Organisational And Management Structures Flashcards
Organisation structures
The way in which a business is arranged to carry out it’s activities
What things does organisation structure show
•communication routes
•delegation
•promotion/career path
•control
•problem solving
•specialisation
Layers of hierarchy
The management structure of an organisation and indicates who is responsible to whom
Chain of command
The paths that communication takes place along- instructions or orders are passed down
Levels of responsibility
The amount of responsibility and the freedom to make decisions based on this responsibility will depend on the amount of control that has been delegated from above
Span of control
The number of subordinates answerable directly to a manager
•high level of delegation= wide span of control
•narrow span of control= strict hierarchical organisations with strict, centralised control
Line manager
The person who is immediately above the employee, to whom they answer
Subordinate
The person who is immediately below the line manager
Independent structure
Where the organisation doesn’t have an obvious structure- common in professional practices such as lawyers, doctors and accountants, where they operate as a team
Traditional hierarchical structure
A series of levels within a business where each level has responsibility and authority over the levels below
Advantages of traditional hierarchical structure
•control is at the centre , and senior management fully understand their responsibilities
•paths of communication and responsibility and clearly defined
•departments understand their position in relation to other departments
•each employee knows how they fit into the organisational structure
Disadvantages of traditional hierarchical structure
•relies on agreed procedures so can be bureaucratic
•organisation may be slow to respond to customers
•communication can be poor between departments
Matrix structure
Often used when cross-functionsl teams are created to run a project- emphasises getting people together into project teams, and run by project managers who want to achieve a certain goal with specific people’s skills and experience
Advantages of matrix structure
•allows individuals with specific skills to contribute to a number of different projects
•breaks down barriers of communication and ensures projects can be better coordinated
•helps ideas and innovation spread throughout the business
•there’s more efficient use of human resources- the structure can improve flexibility and motivation
disadvantages of matrix structure
•can require expensive support systems- extra secretarial and office staff
•co-ordination/communication problems may occur- different departments which slows down decision making
•employees can have divided loyalties- conflict may occur between project and department managers
entrepreneurial structure
Exists when a few key workers at the core of the business make all major decisions
Centralised organisation
Where the majority of decisions are taken by senior managers at the top of the business
Characteristics of centralised organisation
•key decisions are made at head office
•tight control on activities
•company-wide strategies are used
•quick decision making
•good direction
•communication can be poor
•can demotivate staff
Decentralised organisation
Where authority has been passed down to lower levels in the hierarchy for decision making
Characteristics of decentralised organisation
•key decisions made by lower levels
•motivates and empowers staff
•individual strategies used
•good communication
•loss of control by Head Office
•lack of direction
•decision making takes longer
Tall organisation
•long chain of command
•many levels of hierarchy
•narrow spans of control
•close control over employees
Flat organisation
•short chain of command
•few levels of hierarchy
•wide spans of control
•more independence
Advantages of a flatter organisational structure
•increased motivation- delegation of authority
•decisions are made more quickly by those nearest the ground
•communication is quicker and suffers less distortion
•empowerment of employees
Disadvantages of a flatter organisational structure
•different departments may not be working to the same objectives
•loss of central control of the workforce
Downsizing
When a business closes down or merges aspects of their operations in order to reduce costs and remain competitive in the marketplace
