Chapter 2.1 - 2.5 Management Structures Flashcards
Define Management hierarchy
The arrangement that provides increasing authority at higher levels of the hierarchy
The higher you are on the hierarchical structure you gain more
Accountability
Responsibility
Authority
Characteristics of a hierarchical structure include
Rigid communication Different levels of management Linear flows Centralised control Established chain of command
Define chain of command or line authority
Determines responsibility,supervision and accountability of members in an organisation
Define the principle unity of command
Each employee within an organisation should report to only one supervisor
Define span of control
Number of people a manager is directly responsible for
What are some elements of a traditional structure
Task centred
Division of labour
Rigid/Multi layered
Autocratic
What are some elements of a modern structure
People centred
Employees multi-tasked and skilled
Flexible/Flat
Democratic/ Laisser Faire
What is the purpose of a structure
Needs to work in a sequential manner, avoiding duplication of tasks and minimising work
Define a functional structure
Employees are grouped according to their job title
What are advantages of a functional structure
Advantages: efficient use of resources, obvious career pathway and specialisation of tasks
What are the disadvantages of a functional structure
Disadvantages: Lack of flexibility, bureaucratic,empire building can occur, focus is narrow department
Define divisional structure
When an organisation produces a range of products it often divides its operations into categories
What are the elements of a divisional structure
Customers
Geography
Products
Processes
What are the advantages of a divisional structure
Advantages: expertise has direction, cooperation is encouraged and greater flexibility
What are the disadvantages of a divisional structure
Disadvantages: Rivalry can be divisive, work duplicated and reduces economic scale