Organisational Structures Flashcards
(20 cards)
What is the span of control?
The number of employees managed directly by another employee.
What is the chain of command?
The line of authority within a business along which communication passes.
What is delayering?
The removal of one or more levels of hierarchy from a business’s organizational structure. 2 main reasons - reduce costs by having fewer employees and to improve communication within the organisation
What is delegation?
Passing down authority to more junior employees.
What is a flat organisational structure?
A structure with a few levels of hierarchy, comparatively wide span of control and a short chain of command.
What is a tall organisational structure?
A structure with many levels of hierarchy, relatively narrow spans of control and a lengthy chain of command.
What does the organisational structure to
Outlines the reporting relationships, roles and responsibilities of employees. Consider - structure affects the management, communications and operations.
What is a centralized organisational structure?
Authorize for decision making rests with the senior management- center of a business
What is decentralized structure
When authority for decision making is delegated further down towards hierarchy towards functional or middle managers.
Advantages of a centralized structure
- effective coordination and control of business operations from the centre.
- fast and decisive decision making can increase competitiveness consistency across the whole organization
Disadvantages of centralized structure
- middle managers lack of autonomy can impact their motivation
- highly bureaucratic - rules and processes - slowing communication of decision making
- ignores insights of lower level staff who are likely to be closer to customers
Decentralized advantages
- better able to respond to local market conditions and meet customer needs
- staff able to contribute to decision making - may be more fulfilled and loyal
- prepares junior management for career development
Decentralized disadvantages
- diseconomies of scale - such as the duplication of staff roles may emerge
- may be difficult to tightly control budgets
- during times of crisis leadership may not be clear.
Directors
Larger business often have a board of directors - strategic business decisions - new cooperate policies, growth objectives.
Managers
Have many responsibilities to help operate effectively on day to day
Tall structure advantages
Provides a clear structure of authority and defined roles and responsibility
Promote specialization, and expertise within each department or function
Offers opportunities for career advancement, and promotion within the organization
Flat organizational structure advantages
Promote a culture of collaboration and open communication
Decision-making can be more efficient as communication is quick quicker
Encourages creativity, and innovation as employees have more autonomy and flexibility
Disadvantages of a tall organizational structure
Can create communication barriers between upper and lower levels of hierarchy
Decision-making can be slow as information plus pass through multiple players of management
This can lead to bureaucracy and excessive levels of management
Disadvantages of flat structure
Employee and management rules may not be clearly defined, causing confusion
Employees may need to take on multiple responsibilities leading to burnout and stress
