3.11 Organizing Flashcards
What is organising in management?
Organising occurs when the manager coordinates all business resources, such as employees, money, and raw materials, into the most effective formation to achieve organisational goals.
What are the types of organisational structures?
The types of organisational structures include: Functional, Geographic, Matrix, and Product.
What is a functional organisational structure?
A functional organisational structure divides the firm into departments based on the functions they perform, such as Finance, Marketing, and Production.
What are the advantages of a functional organisational structure?
Advantages include increased employee motivation, expert knowledge, and a clear chain of command.
What are the disadvantages of a functional organisational structure?
Disadvantages include slower communication, lack of teamwork, and over-focusing on departmental goals.
What is a geographical organisational structure?
A geographical organisational structure divides the business into geographical areas based on region, country, or continent.
What are the advantages of a geographical organisational structure?
Advantages include clear pathways for promotion, increased sales, and increased consumer loyalty.
What are the disadvantages of a geographical organisational structure?
Disadvantages include increased costs, lack of communication, and management conflict.
What is a matrix organisational structure?
A matrix organisational structure involves employees working in various departments and coming together in cross-functional teams to complete projects.
What are the advantages of a matrix structure?
Advantages include increased employee motivation, improved communication, and improved decision-making.
What are the disadvantages of a matrix structure?
Disadvantages include many managers across project teams, lack of productivity, and increased costs.
What is the chain of command?
The chain of command shows the line of authority and communication in the business, running from the top to the bottom.
What is the span of control?
The span of control relates to the number of employees who report directly to management.
What is a wide span of control?
A wide span of control occurs when a manager has a large number of employees reporting directly to them, typically used when employees do not require much supervision.
What are the effects of a wide span of control?
Effects include tarnished business reputation, low employee motivation, and management burnout.
What is a narrow span of control?
A narrow span of control occurs when a smaller number of employees report directly to the manager, used when employees require greater supervision.
What factors affect the span of control?
Factors include employees’ skills, the nature of the task, and managerial workload.
What is delayering?
Delayering involves removing one or more layers of management in an organisation’s structure, often removing middle management.
What are the advantages of delayering?
Advantages include faster communication and a decrease in costs.
What are the disadvantages of delayering?
Disadvantages include decreased employee motivation and increased management stress.
