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Business Theme 1 > Managing People 1.4 > Flashcards

Managing People 1.4 Flashcards

1
Q

What does the organisational structure show?

A

How employees + management are organised in a business

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2
Q

What does the organisational structure determine?

A
  1. Authority + responsibility
  2. Job roles/ title
  3. Accountability
  4. Communication flows
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3
Q

What do organisation charts show?

A
  1. Span of control
  2. Line management
  3. Chain of command
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4
Q

What are the levels of hierarchy?

A

Number of layers (of management/ supervision) within an organisation

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5
Q

What is the span of control?

A

Number of employees who are directly supervised by a manager

(7= wide, below 3= narrow)

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6
Q

What does the span of control depend on?

A
  1. Experience of manager
  2. Nature of business
  3. Skill/ attitude of employee
  4. Tradition/ culture of organisaton
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7
Q

Factors of a narrow span of control

A
  • Close supervision
  • More layers in hierarchy required?
  • More effective communication
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8
Q

Factors of a wide span of control

A
  • Independence of subordinates
  • More appropriate if labour costs significant
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9
Q

What is the chain of command?

A

Lines of authority within a business

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10
Q

What are the advantages of a flat structure?

A
  • Collaboration
  • Faster/ efficient decision making
  • Creativity + innovation
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11
Q

What are the disadvantages of a flat structure?

A
  • Lack of clear hierarchy
  • Not provide clear opportunities for career advancement
  • Employees take multiple roles (burnout)
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12
Q

What are the advantages of a tall structure?

A
  • Clear hierarchy (roles + responsibilities)
  • Promotes specialisation
  • Opportunity for career advancement
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13
Q

What are the disadvantages of a tall structure?

A
  • Communication barriers
  • Slow decision making
  • Lead to excessive levels of control
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14
Q

What are some ways to structure?

A
  • Function
  • Product/ activity
  • Area
  • Customer
  • Process
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15
Q

Why would a business change its organisational structure?

A
  • Business growth
  • Reduce cost
  • Improving employee motivation
  • Customer service improvements
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16
Q

What are the challenges of changing a businesses organisational structure?

A
  • Employee resistance
  • Disruption + demotivation
  • Costs
  • Negative impact on quality
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17
Q

What is delayering?

A

Removing the layers of management from hierarchy

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18
Q

What are the benefits of delayering?

A
  1. Reduce costs
  2. Improved communication
  3. Faster decision making
  4. Faster innovation
  5. Motivates employees
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19
Q

What are the drawbacks of delayering?

A
  1. Increased workload
  2. Reduced career progression
  3. Negative impact on morale
  4. Increased stress
20
Q

What is a matrix structure?

A

Individuals work across teams + projects
(teams temporary/ permanent)

21
Q

What are the advantages of a matrix structure?

A
  1. Utilise skills within organisation
  2. Effective communication
  3. Increased morale
  4. Generate new ideas
22
Q

What are the disadvantages of a matrix structure?

A
  1. Split across 2 managers/ departments (what to do first)
  2. Takes time to gel as a team
23
Q

What does it mean when a business is centralised?

A

Authority with senior managers at the centre of the business

24
Q

What does it mean when a business is decentralised?

A

Authority delegated further down hierarchy

25
What is centralised decision making?
Decision making kept at the top of the hierarchy
26
What are the benefits of centralised decision making?
1. Strong control over decision making 2. Optimise resource allocation across departments 3. Faster decision making 4. Clear communication
27
What are the drawbacks of centralised decision making?
1. Low employee morale 2. Lack of flexibility (hard to quickly adapt 3. Limited innovation 4. Communication may not flow between layers
28
What is decentralised decision making?
Decision making spread out to include more junior managers in hierarchy
29
What are the benefits of decentralised decision making?
1. Staff motivation 2. Local teams respond quickly to changes in local area 3. Better customer service
30
What are the drawbacks of decentralised decision making?
1. Decisions made by less experienced people 2. Local decisions inconsistent with overall strategy?
31
What is delegation?
Assignment to others of authority for particular function
32
What are the advantages of delegation?
1. Pass on responsibility 2. Motivate staff
33
What are the disadvantages of delegation?
1. May be to worse standard 2. Less motivation (due to lower pay)
34
What is job empowerment?
Delegating power to employees so they can make own decisions
35
What is motivation and where does it come from?
Will to work Enjoyment of work itself/ desire to achieve certain goals
36
Who invested the theories of motivation?
- Taylor - Maslow - Herzberg - Mayo
37
What theories of motivation are there?
- Scientific management (T) - Hierarchy of needs (Mas) - Two factor theory (H) - HR theory (May)
38
What was Taylors scientific management theory of motivation?
Identify efficient method of production-> find most efficient workers-> train remaining worker to work like best-> pay based on productivity
39
How do businesses use Taylor's approach to motivation?
- Workers trained for 1 specific task - Only paid for completed work (piece rate pay)
40
What are the advantages of Taylor's approach to motivation?
1. Increased efficiency 2. Reduce error due to standardised procedure 3. Clear hierarchy 4. Improved training + development
41
What are the drawbacks of Taylor's approach to motivation?
1. Overemphasis on efficiency reduces worker satisfaction 2. Workers disengage from work 3. Limited applicability (doesn't work for all roles) 4. Potential for exploitation (welfare not considered)
42
What was Maslow's hierarchy of needs theory of motivation?
Top: - Self-actualisation (achieving targets) - Esteem (Promotion) - Social (part of a team) - Safety (working env.) - Psychological (basic needs)
43
What does Maslow's hierarchy suggest?
- 5 level of human needs which employees need to have fulfilled at work - Need to fully meet lower level before moving (motivated by opportunity) - Business should offer different incentives
44
What are the advantages to a business of applying Maslow's hierarchy?
1. Higher employee satisfaction 2. Offers incentives to increase motivation 3. Improves employee performance
45
What are the disadvantages to a business of applying Maslow's hierarchy?
1. Doesn't fit everyone (may need to tailor to meet individual needs) 2. Expensive 3. Time consuming

Business Theme 1 (5 decks)

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