Organisational Structures Flashcards
Organisational Structure
the way a business arranges itself to efficiently perform its activities
Organisational Chart
a plan showing the roles of, and relationships between, all the employees in a business
Line Manager
an employees immediate superior or boss
Responsibilities of leaders, owners or directors
establish the business’s overall goals
set long-term plans and targets for the business
Responsibilities of managers
work to achieve long and short term goals set by the owners or directors
could be responsible for a function within the business e.g finance
Responsibilities of supervisors
help managers to achieve their targets by reporting any problems or passing on instructions
make simple decisions
Responsibilities of operatives
carry out the businesses basic duties and activities
Characteristics of job roles
authority
decision making
skills ad qualities
delegation
pay and benefits
Delegation
passing down authority to more junior employees
Span of control
the number of employees managed by another employee
Tall organisational structure
the organisation has many levels of hierarchy
Flat organisational structure
the organisation has a wide span of control therefore has fewer levels of hierarchy
Advantages of tall organisational structure
narrow spans of control can help to minimise managers workload
clear and more regular opportunities for promotion
Disadvantages of tall organisational structure
communication can be somewhat difficult
decisions may take a while to make
Advantages of flat organisational structure
fewer managers can reduce costs
junior employees may feel more motivated since they could be given more authority
communication can be quick and effective
Disadvantages of flat organisational structure
managers may have spans of control that are too wide
may increase costs due to having to supply training
Chain of command
line of authority within a business along which communication passes
Functions in a business
Finance
Marketing
Human resources
Operations
Different approaches to organisational structures
Organising by function
Organising by product
Geographical organisation
The importance of effective communication
Increased employee involvement
Improved motivation
Working towards the same aim and objectives
Help with decision making
Feedback
The consequences of poor communication
Low employee morale
Increased absenteeism
Reduced employee cooperation
Incomplete actions or activities
Reduced efficiency
Working practice
simply the way that work is normally done within a particular business
Flexible hours
allow employees the chance to work at different times to suit their individual needs
Job share
exists when 2 or more employees agree to share the responsibilities of a single job
