Chapter 23: Organisation Structure & Employees (Version) Flashcards
Formal Organisation
The internal structure of a business, represented by an organisation chart.
Advantages Centralised
Easier control and coordination, complete control by trained and experienced senior managers.
Disadvantages Centralised
Demotivated employees without authority, reduced ideas & creativity.
Advantages Decentralised
Faster decision making, reduced manager workload, workers have autonomy, idea sharing.
Disadvantages Decentralised
Some employees lack decision making ability & dislike extra responsibility, higher costs due to less standardisation.
Organisation Chart
Diagram that shows the different job roles in a business & how they relate to each other.
Hierarchy
Levels of responsibility & authority within an organisation.
Chairperson
The person in charge at the top of the hierarchy in an organisation.
Directors
Appointed by owners to run the business; make key decisions and supervise managers.
Managers
Responsible for planning, organizing, motivating, problem-solving, and decision-making.
Supervisors
Monitor work in a specific area, supervising operatives and general staff.
Payroll Officer
Someone who is responsible for the administration of workers’ pay in an organisation.
Operatives
Skilled workers involved in production, such as machine operators and assemblers.
More status than general staff since they are more skilled
General Staff
Employees without specific skills & authority, performing various tasks with potential for promotion.
Accounts clerk
Someone who keeps records or accounts in an office.
Professional Staff
Highly skilled & trained professionals like lawyers, accountants, and doctors.
Chain of Command
The route through which orders pass down the hierarchy.
Span of Control
The number of subordinates a person is directly responsible for in a business.
Subordinates
People in the hierarchy who work under the control of a more senior worker.
Flat Structure
Fewer layers in the hierarchy, leading to better communication and lower management costs.
Hierarchical (Tall) Structure
Many layers in the hierarchy, offering promotion routes but higher costs.
Delegation
A manager assigning a task to a subordinate while retaining responsibility.
Centralised Structure
Type of organisation system where decisions are made at the top of the organisation & then passed down the chain of command.
Decentralised Structure
Type of organisation system where decision-making is distributed across various levels of employees.
Entrepreneurial Structure
A structure where decisions are made centrally by the owner or key workers.
Matrix Structure
Employees work in teams across departments on specific projects.
Authority
Right to command & make decisions.
