Organisational Structure Flashcards
What is an organisational structure?
-shows how employees and management are organised in a business
What does the organisational structure determine?
- authority and responsibility
- individual job roles
- people for whom others are accountable
What is hierarchy?
refer to the number of layers within an organisation
what is span of control?
number of subordinates for whom a manager is directly responsible
Explain a narrow span of control?
- allows closer supervisions of employees
- more layers on the hierarchy may be required
- helps communication
Explain a wide span of control?
- gives subordinates the change for more independence
- more approporiate if labour costs are significant
What is chain of command?
the lines of authority within a business
Explain a tall structure?
- many layers of heirarchy and narrow span of control
- tighter control
- more promotion opportunities
- takes longer for communication
- more layer, more staff, higher costs
Explain a flat stucture?
- few layers of heirarchy, wide span of control
- less direct control
- fewer promotion opportunities
- few layers, less staff, lower costs
what is delayering?
involves removing layers of management from the hierarchy of the organisation
benefits of delayering?
- lower management costs
- faster decision making
- shorter communication paths
Drawbacks of delayering?
- wider span of control (potential loss of management expertise)
Explain a matrix structure?
individuals wokr across teams and projects as well as within their own department
Benefits of matrix structure?
- helps break down traditional barriers
- individuals can use their skills within more contexts
- likely to get result in greater motivation
- encourages sharing
Disadvantages of matrix structure?
- no clear line of accountability
- difficult to coordinate
- team member may neglect functional responsibilities
- may take time to adjust to structure
What is centralised decision making?
authority is with senior management of business
What is decentralised decison making ?
decision making is spread out to include more junior members of the heirarchy, as well as individual units
What are the advantages of centralsied decision making?
- easier to implement policies
- prevents parts of businesses becoming too independent
- easier to coordinate
Disadvantages of centralised decision making?
- more bureacratic
- local or junior managers closer to customer needs
- lack of authority down heirarchy may reduce motivation
Advantages of decentralised decision making?
- decisions made closer to customer
- better able to respond to local circumstances
- improved level of customer service
Disadvantages of decentrilisation?
- decision making is not strategic
- harder to ensure consistent practises
- may be diseconomies of scale
What is empowerment?
delegating power to employees so that they make their own decisions
What is delegation?
the assignement to others of the authority for particular functions, tasks and decisions
Advantages of matrix structure?
- help break down traditional department barriers, improving communication across the entire organisation
- good way of sharing resources across departments (projects more cost effective)
Disadvantages of matrix structure?
- may not be clear line of accountability for project teams given the complex nature of structure
- difficulte to co-ordinate
Advantages of tall structure?
- wide span of control,
- lots of promotion opportunities
Disadvantages of tall structure?
- may take time to communicate decisions due to so many layers
- employees may not be involved in decisions making leading to demotivated staff
Advantages of flat structure?
- less time taken to make decisions
- employees more motivated as more authority
Disadvantages of flat structure?
- difficult for managers to superivse all staff
- few promotion opportunities, staff may leave
