4.1 Organistaional Structure Flashcards
Why have a structure
-makes it easier to see which part of the business does what, and who has which job role
-makes communication easier across company
-employees should find it easier to be aware of responsibilites and roles
Chain of command
-Flow of information,power and athority in business.
-those at top have more authority and can delegate tasks to subordinates in hierachy
Span of control
-this is a number
-this is the number of suboridnates that they can delegate to
Deleagation
Delayering
-delayering is when one or more of the layers of management are removed from the business therefore it saves the money since the organisation no longer need to pay the salaries of the workers
Hierachal structure
-opportunity for promotion
-information takes a long time to get to bottom of hierachy
-long time for descisions to be made
-work is share amongst more people
-orderly and organised
Advantages of hierachal structure
-lots of layers hierachy means lots of opportunity for promotion
-supervisors have small soan of control so they can get to know subordinates better
-knowing subordinates means that they can delegate the right taks and make sure team is trained well
Disadvantage of hierachal structure
-long chain of command can mean business is very inflexible
-communications within business is slow
-expensive as more managers and supervisors
Flat structures
They have a wide soan of control and a shor chain of command so information flows theough quickly through business
Advanatges of flat structure
-Fewer layers of hierachy brtween the bottom and the top of business may mean faster communication
- Lots of delegation means that
staff are given greater
responsibility, which might
mean more opportunities to
use their abilities
Disadvantages if flat structure
• Staff can be overstretched or
overworked in a flat structure
as there is less supervision, this
can cause stress and
demotivation
• Can create a power struggle if
the manager is rarely around as
subordinates jostle for roles
and responsibilities
• Wide span of control means
managers have too many staff
to manage and may lose touch
with them
Decntralisation meaning
– where a business divides
up the organisation of its business into areas for
example: north, south, east, west or UK, Europe,
and Africa. The business will have separate
budgets for each area
Centralisation
where a business has its
organisation of management and administration
at one central head office. The business has one
central shared budget
Communication in flat structure
• Communication in a flat
structure is a lot faster as
there are fewer links in
the chain of command
(up and down)
• Messages can be passed
from management to
junior staff quite quickly
as there are fewer people
to pass through
Advantages of communication in a flat structure
✓ better communication and
relationships between
different roles
✓ simple, faster decision
making processes
✓ it is easier for the business
to change and adapt
✓ increase in employee
responsibility levels