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
Disadvantages of a flat structure
Less chance of promotion which means that employees may not be as motivated
A lot of burden on the managers since there is a wider span of control. Harder to monitor each subordinates performance
What is delayering
Removing 1 or more levels of middle management.
What happens to employees who get delayered
They get transferred, promoted, compensated or resign.
Advantages of a short chain of command
Employees can get in contact with top management more easily
Communication up and down is quicker
Advantages of a wide span of control
Easy to delegate tasks
Employees may feel more trusted since there is less direct control from managers
What are the CEO’s responsibilities
Overall responsibility for day to day management.
Implement decisions of the board of directors
Director’s responsibility
Head a division of the business
What is a manager’s role
Responsible for a certain group of tasks or a certain area (factory, outlet, etc)
What are a manager’s responsibilities
Make sure decisions of directors are carried out
Delegate tasks to members
Take decisions in order to reach department targets
Motivate workers
Solve day to day problems
problems, motivation, targets, delegation, director
PMT DD (physics n math tutor + double ds)
Responsibilities of a supervisor
Direct control over the employees under them
Role of staff managers
Don’t have a hierarchy.
Report directly to the CEO, Board of Directors, etc.
What do staff managers do
Specialise in their tasks such as IT, HR, etc.
Functions of Management
C - commanding O - organising C - controlling P - planning C - coordinating
What is the planning function of management
Plan for the future, set targets and aims.
What is the controlling function of management
Managers should be aware of what their employees are doing. Never-ending function
What is the organising function of management
Delegate tasks and make sure employees have resources to fulfil those tasks
What is the commanding function of management
Motivate employees, make sure they know what they have to do
What is the coordinating function of management
Make sure all departments are coordinated
Consequences of a manager not performing their functions
No sense of direction
No control over employees.
