Organisation Structures + Grouping - UB Flashcards
What is an internal structure?
- An organisation consists of a group of people who come together for a common goal or aim.
- The organise themselves internally to suit the type of activities that the organisation is carrying out.
How do organisations group themselves using internal structure? (5)
- The size of the organisation
- The technology being used
- Who the target market is
- The good or service being provided
- The amount of finance available
What is a tall structure?
- A tall, or hierarchical, structure has many layers of management. This means that is has a long chain of command; it will take time for instructions and information to pass through the structure.
- These structures are often found in public sector organisations but, as a consequence of the global economic downturn in the early 2000s, many public sector organisations have restructured to save staffing costs.
What is a flat structure?
- Flat structures contain fewer levels of management companies to tall ones. This means that flat structures have a shorter chain of command; it will take less time for instruction and information to pass through the structure.
- This time of structure is often found in smaller organisations. Because there are fewer layers of management compared to tall structures, the cost of management salaries will be less.
What is an organisational chart? (7)
- Levels of authority and responsibility
- The lines of communication
- Chain of command
- Different relationships
- Work delegation
- Overall responsibility of the organisation
- Span of control
What is functional grouping?
- Functional Grouping means grouping by department and people working in these departments have a similar area of interest.
- Functions might include Human Resources (HR), Operations, Marketing, Finance and Research and development.
What is span of control?
- This is the number of subordinates who report to one person.
- Wide span of control will means that many people report to one person whereas a narrow span of control will mean that very few people report to one person.
What is a line relationship?
This is a relationship between a subordinate and their line manager.
What is a matrix structure?
- Also referred to as project-based structures. These tend to be formed when a specific task or project is to be carried out. People from across the organisation will come together from various departments to form the matrix structure.
- When the task or project has been completed, the matrix structure will become obsolete. A project or team leader will be appointed to provide leadership to the task or project being undertaken.
What is Entrepreneurial structures?
- Often found in smaller organisations. This type of structure is seen when decisions are made by the owner with very little input from employees. Decisions can be made quickly but it can reduce employee’s motivation as they are not included in the process.
- Good ideas or creative solutions to problems are not considered because employees have not been consulted. This type of structure is not often found in larger organisations because it would place too much of a heavy workload on managers who have to make decisions.
What is a centralised structure?
In centralised organisations the majority of decisions are taken by senior managers and then passed down the organisational hierarchy.
What is a decentralised organisation?
Decentralised organisations delegate authority down the chain of command, thus reducing the speed of decision making.
What is a Later relationship?
This is a relationship between 2 or more people on the same level of the organisation.
What is a functional relationship?
This is a relationship between 2 functional areas in an organisation eg one providing support to another.
What is a staff relationship?
This is a relationship between 2 or more people in an organisation who provide advice or support to others.