4.1 Organisational Structures Flashcards
Why might a business have an organisational structure
So they are organised
They can carry out activity’s effectively and quickly
There is a clear chain of command
People know what there duties are. Who they need to report to and who reports to them.
What is an organisational chart
A plan showing the roles and relationships of all the employees in a business
What is a line manager?
An employees immediate superior or boss
What is a CEO
Chief executive officer
Someone who has ultimate authority
What is a span of control.
He number of employees managed directly by a manager
What happens if your span of control is too wide or too short
If your span of control is to wide then you will find it difficult to manage all of the employees
If your span of control is too low hen you won’t have enuf people to delegate tasks to
What is Levels of Hierachy?
The amount of levels in a business organisation
What is the chain of command?
The line of authority within a business of which communication passes through
What is delayering?
The removal of one or more layers in the organisational structure
What are the advantages of delayering
Reduced wage bills
Employees may feel more motivated if they have less bosses
What are the disadvantages of delayering
Junior employees may have to take on more responsibilities
Some employees may have a very wide span of control
What is delegation?
Passing down responsibly (mainly tasks) to employees which are below you in the hierarchy
What are the advantages and disadvantages of delegation
Advantages
You can do more important jobs
Disadvantages
If you delegate to much then the business may decide that you are no longer needed and fire you
What is a tall organisational structure?
A organisational structure which has a large number of levels of hierarchy and narrow spans of control
What is a flat organisational structure?
An organisational structure which has a low number of levels of hierarchy but wide spans of control.
How might a business modify it’s organisational structure is it wan’t to give it’s employees more freedom
It can create a flatter organisational structure with a wider span of control
Why might a business use a flat or tall organisational structure?
Flat:
To give the managers more authority
So the managers have more people to delegate work to
More skilled workers need less management and can be more independent
To give employees more freedom
Better verticle communication
Tall:
Better managment/ more organised
Better horizontal communication
What is downwards and upwards and horizontal communication?
Downwards communication is when info is passed down the organisation structure
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What effect would having a flat organisational structure have on communication?
Downward’s and upwards communication would be quicker
Horizontal communication would be harder
The bigger the span of control of a line manager may mean that the quality of communication may decrease
What effect would having a tall organisational structure have on communication?
Horizontal communication becomes easier
Upwards and downwards communication may become harder
What is centralisation?
When a business makes all of the decisions in one head office
What is decentralisation?
When a businesses gives authority to local branches to make the big decisions.
Advantages of decentralisation
Can reduce pressure on the top managers
Can motivate employees if they are making the decisions
Can lead to better and faster decisions as the managers know to local community better
Disadvantages of decentralisation
Decisions may not benefit the business if the managers don’t understand the aims and objectives of the business
Training may be needed to teach employees how to make decisions which benefit the business
You need good communication or it will go badly
If a manager makes a decision it will reflect on the bran image of the business
What are the advantages of centralisation?
All decisions are made by a group of people who knows what the business aims are
Disadvantages of centralisation
Decisions are normally slow
You may loose an opportunity to make money
The main office don’t know the local community very well
They are normally well educated and know how to exploit the market
