is the “span of control”?

A

How many people report each manager

e.g. The Finance manager might have 3 different people reporting to him, so the span of control is 3

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4
Q

What is delegation?

A

Giving tasks or authority to those lower in the chain

e.g. the CEO might get the CFO to make the financial decisions

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5
Q

What is the difference between centralised and decentralised decision making/structure?

A

Centralised - when one or two people make all of the decisions

Decentralised - when multiple people in the business are involved in making decisions, empowering staff.

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6
Q

What is the difference between tall and flat organisational structures?

A

Tall - multiple layers of management, chain of command i.e. everyone has someone to report to in a chain. More accountability, and each person only manages a few people. Span of control is small

Flat - few layers of management. Span of control for each manager is big.

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7
Q

What are some examples of tall and flat organisational structures?

A

ANZ - tall - chain of command

Apple - flat

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8
Q

What are advantages and disadvantages of tall organisational structures?

A

Advantages: clear division of responsibility. Each manager has to manage a few employees meaning they can coach them more closely.

Disadvantage: communication is slower. Takes time to go down the chain.

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9
Q

What are advantages and disadvantages of flat organisational structures?

A

Advantage: Better communication. Employees feel more a part of influencing the company.

Disadvantage: Confusion over responsibility/roles, and each manager has to manage more employees, meaning they can’t coach them as closely.

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