Human resource management within a business environment - organisation Flashcards
what is an organisational chart?
diagram that shows the hierarchy in a business, usually from top to bottom in terms of seniority
what does an organisational chart show?
- who is responsible for which functions
- who has authority
- line of communication
- how departments are linked
- progression opportunities
what is span of control?
number of employees for who a manager is responsible for, can be narrow or wide (generally based on cost)
what are the advantages of a narrow span of control?
- cost savings –> less salaries
- easier communication
- closer management
- Better employee development
- monitor performance
what are the disadvantages of a narrow span of control?
- more levels = more cost
- managers may watch over employees too closely
- slower decision making
what are the advantages of a wide span of control?
- more people in charge
- cost efficiency - fewer managers
- faster decision making
- employees have more freedom
what are the disadvantages of a wide span of control?
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how to determine the effectiveness of a structure?
depends on:
- personality of manager
- skills of subordinates
- size of the business
- industry the business is in
define chain of command
order of authority and delegation within a business
long chain = narrow
short chain = wide
define levels of hierarchy/layers
refers to number of levels/layers in a business organisation
more layers = narrow
less layers = wide
define line relationships
vertical relationships between managers and subordinates
define staff relationships
horizontal relationship between a manager and another organisational member to/from whom the manager gives/receives or advice
what is the difference between a tall and flat structure
tall has many layers
short has few layers
what are the reasons for a tall structure?
- more promotional opportunities
- easier to see who is in charge
- easier to delegate tasks
- more structured
what are the reasons for a flat structure?
- easier communication
- more teamwork
- less tension over roles, equality
- cheaper - less managers
