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A Level Business > Component 1 Booklet 11 > Flashcards

Component 1 Booklet 11 Flashcards

1
Q

What do organisational charts show?

A
  • The internal structure of the business
  • make it easy to identify the specific roles and responsibilities of staff
  • show how different roles relate to one another and structure within the company.
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2
Q

What is a common method of organisation?

A

dividing staff into different functional areas

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3
Q

The form that a businesses internal structure takes depends on what factors?

A
  • the views of management
  • the need for different communication systems
  • the industry within which the business operates
  • the traditions of the business
  • the skills of the workforce
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4
Q

What components make up organisational design?

A
  • layers of hierarchy
  • spans of control
  • chains of command
  • communication pathways
  • levels of responsibility
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5
Q

What is Authority?

A

The power to give orders,make decisions and enforce obedience

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6
Q

What is responsibility?

A
  • Each layer of the hierarchy will have its own level of responsibility.
  • The amount of responsibility and the freedom to make decisions based on this responsibility will depend on the amount of control that had been delegated from above,this will depend on the business structures of management.
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7
Q

What is a chain of command?

A

They are the paths which communication takes place and instructions or orders are passed down.

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8
Q

What is a span of control?

A
  • it tells us how many workers are directly responsible to a manager.
  • when there has been a high level of delegation the span of control is often wide
  • workers are trusted to achieve quality and complete their tasks without constant supervision.
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9
Q

What is delegation?

A

The ability to assign some responsibility fo somebody else,usually a subordinate to carry out specific tasks

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10
Q

What is a subordinate?

A

Somebody underneath you on the structure

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11
Q

What is a hierarchy?

A

A management structure of an organisation and it indicates who is responsible for whom

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12
Q

What is centralisation?

A

When planning and decision making are done at the top of the organisation.

(Usually directors or head office)

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13
Q

What is decentralisation?

A

Planning and decision making extends to all levels of the organisation and uses delegation.

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14
Q

What is empowerment?

A
  • When you pass power to compete a job of activity to a subordinate.
  • This can give a level of freedom to work and compose a job.
  • employees are given the responsibility and trusted to complete their job and potentially jobs at a higher level
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15
Q

What is delayering?

A
  • The removal of layers or a layer of the hierarchy.

* Can increase the speed of communication and therefore change.

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16
Q

What are the typical characteristics of a tall hierarchical structure?

A
  • many levels to the hierarchy although only 3 are shown
  • narrow span of control at the top but will widen at the bottom as performance is monitored
  • at the top is senior management
  • at the bottom is shop floor workers
  • in the middle there are layers of middle management and supervisors
17
Q

What are the advantages of a Tall hierarchical structure?

A
  • Control is at the centre(senior management understand exactly who does what etc)
  • paths of communication/responsibility are clearly defined
  • departments understand their position in relation to other departments
  • Each worker knows how they fit into the organisational structure
18
Q

What are the disadvantages of a Tall hierarchical structure?

A
  • senior management are distanced from those who implement decisions
  • vertical communication is difficult
  • communication between different departments is hampered by the lack of direct contract between department
19
Q

What are the typical characteristics of a flat structure?

A
  • The span of control is wider
  • the chain of command is shorter
  • there are fewer layers of the hierarchy
20
Q

What are the advantages of a flat structure?

A
  • increased motivation as a result of the delegation of authority
  • decisions are made quicker by those nearest to the ‘ground’
  • communication is quicker and suffers less distortion
  • empowerment of workers
21
Q

What are the disadvantages of a flat structure?

A
  • loss of central control of the workforce

* different departments may not be working to the same objectives

22
Q

What are the typical characteristics of a matrix structure?

A
  • attempt to organise the management of different tasks in a way that cuts across traditional department boundaries.
  • enables people with particular specialist skills to work together in project teams.
  • each individual in the team will have their own responsibility for certain aspects of the project but they will be working together to achieve a specific objective.
23
Q

What are the advantages of a Matrix structure?

A
  • allows individuals with specific skills to contribute to a number of different projects
  • it breaks down barriers to communication and ensures that projects can be better co-ordinated
  • helps ideas and innovation spread throughout the business
  • more efficient use of Human Resources
24
Q

What are the disadvantages of a Matrix Structure?

A
  • defining what each employees main responsibilities are is difficult
  • project management using a matrix structure can be expensive because extra support systems
  • coordinating a team drawn from a number of different departments may be difficult as the culture and methods of operation in each department may be very difficult
25
Q

What are the advantages of delayering?

A
  • may allow the business to be more flexible and creative
  • reducing the chain of command would increase the spread of communication
  • reduce cost-using removal of management layer
  • can reduce the layer between management of employees which can improve motivation of staff as management are more aware.
26
Q

What are disadvantages of delayering?

A
  • gives management a wider span of control
  • can cause uncertainty due to loss of jobs which can reduce production
  • cost the business money due to having to pay to make people redundant
27
Q

What is control?

A

Where workers are watched and closely monitored to ensure that they are doing their job

28
Q

What factors does which organisational structure is best for a business depend on?

A

It depends on:

  • the views of management
  • the need for different communication systems
  • the industry within which the business operates
  • the traditions of the business
  • the skills of the workforce

A Level Business (10 decks)

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