Organisation Flashcards
how to show how a buisness is organised
using an organisational chart
shows the hierarchy in the business - top to bottom or from board of directors to shop floor workers etc.
Span of control
the number of employees for whom a manager/superior is responsible for
great/wide - manager is responsible for many employees
narrow/thin- manager is responsible for few employees
what recommended as the best span of control
is 4/5
because as the number in the SPAN OF CONTROL INCREASES, the number of CHANNELS OF COMMUNICATION INCREASE
= effective communication can break down
how many people are involved in the span of control dependent upon:
- manager personality
- size of the business
- whether or not the business is centralised
- degree of competition in the market - costs are an issue then WIDER will be encouraged - DELAYERING
- skills of employee or subordinate
- if employees have a good idea of where they want to go with the business then less supervision and wider span
small span of control
number of layers/levels required will INCREASE
more layers for communication to pass through
=ineffective communication
Chain of Command
about the way on which RESPONSIBILITY IS ORGANISED within a business
serve as a useful guide to communication
what are Levels of Hierarchy
refers to the number of layers/levels in the buisness organisation
will depend on the TYPE OF ORGANISATIONAL STRUCTURE chosen by the business
too many levels/layers may not be good for a business - hard for promotion etc.
what is Delayering
as a result of RATIONALISATION by the business
competitive market, keep costs under control = remove layer or tier of management
advantages and disadvantages to Delayering
- provides an opportunity for employees to have more responsibility - motivation
- decision making process is made quicker as fewer layers have to be discussed with to go ahead with something and agree on it
- span of control will increase
- implications for costs in the short term - potential redundancies might have to happen to achieve the delayering
- demotivating
- reduced job security
whats Delegation
more delegation - the bigger the span of control will be - the wider the organisational structure
how much delegation goes on depends on:
- leadership style (democratic = more delegation)
- how busy the manager or leader is (more busy = more delegation)
- ability or willingness of employees to take on extra responsibility
- type of task to be delegated
whats Empowerment
giving employees responsibility for the tasks they preform
FORM OF DELEGATION
by enriching their jobs, they hope employees will be more motivated
may give business the power to reduce the number of layers in its organisational structure (delayer)
horizontal organisation structure
flat
large span of control
each manager is responsible for a large number of employees
associated with a democratic style of leadership
delegation is encouraged, so a more motivated workforce
vertical organisation structure
taller
smaller span of control
less democratic than under the flat structure
large number of layers in the structure = more bureaucratic
centralised structure
associated with autocratic leaders
WANT TO KEEP FIRM CONTROL OF THE BUSINESS
leader is involved with everything
all communication goes through him/her
DECISION MAKING TAKES PLACE AT THE TOP OF THE HEIRARCHY
decentralised structure
allows the decision making to take place away from head office
may be decentralised by product or by area/region
wide span of control
democratic leadership associated with this - more employees will have responsibilities delegated to them
organisation by system
business is split into SPECIALIST AREAS which OPERATE TOGETHER to make the business function efficiently
each part of the system/departments contribute to the output of the business
- contain specialisests who can concentrate on what they do best