3.6.3- Making human resource decisions: improving organisational design and managing the human resource flow Flashcards
3.6 Human resource management
What are the 4 organisational structures?
- Functional
- Product-based
- Regional
- Matrix structure
What is a functional organisational structure?
Its a team structure that groups employees into different departments based on areas of expertise. This structuer is very common..
What are the advantages of a functional organisational structure?
- Coordination is estabilished: All employees work withing a department are specialists, coordination is straightforeward
- Training is easier: It facilitates the training of employees as it focuses on a limted set of skills. E.g. marketing department are trained in marketing issues
- Specialisation: It allows employees to develop their skills rapidly as they repeat the same tasks
What are the disadvantages of a functional organisational structure?
- Decreased morale: Employees tend to feel bored when work is monotonous
- Narrow scope: Employees from individual departments may possess little knowledge of how their roles ralte to the business’s objectives.
What is a product-based structure?
The business organises based on what they sell, each product will be under a different division. They all have there indivisdual functions like marketing, finance, etc.
What are the advantages of a product-based organisational structure?
- It allows each division to focus on its own customers
- Can monitor product performance- monitor performance and profits for each product unit
- Allows businesses to adapt different products to customers needs
What are the disadvantages of a product-based organisational structure?
- There can be competition for custoemrs between different product divisions
- Poor communication between product units may result in the business missing market opportunities
- There can be wasteful duplication of management functions for each product division.
What is a regional organisational structure?
When a business structures itself around a region, so staff from function working in a team is assigned to each region.
What are the advantages of regional organisational structures?
- Close communication with local customers
- Strong collaborative teams at each location
- The ability to better sevre local needs and tailer to the local market
- The ability to encouragr positive competition between differemt departments
What are the disadvantages of a regional organisational structure?
- Potential duplication of jobs, resources and functions, which is costly
- Some economies of scale may be lost
What is a matrix organisational structure?
Its a combination of two or more organisational structures.
What are the advantages of a matrix organisational structure?
- Improve decision-making, since there are two chains of command
- Improves communication across the business
- Help share best practice and ideas acrros teams
- Increases efficiencies due to sharing resources across deppartments
What are the disadvantages of a matrix organisational structure?
- Difficulties in coordinating tasks or functions
- Power struggles between the project managaer and functional managaer
- Large overhead costs, on account of having multiple manager
How is an organisation divided?
- Board of directors
- Managers
- Team leaderr
- Supervisors
- Shop-floor workers
What is a tall structure?
An organisation with lots of levels in their hierachy. They have long chains of command which is the path for communication and authority.
What are the advantages of a tall structure?
- Role are transparent, objectives are clearer and costs are easier to control
- Ecah levels managers have their own clear and seperate responsibilies
- Each manager has a small number of employees, therfore they’re closely supervised
What are the disadvantages of a tall structure?
- Decisions take a long time to make as long chain of command
- Employees have less freedom/ responsibilites and must rely on direct managers
- The company isnt as flexible and responsive to change
What is a flat structure?
They only have a few levels of hierachy in the organisation. People are given more responsibilites and freedom.