Topic 16 Flashcards
Purpose of organisational structure
. Provided clarity in roles and responsibilities
. Enables efficient communication
. Facilitates decision-making
Key features of organisational structure
- Hierarchy -> employees ranked based on authority
- Divisional organisation -> departments grouped based on specific functions + head responsibility for each one
- Influence on business efficiency -> small VS large businesses
Formal organisation chart advantages
Shows relationship between employees, roles and reporting lines
Advantages:
. Improves transparency
. Helps identify responsibilities
. Assists in resource plan and delegation
Employee roles in hierarchy -> 6
- Directors -> responsible for overall tragedy, vision and success of business
- Managers -> handle day-to-day management of specific departments
- Team leaders -> oversee smaller teams to ensure that everything works
- Supervisors -> monitor employees tasks and provide guidance
- Operatives -> carry out specific practical tasks to support business
- General staff -> non-specialist workers performing tasks
Department managers
They handle functions such as:
. Marketing
. Human Resources
. Operations and finance
Chain of command -> flow and importance
Formal line of authority through which orders are passed from senior managers o employees
Flow:
. Orders flow downwards + feedback flows upwards
Importance:
. Ensures accountability at every level + helps clarify decision-making process
Span of control -> wide VS narrow
Refers to number of subordinates directly managed by one person
Wide span:
. One manager supervises many employees - common in flat structures
Advantages -> fast decision- making
Disadvantages: managers may become overwhelmed
Narrow span:
One manager supervises fewer employees + common in tall structures
Advantages: clear supervision + higher quality control
Disadvantages: slower communication + higher costs
Authority VS responsibility
Authority:
-> Power to make decisions
Levels:
. Directors -> strategic authority (long-term)
. Managers -> operational authority (day-to-day)
Responsibility:
-> accountability for performing a task or meeting objectives
Centralisation -> advantages and disadvantages
Decision making concentrated at higher levels of hierarchy
Advantages:
. Consistency
. Control
. Cost efficiency
Disadvantages:
. Slower decision making
. Reduces innovation
. May demotivate employees
Decentralisation -> advantages and disadvantages
Decisión making delegated to lower levels of hierarchy
Advantages:
. Faster decisions
. Empowerment
. Flexibility
Disadvantages:
. Inconsistent practices
. Managers may lack expertise
. Coordination becomes challenging
Types of organisational structures -> tall structures (advantages and disadvantages)
Many levels of hierarchy + narrow span of control
Advantages:
. Clear chain of command + employees receive closer supervision
Disadvantages:
. Slower communication + higher costs
Types of organisational structures -> flat structures (advantages and disadvantages)
Fewer levels of hierarchy + wide span of control
Advantages:
. Faster communication + decision making
. Employees have more independence + responsibility
Disadvantages:
. Managers may become overburdened + difficult to supervise large teams
Types of organisational structures -> matrix structures (advantages and disadvantages)
Combines functional and project-based teams with employees + multiple managers
Advantages:
. Promotes collaboration
. makes efficient use of resources and expertise
. encourages flexibility
Disadvantages:
. Can lead to confusion and conflicts in reporting
. Requires strong coordination
