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OCR A-Level business > Human resource management within a business environment - organisation > Flashcards

Human resource management within a business environment - organisation Flashcards

1
Q

what is an organisational chart?

A

diagram that shows the hierarchy in a business, usually from top to bottom in terms of seniority

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2
Q

what does an organisational chart show?

A
  • who is responsible for which functions
  • who has authority
  • line of communication
  • how departments are linked
  • progression opportunities
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3
Q

what is span of control?

A

number of employees for who a manager is responsible for, can be narrow or wide (generally based on cost)

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4
Q

what are the advantages of a narrow span of control?

A
  • cost savings –> less salaries
  • easier communication
  • closer management
  • Better employee development
  • monitor performance
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5
Q

what are the disadvantages of a narrow span of control?

A
  • more levels = more cost
  • managers may watch over employees too closely
  • slower decision making
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6
Q

what are the advantages of a wide span of control?

A
  • more people in charge
  • cost efficiency - fewer managers
  • faster decision making
  • employees have more freedom
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7
Q

what are the disadvantages of a wide span of control?

A

CHECK THIS PLS

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8
Q

how to determine the effectiveness of a structure?

A

depends on:
- personality of manager
- skills of subordinates
- size of the business
- industry the business is in

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9
Q

define chain of command

A

order of authority and delegation within a business
long chain = narrow
short chain = wide

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10
Q

define levels of hierarchy/layers

A

refers to number of levels/layers in a business organisation
more layers = narrow
less layers = wide

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11
Q

define line relationships

A

vertical relationships between managers and subordinates

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12
Q

define staff relationships

A

horizontal relationship between a manager and another organisational member to/from whom the manager gives/receives or advice

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13
Q

what is the difference between a tall and flat structure

A

tall has many layers
short has few layers

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14
Q

what are the reasons for a tall structure?

A
  • more promotional opportunities
  • easier to see who is in charge
  • easier to delegate tasks
  • more structured
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15
Q

what are the reasons for a flat structure?

A
  • easier communication
  • more teamwork
  • less tension over roles, equality
  • cheaper - less managers
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16
Q

what is delayering?

A

when you take out a layer of management by laying them off

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17
Q

what are the advantages of delayering?

A
  • reduces wage costs (LT)
  • more employee responsibility due to increased delegation
  • faster communication
  • fast decision making
18
Q

what are the disadvantages of delayering?

A
  • redundancy payments (ST)
  • damages to staff morale (colleagues leaving and anxieties about further costs)
  • span of control widens
19
Q

define delegation?

A

where managers give a portion of their work to subordinates - responsibility is passed to someone else

20
Q

define empowerment?

A

giving staff the authority and resources to make decisions and take action without first receiving management approval

21
Q

what does successful delegation depend on?

A
  • type of employee
  • type of task
  • training
22
Q

what is a centralised structure?

A

decision making process is undertaken by the leader at the top of the hierarchy

23
Q

what is a decentralised structure?

A

the decision making process is delegated and undertaken on a regional or product basis

24
Q

what are the advantages of a centralised structure?

A
  • quicker decisions (no consulting)
  • strong leadership
  • standardised approach to business
  • consistent organisation (consumers recognise this)
  • less duplication of resources, reduce costs
25
Q

what are the disadvantages of centralised structure?

A
  • decisions made w/o benefit of local knowledge
  • lack of involvement in decision making process is demotivating
  • experts of region may be ignored
26
Q

what are the advantages of decentralised structure?

A
  • 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
27
Q

what are the disadvantages of decentralised structure?

A
  • 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
28
Q

define organisation by function?

A

organising business by job roles

29
Q

advantages of organisation by function?

A
  • specialists can concentrate on what they know best
  • need the rest
30
Q

define organisation by product?

A

organising the business around recognisable products

31
Q

what are the advantages of organisation by product?

A
  • easier to see which products are performing well
  • managers can concentrate energies on one product rather than central
  • centre has considerable autonomy = increased motivation
32
Q

what are the disadvantages of organisation by product?

A
  • different products compete for resources –> conflict
  • duplication of departments can waste resources –> cost
33
Q

define organisation by system?

A

business is split into specialist areas which operate together

34
Q

what are the advantages of organisation by system?

A
  • contains a specialist which makes the business more efficient
35
Q

what are the disadvantages of organisation by system?

A
  • 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
36
Q

define organisation by division?

A

refers to a large/multinational organisation where there are divisions which can be geographically separated or separated by product

37
Q

advantages of organisation by divisions?

A
  • 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
38
Q

disadvantages of organisation by division?

A
  • not involved in wider strategic outlook of business
  • duplication of jobs and resources
  • may lose consistency
  • potential conflict for resources
39
Q

explain what is meant by organisational culture?

A

reflects the values, attitudes and beliefs of a business

40
Q

what are the factors affecting organisation culture?

A
  • vision
  • values
  • practices
  • people
  • narrative
  • place
41
Q

what is the benefit of organisational culture?

A
  • conducts the business
  • treats its customers
  • shows concern for local community
  • employees involved in business
  • communicates within the business
  • commitment of business the values
42
Q

what are the benefits of an organisational structure?

A
  • 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

OCR A-Level business (57 decks)

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