Changes To Internal Structures Flashcards
what is downsizing and the advantages and disadvantages
reducing product capacity by closing factories, making surplus staff redundant, reorganisation of job grades, roles
adv-reduced cost,empowers staff, competitiveness
neg-not able to meet sudden change in demand, poorer public image
what is delayering and the advantages and disadvantages
removing layers of middle management, making a flatter structure
adv-improved communication, fast decisions, staff motivation as more empowerment
neg-reduced promotional opportunity, harder to monitor
what is wider span of control
connected to delayering, they are in charge of more workers
what are the advantages of wider span control
- empowered staff
- manager can delegate tasks to staff with certain skills
- manager feels more motivated as they have more responsibilities
what are the disadvantages of wider span control
- can be stressful
- slower decisions
- manager has less discussion time with individuals about their work
what is outsourcing
a firm hires an external agency to complete non core activity
what are the advantages of our sourcing
- firms produce better quality as they are experts
- has specialised equipment so org can access it without payment
- reduces costs of employing staff
- service only paid for when needed
what are the disadvantages of outsourcing
- dependent on agency so has less control
- agency can take longer to make decisions affecting deadlines
- no guarantee the standard will be good
- cost of fees as paying for expert help
