3.4 Human Resources Flashcards
Organisational structure
The way in a which a business arranges itself internally to carry out its activities.
Organisation chart
A diagram/plan showing the internal structure of a business. (Roles and relationships between employees)
Rules of an organisational chart
• Place people in order of importance.
• Only include people employed by the business.
Importance of an organisational chart?
• Clear lines of responsibility for departments and workers.
• Shows communication routes clearly.
• Highlights number of different departments.
Delegate
Passing over responsibility to a subordinate.
Chain of command
How communication is passed down the business.
Subordinate
A person in a lower level of hierarchy.
Span of control
The number of people you are responsible for.
Director
Lead the business and decide on the plans, or the strategy to reach the firms aims and objectives.
Manager
Put strategy into practice and organise work to meet objectives set.
Supervisor
Responsible for a team of employees ensuring targets are met.
Operator
Carry out the day to day work of a business.
Tall organisational structure
• Narrow span of control
• Closer supervision
• Less delegation
• Longer chain of command
Flat organisational structure
• Wide span of control
• Greater freedom
• Increased delegation
• Shorter chain of command
Delayering
The removal of 1 or more levels of hierarchy from a businesses organisational structure.
Positives of Delayering
• Can make the business more efficient.
• Vertical communication is easier.
• Reducing cost on salaries/wages.
Negatives of Delayering
• Redundancies are difficult to process.
• Employees worry about job security, reduces productivity.
• Line managers have more subordinates, increased workload.
Communication
The exchange of information between 2 or more people.
Internal communication
Messages that are sent between people or groups that work for the same business.
• Emails
• Phone calls
• Meetings
External communication
Messages that are sent to people who do not work within the business.
• Social media
• Advertising
• Letters
Types of communication
• Upwards
• Downwards
• Horizontal
Centralised business
Important decision are made by senior managers at the top.
E.g. Fast food business.
Decentralised business
Decision making power is spread (delegated) to junior managers in other departments/locations.
E.g. Hotel Chains.
Positives of a centralised business
• Decisions made by experienced people.
• Decision consistent across whole business.