3.3 How organisational structures impact on operations

Question 1

What is Empowerment?

Answer 1

Authority of power given to someone to do something

Question 2

What is delegation?

Answer 2

The transfer of authority or responsibility for specific activities and tasks within a business from one individual to another

Question 3

What is accountability?

Answer 3

An acceptance of responsibility for honest and ethical conduct towards others

Question 4

What is division of labour/work?

Answer 4

The separation of a work process into a number of tasks, with each task performed by a separate person or group

Question 5

What is delayering?

Answer 5

Removing one or more levels of hierarchy from the organisational structure

Question 6

What are the advantages of delayering?

Answer 6

Offer opportunities for empowerment and motivation
Improve communication
Remove department rivalry
Reduce costs
Encourage innovation
Brings managers into closer contact with business’ customers = better customer service

Question 7

What are the disadvantages of delayering?

Answer 7

Not all organisations are suited to flatter structures
Negative impact on motivation due to job losses
Period of disruption as new responsibilities are taken on
Managers will have a wider span of control
Damage communication within the business
May increase workload too much for workers
Create skill shortages