BS6- Opganisation Part 2 Flashcards
State what is meant by organisation by function
a common type of organizational structure in which the organization is divided into smaller groups based on specialized functional areas, such as IT, finance, or marketing.
Identify and explain one drawback and one benefit of organising a business by function
Drawback- It splits people up therefore they are less likely to learn new skills from others which can limit there roles in the future.
Benefits- it helps to then be able to go to a specific group to do a certain job, this allows for quicker and more efficient working
Explain what is meant by organisation by product
The business is organised around recognisable individual products. These are known as profit centres.
Identify and explain one advantage and disadvantage of organising a business by product
Advantages- it makes it a lot easier to see what products are preforming better and each profit centre can be easily analysed.
Disadvantage- different products compete for resources, this can creat winners and losers so leads to competition.
If sky was organised by product, identify three products that the business might be organised around.
Televisions
Tv broadcast
Sky sports
Explain what is meant by centralised structure
The decision making process is undertaken by the leader at the top of the hierarchy.
Identify and explain one advantage and one disadvantage of a centralised structure
Advantages- Prevents other parts of the business from becoming too independent
Disadvantage- Lack of authority down the hierarchy may reduce manager motivation
Explain what is meant by a decentralised structure
The decision making process is delegated and undertaken on a regional or product basis
The power is spread throughout
Identify and explain one benefit and one drawback of of a decentralised structure.
Advantage- Decisions are made closer to the customer
Disadvantage- More difficult to ensure consistent practices and policies (customers might prefer consistency from location to location)
Explain what is meant by a matrix structure
a company structure where teams report to multiple leaders. The matrix design keeps open communication between teams and can help companies create more innovative products and services.
Identify and explain one advantage and one disadvantage of a matrix structure
Advantage-This gives employees the flexibility to move between projects or teams as needed, sharing their knowledge, expertise, and skills.
Disadvantage- Increases organizational complexity. Requirement for high degree of cooperation between functional and project management.
