Decision Making Internal Structures Flashcards
what is centralised decision making
it is often used by retailers who want the same customer service in all branches. taken by head office
what are the advantages of centralised decisions
- decisions made my experiences staff
- easier to promote corporate image
- standardised procedures across the organisation
what are disadvantages of centralised decisions
- heavy reliance on key staff and HQ who are expected to make major decisions
- action can be delayed whilst decision is made
- communication slower across the org
what is decentralised decision making
used by conglomerates with a diverse product range who deal with customers with different wants and needs. taken in HQ
what are the advantages of decentralised decisions
- quicker decisions made
- decisions made by staff who undergrad the needs of their customers
- staff are motivated as they make their own decisions
what are disadvantages of decentralised decisions
- decisions taken may focus only on division rather than the whole org
- divisional staff may be incapable of taking decisions without training
- duplication of decisions can cost eg management time
what is entrepreneurial structure
- used by small businesses
- very few decision makers
- usually kew workers or owners
what are the advantages of entrepreneurial structures
- decisions are taken quickly by core staff
- staff know who they are to go to
- decisions are made from backround knowledge of the business
what are the disadvantages of entrepreneurial structures
- decision makers have a heavy work load
- if decision makers aren’t available the decisions are delayed
- staff are rarely consulted on decision making which can be demotivating
what is a matrix structure
- used by workers in teams across the org
- to complete specific tasks
- decisions made by skilled workers
- workers move between projects
what are advantages of matrix structure
- best person is selected to carry out the jobs
- helps tackle complex problems
- improve job satisfaction and staff motivation as there is a variety of things
what are the disadvantages of matrix structure
- team members must report to leader and manager which can cause conflict/confusion
- coordinating staff might be a problem
- difficult to identify priorities between job role and team responsibilities
what is empowering staff?
giving staff responsibility for their own work and allowing them to make decisions
what are advantages of empowering staff
- motivates staff
- skills and experience develop
- decisions made by workers so better decisions made
disadvantages of empowering staff
- staff may want higher pay
- staff could be less capable
- staff may not want involved in decisions
- managers may not want to give empowerment if lack of trust
