2.5 Flashcards
What is An organisational structure
An organisational structure is a way that employees and their job roles are organised in a business
Hierarchy definition
The layer/levels of management within an organisation
Why have a structure?
All businesses have to organise what each member of staff do
A clear structure makes it easier to see which part of the business does what, and who has which job role
It can indicate pay levels.
Makes communication easier across the company
Can offer clear idea of possible promotional/progression opportunities
What is a Subordinate
A subordinate is an employee who is lower in rank or job position than their manager
What is Delegation
Delegation is where a task is given to a subordinate employee (someone below) in the hierarchy
What is the chain of command
This is the flow of information, power and authority through the business
Those at the top have more power and authority
They can delegate tasks to those subordinate to them in the hierarchy (below them)
What is the Span of control
This is the number of subordinates that they can delegate to.
What are the advantages of a Tall organisational structure
There are lots of opportunity for promotion
Work is shared amongst more people so less stress
Everyone knows where they are in the hierarchy, so very orderly and organised
What are the disadvantages of a Tall organisational structure
The information takes a long time to get from the bottom to the top
It takes a long time for decisions to be made
What are the disadvantages of a flat organisational structure
There are limited opportunities for promotion
Work is shared amongst fewer people so more stress
Less orderly and organised because fewer people have more responsibilities
What are the advantages of a flat organisational structure
Information travels quicker from the bottom to the top
Decisions can be made much quicker and easier as fewer people to involve
Define delayering
Removing layers of management from the hierarchy of the organisation
What are the advantages of a centralised organisation
○ A better sense of direction
○ More efficient
What are the disadvantages of a centralised organisation
○ More time consuming for top people
○ It May not be suitable for all locations
What are the advantages of a decentralised organisation
○ Decisions become suitable for all location
○ Less time consuming
What are the disadvantages of a decentralised organisation
○ Lacks consistency
○ Less efficient
Define motivation
Motivation is defined as: The reasons for acting or behaving in a certain way
3 reasons why motivation in the workplace is important
Attracting employees
Retaining employees
Increase productivity
What are the Two ways to motivate employees
Financial and non-finanacial
What is Remuneration
Remuneration means money given to an employee in return for work or service
What is a bonus
Given out when certain performance targets have been met
What is commission
The employee receives a reward for every sale made. E.g. 10% of every sale they make
What is a promotion
Promotion means giving an employee a new role which will earn them more income
What are fringe benefits
Items an employee receives in addition to their normal wage or salary
What is job rotation
Employees are rotated between different jobs to avoid repetition and boredom
What are benefits of job rotation
Relieves boredom
Easy to find an employee to cover for an absent colleague
More motivated due to the wider range of skills
What are the drawbacks of job rotation
Training costs are high
Fall in output due to less specialisation
Could be simply a greater number of boring tasks with less social benefits due to the constant changing of groups
What is job enrichment
Employees are given redesigned jobs that have more challenge and are less repetitive and boring
Job enrichment advantages
Develops unused skills and challenges employees
Allows employees to contribute to the decision-making process
Increased feelings of achievement
Job enrichment disadvantages
Some employees may feel under pressure not simply challenged
Costly
Benefits only when thinking long term as employees have to be trained
Not all jobs can be enriched e.g. bin men
What is Autonomy
Autonomy means allowing employees to make their own decisions
Autonomy advantages
Employees feel more ownership of their own work and so are more motivated
Employees able to use their own thinking skills to complete their work at their pace
Autonomy disadvantages
Some employees may become unhappy as they need more direction in their work and want recognition from their boss
Some employees may want to make more decisions than they are entitled to
