lo3 Flashcards
how can an organisation be structured
- function
- product of services
- geographical location
organisation by function
- most common
- employees work with others in the same function
organisation by product or services
- common in businesses that make a range of products or services
- employees work with others who produce a particular product or service
organisation by geographical location
- common in tertiary sector - need to be located close with customers
- emploees of all status levels will be employed at each branch
elements of organisational structures
- division of work
- span of control
- chain of command
division of work
- tasks that a business needs to do are shared out across the workforce.
- mostly based on functional area
span of control
number of employees an employee or manager is responsible for
- manager with narrow span of control is directly responsible for few employees
- a manger with a wide span of control is directly responsible for many employees
chain of command
prescribes who is in charge of whom and whose permission must be obtained
3.3 WRIGHT
organisational structures
-tall
-flat
-matrix
-centralised
-decentralised
tall
-many levels
- more people at the bottom
- chain of command is clear
tall advantages and disadvantages
+ narrow span of control
+ opportunities for promotion
+ can spot areas / departments to develop as its clear to see who is accountable
x them and us culture
x long chain of command - decison making will take longer and messages can get distorted
flat
- very few levels between top and bottom
- chain of command tends to be short and span of control to be wide
flat advantages and disadvantages
+ feels like a team
+ fewer managers (cut costs)
+ quicker communication
x larger span of control (workload)
x more likely to be unorganised
x less opportunities for promotion
matrix
- teams of employees taken from different functional areas to carry out a specific project and when required
matrix advantages and disadvantages
+ good communication and share good practice in the business
+ help with motivation
+ understand each other
x unclear who is immediate manager
x potential conflicting messages from function and project managers
x can cause conflict
centralised
- decisions made higher up in the organisational structure (head office)
centralised advantages and disadvantages
+ decisions made by expert - trained in the role
+ decisions made tend to unify the business, benefiting the organisation as a whole
x lower ranked workers may feel alienated and unimportant
x decisions made by high status employees who have limited understanding of customer needs
decentralised
- decisions are made in branch or lower down in the hierarchy
decentralised advantages and disadvantages
+ increased job satisfaction to more motivated workforce
+ decisions made by those who deal with the customer so more responsive to local need
x employees who make the decision s may lack the skills of experienced decisions makers
x decisions may be made to benefit an individual / department rather than the business as a whole
the use of organisation charts
- organisational hierarchy
- the division of work
- spans of control
- status level
- chain of command
organisational hierarchy
number of levels
the division of work
how work is distributed
spans of control
number of subordinates an employee manages
status level
shown by the horizontal levels
chain of command
how instructions are passed through an organisation
