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Higher Business > Structures > Flashcards

Structures Flashcards

1
Q

what does an organisation chart demonstrate?

A

the structure of an organisation.
it shows the formal lines of communication and the route taken for information and instructions to reach a particular place.

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2
Q

what is an informal structure?

A

this is when communication takes place in w way the organisations structure does not show.

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3
Q

what 6 factors affect the organisation structure of a business structure?

A
  1. size
  2. technology
  3. product
  4. market
  5. staff knowledge and skills
  6. finance
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4
Q

how does size effect organisational structure?

A

as the business grows to become harder to control, a more formal structure may be needed.

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5
Q

how does technology effect organisational structure?

A

the introduction of new technology can change the structure.

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6
Q

how does product effect organisational structure?

A

having a small number of large customers mean a flat or matrix structure

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7
Q

how does market effect organisational structure?

A

if the market id small then the organisation will be small with an entrepreneurial structure.

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8
Q

how does staff knowledge and skills effect organisational structure?

A

if staff are highly skilled, a less formal structure can exist.

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9
Q

how does finance effect organisational structure?

A

additional manages cost money

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10
Q

what does a flat structure involve?

A
  • only a few levels of management
  • short chain of command
  • managements have a wider span of control
  • managers are directly responsible for more employees.
  • managers are directly responsible for more employees
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11
Q

what are the advantages of flat structure?

A
  • information flows quickly
  • consulting staff on decisions make less time
  • business is more able to respond to market changes
  • customer’s need is quickly identified and dealt with.
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12
Q

what are the disadvantages to the flat structure?

A
  1. removal of managements levels means there is less control throughout the business
  2. mistakes are easier to be made.
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13
Q

what does the hierarchical structure (tall) involve?

A
  • many layers of management
  • long chain of command
  • each manager has a narrow span of control
  • information and decisions need to go through each levels.
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14
Q

what are the advantages of the hierarchical structure?

A
  1. great deal of control and supervision
  2. clearly defined roles and procedures to follow
  3. all members of staff are supervised
  4. staff have the chance to come experts in their roles.
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15
Q

what are the disadvantages of the hierarchical structure?

A
  1. decision making can take a long time as every level must be consulted.
  2. communication can be slow therefore customers needs can take a while to meet.
  3. not being able to adopt to changes in market quickly can make business vulnerable.
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16
Q

what does the entrepreneurial structure include?

A
  • there are only 1 or 2 main decision makers
  • usually used in small businesses but also newspapers and money markets
  • this type of business relies on the expertise of the decision maker.
17
Q

what are the advantages of the entrepreneurial structure?

A
  1. decisions are made quickly
  2. decisions are made for the benefit of the organisation
  3. decisions makers are very experienced
  4. staff know who they are accountable to
18
Q

what are the disadvantages of the entrepreneurial structure?

A
  1. if decision maker is unavailable the decisions can’t be made.
  2. places a very heavy workload on a few individuals
  3. does not allow staff to use their initiative - can lead to demotivation.
  4. difficult to use in large business
19
Q

what does the matrix structure include?

A
  • staff are formed within functional departments with each team member having their own specialists skill which they are responsible for.
  • used when the business is involved in a number of large projects or long-term contracts with their customers to produce goods or service.
20
Q

what are the advantages of the matrix structure?

A
  1. teams of specialist provide innovation
  2. employees can learn new skills and experiences from working in diverse teams.
  3. employees can be motivated as they are involved in new experiences.
21
Q

what are the disadvantages of the matrix structure?

A
  1. 2 managers to report to functional manager and matrix manager.
  2. can be conflict and duplication of tasks between departments.
  3. can be costly to set up and manage.
22
Q

what does centralised structures involve?

A
  • also relies heavily on a few key individuals who make the most of the decisions.
  • complete control of the organisation is held by these key members.
  • usually senior managers, directors or owners are the key members.
  • a hierarchical structure is also heavily centralised in terms of decision making.
23
Q

what are the advantages of centralised structures?

A
  1. economies of scale can be achieved through centralised purchasing.
  2. easier to promote a corporate image.
  3. decisions are made by experienced members.
  4. strong leadership.
24
Q

what are the disadvantages of centralised structures?

A
  1. heavy reliance on key members.
  2. stifles the creativity of staff unmotivated.
  3. difficult to take local condition into consideration when making decisions as managers are not working in the day to operate.
25
Q

what does decentralised structure involve?

A
  • give responsibility and decision making to middle and lower managers.
  • allows for decisions to be based around local needs ans wants.
  • head office is seen more for providing support to he organisation.
26
Q

what are the advantages of decentralised structures?

A
  1. decision making is quicker as chain of command does not need to be consulted.
  2. organisation is more responsive to change.
  3. meets customers needs better.
  4. empowerment of staff while developing professional skills.
  5. give staff responsibility motivated.
27
Q

what are the disadvantages of decentralised structures?

A
  1. some overall control can be lost.

2. inexperienced managers can make decisions that harm the business.

28
Q

what does delayering involve?

A
  • this is the removal of levels of management
  • although this means managers can lose their jobs, communication and decision making would be faster, reduces costs of salaries and increase staff empowerment.
    e. g. caning from tall to flat structure

Higher Business (44 decks)

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