Chapter 7 (A) Organization and Management Flashcards
What is an organisation
Many people who come together to provide a good/service
What is an organisational structure?
refers to the levels of management and division of responsibilities
Advantages of an organisational structure
Easier to assign tasks
Helps you know your position in a company - who you report to, who reports to you.
What is an organisational chart
Graphical representation of a company’s organisational structure
Advantages of an organisational chart
Know which department is understaffed
Shows t he links between departments
Gives a sense of belongingness to an employee
What is a hierarchy
Referrs to the levels of management in an organisation from highest to lowest
What is chain of command
Shows how communication and tasks are passed down in a business from top to bottom
What are the two types of organisational structures
Tall
Flat
What are the characteristics of a tall organisational structure
The number of levels present in the organisational structure is more than that of a flat structure
Narrow
What are the characteristics of a flat organisational structure
The number of levels present in the organisational structure is less than that of a tall structure
Wide
Span of control
Number of subordinates working directly under a manager
Relationship between span of control and chain of command
Inversely related. Wider the span of control, shorter the chain of command
Advantages of a tall structure
More managerial positions means that employees are motivated since there are higher chances of promotion
Shorter span of control at each level means that its easier to monitor performance
Disadvantages of a tall structure
More costly -> since there are more managerial positions higher salaries have to be paid out.
Communication takes longer since chain of command is longer
Advantages of a flat structure
Communication is quick since chain of command is shorter
Less costly since there are less managerial positions, lower salaries have to be paid
Easier to delegate tasks