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Management Structures Flashcards

1
Q

Management Structure

A

Refers to the layout or internal framework of an organisation that demonstrates how management is linked to the organisation and how authority is transmitted.

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2
Q

What are the different levels of management and their specialised roles?

A

Top Management - Strategic planning; monitoring of whole organisation.

Middle Management - Operational planning; supervision of lower management.

Lower Management - Front-line planning; supervision of operations

Operations - Workers/functions

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3
Q

What are the characteristics of a pyramid shaped management structure?

A
  • Rigid Lines of management
  • Numerous levels of management
  • Hierarchical information flow downwards
  • Centralised control with all decisions made by senior management
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4
Q

Why are structures important?

A

Because they allow stakeholders to know:

  • The way that communication flows within an organisation
  • The possibility of career paths
  • The hierarchy of positions within the organisation
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5
Q

What are the 7 elements of the internal environment?

A
  • Management Structures
  • Corporate Culture
  • Key Management Roles
  • Policy Development
  • Management Styles
  • Management Skills
  • Ethical Management
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6
Q

Bureaucracy

A

Is the combined organisational structure, procedures, protocols, and set of regulations in place to manage activity, usually in large organisations.

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7
Q

Bureaucratic Structures

A

Applied to structures where there are many levels of management and a clear vertical hierarchy.

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8
Q

Weberian characteristics of bureaucracy

A
  • clear defined roles and responsibilities
  • hierarchical structure
  • a reliance in established rules and procedures within the organisation
  • respect for merit
  • motivation based on a sense of duty and career prospects
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9
Q

Vertical Specialisation

A

Refers to the hierarchy of formal authority and decision making power within the organisation. It is the organisations chain of command.

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10
Q

In relation to vertical specialisation, where can differences in LSO’s be found?

A

In relation to vertical specialisation, the main differences between organisations are found in the extent to which decision-making power is centralised at the top or decentralised throughout the organisation.

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11
Q

Horizontal Specialisation

A

Refers to the division (or grouping) of people and resources within the organisation. In management theory it is usually known as departmentation.

Departments can be organised on the basis of:

  • Function
  • Division
  • Matrix
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12
Q

Functional Model

A

Staff are organised in various departments based in organisational functions.
E.g. Production, Human Resources, Finance and Marketing

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13
Q

Divisional Model

A

Staff are organised in departments based in division.

E.g. Product, service, customers, geography (region).

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14
Q

Matrix Model

A

Combines specialisation by function and division. Allows specialisation by project while each member of staff remains part of a department based on function. The model promotes both teamwork and flexibility.

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15
Q

Simple Strucutre

A

A type of organisational structure in which there are only two layers or levels. Best suits a small or micro business where there are few employees.

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16
Q

Geographic Structures

A

Represents those where business is conducted in several different locations. Best suits multinational organisations or TNC’s. Each branch could contain its own structure.

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17
Q

Functional Strucutre

A

Is where the organisation is split according to the function or work performed by the people in that area of management function/area. Best suits medium-to-large organisations.

18
Q

Divisional Strucutres

A

Has the same foundation as a functional structure but each functional area is further divided into subsections with a separate manager for each. Only suitable for especially large organisations.

19
Q

Matrix Structures

A
  • Consists of a team approach to separate projects.
  • Suits LSO’s that work on several different projects at once.
  • Control is decentralised; ensuring better monitoring of all aspects of a job.
20
Q

Organic Structures

A
  • This structure has its core business maintained by employees, with non-core functions outsourced.
  • May involve hiring consultants to give advice or complete a task.
21
Q

Bureaucratic Structures

A
  • Hierarchical structure with many levels and a distinct chain of command.
  • Associated with autocratic management styles.
  • There is a clear division of tasks and centralised decision.
  • Lack of teamwork
  • Management and lower subordinates lack communication
22
Q

Any proposed changes to the existing structure of a large organisation must have a view to…

A
  • Clearly setting out roles and line of authority
  • Assessing the advantages of the proposed change against the costs of implementation
  • Maintaining effective communication and information flows
  • Providing the appropriate amount of control over staff
23
Q

What are the characteristics of a Tall Structure?

A
  • Leads to authoritarian culture
  • Opportunities for promotion
  • Long lines of communication
  • Many layers of management
  • More people have responsibility
  • Manager responsible for few people
24
Q

What are the characteristics of a Flat Structure?

A
  • Improved communication flow
  • More responsibility for each manager
  • Fewer layers of management
  • Emphasis on team work and working independently
25
Q

Corporate Culture

A

The shared values and beliefs of the people in an organisation which can influence the actions and decision making styles of managers and employees. It is a term used to describe the shared values and beliefs of the people in an organisation.

26
Q

What are the indicators of ‘real’ corporate culture?

