Human Resources Flashcards
What is meant by the key term organisational structure?
a system used to define a hierarchy within an organization.
State what is meant by span of control?
is the number of subordinates for whom a manager is directly responsible for.
Two benefits of a narrow span of control.
- close relationships between workers and employees - possibility for more upward growth for employees
Two benefits of a wide span of control.
- Less expensive because the business employs fewer managers - With only one manager, or a manager with a supervisor or team leader in the hierarchy below, most employees are all on the same level and can work with each other with clear delegation of duties.
What is a line relationship?
authority and control are exercised from above and pass down through the hierarchy.
Define Delegation?
is the assignment of any responsibility or authority to another person
Define Delayering?
involves removing one or more levels of hierarchy from the organisational structure.
Two advantages of delayering to a business.
- It can improve communication within the business as messages have to pass through fewer levels of hierarchy - It can reduce costs as fewer (expensive) managers are required
Two disadvantages of delayering.
- Delayering can have a negative impact on motivation due to job losses. - Those managers remaining will have a wider span of control which, if it is too wide, can damage communication within the business.
Outline the relationship between delayering and increased delegation.
Because delayering creates a wider span of control job delegation is easier as there is more people to delegate work to.
Explain what is meant by chain of command.
- refers to the different levels of command within the organization.
Examples of Tall and Flat organisational structures.
What is a Tall organisation?
have many levels of hierarchy. The span of control is narrow and there are opportunities for promotion. Lines of communication are long, making the firm unresponsive to change.
What is a Flat organisational structure?
have few levels of hierarchy. Lines of communication are short, making the firm responsive to change. A wide span of control means that tasks must be delegated and managers can feel overstretched.
What is a Centralised Organisation?
the majority of decisions are taken by senior managers and then passed down the organisational hierarchy. (decisions made at the top)
What is a Decentralised Organisation?
delegate authority down the chain of command, thus reducing the speed of decision making.
Two disadvantages of flat structures.
- It Is Cost Efficient as there are fewer managers meaning less wages
- Promotes faster decision making because fewer people have to be consulted about making a decision
Two advantages of tall strucutres.
- provide a clear, distinct layers with obvious lines of responsibility and control
- clear promotion structure.
What is meant by organisation by function?
- when the organization is divided into smaller groups based on specialized functional areas
One benefit of organising a business by function.
- It achieves greater operational efficiencies, as employees with shared skills and knowledge work together and perform similar functions.
One drawback of organising a business by function.
- Communication in organizations with functional organizational structures can be rigid.
- Slow to react in response to environmental changes.
What is meant by organisation by product?
is the grouping of sales and production efforts of a business as per the line of products and services of the business
Two advantage of organising a business by product.
- extend knowledge or expertise within specialised divisions
- focus on specific market segments
Two drawback of organsing a business by product.
- duplicating functions and resources, eg a different sales team for each division
- losing central control over each separate division
If ‘Sky’ was organised by product indentify three products that the business might be organised around?
- Broadband
- TV
- Mobile Phone
Advantage of a Centralised structure.
Prevents other parts of the business becoming too independant
One disadvantage of a centralised structure.
Lack of authority is likely to demotivate staff
