3.4 - Human Resources Flashcards
What is an organisational structure?
The way in which a business arranges itself internally to carry out its activities
Why is an organisational structure important?
Enables the business to function efficiently
Shows communication routes clearly
Workers know who to report to
Tall organisational structure = ?
Narrow span of control, more layers of hierarchy
Flat organisational structure = ?
Wide span of control, less layers of hierarchy
What is delayering?
The removal of one or more levels of hierarchy from a business’ organisational structure
Benefits of delayering
Reduce labour costs
Can empower staff to take initiative
Shorter chain of command, improve communication
Drawbacks of delayering
Large increase in span of control
Junior staff have to take on responsibility - stress/experience
What is hierarchy?
The levels of importance in an organisational chart
What is the meaning of delegate?
Passing over responsibility to a subordinate
What is the meaning of subordinate?
A person in a lower level of hierarchy
What is chain of command?
How communication gets passed down the business
What is span of control?
The number of people you are responsible for
What is meant by line manager?
Where one employee is in charge of another less important employee
What is delegation?
The passing of responsibility from a line manager to a subordinate
What is a centralised business?
They are where important decisions are made by senior managers
What is a decentralised business?
They are where decisions making power is spread (delegated) to junior mangers