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Higher Business- Understanding Business > Structures of an organisation > Flashcards

Structures of an organisation Flashcards

1
Q

What are the different types of structures?

A
  • Tall
  • Flat
  • Delayering
  • Downsizing
  • Centralised
  • Decentralised
  • Matrix
  • Entrepreneurial
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2
Q

What is a tall structure?

A

A hierarchy. There are lots of levels, long chain of command, narrow span of control, long decision making process

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3
Q

Narrow span of conrtol advantages:

A
  • Managers have more time for planning supervision and decision making
  • Managers can support subordinates as they ahve more time
  • Managers have less subordinated to manage
  • Staff can be closely supervised
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4
Q

Narrow span of conrtol disadvantages:

A
  • Managers watch stagg closely, under pressure (micromanage)
  • Managers have less staff to share ideas with
  • A greater workload is shared between fewer staff
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5
Q

What are advantages of a tall structure?

A
  • Lots of promotion opportunities
  • Staff know their roles and who they report to
  • Managers manage fewer subordinates (narrow span of control)
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6
Q

What are disadvantages of a tall structure?

A
  • React slowly to external factors
  • Low decision making
  • Managers my be autocratic (doesn’t care about others opinions)
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7
Q

What is a fall structure?

A

A short chain of command, fast decision making, wide span of control, little promosion opportunities

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8
Q

Wide span of control advantages:

A
  • Delegating tasks to subordinated increases moral as they are more trusted
  • Staff are empowered to make decisions themselves
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9
Q

Wide span of control disadvantages:

A
  • Time os at a premium which leads to snap decisions
  • Less time for planning due to being busy
  • Subordinates ay have no-one to seek help from
  • More staff to manage so lots of delegation is required
  • Pressure on management due to increased workloas
  • High degree of trust required
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10
Q

What are advantages of a flat structure?

A
  • Infromation is quickly passed between levels
  • Quick response to external factors
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11
Q

What are disadvantages of a flat structure?

A
  • Less levels=less promition so staff are demotivated and move elsewere (or quality drops)
  • Staff delegate to subordinated putting more pressure on lower levels
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12
Q

What is delayering?

A

Removing layers of a hierchy to make a business flatter

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13
Q

What are advantages of delayering?

A
  • Money is saved on wages (less manager roles)
  • Decision making quicker due to shorter chain of command
  • More responsive to external factors
  • Widens span of control
  • Improved communication
  • May improve productivity
  • Removed department rivalry
  • Encourages innovation
  • Better customer service as managers are closer to customers
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14
Q

What are disadvantages of delayering?

A
  • Fewer promotion opportunities
  • High cost of redundancy (managers are paid off) payments
  • May lose key members of staff
  • Massive uncertainty amounst staff
  • Not all organisations may suit as low skilled employeed may not adapt
  • Motivation decreases
  • Creates skills shortage
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15
Q

What is Downsizing?

A

When an organisation either closes locations or merges divisions to premanently reduce its workforce

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16
Q

What are the current trends in downsizing?

A

Stores were closing down due to online shopping but they are beginning to open up again

17
Q

What are advantages of downsizing?

A
  • The business may be more efficient
  • Cuts costs (wage and rent)
  • The business becomes more competitive
18
Q

What are disadvantages of downsizing?

A
  • Causes unrest in staff
  • Staff feel vulnerable, demotivated
  • Valueable skills may be lost
19
Q

What is centralised decision making?

A

Where major responsibilities are at the centre/top of the organisation (head office) which is easier to promote a consisntnt corporate image

20
Q

What are advantages of centralised decision making?

A
  • High corporate identity and strategy
  • Procedures are standardised (consistancy)
  • Lower risk of leaks
  • Greater uniformity (familiar, loyal)
  • Subordinates remain focused on core activities
  • Senior staff can make better decisions
21
Q

What are disadvantages of centralised decision making?

A
  • Low suborninate responsibility leads to demotivation
  • Loss of market share (less responsive)
  • Decisions don’t effect local markets
  • React slowely to external factors
  • Lack of innovation
  • Managers and employees are disconnected
  • Managers may becoome burdened by amounts of work
22
Q

What is decentralised decision making?

A

When control in delegated to individual branches or departments in the business

23
Q

What are advantages of decentralised decision making?

A
  • Quick reaction to external factors
  • Decision making fast because local managers dont need to consult seniors (respond to local markets)
  • Subordinated are empowered
  • Releives senior management from constant decision making burden
  • Important decisions still made by managers
  • Delegated to branches
24
Q

What are disadvantages of deceltralised decision making?

A
  • Corporate image may be lost if each branch opperates differently
  • Local branches may compete with eachother
  • Branch managers may lack experience
  • Higher costs due to duplication of resources
25
Q

What is a matrix structure?

A

When an organisation sets up a temporary project and different teams cary out tasks

26
Q

What are advantages of a matrix structure?

A
  • Specialised staff used for all areas
  • Complex problems can be solved
  • Staff use their expertise so are motivated and have job satisfaction
27
Q

What are disadvantages of a matrix structure?

A
  • Many managers means high costs
  • Resources may be duplicated
  • Staff may be unsure who to report to
28
Q

What is an entrepreneurial structure?

A

(mainly used by small organisations)
This is when there is one key decision maker, the owner, who makes all the decisions

29
Q

What are advantages of an entrepreneurial structure?

A
  • Decisions made quickly as no consultation needed
  • Staff know who they report to
  • People know who makes the decision
30
Q

What are disadvantages of an entrepreneurial structure?

A
  • Owner has a heavy workload
  • If owner is busy key decisions can’t be made
  • Other staff don’t get to be innovative which demonivates and stiffles creativity

Higher Business- Understanding Business (16 decks)

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