2.2 Organisation and management Flashcards
What is an ‘organisational structure’?
Levels of management and division of responsibilities within a business
Hierarchy
management levels within an organisation
Line managers
people responsible for overseeing work of other staff
Authority
power managers have to direct subordinates and make decisions
Delegation
when managers entrust tasks or decisions to subordinates
Span of control
number of subordinates reporting directly to a manager
Chain of command
path of authority which instructions are passed, from highest downwards
Lines of communication
routes messages travel along
Directors
most senior, sets out strategies, makes sure resources available, reviews performances of managers, provide leadership to ensure success
Managers
Day-to-day running of a department, delegation, motivation, solving problems that may arise within department
Workers
complete tasks efficiently at require quality standard set by managers
What are the features + advantages + disadvantages of tall organisations.
Tall organisations have many levels of hierarchy - span of control is narrow
Ads:
- Opportunities for promotion → motivational
- Managers not overstretched, effective workload
Disads:
- Lines of communication long → firm unresponsive to change
- Have to pay a large range of salary to motivate workers to try to get promoted
What are the features + advantages + disadvantages of flat organisations.
Flat organisations have few levels of hierarchy
Ads:
- Lines of communication narrow → responsive to change
- Salary range = narrower → less competition
Disads:
- Wide span of control → managers can feel overstretched
- Not many opportunities for promotion → demotivating
Planning
managers should have a clear plan of what employees need to follow (aims, tasks, objectives)
Organising
Managers expected to organise by setting up systems, procedures and structures in efficient way
Coordination
related to organisation, making sure interrelated activities are integrated and carried out in a structured way
Commanding
give direction, ensures directions are followed
Controlling
create effective control system to make sure on track
Why is delegation important?
- Managers cannot do all tasks (overstretched)
- Can be delegated if they can be completed correctly
- Enables more work to be completed + motivating
Features of democratic
Encourages participation in decision making
- Strong coaching, listening + motivating skills
- Teamwork + communication important
Features of autocratic
Leader has full control of decision making.
- Employees have little/no input
- Good in crisis situations
Features of laissez-faire
Gives employees much freedom as possible (art)
- Managers communicate goals employees, allow them to choose how to complete objectives
Features of bureaucratic
Done by the books/policy
- Reinforces rules
What are ‘trade unions’?
Pressure groups that have ability to influence business activity, improving working conditions
What are the aims of trade unions?
- Defend employees rights and jobs
- Improve pay + other benefits e.g. holiday entitlement, sick pay
- Influence government policies
- Negotiate wages and other non-wage benefits
- Develop skills of union members by providing training/educational courses
What are the benefits of being union member?
- Strength in numbers
- Improved working conditions
- Improved sickness benefits, pensions, and retrenchment benefits
- Improved job satisfaction and encourage training
- Advice/Financial support if a worker is dismissed unfairly/made redundant or is asked to do something not part of their job
- Improved fringe benefits
