3.6.3 Flashcards
Organisational structure
Shows how people and management are organised in business
What is functional organisation structure
Groups employees into different departments based on areas of expertise
Product - based organisational structure
Separate divisions, each focusing on a different product or service and functioning as an individual unit
What is regional organisational structure
Structures based on different geographic areas
What is matrix organisational structure
Structure where teams report to multiple leaders
Factors that influence organisational design
Size of the business
Type of business
Management and leadership style
The competitive environment
What does span of control depend on
Personality and skill / experience of manager
Size of business
Whether the business is centralised or decentralised
Use of clear objectives
What are advantages of tall (narrow) span of control
Opportunity for promotion
More supported staff
More supervision
What are disadvantages of tall (narrow) span of control
Slower communication
High wage costs
Less responsive for change
What are advantages of flat (wide) span of control
Quicker communication
More responsive to change
Lower wage costs
What are disadvantages of flat (wide) span of control
Less promotion opportunities
Less supported staff
Less supervision
What is de layering
Removing layers of management from the hierarchy of the organisation
Delegation
The assignment to others of the authority for particular functions, tasks and decisions
Advantages of delegation
Reduces management stress/ workload
Senior management focus on key tasks
Subordinates more empowered
Disadvantages of delegation
Difficult to do
Depends on quality of subordinates
Increase workload and stress of subordinates
Centralisation
Decision making firmly at the top of the hierarchy
Benefits of centralisation
Easier to co-ordinate and control
Prevents independence from franchises
Economies of scale and overhead savings
Drawbacks of centralisation
HQ may not know local customer needs
Decentralised
Decision making is spread out
Benefits of decentralised
Better able to respond to local circumstances
Improved level of customer service
Improve staff motivation
Drawbacks of decentralised
Harder to achieve tight financial control
Harder to ensure consistent practices
Diseconomies of scale/ waste
Value of changing the organisational structure
Growth of the business
Reduce costs
Employee motivation needs boosting
Challenges with changing the organisation structure
Resistance
Disruption
De motivation
Costs
What is HR flow
Describes the cycle of staff leaving and joining a business.