Organisational Structures Flashcards
(28 cards)
Directors
Establish the business’s overall goals
Set long term plans and targets for the business
Managers
Work to achieve targets set by directors
May be responsible for a function within the business
Use employees and other resources in best possible ways
Team leaders or supervisors
Help managers reach targets by reporting problems and passing on instructions
Take simple decisions such as allocating jobs amoung different emloyees
Shop floor workers or operatives
Carry out the business’s basic duties or activities.
This could be working on a production line, serving customers in a shop or basic office duties
Organisational structure
Is how a business aranges itself to carry out it’s activities. Shows everyone’s responsibilities.
Everyone must know what their duties are, who they need to report to, the other employees for whom they’re responsible for
Organisational chart
A plan showing the roles of, and the relationships between all the employees in a business
Authority
The power to control others and to make decisions
Span of control
The number of employees managed directly by another employee. This employee’ll be the imediate boss or line manager of these employees.
Too wide span of control
Makes it difficult to manage employees and means there’s less time to be spent on each employee. Experts say each manager should manage no more than 6 employees though this is exceeded by most businesses.
Levels of hierarchy
The levels of authority within a business
The chain of command
The line of authority within a business along which communication passes
Delayering
The removal of one or more levels of hierarchy from a business’ organisational structure.
Effects of delayering
Can reduce costs (less manager roles)
Junior employees may have to take on some line manager’s duties, may need to be trained and may initially be less productive
Senior employees may have a wider span of control
Makes the business’s structure more flat. Will this suit the business?
Delegation
The passing down of authority to more junior employees:
For larger businesses there are too many decisions to be made by one person
Some decision making roles could be very specialist, like IT
Flat organisational structure
Uses wide span of control and has fewer levels of hierarchy. Managers have a heavy workload and junior employees are given more authority
Tall organisational structure
Smaller span of control with more levels of hierarchy. Junior employees have less control and managers can monitor them more closely. Senior managers make most decisions
Skills of the workforce (as a factor influencing decisions on organisational srructure)
Skilled workers are more capable of making decisions so in a situation with many of them (for example a hospital) a wide organisational structure could be used
The management style of the business (as a factor influencing decisions on organisational srructure)
Managers who want to retain control of their employees can use a tall structure for a smaller span of control. Opposite applies for those who don’t.
The business’s competitive environment (as a factor influencing decisions on organisational srructure)
A business with high levels of competition will want costs as low as possible. Flat organisational structure requires fewer managers (fewer salaries). May also motivate junior employees as they’ll have more authority and more interesting jobs.
Downward communication
From senior to more junior employees
Upward communication
From junior employees to their line managers and other more senior employees.
Horizontal communication
Between employees at the same level in the organisation
Flat structures and communication
Downward and upward communication easier- less levels of hierarchy
Wide spans of control means managers are responsible for more people so the quality of communication may suffer
Employees having more authority could encourage upward communication
Horizontal more difficult-more people on each level
Tall structures and communication
Problems passing messages with many levels of hierarchy
Smaller spans of control means better communication with managers and their employees