Chapter 4 Flashcards
Why are organisational structures important?
Makes it easier for the business to know who is responsible for what and helps the company make sure that it has people in every job role to deal with each of its activities
What is a hierarchical structure?
Structured in layers
What are the four basic layers of staff?
Directors
Managers
Supervisors
Operatives
Who are directors?
Responsible for businesses strategy(its overall direction). The directors decide on strategy and targets at regular board meetings
Who are managers?
Organise the carrying out of the directors strategy. Large firms may have senior , middle and junior managers
Who are supervisors?
Ranked below managers. Usually look after specific projects or small teams of operatives
Who are operatives?
Workers who aren’t responsible for other staff. They’re often given specific tasks to perform by managers and supervisors
What is the chain of command?
Chain connecting directors and operatives . Each level a certain amount of responsibility is delegated to people in the level below
What is the span of control?
Number of workers who report to one manager in a hierarchy
What is a tall organisational structure?
- Long chain of command with more layers of management
- each manager only has a narrow span of control. Makes a firm more effective as managers can monitor the employees they are responsible for more closely.
What is a flat organisational structure?
- short chain of command
- each manager has a wide span of control . This means thy have to manage a lot of employees at once, it can be difficult to manage a lot of employees at once
How is communication effected in a tall organisational structure?
Communication can be difficult and slow as more people need to pass on the message . It can also be hard to use verbal communication (talking face to face and telephone) if lots o managers need to be involved. Emails will make communication faster , but they’re not great when a discussion is needed. Meetings need to be set up for discussions.
How is communication effected in a flat organisational structure?
Much faster because fewer layers of management. Verbal communication can still be tricky if a managers span of control is very wide and they need to talk to each of their workers individually. If manager needs to pass on a message to each worker they can use email or group meetings instead.
What is a centralised organisation?
-all major decisions made by one person or a few at the top of the hierarchy.
Advantages of centralised organisations?
Senior managers tend to have plenty of experience , and can get an overview of the whole business. Policies will be uniform throughout the business
Negatives of a centralised organisation?
Can slow down decision making and communication of decisions can take a long time to filter through to the employees. This means that the organisation reacts slowly to change. Senior managers at the top of the hierarchy can become very powerful. Could lack specialist knowledge
What is a decentralised organisation?
Authority to make decisions is shared out
Advantages of decentralised organisations?
Employees use expert knowledge of their sector to make decisions. They dont always need to communicate these decisions with managers above them for approval , so changes can be made more quickly
Disadvantages of decentralised organisations?
Inconsistencies may develop between departments or regions . Also the decision making might not be able to see overall needs of the business.
What type of structure will a small business have?
A flat structure
What happens to the structure of a business if it grows?
Will become taller , managers needed for organise . The bigger the business the more managers needed to organise.
How can businesses be ordered into functions?
See a lot in limited companies
-each functional area does one part of the work for the business
Examples of functional areas?
Sales, marketing , customer service, operations , finance, human resources
Advantage of organising based on functions?
Specialists cam concentrate on their particular job.
Disadvantage of organising by function?
Different departments may not work well together.
How could you organise by product?
Large manufacturers-do it . Product based structure splits the organisation into different sectors, for the products produced
Main advantage of organising by product?
Managers can make decisions that are relevant to each product sector
Disadvantage of organising by product?
Can be wasteful duplication of resources between sectors.
How do businesses organise by region?
Normal for multinational companies . Divisions may be regional or national.
Main advantage of regional structure?
Spreading management between regions makes day to day control easier
Disadvantage of regional structures?
Can be wasteful duplication of resources between regions
What is a contract of employment?
A legal agreement between an employee and an employer . Contains the information that most employers must give employees in writing within two months of starting work
What does a contract of employment say?
- job title
- starting date
- hours worked, starting pay and regular date of payment
- where the employee will be working
- holidays the employee is entitled too
- details of sickness pay and any company pension
- information about disciplinary procedures
- length of notice the employee has to give if they want to leave
What does working full time mean?
working 35-40 hours a week
What does working part time mean?
Less than a full week, usually between 10 and 30 hours
Why would you work full or part time?
Full time if you need to work for financial reasons. Others prefer part time so they can spend more time with family or on other interests
How full time employees effect businesses?
Good if theres enough work and they are reliable
How part time employees can effect the business?
Make more financial sense if a business is only busy at certain times
What is job share?
They share work and pay of one full time job with another person
Why is job sharing good?
Good for employees who want to work part time hours. Might have different strengths they bring to the job . For it to work the responsibilities of the employees need to be very clear snd the employees need to be able to communicate well with each other.
