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EdExcel GCSE Business > 2.5.1 Organisational Structures > Flashcards

2.5.1 Organisational Structures Flashcards

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1
Q

Organisational structures:

A
  • 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
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2
Q

What do different organisation structures have?

A

dif. structures have dif. numbers of layers and dif. spans of control

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3
Q

Span of control:

A

should be no more than 6 people

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4
Q

What does a span of control depend on?

A
  • experience and personality of manager
  • type of business
  • skills of employees and attitudes
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5
Q

Delegation:

A

giving others responsibility to do something

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6
Q

Organisational chart:

A
  • a business’s organisational structure can be shown using an organisational chart
  • line managers can pass on authority to their subordinates through delegation
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7
Q

How does size affect a business’s organisation structure?

A
  • 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
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8
Q

Why may a business downsize or delayer?

A
  • reduce costs
  • improve efficiency
  • improve communication
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9
Q

Hierarchical structure:

A
  • long chain of command
  • makes business easier to control and provides opportunities for promotion
  • can be costly and slows down effective communication
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10
Q

Flat structure:

A
  • few levels of management but a wide span of control
  • improves business’s flexibility but lines of authority are not always clear
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11
Q

Centralised structure:

A

businesses keep decision-making at top of the hierarchy (senior management)

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12
Q

Pros of a centralised structure:

A
  • quicker policies
  • decision benefits business
  • consistent uniform customer experience
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13
Q

Cons of a centralised structure:

A
  • 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
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14
Q

Decentralised structure:

A

decision-making spread out to include more junior managers in the hierarchy and individual business units of trading location

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15
Q

Pros of a decentralised structure:

A
  • can make on the spot decisions - responsive
  • local managers understand needs/wants of community - tailored
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16
Q

Cons of a decentralised structure:

A
  • not necessarily for the long-term direction
  • less consistent practices or policies
  • harder to control costs - overspending
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17
Q

Communication:

A

a process which enables info to be passed from one person/group to another

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18
Q

Types of communication:

A
  • informal communication
  • formal communication
  • internal communication
  • external communication
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19
Q

Informal communication:

A

e.g. gossip can get in the way of effective communication

20
Q

Formal communication:

A
  • approved by the organisation
  • follows set rules of communication used with a business
21
Q

Internal communication:

A

communication between people in the same business

22
Q

External communication:

A

communication with people outside the business

23
Q

Importance of good/effective communication in a business:

A
  • 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
24
Q

What needs to happen for communication to be effective?

A
  • the sender has to choose an appropriate medium to reach the receiver
  • feedback should also be available to ensure the communication has been successful
25
Q

Impacts of poor communication:

A
  • employee motivation
  • customer service
  • the number of mistakes made
  • understanding of employees
  • efficient implementation of decisions
  • the image/brand of the business (through advertising)
26
Q

Barriers to effective communication:

A
  • 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
27
Q

Consequences of poor communication (too much):

A
  • overwhelming
  • mixed messages
  • useless info shared
  • inefficient - wasted time and resources
28
Q

Consequence of poor communication (too little):

A
  • unsure of aims and objectives
  • don’t know what to do
  • mistakes made
  • inefficiency (wasted time/resources)
29
Q

Full-time:

A

the amount of time considered the normal or standard amount for working during a given period, 35hrs or over

30
Q

Pros of working full-time:

A
  • Steady income
  • Paid leave
  • Insurance
  • Retirement benefits
  • Job advancement opportunities
  • Professional developmentopportunities
  • Fixed schedule
  • Professional relationships
31
Q

Cons of working full-time:

A
  • Possibility of becoming stagnant
  • Limited versatility on your resume
  • Increased work-related stress
  • Difficulty achieving a work-lifebalance
  • You can’t choose your projects
32
Q

Part-time:

A

employed for or occupying only part of the usual working day or week

33
Q

Pros of working part-time:

A
  • Shorter Commutes
  • Paid Experience
  • Time and Money for Education
  • Increased Creativity
  • Higher Net Income
  • Better Health
34
Q

Cons of working part-time:

A
  • Split Shifts
  • Tight Budget
  • Fewer Networking Opportunities
  • Limited Health Insurance
  • Fewer Retirement Options
  • Difficulty Balancing Multiple Positions
35
Q

Flexible-hours:

A
  • 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
36
Q

Pros of working flexible-hours:

A
  • 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
37
Q

Cons of working flexible-hours:

A
  • 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
38
Q

Permanent:

A

full-time, salaried positions

39
Q

Pros of being a permanent worker:

A
  • 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
40
Q

Cons of being a permanent worker:

A
  • 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
41
Q

Temporary:

A

working arrangement limited to a certain period of time based on the needs of the organisation

42
Q

Pros of being a temporary worker:

A
  • Flexibility
  • Networking opportunities
  • Potential for a permanent job down the line
  • Gain skills and knowledge in a new environment
  • Fills up CV
43
Q

Cons of being a temporary worker:

A
  • No job security
  • Lower pay grade
  • Unlikely to climb the career ladder
  • May not fit in with coworkers
44
Q

Remote working:

A
  • 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
45
Q

Video conferencing:

A
  • 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
46
Q

Management information systems:

A

business internet systems hold vast amounts of information that employees can access using a computer anywhere in the world

EdExcel GCSE Business (38 decks)

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