Human Resources Flashcards
Organisational structure
The way in which a business arranges itself internally to carry out its activities.
Role
Fulfilling a task or duty within a business.
Span of control
The number of employees a manager is directly responsible for.
Delayering
The removal of one or more levels of hierarchy from a business’s organisational structure.
Communication
The exchange of information between 2 or more people.
Centralised
Businesses where important decisions are made by senior managers.
Directors
Most senior - strategic decisions
Managers
- Oversee employees
* Run the business day to day
Team Leaders
Oversee a small group of workers.
Workers
Day to day tasks.
Hierarchy
The levels of importance in an organisation chart
Delegate
Passing over responsibility to a subordinate
Subordinate
A person in a lower level of hierarchy
Chain of command
How communication gets passed down the business
Span of control
The number of people you are responsible for
Authority
Having power over other employees
Line manager
Where one employee is in charge of another less important employee
Function
Where the business is organised according to what each department does
Organisation chart
The internal structure of a business
Flat structure
- Few layers of hierarchy
* Wider span of control
Tall structure
- Many layers of hierarchy
* Narrow span of control
Benefits and drawbacks of flat organisational structure
Benefits:
• Quicker communication as there are fewer layers for messages to pass through
• Cheaper as few managers employed
Drawbacks:
• Employees may not be very well controlled and quality of work could suffer
• Training costs in ensuring workers can cope with additional responsibility
Benefits and drawbacks of tall organisational structure
Benefits:
• Managers can closely supervise quality of work
• Responsibility is kept in the hands of senior managers so less risk of costly mistakes
Drawbacks:
• Communication can easily be distorted and misunderstood
• Slow decision making as the chain of command is lengthy
Decentralised
All staff are empowered to make decisions
Benefits and drawbacks of centralised
Benefits:
• Decisions are made by experienced people
• Decisions are taken for the benefit of the whole business
Drawbacks:
• No ideas or suggestions from staff
• Some senior managers may abuse their position of power and influence decisions