2.5 Organisation Structure and Employees Flashcards
What are the organisational charts for different businesses?
- Tall/Flat
- Centralized/Decentralized
What is the span of control?
It is the number of subordinates under a manager
What is the chain of command?
It is the route through which authority is passed down.
What is delegation?
It is the passing down of authority from manager to employee.
What are the different functional areas within a business?
- Finance
- HR
- Marketing
- Production
What are the advantages and disadvantages of a Wide span of control?
Advantages:
- Less managers needed
- Less supervision motivates workers
- faster communication and decision making
Disadvantages:
- Less managers reduces promotion possibilities
- less control
- effective communication becomes difficukt
What are the advantages and disadvantages of a short span of control?
Advantages:
- Effective communication
- more control
- increases promotion possibilities
Disadvantages:
- Expensive
- Employees feel stuck
- Communication is slower
What is a tall organisation structure?
- It has many levels of heirarchy
- Chain of command is long
- slower decision making
What is a flat organisation structure?
- Few levels of heirarchy
- decision making and communication is faster
- short chain of command
What is a centralised organisation, its advantages and disadvantages?
- Decision making power is held by the CEO
Advantages:
- Faster decision making
- decisions benefit entire business
- greater use of specialist staff
Disadvantages:
- Slower communication
- Slower responses to market changes
- reduces employee motivation
What is a decentralised organisational structure , its advantages and disadvantages?
This is where decision-making powers are passed down to the lower levels of hierarchy
Advantages:
- Faster communication
- Decisions are made on local needs
- Can be used to train managers
- Delegation Motivates
Disadvantages:
- Decisions do not benefit the entire business
- Bas decisions due to lack of expertise
