Chapter 7 & 8 Flashcards
Benefits of organisational structure
- Clear chain of commands ensures that employees know who to report to, simplifies, improves motivation,employees know their expected standard
- Wide spans of control for managers with many direct subordinates, no duplication, encourage staff empowerment, intrapreneurship and creativity for a business
- Allows for clear communication between supervisors and subordinates, info doesn’t go through long communications channels
- Clear promotional paths for staff based on expertise. Motivating for staff, they will work hard for a promotion
Chain of Command
How decisions flow from the top of an organisation through the layers at the bottom
Span of Control
The number of people reporting directly to a manager
Described as wide if the manager has many direct subordinates, narrow for tight management control
Management control
The continuous monitoring and checking of results t see if they are in line with the goals and targets set out in the plans
Stock control
Ensures that forms have the right quantity and type of goods in stock at the right time, without incurring the stockholding costs, such as insurance, security, rent or obsolescence
Quality control
Ensured that the Quality standards expected by customers are properly met
Credit control
Monitoring the customers that are given credit put limits on the amount and the time period and then ensuring that they pay up by the time
Financial control
Monitoring the financial affairs of the business to ensure it is profitable and always has enough money to pay its bills
SWOT Analysos
A management technique used to access a business in terms of its strengths, weaknesses, opportunities and threats
Planning
This involves setting targets/goals for business and choosing the best course of action
Organising
Ensuring there is a clear structure within the firm to facilitate the smooth running of the business
Delayering
Reducing the numbers of layers in the organisational structure of a business
How ICT can help in business communications
Email allows document and audiovisual to be sent instantaneously over the Internet
Internet allows low-cost communication, WiFi and social networking
EDI allows stock to be ordered automatically when it reaches a certain limit
Social media for market research, advertising and recruitment
Memo
To From Subject Date Signed
Communication
Communication is a two way process that involves transferring information from one person to another in a manner that ensures that the receiver will understand the message from the send
Internal communication
The informal network of communication that exists within every organisation and industry
Functional organisational structure
The division of business into different departments according to the management functions of marketing, production, human resources and finance
Principles of effective communication
Accuracy Clarity Timing Feedback Brief Fast Low cost
Communication channels
Routes in an organization through which information flows between people
Upward
Downward
Horizontal
Function of business meetings
Provide information and instructions to staff
Discuss an issue
Make a decision
AGM
Held once a year Required by law Shareholders receive updates on key areas of the business Dividend policy decided Election of directors
EGM
Major issue arises after AGM
Discuss and resolve issues
If takeover bid threatens future of company
Ad-hoc Meetings
Occasional basis
For specific issues or problems facing the business
Virtual meetings
Uses audio-visual and internet technology
Videoconferencing for staff in different locations
Links employees to each other
Terms of reference
Reason why the report is being written and issues it will investigate
Internet
International network of computers connected through the telephone network
Lost cost communication
Social networking
Advertising
Allows documents and audiovisuals to be sent instantaneously
Saves time
Cheap
EDI
Electronic Data Interchange
An automated stock ordering system which allows goods to be ordered by forms online automatically when stock reaches a certain level
Saves time
Videoconferencing
A type of virtual meeting where participants can see and hear each other through use of video cameras, telephone links and monitors
Saves travel costs
Highly accessible
ISO
International Standards Office
Strategic Plan
Corporate Plan
Long-term plans for a business
5 or more years
Tactical Plan
Short-term
Breaks down strategic plan
Shorter, more specific steps
