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Business A-level > Organisational Structure > Flashcards

Organisational Structure Flashcards

1
Q

What is an organisational structure?

A

-shows how employees and management are organised in a business

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2
Q

What does the organisational structure determine?

A
  • authority and responsibility
  • individual job roles
  • people for whom others are accountable
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3
Q

What is hierarchy?

A

refer to the number of layers within an organisation

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4
Q

what is span of control?

A

number of subordinates for whom a manager is directly responsible

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5
Q

Explain a narrow span of control?

A
  • allows closer supervisions of employees
  • more layers on the hierarchy may be required
  • helps communication
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6
Q

Explain a wide span of control?

A
  • gives subordinates the change for more independence

- more approporiate if labour costs are significant

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7
Q

What is chain of command?

A

the lines of authority within a business

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8
Q

Explain a tall structure?

A
  • many layers of heirarchy and narrow span of control
  • tighter control
  • more promotion opportunities
  • takes longer for communication
  • more layer, more staff, higher costs
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9
Q

Explain a flat stucture?

A
  • few layers of heirarchy, wide span of control
  • less direct control
  • fewer promotion opportunities
  • few layers, less staff, lower costs
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10
Q

what is delayering?

A

involves removing layers of management from the hierarchy of the organisation

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11
Q

benefits of delayering?

A
  • lower management costs
  • faster decision making
  • shorter communication paths
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12
Q

Drawbacks of delayering?

A
  • wider span of control (potential loss of management expertise)
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13
Q

Explain a matrix structure?

A

individuals wokr across teams and projects as well as within their own department

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14
Q

Benefits of matrix structure?

A
  • helps break down traditional barriers
  • individuals can use their skills within more contexts
  • likely to get result in greater motivation
  • encourages sharing
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15
Q

Disadvantages of matrix structure?

A
  • no clear line of accountability
  • difficult to coordinate
  • team member may neglect functional responsibilities
  • may take time to adjust to structure
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16
Q

What is centralised decision making?

A

authority is with senior management of business

17
Q

What is decentralised decison making ?

A

decision making is spread out to include more junior members of the heirarchy, as well as individual units

18
Q

What are the advantages of centralsied decision making?

A
  • easier to implement policies
  • prevents parts of businesses becoming too independent
  • easier to coordinate
19
Q

Disadvantages of centralised decision making?

A
  • more bureacratic
  • local or junior managers closer to customer needs
  • lack of authority down heirarchy may reduce motivation
20
Q

Advantages of decentralised decision making?

A
  • decisions made closer to customer
  • better able to respond to local circumstances
  • improved level of customer service
21
Q

Disadvantages of decentrilisation?

A
  • decision making is not strategic
  • harder to ensure consistent practises
  • may be diseconomies of scale
22
Q

What is empowerment?

A

delegating power to employees so that they make their own decisions

23
Q

What is delegation?

A

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

24
Q

Advantages of matrix structure?

A
  • help break down traditional department barriers, improving communication across the entire organisation
  • good way of sharing resources across departments (projects more cost effective)
25
Q

Disadvantages of matrix structure?

A
  • may not be clear line of accountability for project teams given the complex nature of structure
  • difficulte to co-ordinate
26
Q

Advantages of tall structure?

A
  • wide span of control,

- lots of promotion opportunities

27
Q

Disadvantages of tall structure?

A
  • may take time to communicate decisions due to so many layers
  • employees may not be involved in decisions making leading to demotivated staff
28
Q

Advantages of flat structure?

A
  • less time taken to make decisions

- employees more motivated as more authority

29
Q

Disadvantages of flat structure?

A
  • difficult for managers to superivse all staff

- few promotion opportunities, staff may leave

Business A-level (29 decks)

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