Business 2.2 Flashcards
Advantages of flat structure
Employees are given more authority and responsibility
Employees involved in decision making
Less complicated communications channels
Less time taken to make decisions
Disadvantages of flat structure
Workloads of employees
may increase
Where the span of
control is too wide
employees may feel
isolated
Few promotion
opportunities
Employees may not meet
with line manager
regularly
Delegation advantages and disadvantages
Can motivate and develop employees while saving time for managers
May lead to confusion and inadequacy (in case of failure)
What does levels of hierarchy clearly show
Shows clear lines of communication
Establish departments or teams (motivation and sense of belonging)
Delayering advantages
Reduce costs
Improve speed of communication
Encourage delegation
Delayering disadvantages
Can cause job insecurity, demotion, redundancy
Overstretching of employees
Costs to train employees
Advantage of bureacracy
Advantages:
Provides structure and stability to organizations By establishing clear roles, responsibilities, and procedures, bureaucracy can help ensure that tasks are completed in a consistent and predictable manner
Helps ensure consistency and fairness in decision-making: Bureaucracy can help ensure that decisions are made based on established rules and procedures, rather than personal biases or preferences. This can help promote fairness and consistency in decision-making.
Disadvantage of bureacracy
Can be slow and inefficient with too much time and resources spent on paperwork and processes: Bureaucracy often involves a lot of paperwork and processes, which can be time-consuming and frustrating for employees and customers
May lead to a lack of flexibility and adaptability Bureaucracy is often characterized by rigid rules and procedures, which may not be easily adjusted to fit new situations or changing circumstances.
Centralised structure advantages
Rapid decision making on single projects
Better control over all company activity
Better sense of direction
Suited for smaller businesses
Decisions are more consistent
Centralised disadvantages
Slow decision making on multiple projects
Stress for senior staff
Inflexible
Demotivating
Exclusion of other people’s ideas that may be better
Decentralised advantages
Input from employees
Speedier decision making
Improved Morale
Accountability
Teamwork
Decentralized disadvantages
No control
Greater chance of mistakes
Reliance on communication
Redundancy
Lower standards of work (no governing body)
Inconsistency between company goals (regional managers)
Explain Shamrock organisational structure
3 main groups of staff
Core staff (full time) :
Managers, technicians
Must be well compensated and have job security
E-commerce and teleworking have reduced core staff – implies downsizing
Peripheral workers (part time, contractual) :
Employed only when required
Less job security and morale but offer more flexibility
Outsourced workers :(subcontracting)
Paid to do specialized tasks
Advantages of Shamrocks org
Small and simple organizational structure, allowing for quick decision-making and flexibility
Easy to communicate and coordinate with all members due to the small number of employees
Minimal bureaucracy, reducing red tape and allowing for a more streamlined workflow
Close-knit and supportive team environment, fostering strong relationships and collaboration
Lower overhead costs compared to larger organizations, allowing for more financial stability and independence
Ability to adapt quickly to changing market conditions and trends
Disadvantages of Shamrocks org
Limited resources and expertise due to its small size
Limited opportunities for career growth and advancement
Lack of diversity and representation due to the small size and potentially homogenous makeup of the organization
Potential for burnout and overworking due to limited staff
Potential for inefficiency and lack of specialization due to limited staff and resources
Limited ability to compete with larger, more established companies in terms of resources and reach
Workers can be unreliable due to temporary contract
