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
what is delayering?
when you take out a layer of management by laying them off
what are the advantages of delayering?
- reduces wage costs (LT)
- more employee responsibility due to increased delegation
- faster communication
- fast decision making
what are the disadvantages of delayering?
- redundancy payments (ST)
- damages to staff morale (colleagues leaving and anxieties about further costs)
- span of control widens
define delegation?
where managers give a portion of their work to subordinates - responsibility is passed to someone else
define empowerment?
giving staff the authority and resources to make decisions and take action without first receiving management approval
what does successful delegation depend on?
- type of employee
- type of task
- training
what is a centralised structure?
decision making process is undertaken by the leader at the top of the hierarchy
what is a decentralised structure?
the decision making process is delegated and undertaken on a regional or product basis
what are the advantages of a centralised structure?
- quicker decisions (no consulting)
- strong leadership
- standardised approach to business
- consistent organisation (consumers recognise this)
- less duplication of resources, reduce costs
what are the disadvantages of centralised structure?
- decisions made w/o benefit of local knowledge
- lack of involvement in decision making process is demotivating
- experts of region may be ignored
what are the advantages of decentralised structure?
- local regions are better informed
- employees are motivated as they can make decisions
- delegation or empowerment = opportunities for local initiative
- more flexible
- less time on communication and arguing case for specific region
what are the disadvantages of decentralised structure?
- consumers may not recognise corporate identity as regions are varied
- decisions may not be appropriate for whole business
- duplication of resources occurs, which could be reduced is centralised
define organisation by function?
organising business by job roles
advantages of organisation by function?
- specialists can concentrate on what they know best
- need the rest
define organisation by product?
organising the business around recognisable products
what are the advantages of organisation by product?
- easier to see which products are performing well
- managers can concentrate energies on one product rather than central
- centre has considerable autonomy = increased motivation
what are the disadvantages of organisation by product?
- different products compete for resources –> conflict
- duplication of departments can waste resources –> cost
define organisation by system?
business is split into specialist areas which operate together
what are the advantages of organisation by system?
- contains a specialist which makes the business more efficient
what are the disadvantages of organisation by system?
- tendency for departments to treat their department as the most important part
- business may become fragmented due to lack of co-ordination
- difficult to evaluate performance due to several departmental inputs affecting performance
define organisation by division?
refers to a large/multinational organisation where there are divisions which can be geographically separated or separated by product
advantages of organisation by divisions?
- understand division in depth
- managers have full control
- communication barriers are broken down between individuals
- team is closer to customer needs –> tailor approach
- compare location’s performance
disadvantages of organisation by division?
- not involved in wider strategic outlook of business
- duplication of jobs and resources
- may lose consistency
- potential conflict for resources
explain what is meant by organisational culture?
reflects the values, attitudes and beliefs of a business
what are the factors affecting organisation culture?
- vision
- values
- practices
- people
- narrative
- place
what is the benefit of organisational culture?
- conducts the business
- treats its customers
- shows concern for local community
- employees involved in business
- communicates within the business
- commitment of business the values
what are the benefits of an organisational structure?
- brings order to the business
- can see who is responsible for whom
- communication is clear
- spans of control can be viewed
- can see if delayering is possible
- stakeholders can see strengths and weaknesses
- employees can see possibility for promotion
