2.5.1 Organisational Structures Flashcards
Organisational structures:
- the way in which a business is a structured to achieve its objectives - normally through a hierarchy
- a hierarchy is a structure of different levels of authority in a business organisations
What do different organisation structures have?
dif. structures have dif. numbers of layers and dif. spans of control
Span of control:
should be no more than 6 people
What does a span of control depend on?
- experience and personality of manager
- type of business
- skills of employees and attitudes
Delegation:
giving others responsibility to do something
Organisational chart:
- a business’s organisational structure can be shown using an organisational chart
- line managers can pass on authority to their subordinates through delegation
How does size affect a business’s organisation structure?
- as a business expand they will naturally employ more people, increasing the chain of command and span of control
- the size and structure of an organisation can have an impact on communication, control and flexibility of a business
Why may a business downsize or delayer?
- reduce costs
- improve efficiency
- improve communication
Hierarchical structure:
- long chain of command
- makes business easier to control and provides opportunities for promotion
- can be costly and slows down effective communication
Flat structure:
- few levels of management but a wide span of control
- improves business’s flexibility but lines of authority are not always clear
Centralised structure:
businesses keep decision-making at top of the hierarchy (senior management)
Pros of a centralised structure:
- quicker policies
- decision benefits business
- consistent uniform customer experience
Cons of a centralised structure:
- managers and employees have a lack of authority - reduces motivation
- more layers - more costs
- local/junior managers may know customer needs better than higher ups
Decentralised structure:
decision-making spread out to include more junior managers in the hierarchy and individual business units of trading location
Pros of a decentralised structure:
- can make on the spot decisions - responsive
- local managers understand needs/wants of community - tailored
Cons of a decentralised structure:
- not necessarily for the long-term direction
- less consistent practices or policies
- harder to control costs - overspending
Communication:
a process which enables info to be passed from one person/group to another
Types of communication:
- informal communication
- formal communication
- internal communication
- external communication
Informal communication:
e.g. gossip can get in the way of effective communication
Formal communication:
- approved by the organisation
- follows set rules of communication used with a business
Internal communication:
communication between people in the same business
External communication:
communication with people outside the business
Importance of good/effective communication in a business:
- important for a business as increases the efficiency at which business info (e.g. aims and objectives) is transferred in an organisational structure
- therefore, as a result of business info e.g. objectives being shared more quickly employees may better understand the business goals
- this leads to them having a better state of mind and therefore more motivated when working
- increased efficiency → faster production → lower costs → increased profit
- benefits business
What needs to happen for communication to be effective?
- the sender has to choose an appropriate medium to reach the receiver
- feedback should also be available to ensure the communication has been successful
Impacts of poor communication:
- employee motivation
- customer service
- the number of mistakes made
- understanding of employees
- efficient implementation of decisions
- the image/brand of the business (through advertising)
Barriers to effective communication:
- using inappropriate mediums or email system failure
- tech problems
- being angry or tired
- cultural differences
- e.g. when a business is working with a foreign company, employees in the 2 businesses may not understand cultural references or meaning
- can lead to mistakes being made e.g. wrong product being shipped which could lead to customers receiving the wrong products
- use of jargon - depends on the skill or knowledge of the sender or receiver
- too little info
- misinterpretation/misunderstanding
- if it is only one way
- information overload
- e.g. too many emails
- when workers are faced with too much information their motivation and efficiency will fall
- managers must ensure communication is controlled and organised effectively to ensure that this does not happen
- confusing lang
- lang barriers
Consequences of poor communication (too much):
- overwhelming
- mixed messages
- useless info shared
- inefficient - wasted time and resources
Consequence of poor communication (too little):
- unsure of aims and objectives
- don’t know what to do
- mistakes made
- inefficiency (wasted time/resources)
Full-time:
the amount of time considered the normal or standard amount for working during a given period, 35hrs or over
Pros of working full-time:
- Steady income
- Paid leave
- Insurance
- Retirement benefits
- Job advancement opportunities
- Professional developmentopportunities
- Fixed schedule
- Professional relationships
Cons of working full-time:
- Possibility of becoming stagnant
- Limited versatility on your resume
- Increased work-related stress
- Difficulty achieving a work-lifebalance
- You can’t choose your projects
Part-time:
employed for or occupying only part of the usual working day or week
Pros of working part-time:
- Shorter Commutes
- Paid Experience
- Time and Money for Education
- Increased Creativity
- Higher Net Income
- Better Health
Cons of working part-time:
- Split Shifts
- Tight Budget
- Fewer Networking Opportunities
- Limited Health Insurance
- Fewer Retirement Options
- Difficulty Balancing Multiple Positions
Flexible-hours:
- a range of employment options designed to help employees balance work and home life
- freelance contracts often used when a business needs to employ a specialist, such as a consultant or an accountant
Pros of working flexible-hours:
- Flexibility to better meet family and personal needs
- Reduced commuting time and gas expenses
- Have more control over your time schedule and working environment
- Can work during the hours that fit your energy cycles best
- Boosts employee morale
- if a business can use flexible working contracts, it has more control over its costs and can increase or lower its capacity when it needs to
Cons of working flexible-hours:
- Difficult for office-based staff to work as effectively with telecommuting staff
- Working from home may mislead loved ones about your availability
- No clear dividing line between home and work
- Some employees may not work efficiently without supervision
- Compressed work weeks may mean client availability suffers
- Employees with flexible contracts may not be very committed to the business if they do not have long-term job security
- Employee may not have guaranteed income and may look for a job elsewhere → high rates of labour turnover which may have an impact on the business’s productivity and could result in a rise in recruitment costs
Permanent:
full-time, salaried positions
Pros of being a permanent worker:
- Reliable source of income
- Reduced commuting time and gas expenses
- Have more control over your time schedule and working environment
- Can work during the hours that fit your energy cycles best
- Boosts employee morale
- employees may feel they have more job security → more motivated at work → more productive
Cons of being a permanent worker:
- Difficult for office-based staff to work as effectively with telecommuting staff
- Working from home may mislead loved ones about your availability
- No clear dividing line between home and work
- Some employees may not work efficiently without supervision
- Compressed work weeks may mean client availability suffers
Temporary:
working arrangement limited to a certain period of time based on the needs of the organisation
Pros of being a temporary worker:
- Flexibility
- Networking opportunities
- Potential for a permanent job down the line
- Gain skills and knowledge in a new environment
- Fills up CV
Cons of being a temporary worker:
- No job security
- Lower pay grade
- Unlikely to climb the career ladder
- May not fit in with coworkers
Remote working:
- employees can work from home while keeping in touch with colleagues through teleconferencing and email
- working arrangements can be agreed to meet the needs of the business and its workers e.g. working from home 1 day a week
Video conferencing:
- face-to-face communication and presentations can be streamed live over the internet so that employees no longer need to travel long distances to meet clients or share important information
- more efficient as employees do not have to spend time and money travelling
Management information systems:
business internet systems hold vast amounts of information that employees can access using a computer anywhere in the world
