Organisational Structure Flashcards
The organisational charts
What is an organisational chart?
A pictorial diagram of an organization that shows lines of authority and responsibility within a firm
How does authority flow in a line org. chart?
It flows from the top to the bottom
The advantages of a line org chart:
- Easy to understand
- Lines of authority are well defined
- Decisions can be reached quickly
- Employees are clear about whom they report to
The disadvantages of a line org chart:
- Effective communication can be obstructed between management and the employees if it becomes too tall
- The structure is rigid and will not be able to show cross departmental teams
- Dictatorial
- Overloads key persons
Line structures best suit the following:
- Small business
- The business operation is simple in nature
- The activities are of routine nature or machine-based
A staff org structure is an…
Expansion of a line organisation structure
What does a line org structure comprise of?
It comprises all the non-revenue-generating departments
What is the aim of a line and staff org chart?
The aim is to show the main relationships and staff or supporting relationships within an organisation.
The advantages of a line and staff org chart are:
- Facilitates the work faster and better
- Promote efficiency in the org
- Experience and advice are properly utilized
The disadvantages of a line and staff org chart are:
- Complex and difficult to understand
- If powers are undefined it can lead to confusion and conflict
- No unity of command
What does a functional org structure identify?
It identifies the business in terms of the basic functions
For a functional org chart the managers have a…
Horizontal and lateral relationship
The advantages of a functional org chart are:
- Simple to understand
- Unity of command
- Specialization allows for more productivity
The disadvantages of a functional org chart are:
- Departments may compete for scarce resources which can cause conflict
- Communication gaps between departments
List the things that must be done when drawing an org chart
- Use blue or black ink
- Charts should be fully labelled and dated
- Boxes at the same level of authority should be drawn at the same level and the same size
- Consultants, advisors, administrative assistants and secretaries are drawn to the side of the main structure
What are the three limitations of org charts?
- They don’t reveal the leadership style
- They don’t reflect the informal relationships which influence the org’s success
- They may become very complex and difficult to understand as an organisation
What is the span of control?
The span of control is how many departments or people one person supervises.
If the workers don’t need supervision the span of control is _______ and _________
If the workers don’t need supervision the span of control is wide and flat
If the workers need supervision the span of control is _________
If the workers need supervision the span of control is narrow
