Business Section 3 Flashcards
1
Q
Hierarchical structure
- What is a hierarchical structure?
A
- Hierarchical structure is the organisation of job roles by rank.
2
Q
Flat structure and tall structure.
- What is a flat structure?
- What is a tall structure?
A
- A flat structure is where a business hierarchy has few levels.
- A tall structure is where a business hierarchy has many levels.
3
Q
Centralised and decentralised structure.
- What is a centralised structure?
- What is a decentralised structure?
A
- A centralised structure is a business structure in which decisions are made by those at the top of the hierarchy.
- A decentralised structure is a business structure in which decisions are made lower down the hierarchy.
4
Q
Matrix structure.
- What is the matrix structure in a business?
A
- Matrix structure is a business structure in which teams of people from different functional areas work together on specific projects.
5
Q
Span of control
(Narrow span of control and wide span of control)
- What is a narrow span of control?
- What is a wide span of control?
A
- A manager with a narrow span of control is directly responsible for few employees.
- A manager with wide span of control is directly responsible for many employees.
6
Q
Chain of command
What does the chain of command mean in business?
A
Chain of command is the formal hierarchy of a business that prescribes who is in charge of whom and whose permissions must be obtained.
7
Q
How organisational structures impact on business operations.
- Communication paths
- Responsibility, authority and accountability
- Delegation
- Empowerment
A
- Communication paths are longer with tall organisation structure.
- Business with decentralised structure gives more responsibility, authority and accountability to position lower down in the hierarchy.
- A business with wide spans of control is likely to make greater use of delegation than a business with narrow span of control.
- A decentralised organisational structure is more likely to encourage empowerment.
