23 Organisation structure and employees Flashcards
Define formal organisation
Internal structure of a business shown by an organisation chart
Define directors
Those who are appointed by owners to run the business
Define managers
Those who are responsible for planning, controlling, organising within their department and to acieve the objectives of the owners
Define supervisors
Those who monitor the work in their particular area
Define operatives
Skilled workers involved in the production process
Define general staff
Staff that do not have any specific skills
Define professional staff
Highly skilled and trained staff
Define chain of command
Route through which orders are passed down the hierarchy
Define subordinates
People who are under control of a more senior worker
Define span of control
Number of people a person is directly responsible for in a business
Define flat structure
Organisation structure with fewer layers in the hierarchy
Define tall structure
Organisation structure with more layers in the hierarchy
What are the advantages of a flat structure
- Communication is better because the chain of command is short
- Management costs are lower because there are fewer layers of management
- Control may be more firendly and less formal because their is direct contact between layers
What are the disadvantages of a flat structure
- Less motivation because there is less chance of promotion
2. The span of control is wide which may be more frustrating for senior workers
What are the advantages of a tall structure
- More motivation because there is a clear route for promotion
What are the disadvantages of a tall structure
- Communication can be poor because there is a long chain of command
- Management costs will be higher
- Control tends to be more formal and less friendly because of all the layers
Define delegation
Authority to pass down work from superior to subordinate
What is the advantage and disadvantage of delegation?
Motivates workers because they feel as they are being ‘trusted’ to complete the task
May be dissatisfied because they may think that ‘extra’ work is given without any reward
Define centralised
Type of organisation system where most decisions are made at the top of the organisation and then passed down the chain of command
Define decentralised
Type of organisation system where decision making is pushed down the chain of command and away from the top
What are the advantages of a centralised structure?
- Senior managers are trained and experienced in decision making
- Coordination and control is easier
- Senior management had complete control over resources
What are the disadvantages of a centralised structure?
- Employees may be demotivated without any authority
- Brings less creativity and new ideas
- People at the top may be out of touch with the needs of customers, served by more local employees
What are the advantages of a decentralised structure?
- Workers have autonomy and may be better motivated
- Speeds up decision making
3 Takes pressure off senior managers by reducing their workload - Workers get the opportunity to be creative and share their ideas
What are the disadvantages of a decentralised structure?
- Senior managers may lose control of resources
- Costs may be higher owing to less standardisation and more variability in the decision making process
- Some employees may not have the ability to make decisions
- Some employees may not welcome extra responsibility
Define matrix structure
Where employees are put into specific teams that cut across departmental roles
