Organization and Management Flashcards
Organizational structure
refers to the levels of management and division of responsibilities within an organization
Organizational chart
refers to a diagram that outlines the internal management structure
Hierarchy
refers to the levels of management in any organization, from highest to lowest
Level of hierarchy
refers to managers/supervisors/other employees who are given a similar level of responsibility in an organization.
Chain of command
is the structure in an organization which allows instructions to be passed down from senior management to lower levels of management.
Organizational chart (Feature)
- The chart shows how everybody is linked together in the organization. All employees are aware which communication channel is used to reach them with msgs and instructions
Advantages of organizational chart
- Every individual can see their own position in the organization. They can identify who they are accountable to and who they have authority over
- Everyone is in a department and this gives them a sense of belonging
Span of control
is the number of subordinates working directly under a manager
Advantages of short chains of command
- Communication is quicker and more accurate, since the message only passes through a fewer levels when reaching the intended person
- Top managers are less remote from lower levels, so these managers should be more in touch with workers below them.
- since span of control in wider, which would make managers delegate more as they have more employees to manage under them
- less direct control of each worker, so they will feel more trusted, more decisions can be taken by themselves (Job satisfaction)
Directors
are senior managers who lead a particular department or division of a business
Line managers
have direct responsibility for people below them in the hierarchy of an organization
Supervisors
are junior managers who have direct control over the employees below them in the organizational structure
Staff managers
are specialists who provide support, information and assistance to line managers
Delegation
means giving a subordinate the authority to perform particular tasks
Advantages of delegation (for the manager)
- Managers can delegate the workload he has, as it is hard for the manager to do everything by themselves.
- Managers are less likely to make mistakes, since some tasks are carried out by subordinates
- Managers can measure can measure the success of their staff.
Advantages of delegation (for the employee)
- The work becomes more interesting and rewarding
- The employee feels more important and believes trust is being put in them to perform the job well
- Delegation helps to train workers and they can make progress in the organization.
Why is it important to have good managers
- motivate employees
- give guidance and advice
- inspire employees to go beyond limits
- manage resources effectively
- increase profits of the business
Leadership styles
are the different approaches to dealing with people and making decisions when in a position of authority - autocratic, democratic or laissez-faire
Autocratic leadership
is where the manager expects to be in charge of the business and have their orders followed
Advantages of autocratic leadership
- Quick decision making, ex: during a crisis
disadvantages of autocratic leadership
- No opportunity for employee input into key decision, which is demotivating
Democratic leadership
gets other employees involved in the decision making process
Advantages of democratic leadership
- Better decisions could results from consulting with employees and using their experience and ideas
disadvantages of democratic leadership
- Unpopular decisions, such as making workers redundant, could not effectively be made.
Laissez-faire leadership
makes the broad objectives of the business known to the employees, but then they are left to make their own decisions and organize their own work
Advantages of Laissez-faire leadership
- Encourages employees to show their creativity
disadvantages of Laissez-faire leadership
- Unlikely to be appropriate in organizations where a consistent and clear decision making structure is needed.
Trade unions
is a group of employees who have joined together to ensure their interest are protected
Effects of employees being union members
- Strength in number when negotiating
- Improved conditions of employment (ex: rates of pay, holiday)
- Improved environment where people work ex: health and safety
- Improved benefits for member who are not working because they are sick or retired/redundant.
- Improved job satisfaction (training)
- Financial support if a member if they think they have been unfairly dismissed/ made redundant/ unfair payment or tasks irrelevant to the job
- Benefits such as discounts in certain shops
- Trade unions often meet government officials to benefit workers
- More secure employment where there is closed shop
Closed shop
is when all employees must be a member of the same trade union
Disadvantages of trade unions (Employee)
- Costs money to be a member
- Workers forced to take actions they don’t want to
Advantages of trade unions (Employer)
- Improve communication between workers and management
- Wage agreement easier to negotiate
Disadvantages of trade unions (Employer)
- Organizes strikes if wishes are not fulfilled
- Wages likely to be higher
