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Business Yellow Unit > Internal Structures > Flashcards

Internal Structures Flashcards

1
Q

What do organisational charts show?

A
  • who is responsible for the overall business
  • different levels of authority and responsibility
  • lines of communication and chain of command
  • span of control
  • relationships within the organisation
  • where the work can be delegated
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2
Q

Organisational charts key words:

A
  • Responsibility
  • Authority
  • Chain of command
  • delegation
  • lines of communication
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3
Q

What is Span of control?

A

The number of staff a manager has responsibility for

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4
Q

What is WIDE span of control?

A
  • more empowerment is possible
  • tasks can be delegated more easily
  • can cause lots of stress for managers
  • may be motivating to managers
  • fewer managers saves money
  • more effective and quicker decision making
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5
Q

What is NARROW Span of Control?

A
  • less empowerment
  • delegation more difficult
  • more opportunities for subordinates to communicate with their managers
  • slower decision making due to long chain of command
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6
Q

What are the types of relationships within an organisation?

A
  • line
  • lateral
  • staff
  • functional
  • informal
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7
Q

What is a line relationship?

A

This describes the relationship between a superior and a subordinate and can be identified as a vertical line between individuals on an organisation chart

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8
Q

What is a lateral relationship?

A

Exist between individuals at the same level in the organisations hierarchy. These individuals have the same levels of authority and responsibility. Usually illustrated by a horizontal line on an organisation chart.

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9
Q

What is a staff relationship?

A

This is a relationship between the organisation and someone in it who acts in an advisory capacity for the benefit if the organisation as a whole.

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10
Q

What is a functional relationship?

A

Exist when departments are given responsibility for a specific function throughout the organisation.

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11
Q

What is an informal relationship?

A

These are relationships that develop between staff when they interact informally with each other. Eg. During lunch breaks.
This creates an opportunity for employees to share info and support.

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12
Q

What are the types of structures?

A

Tall (hierarchical)
Flat (hierarchical)
Matrix
Entrepreneurial

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13
Q

Factors that affect choice of structure?

A
  • size of organisation
  • technology being used
  • who the customer is
  • the good or service being provided
  • finance available
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14
Q

What is the tall hierarchical structure?

A

This has many layers of management and therefor is more managers than a flat structure

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15
Q

Adv of tall structure?

A
  • clear lines of communication
  • lots of promotion opportunities
  • opportunities for specialisation
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16
Q

Disadv of tall structure?

A
  • slower to communicate and make decisions
  • more expensive for managerial salaries
  • senior and junior staff disconnected
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17
Q

What is a flat hierarchical structure?

A

This has fewer layers of management meaning each manager is in charge if more staff.

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18
Q

Adv of flat structure?

A
  • staff are empowered
  • quicker decision making
  • less managerial wages
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19
Q

Disadv of flat structure?

A
  • less chance of promotion
  • managers have more staff to control
  • less clear communication lines
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20
Q

What is a matrix structure?

A

Usually used for products and consists of staff from various functional departments working together. Group is dissolved when task is completed

21
Q

Adv of a matrix structure?

A
  • staff with different skills and viewpoints work together

- motivates staff as they get leadership opportunities

22
Q

Disadv of a matrix structure?

A
  • may be unclear who to report to

- can be expensive as managerial roles are duplicated

23
Q

What is an entrepreneurial structure?

A

Used in smaller organisations where major decisions are made by one or two people

24
Q

Adv of entrepreneurial structure?

A
  • quick decision making
25
Q

Disadv of entrepreneurial structure?

A
  • lack of staff involvement with decisions- motivation

- lots of responsibility for few decision makers

26
Q

What is delayering?

A

Involves cutting out levels of management within the organisation to “flatten out” the structure. Used by companies to cut costs, increase efficiency and overcome its competition.

27
Q

What is downsizing?

A

When a company reduces its workforce, usually a result of poor economic conditions. (the company has to cut jobs in order to lower costs and maintain profitability.)

28
Q

What is centralisation?

A

Where decisions are made by senior management for the whole organisation

29
Q

Adv if centralisation?

A
  • uniform approach for whole organisation

- most senior people have responsibility

30
Q

Disadv of centralisation?

A
  • staff have no involvement in decision making (motivation)

- lack of local knowledge

31
Q

What is de-centralisation?

A

Where decision making is delegated to staff throughout the organisation, staff make decisions in branches or departments

32
Q

Adv of de-centralisation?

A
  • staff are empowered and motivated

- local/departmental needs can be taken into account

33
Q

Disadv of de-centralisation?

A
  • lack of consistency of approach

- staff may make decisions Inconsistent with company wide approach

34
Q

What are the types of grouping?

A
  • Functional
  • Product/service
  • Customer
  • Place/territory (geographical)
  • Technological
35
Q

What is functional grouping?

A

Grouped by department, eg marketing, finance, human resources etc

36
Q

Adv of functional grouping?

A
  • clear structure/lines of authority
  • clearly defined tasks and jobs
  • specialism in each function
  • staff can seek assistance and support from colleagues easily
  • less duplication of resources
37
Q

Disadv of functional grouping?

A
  • departmental aims may overtake those of the organisation
  • can be slow to respond to market changes
  • may compete, resulting in poor relationships
38
Q

What is product/ service grouping?

A

An organisation is structured around the products its produces. Each department focuses on one particular product

39
Q

Adv of product/service grouping?

A
  • product expertise is built up

- quick responses to market changes

40
Q

Disadv of product/service grouping?

A
  • rivalry between departments

- lines of authority may not be as clear

41
Q

What is technological grouping?

A

When organisations group their activities along technological lines such as building a car

42
Q

Adv of technological grouping?

A
  • staff become highly specialised
  • it can be cheaper to train staff as they only have to learn to operate one piece of tech
  • problems with machinery can be more easily identified
43
Q

Disadv of technological grouping?

A
  • work can become low skilled and repetitive and so staff lose motivation
44
Q

What is customer grouping?

A

Organisations are structured around particular customer groups

45
Q

Adv of customer grouping?

A
  • positive customer relationships can be built

- staff knowledge of customers

46
Q

Disadv of customer grouping?

A
  • high staffing costs
47
Q

What is place/territory (geographical) grouping?

A

Organisations structured around geographical area in which it operates

48
Q

Adv of place/territory grouping?

A
  • can become familiar with different cultures in which they work
  • can use tech to good effect
49
Q

Disadv of place/territory grouping?

A
  • can be expensive

- duplication of effort can occur

Business Yellow Unit (4 decks)

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