learning outcome 3 Flashcards
flat structure characteristics
Few or no levels of middle management.
Broad span of control with employees reporting directly to top-level managers.
flat structure effects on operations
Faster decision-making due to fewer levels of hierarchy.
Employees often have more responsibility and autonomy, encouraging creativity and innovation.
Risk of role confusion due to limited supervision, potentially leading to inefficiencies.
tall structure characteristics
Multiple layers of management.
Narrow span of control with clear lines of authority.
tall structure effects on operations
Clear reporting lines and defined responsibilities improve accountability.
Slower decision-making due to layers of approval.
Promotes specialization, but may create silos, reducing collaboration across departments.
centralised structures characteristics
Decision-making authority is concentrated at the top level of management.
Standardized procedures across the organization.
centralised structures effects on operations
Consistent decision-making aligns the business with its strategic goals.
Limits the flexibility and responsiveness of lower-level managers to local or immediate needs.
Employees may feel less empowered, which could impact motivation.
decentralised structures characteristics
Decision-making authority is distributed across various levels of the organization.
Lower-level managers or teams have autonomy in their areas.
decentralised structures effects on operations
Enhances flexibility and responsiveness to local markets or issues.
Encourages innovation and faster problem-solving at lower levels.
Risk of inconsistent decision-making or duplication of efforts across regions or teams.
matrix structures characteristics
Employees report to multiple managers, often based on project and functional roles.
Combines aspects of functional and project-based structures.
matrix structures effects on operations
Promotes collaboration across departments, fostering innovation and resource sharing.
Can create confusion or conflicts in authority due to dual reporting lines.
Works well for businesses managing complex projects requiring input from various specializations.
division of work
The process of breaking down a business’s goals and objectives into smaller, more manageable tasks.
These tasks are then distributed to individuals, teams, or departments based on specialization and expertise.
division of work in large organisations - operations management
Handles production processes, ensuring inputs are converted into outputs efficiently.
division of work in large organisations - finance
Manages financial resources, including budgeting, accounting, and financial reporting.
division of work in large organisations - marketing
Focuses on promoting products and attracting customers through various strategies.
division of work in large organisations - human resources
Manages recruitment, training, and employee relations.
division of work in large organisations - customer services
Addresses customer queries and ensures satisfaction.
benefits of division of work
Encourages specialization, increasing efficiency and expertise in specific tasks.
Reduces redundancy as tasks are clearly assigned to the right individuals or teams.
challenges of division of work
Over-specialization may lead to silos, reducing cross-functional collaboration.
Miscommunication between departments can create inefficiencies.
span of control
Refers to the number of subordinates directly managed by a single supervisor or manager.
types of span of control
Wide Span of Control:
A manager supervises many employees.
Common in flat structures.
Promotes autonomy and faster decision-making but may lead to managerial overload.
Narrow Span of Control:
A manager oversees a smaller number of employees.
Common in tall structures.
Ensures close supervision and better control but may slow decision-making and increase costs.
span of control impact on large organisations
Wide spans are often used in departments where employees are experienced and require minimal supervision, such as R&D or sales.
Narrow spans are typical in departments with complex or highly regulated tasks, such as finance or legal teams.
chain of command
The formal line of authority and communication within an organisation, dictating how orders are passed from the top levels of management to lower levels.
chain of command key features
Vertical Chains: Found in hierarchical structures where authority flows from top to bottom.
Horizontal Chains: Seen in flat or matrix structures where decision-making may involve collaboration across levels or departments.
chain of command in large organisations
Clear chains of command are critical for ensuring accountability and maintaining order.
They help employees understand whom they report to and who is responsible for decision-making.