LO3 - Understand the effect of different organisational structures on how businesses operate Flashcards
Define:
Flat organisational structure
Few or no levels of middle management between staff and executives
Define:
Hierarchical/Tall organisational structures
Many management between staff and executives
Define:
Centralised organisational structure
Decisions made by head office
Define:
Decentralised organisational structure
Decisions delegated to lower levels
Define
Matrix organisational structure
Teams are formed across departments for specific projects
Define:
organisation by function
organises a company into different departments based on areas of expertise (functional areas)
Define:
organisation by product/service
organises a company into different departments based on product/service
Define:
organisation by geographic location:
organises a company into different departments based on geographic location
Define:
Span of control
Number of subordinates a line manager supervises
Define:
Chain of command
The route through which messages are passed
In terms of narrow:
How does span of control affect:
1. communication paths
2. accountability, authority and responsibility
3. delegation
4. empowerment
- More direct and easy to manage messages
- Easy to manage employees, so its easy to hold them accountable
- Less delegation needed as managers can closely supervise
- Employees feel less powerful as they make most decisions
In terms of short chain of command
How does chain of command affect:
1. communication paths
2. accountability, authority and responsibility
3. delegation
4. empowerment
- Communication is quick and direct
- Accountablility is more direct as there are fewer
- Faster delegation due to less layers between top and bottom
- More empowerment, they are closer to the decision-makers
Advantages and disadvantages of:
Flat organisational structure
+Quick comms
+Quick decisions
-Large span of control
-Less chance for promotion
Advantages and disadvantages of:
Hierarchical/Tall organisational structure
+Oppurtunity for promotion
+Narrow span of control
-Messages can be distorted
-Slow decisions
Advantages and disadvantages of:
Centralised organisational structure
+Head office is experienced
+Reduced risk of conflict
-Less innovative
-Slower responses
Advantages and disadvantages of:
Decentralised organisational structure
+Quick decisions
+Innovative
-Inconsistent decisions
-Harder to control
Advantages and disadvantages of:
Matrix organisational structure
+Good comms
+Innovation
-Unclear who immediate manager is
-Potential for conflicting messages from different managers
The status and responsibilities of
CEO (Chief Executive Officer)
- Highest ranking role in an organisation
- Setting company goals
The status and responsibilities of
Directors
- Under CEO, over manager
- Ensures their department achieves org. goals
The status and responsibilities of
Managers
- Under director, over supervisors
- Oversees daily operation
The status and responsibilities of
Supervisors
- Under manager, above assistant
- Assigning tasks and guidance
The status and responsibilities of
Assistant
- Lowest ranking role in organisation
- Responsible for completing tasks
