Chapter 7 Flashcards
Organization and management (chain of command, and span of control)
Organisational structure
refers to the levels of management and division of responsibilities within an organisation.
Organisational chart
refers to a diagram that outlines the internal management structure.
Hierarchy
refers to the levels of management in any organisation, from the highest to the lowest.
Level of hierarchy
refers to managers/supervisors/other employees who are given a similar level of responsibility in an organisation.
Chain of command
is the structure in an organisation which allows instructions to be passed down from senior management to lower levels of management.
Span of control
is the number of subordinates working directly under a manager.
Directors
are senior managers who lead a particular department or division of a business.
Line managers
have direct responsibility for people below them in the hierarchy of an organisation.
Supervisors
are junior managers who have direct control over the employees below them in the organisational structure.
Staff managers
are specialists who provide support, information and assistance to line managers.
Delegation
means giving a subordinate the authority to perform particular tasks.
Leadership styles
are the different approaches to dealing with people and making decisions when in a position of authority – autocratic, democratic or laissez-faire.
Autocratic leadership
is where the manager expects to be in charge of the business and to have their orders followed.
Democratic leadership
gets other employees involved in the decision making process.
Laissez-faire leadership
makes the broad objectives of the business known to employees, but then they are left to make their own decisions and organise their own work.
Trade Union
is a group of employees who have joined together to ensure their interests are protected.
Closed shop
A closed shop is when all employees must be a member of the same trade union.
Advantages of Organisation chart
- Employees are aware of the communication channel used to reach them.
- The chart shows how everyone is linked to the organisation.
- Everyone is in a department and this gives them a sense of belonging.
Long chain of command = ?
Short chain of command = ?
Long chain of command = narrow span of control = Tall structure
Short chain of command = Wider span of control = Wide structure
Short chain of command Advantages
- Communication is quicker and more accurate
- Top managers are less remote from the lower levels of hierarchy
- More tasks for managers:
- So more delegation from managers
- Resulting to less direct control of workers
- Workers feel more trusted
- Obtain more job satisfaction
Short chain of command Disadvantages
Managers could lose control of what the subordinates are doing
Subordinates could make mistakes if poorly trained
The roles and function of management
Planning
- Setting aims or targets
- Gives a sense of direction for the organisation.
The roles and function of management
Organising
- Tasks are delegated to others since manager cannot do everything
- Make sure resources are available so that tasks are successful.
The roles and function of management
Coordinating
- Means ‘bringing together’
- Example: Production department should work well with marketing department.
The roles and function of management
Commanding
- Make sure all supervisors and workers are keeping to their targets and deadlines
- Give proper instruction and guidance, so tasks are carried out by people below them in the organisation.
The roles and function of management
Controlling
- Managers must try to measure and evaluate the work of all individuals and groups and make sure they are on target.
Why is management necessary to any organisation?
Without management the business is going to lack:
* A sense of control and direction
* Coordination between departments, leading to wastage of effort
* Control of employees
* Organisation of resources, leading to low output and sales.
Advantages of delegation to a manager
- Managers can concentrate on other important tasks.
- Managers less likely to make mistakes
- Delegation helps to train workers and they can make progress in the organisation
Advantages of delegation for the subordinate
- Work becomes more rewarding and interesting
- Employees feel more important and trust is being put in them
- Delegation helps to train workers. It gives them career opportunities.
Why might a manager not delegate
- Afraid that subordinates might fail, so managers want to control everything
- Risk that subordinates might do a better job than the manager. Managers might feel insecure.
Delegation must mean?
- a reduction in direct control by supervisors and managers once tasks are done by workers
- increasing trust of workers by supervisors and managers
Why is a good manager important
- Motivates employees
- Give guidance and advice to employees they manage
- Inspire employees to achieve more
- Manage resources effectively and keep costs under control
- Increase profitability of business
Leadership styles
- Autocratic leadership
- Democratic leadership
- Laissez-faire leadership
Autocratic features
- Managers expects to be in charge of the business and have their orders followed
- Keep themselves from employees
- Make all decisions and keep information to themselves.
adv and dis of autocratic leadership
- Quick decision making
- No opportunity for employee input into key decisions
Features of democratic leadership
- Democratic leadership gets other employees involved in the decision-making process
- Plans are openly discussed before final decision is made
adv and dis of democratic leadership
- Better results could result from consulting employees and using their ideas and experiences
- Unpopular decisions, like worker redundancy might not be effective
Laissez faire features
- Laissez-faire is french for ‘leave to do’
- Makes the board objectives of the business known to employees, but then they are left to make their own decisions and organize their work.
- Communication can be difficult in this type of organization as clear direction is not given
adv and dis of Laissez faire leadership
- Encourage employees to show creativity and responsibility
- Not appropriate in organisations where a consistent and clear decision making structure is needed, example providing customer service.
benefits of trade unions
for employees
- Strength in numbers when negotiating with employers
- Improved conditions of employment. Example: rates of pay, holiday
- Improved environment where people work, for example health and safety.
- Improved benefits for members not working because of sickness, retirement,redundancy
- Improved job satisfaction by encouraging training
drawbacks of trade unions
for employees
- Cost money to become a member.
- Workers may be required to take industrial action (boycott strike) even if they don’t agree.
benefits of trade unions
for employers
- Improve communication between workers and management
- Wage agreements easier to negotiate
drawbacks of trade unions
for employers
- Trade unions can organize a strike
- Wages are likely to be higher, business cost can go up.
