Chapter23 (Organization Structure and Employees) Flashcards
What does running a business involve?
Planning, decision making, co-ordination, communication.
What can make running a business easier?
If workers are organized into a structure made up of different functions or department.
What is formal organization?
Internal structure of a business as shown by an organization chart.
What is organization chart?
Chart diagram that shows the different job roles in a business and how they relate to each other.
What can organizational chart show?
- How the business is split into functions and departments
- Roles of employees and their job titles
- who has responsibility
- To whom people are accountable
- Communication channels
- Relationship between different positions
How the roles played by employees vary?
Depending on the size and type of the business.
Who appointed directors?
Owners
What is the roles of directors?
make all the important decisions in the business.
What are managers responsible for?
Planning, controlling, organizing, motivating, problem solving and decision making.
What are the overall role of managers?
To achieve the objects of the owners using the resources given.
What are role of supervisors?
They monitor the work in their particular area.
Who are operatives?
They are skilled workers who involved in the production process.
Who do operatives accountable to?
Supervisors and managers
Who are general staffs?
Staffs that do not have any specific skills.
General staffs have authority?
False
Who are professional staffs?
Skill and highly trained staffs
What are features of organization structure?
- Chain of command
- Span of control
- Flat and tall structure
- Delegation
What happen if the chain of command is long?
- Messages may get lose or confused
- Changes might not be accepted lower down the chain
What is span of control?
Number of people a person is directly responsible for in a business.
What is the mean by business having wide span of control?
It means a person controls more subordinates.
What are flat structures?
Structure which have fewer layers in the hierarchy.
What are the features of flat structure?
- Better communication with short chain of command
- Lower manage costs with few layers of management
- Friendly and less formal control
What are features of tall structure?
- Poor communication through whole structure
- Higher management cost
- Help to motivate staffs with clear rout for promotion
- Formal and less friendly control
What is delegation?
Delegation is authority to pass down work from superior to subordinate?
What is the benefit and disadvantage of delegation?
- motivate workers as they feel trust by carrying our more difficult tasks
- They may be dissatisfied by these extra works with no rewards
What is centralized?
Type of organization system where most decisions are made at the top of the organization and then passed down the chain of command.
What is decentralized?
Type of organization system where decision making is pushed down the chain of command and away from the top.
Employees will have authority to make decision if the decision making is decentralized.
True
What are the advantages and disadvantages of centralized?
Advantages
- Senior management have complete control
- Senior managers are trained and experienced
- Prevent parts of business acting independently
- Coordination and control is easier
Disadvantages
- Employees may demotivated
- Brings less creativity
- Procedure may be needed to make decision making easier
- People at top hierarchy may be out of touch with the need of customers by their employees
What are advantages and disadvantages of decentralized?
Advantages
- Workers have autonomy and may be motivated
- Speeds up decision making
- It takes pressure of senior managers
- Workers are given opportunity to be creative
- Provide more promotion opportunities at different managerial levels
Disadvantages
- Senior management may lose control of resources
- Higher cost owing to inconsistent decision making process
- Some employees lack the ability to make decisions
- Some employees may not like extra responsibility
Which kind of structure do small business have?
Entrepreneurial structure
What is entrepreneurial structure?
Where decision are made centrally, by the owner or key workers.
What kind of structure do large business use?
Traditional structure
Matrix structure
What is traditional structure?
Where the structure is based on hierarchy and decision making is shared throughout the business.
What is matrix structure?
Where employees are put into teams cut across department roles who may work together on a specific project.
