Organization Structure and Employees Flashcards
What is a hierarchical organizational structure?
A structure with many layers of management and a clear chain of command.
What are the advantages of a hierarchical structure?
Clear roles and responsibilities, easier supervision, and strong control.
What is a flat organizational structure?
A structure with few layers, giving employees more responsibility and faster communication.
What are the advantages of a flat structure?
Faster decision-making, better communication, and lower costs.
What is centralized decision-making?
When decisions are made by senior managers at the top of the organization.
What is decentralized decision-making?
When decision-making is shared with lower levels or departments.
What are the benefits of decentralization?
Quicker decisions at local level, greater motivation, and more flexibility.
What is span of control?
The number of employees a manager is directly responsible for.
What is chain of command?
The line of authority within a business – showing who reports to whom.
What is delegation?
When a manager gives responsibility for a task to a subordinate, while still being accountable.
Why is delegation important?
It develops staff skills, saves managers time, and can increase motivation.
What are the main roles of the HR department?
Workforce planning, recruitment, training, health and safety, and staff welfare.
What are HR’s responsibilities in employment issues?
Managing disputes, grievances, dismissal, and redundancy fairly and legally.
What are the finance department’s key functions?
Managing wages, salaries, budgeting, accounting, and cash flow forecasting.
Why is cash flow forecasting important?
It helps a business predict and manage its income and expenses.
What are the key responsibilities of the marketing department?
Market research, pricing, promotion, advertising, customer service, and distribution.
What is the purpose of packaging and public relations in marketing?
Packaging protects and promotes the product; PR helps build a positive brand image.
What are the responsibilities of the production department?
Manufacturing goods, designing new products, managing quality, and stock control.
What is quality control?
Checking products to ensure they meet set standards.
Why is stock control important?
To avoid overstocking or running out of materials, helping reduce costs and meet demand.