employee structure Flashcards
centralised
this is where control and decision making is made by the highest levels of management - suits a tall structure
decentralised
this is where control and decision making is delagated to more junior employees
centralised pro
consistant decision making - ensures uniform policies - leads to a consistant brand image - therefore an increased customer trust and higher sales
centralised con
less flexibility - this leads to the business repsonding slower to market changes
decentralised pro
quicker decision making - local managers can respond to changes immediately
decentralised con
higher costs - more managers are needed leading to higher wages
delegation
giving authority to more juniour employees
delegation pros
increased motivation - this leads to an increased productivity
frees up managers time, this means they can focus on strategic decisions instead.
delegation cons
risk of poor decision making
time consuming
when is delegation most beneficial to a business
when the business is large due to more employees
tall structure
lots of layers of …
… span of control
… chain of …
stronger …
more …
lots of layers of management
narrow span of control
long chain of command
stronger supervision
more expensive
tall structure pro
clear chain of command - everyone knows who to report to improving organisation meaning increased efficiency
tall structure con
slow decision making - info must pass through many layers delaying action
flat structure con
increased workload for managers - can lead to mistakes
flat structure pro
lower costs - fewer managers wages to pay
faster decision making - quicker response to problems
delayering
reducing the number of layers in an organisational structure
delayering pro
less employee costs
faster communication
delayering con
redundancies - initial costs - employees may be less motivated
why hire part time (pros)
cheaper - cheaper cost of labour
business will schedule an exact number of hours needed to work - this leads to an increased labour productivity
why hire part time (cons)
likely the person is less loyan to the business as they are suiting their personal life - this leads to a decrease in motivation and a decreased productivity
part time vs full time - it depends on…
the type of product the business is selling - eg if it is seasonal then zero hour contracts or part time may be better
also depends on the skill of the job - business likely spent a lot of money recruiting a highly skilled individual so wants to increase staff retention so offers a full time contract.
external recruitment pro
potentially a larger pool of workers to chose from - this can mean the business can chose the best candidate
new ideas meaning an increase in innovation
internal recruitment pro
cheaper
faster process