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Human Resource Management > Organisation > Flashcards

Organisation Flashcards

1
Q

What is an organisational chart?

A

A diagram that shows the hierarchy in an business, usually from top to bottom in terms of seniority.

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2
Q

What do organisational charts show?

A
  • who is responsible for which functions
  • who has authority for which subordinates
  • lines of communication
  • progression opportunities
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3
Q

What is span of control?

A

The quantity of employees (subordinates) for who a manger is responsible for

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4
Q

Whats a wide span of control?

A

When a manager is responsible for many subordinates

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5
Q

Whats a narrow span of control?

A

When a manger is responsible for fewer employees

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6
Q

What are the advantages and disadvantages of wide span of control?

A

Advantages:
- more autonomy for subordinates
- more chance to show responsibility
- manager has more people to delegate to

Disadvantages:
- manager ay loose control
- staff perform worse
- staff may not like being delegated work

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7
Q

What are the advantages and disadvantages of narrow span of control?

A

Advantages:
- clearer + more direct communication
- clearer on what to do
Easier for manager to control

Disadvantages:
- may feel constantly “watched over”

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8
Q

What does the effective span of control number depend upon?

A
  • personality of manager
  • skills of subordinates
  • size of business
  • industry business operates in
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9
Q

What is chain of command?

A

The order of authority and delegation in a business

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10
Q

What are the two types of chain of command?

A
  • long chain of command
  • short chain of command
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11
Q

What does authority refer to?

A

The power an employee has over a subordinate

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12
Q

What are the benefits of a tall structure?

A
  • everyone knows who to report to
  • lines of communication clearer
  • more control - overall strategic direction
  • guidance from above
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13
Q

What are the benefits of a flat structure?

A
  • more empowering - more control + trust
  • more teams work + flexible working environment (working form home)
  • allows leaders to share ideas with subordinates
    Subordinates more contact wit those above
  • better communication
  • cheaper - less people so less salary costs
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14
Q

What is delayering?

A

A process of reducing the numbers of levels or layers in an organisational structure

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15
Q

What are the advantages do delayering?

A
  • less wage costs in long term
  • more employee responsibility due to inc delegation
  • faster communication so decision made quicker
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16
Q

What are the disadvantages of delayering?

A
  • spans of control will widen (investment of time + training possibly to get employees used to working more independently)
  • redundancy payments (short term)
  • damage o staff morale (colleagues leaving and anxiety ab further cuts)
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17
Q

What is delegation?

A

Te assignment to others of the authority for particular functions, tasks and decisions

18
Q

What is empowerment?

A

Giving employees the power to do their job eg authority to make decisions

19
Q

What does successful delegation and empowerment depend upon?

A
  • type of employee (skills + attitude)
  • type of task (level of difficulty)
  • training
20
Q

What is a centralised structure?

A

Where decision making is firmly at the top of the hierarchy - autocratic leader (usually) who makes decisions

21
Q

What are the benefits of centralisation?

A
  • ensures control maintained
  • economies of scale and overhead savings easier to achieve (marketing eos)
  • easier implementation of common policies and practices for whole business
  • quicker decision making (usually) - easier to show strong leadership
22
Q

What are the disadvantages of centralisation?

A
  • more bureaucratic - often extra layers in the hierarchy so more expensive —> more staff
  • lack of authority down hierarchy may reduce motivation of managers
  • customer service: lost flexibility and have to find leader for decisions so may be slower
23
Q

What is a decentralised structure?

A

Decision making is spread out/ delegated to include more junior managers in hierarchy. Region or an area may make the decision

24
Q

What are the benefits of a decentralised structure?

A
  • improved level of customer service bc decisions made on the spot
  • good way of training developing junior management
  • facilitates empowerment —> should improve staff motivation
25
Q

What are the drawbacks of a decentralised structure?

A
  • decision making not necessarily strategic
  • harder to ensure consistent practices + policies at each location
  • who provides strong leadership when needed (crisis)
26
Q

What would a tall structure look like in terms of span of control, chain of command and centralisation?

A

Tall structure, narrow span of control, long chain of command, centralised

27
Q

What would a structure loo like in terms of span of control, chain of command and centralisation?

A

Wide span of control, short chain of command, decentralised

28
Q

What is organisation by function (system) in terms of organisational structure models?

A

The business is arranged into specialist/ functional areas. This means each function has some input into the output of the businesses product(s)/ service(s)

29
Q

What would organisation by function look like?

A

Board of directors
|
Sales + marketing Operations HR Finance

30
Q

What are the advantages of organisation by function?

A
  • specialists can concentrate on what they do best + share ideas with eachother
  • less duplication of roles
31
Q

What are the disadvantages of organisation by function/ system?

A
  • conflicts may occur over goals, budgets ect
  • segregation of functions means communication ab products diff functions are working on is ineffective
  • difficult to credit success and or blame ab product performance
  • depts ding a lot of work but cant see outcome
32
Q

What is organisation by product?

A

The business is organised according to the different products made

33
Q

What would a business organised by product look like?

A

Chief executive
|
General manger product A General manager product B General manager product C
| | |
HR Sales Finance Sales HR Sales Finance Sales HR Sales Finance Sales

34
Q

What are the advantages of a business being organised by product?

A
  • easy to see which products are ‘profit centres’ and performing wel
  • each centre has lots of autonomy inc motivation
  • teams can see direct result of their product
  • communication barriers are broken down for specialists
35
Q

What are the disadvantages of being organised by product?

A
  • different products compete for resources (finance) causing conflict
  • duplication of departments can waste resources
  • teams may loose sight of overall direction of business bc focused on their product
36
Q

What is a matrix structure?

A

Individuals works across teams and projects as well as within their own department or function. Each ave two a managers, their normal department manager then the project team leader.

37
Q

What are the advantages of a matrix structure?

A
  • increase motivation as an employee works in small teams so get to know colleagues well and diff business areas
  • ideas flow freely through the business
  • utilises skills in the organisation
38
Q

What are the disadvantages of a matrix structure?

A
  • multiple managers can lead to inc pressure
  • can take time to work well as a team
  • having two managers inc priorities
39
Q

What is organisation by division?

A

Usually refers to a large multinational business where there are divisions that can be geographically separated (eg USA, Europe or Asia team) OR can mean the same as organisation by product.

40
Q

What are the advantages of organisation by division?

A
  • alter products selling to diff geographical markets + what customers want
  • easy to identify which regions are performing well
41
Q

What are the disadvantages of organisation by division?

A
  • duplication of roles - higher overall headcount
  • lose consistency in different regions if working to customers needs + wants

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