A
  • The prevailing management style in the organisation
  • Attitudes of management to staff and staff to management
  • Relations among staff
  • Budgets and other statements of the organisation’s priorities
  • Customer relations
  • Style of dress and language within the organisation
27
Q

How can a desired culture be cultivated?

A
  • Management providing an example of the culture in action
  • Management recognising and rewarding appropriate action
  • Management communicating aspects of the desired culture
  • Recruitment and selection practices in line with the desired culture
  • Training in line with the desired culture

Corporate culture can also be moulded to emphasise strategies and objectives such as customer service, innovation, ethical behaviour.

28
Q

Managers who are aiming to develop a learning culture in their organisation should…

A
  • Make use of team structure
  • Communicate significant information throughout the organisation
  • Encourage staff to take on new tasks and responsibilities
  • Support staff with realistic training opportunities
  • Employ other managers who are capable of exploring their own values and beliefs
  • Employ staff who show they are open to learning
29
Q

What types of corporate culture are there?

A
  • Mutual respect
  • Productive/Efficient
  • Creative
  • Corporate responsibility
  • Hard work
  • Equal opportunities/non-discrimination
  • Social environment
  • Teamwork
30
Q

Why is corporate culture important?

A
  • Unites workforce, promotes creativity, boosts morale, guides recruitment.
  • Staff retention/absenteeism, customer service
  • Respond to change and improves worker productivity
31
Q

What determines corporate culture?

A
  • Management style
  • Product or area of business
  • Morale of employees
  • Recruitment strategy
  • Mission statements
  • Communication
  • Dress code
  • Working environment
  • Teamwork
32
Q

Corporate culture can be learnt or observed through…

A
  • Practices
  • Material symbols
  • Behaviour of management
  • Staff employment
  • Language used
  • Training method
  • Skills that are trained
33
Q

Causes of change of culture?

A
  • Time
  • New managers
  • New employees
  • Merge
  • Macro factors
34
Q

Official or formal culture

A

The corporate culture expressed in LSO’s internal and external documentation presented to stakeholders. It is the culture displayed to the public.

35
Q

Real or unofficial corporate culture

A

The corporate culture that actually exists within an organisation as felt by the employees and other stakeholders day to day, it is their actual culture.

36
Q

What is a policy?

A

A policy is a written statement detailing the processes, procedures, rules and regulations that must be observed in a given situation. Policy provides the broad framework for an organisations activity. It is a general guide to decision making and action. Must be consistent with its objectives and help the organisation achieve its objectives.

  • Policies must reflect the organisations mission and goals.
  • They should provide the guiding or governing principles tat mandate or constrain the actions of people with the organisation.
  • A policy guides a member of the organisation about that they are expected to do in a given situation.
37
Q

How are policy’s linked to procedures?

A
  • Procedures are practical ways of putting policy into action
  • Procedure is more detailed and usually more routine in nature than policy.
38
Q

How can policies be effective?

A

For policy to be effective it must be plainly expressed (worded) and communicated clearly throughout the organisation.

  • This requires training of management and employees on policy
  • Training should include the organisational procedures
39
Q

Policies that are based on an organisations mission and goals will…

A
  • Reflect the mission and objectives of the organisation
  • Establish intentions of senior management
  • Include procedure
  • Offer guiding principles for actions within the organisation
  • Assist with compliance and acceptance desired behaviours within the organisation
  • Recognise the rights and obligations of people
  • Identify means and procedures for resolution of conflict
40
Q

Why are policies necessary in LSO’s?

A
  • They can help enforce legal requirements
  • They ensure consistency in approaches to work
  • They can prevent accidents
  • They allow works to clearly know the boundaries in which they work
41
Q

What are the pressures on policy development?

A 
External/Macro Environment
  -Legal/legislative
  -Technology
  -Social responsibility
  -Changing markets and other international pressures
Operating
  -Customers
  -Competitors
  -Special interest groups
  -Regulatory bodies
Internal
  -Managers
  -Staff
  -Structures
  -Owners/shareholdersj
42
Q

The Policy development process

A
  1. Issue identification
    -Management become aware of the need for a policy
  2. Research and Analysis
    -Research is conducted into policies of competitors, trading partners, and organisations to determine possible alternatives
    -Assessment of what is needed in the new/updated policy is conducted
  3. Stakeholder Input
    -Stakeholders are informed of possible impending policy change
    -Comment and feedback is called for from interested stakeholders
  4. Policy Development
    -A draft policy is prepared by a working party taking stakeholder views and ideas into account
  5. Draft Policy Posted
    -Draft policy displayed in a public place
    Stakeholders are given the opportunity to make comments
    -Comments are invited and advanced notice if intended change is issued
  6. Policy Approval
    -Feedback is considered
    -Changes are made
    -Appropriate level of management approval is obtained
    -Final copy issued
  7. Evaluation
    -Did it work?

Business (8 decks)

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