Business Organisation Flashcards
Span of control
The number of employees for who a manger is responsible for
Advantage of narrow span of control
Manager gets to spend lots of time giving clear and direct instructions to staff
Disadvantage of narrow span of control
Staff may feel ‘watched over’ and uncomfortable in the workspace
Advantage of wide span of control
Independence may be more motivating for staff
Disadvantage of wide span of control
Staff may feel like they’re not getting enough attention and become demotivated and perform badly
Division of labour
How tasks are shared put across the work force, usually based of functional areas
Communication paths
The way commands/messages travel along the chain of commands
Centralised structure
Decision making taken at the top of the hierarchy
Decentralised structure
Decision making is spread out
Matrix structure
Individuals work across teams & projects as well as within their own department or function
Advantage of matrix structure
Utilises skills within the organisation
Disadvantage of matrix structure
Potential for conflicting management directives
Organisation by function
The business is arranged in specialist areas. E.g-marketing
Hierarchal structure
The oranisation of job roles by rank
Accountability
Requirement to be answerable for quality & quantity of work done/not done