What are zero hour contracts?
Means that the employer doesn’t have to offer them any work at all. Nor does the employee have to accept any work that is offered to them.
When are zero hour contracts used?
Businesses where there can be lots of fluctuation in demand . They’re a cheap form of labour for businesses. They dont waste money paying staff when theyre not needed and they dont need sick pay or holiday pay.
Who might zero hour contracts appeal too?
Someone who wants to earn extra cash but want to be able to turn down work if they’re busy. E.g students
What thre steps are used in job recruitment?
Job analysis
Advertisement
Selection
What is job analysis?
Where the firm thinks about every little detail of the job in question
How do businesses advertise for employees?
Job description-what you do
Person specification -qualifications , skills and experience
What is internal recruitment?
Recruiting employees already in the company
Advantages of internal recruitment?
Much cheaper , the post will be filled more quickly and could increase employees morale
Disadvantages of internal recruitment?
No new ideas and another role will need filling anyway
What is External recruitment ?
Recruiting from outside the business
Advantage of external recruitment?
Job advert will be seem by more people so its more likely the firm will find someone suited to the job.
Disadvantages of external recruitment?
Advertising isn’t cheap
How can recruiting the right people have many benefits?
- high productivity
- high quality output
- good customer service
- staff retention
What is a CV?
A summary of a persons details, skills, qualifications and interests. Usually need references aswell
What happens once the closing date for applications has passed?
Shortlisted candidates are invited for an interview
What happens at interviews?
Interviewers ask questions to candidates , to assess their confidence , social and verbal skills, and whether they will work at the business.
What are the four main types of tests to select who to employ?
- skills test
- aptitude test : whether the candidate has the potential to learn to do the job
- personality tests
- group tests
What is induction training?
Training introduces the new employee to their workplace and should help them make new employees feel welcome. It includes introducing them to their fellow workers and advising them of company rules and procedure. May also include initial training on how to do the job.
What is an advantage of induction training?
New employees feel confident when they start work. Less Likely to make mistakes as they know the procedures, which will increase productivity. Also increases chances of them staying if they feel welcome .
What is on the job training?
Most common form of training. The employee learns to do their job better by being shown how to do it, and then practicing. It is most suitable where practical skills are being taught and when in a safe environment.
Advantages of on the job training?
Cost effective for the employer, as doesnt have to pay for outside training
Disadvantage of on the job training?
Training often by colleagues so bad working practices could get passed on
What is off the job training?
Happens when staff learn away from the workplace. It is appropriate when employees need to learn general information about the business and procedures. Its useful for when employees are being trained for a promotion or learning a new skill. more expensive than on the job but is usually higher quality
Benefits of training for the employer?
- Trained staff should do better at their jobs.
- help stay up to date with changes in the business
- help staff feel motivated
Benefits of training for the employee?
- knowledge and skills should be able to do their jobs better , which often increases job satisfaction and motivation
- new skills could increase promotion chances
Benefits of motivated staff?
- lead to higher productivity
- high staff retention.
How can workers be paid?
Wages or salary
What is a time rate?
Pays workers by the hour . It encourages people to work longer hours. The problem is they also have an incentive to work slowly . Time rate is best for jobs where measuring out put is difficult,
What is a piece rate?
Pay based on output. Encourages people to work quickly
What are wages?
Weekly or monthly payment usually to manual workers. They can be calculated as a time rate or a piece rate.
What is a salary?
Fixed amount paid every month. Doesn’t change. Usually paid to office staff. Advantages of this is you know exactly how much you are going to get
What other types of extra financial incentives can be done?
- commission: paid to sales staff for every item they sell
- profit sharing:percentage of company profit is divided up by employees
Non financial methods of motivation?
- training
- styles of management
- fringe benefits
How training can boost motivation?
- Knows how to do job and is better at it
- boosts staffs self esteem
- more likely for a promotion and may get a greater responsibility
What does authoritarian mean?
Managers make decisions alone.
What does paternalistic mean?
Managers make decisions themselves, but after consuktation with workers
What does democratic mean?
Allows work force to influence decisions.
What does laissez-faire mean?
Managers allow workers to perform tasks as they see fit, offering help if needed.
How the styles of management effect employee motivation
If workers have some input they may be more motivated . Often a mix of management styles are adopted
What are fringe benefits?
Any reward that is not part of workers main income
Examples of fringe benefits?
- staff discount
- company cars
- gym memberships
- daily free allowance
- free health insurance
