Topic 2.5 Flashcards
Organisational structure
Refers to the levels of hierarchy within a business
Hierarchical/tall organisational structure
- Many levels of hierarchy
- Narrow span of control
- Long communication flow
Flat organisational structure
- Few levels of hierarchy
- Wide span of control
- Short communication flow
Tall structure advantages and disadvantages
Advantages:
- Clear line of authority
- Managers control fewer people
- More promotional opportunities
Disadvantages:
- Slow communication
- Slow decision making process
- More managers required
Flat structure advantages and disadvantages
Advantages:
- Fast communication
- Workers have a wider job role
- Lower managers needed -> independent staff
Disadvantages:
- Blurred lines of authority
- Managers have wide span of control
- Lack of opportunities
Chain of command
The chain down which orders are passed
Span of control
The number of staff a manager is directly responsible for
Delegation
Passing down authority for work to another worker further down the hierarchy
Authority
The power to give orders
Hierarchy
Levels of authority in an organisation
Delayering
Removing levels of management in the hierarchy
Centralisation
Decisions are made in one place such as a head office
Centralisation advantages
- Consistency across the business
- Policies will be uniformed across all branches
Centralisation disadvantages
- It can demotivate employees
- A standardised approach may not work in all business locations
Decentralisation
Decision making is spread across the organisation, different branches or geographically
Decentralisation advantages
- Allowing managers to make decisions to suit their local area and customers
- Quicker than competitors to make changes
Decentralisation disadvantages
- Consistency is not achieved across the business
- Managers can make ineffective decisions -> lower sales
Communication
Transferring information from one part of a business to another
Effective when message is sent, received and understood
Methods of communication
Internal: e-mail, conference calls, team briefing sessions, gossip
External: press releases, marketing materials
Insufficient communication
- Not enough communication or poor-quality communication
- Time and money wasted due to miscommunication e.g. a task may be done twice
- Demotivate staff as they would feel frustrated -> decrease productivity
Excessive communication
- Too much communication
- Often cause employees to become confused or feel overwhelmed
- Lead to demotivated staff and inefficiency
Barriers to effective communication
- Use of jargon
- Poor explanations
- Personalities: employees feel uncomfortable communicating with other people
Types of working: Full time
- Works around 35 hours a week
- Fixed contract
- Full - time staff are good if there is enough work for them to do
- Expensive - will have to pay workers on a fixed cost
Types of working: Part time
- Less than 35 hours a week
- More financial sense if business gets busy seasonally
- Workers are less committed
Types of working: Flexible
- Employees are given a set number of hours to work in a period of time but get to choose when they work
- higher staff retention
- Communication can be difficult
- Zero - hour contracts: employer doesn’t have to offer any work (firms with fluctuation in demands)
Types of working: Permanent
- A permanent contract is one that has no fixed end date, they stay until redundant or choose to leave
- Workers are committed long time
- Harder to reduce staff numbers
Types of working: Temporary
- The worker is only employed for a fixed period
- Hire more staff when demand is high
- Have to train new workers
Types of working: Freelance
- A self-employed person is recruited to work on a specific project
- Employee people with particular skills
- Freelancer’s fee is expensive
Impact of technology: Efficiency
- Everything in a business can be managed more efficiently with well-designed software
- Communication has improved too with online documentation, email…
Impact of technology: Remote working
- Remote working means that employees have more flexibility:
No commute, fit work around commitments - Work - home balance may be tipped towards work -> employees find it hard to switch off
Recruitment process
Business identifies the need to recruit
-> They write a job description: a summary of the duties and responsibilities of the job
-> They write a person specification: experience, qualifications and skills wanted
-> advertise and interview candidates
-> Application forms are filled by a potential employees
-> CV is a document that has a person’s contact details, qualifications and other relevant info. Submitted with the application.
Internal recruitment
Recruiting current employees into new roles
- Cheaper to recruit and advertise roles internally
- A lack of fresh ideas in the business
External recruitment
Recruiting from outside the business
- Fresh enthusiasm and skills
- Expensive to recruit
Formal training
Employees attend specific training courses to improve their skills
- May be provided by external specialist companies
- Employees may stop working for trying time -> productivity falls
Informal training
Employees learn skills ‘on the job’ overtime
- Cheaper, less time consuming
- Other employees are disrupted from their work
Ongoing training
Training that takes place throughout time of employment
- Up to date and continues to develop skills
- Constant disruption
Self-learning
Learning yourself without a formal setting
- Cheaper
- Freedom to pick and choose what skills to develop
Performance review
Formal meeting between the employees and their supervisor about the job
- They give feedback, set new targets and training needs for the employee to keep developing
- Recognises high performing employees
Target setting
The targets are agreeable to the supervisor and employee
- May be rewarded with higher pay/ promotion
Benefits or training and development
- Make staff more productive
- Help staff stay up to date with using new technology
- Motivated: firm is investing in employees -> staff feel like they are valued -> increase in retention
Motivation
The desire to complete tasks in a workplace
Motivation: Attracting employees
- If employees see a positive, motivated workplace, they wold want to work there
Motivation: Retaining employees
- If employees are not motivated they will leave
- Wasting time and money hiring new employees to replace
Motivation: Productivity
- Workers who are motivated may work harder and be more creative -> increase in output per worker
Financial methods: Remuneration
The money employees are paid in return for work e.g. salary -> pay rises are very motivational
Financial methods: Bonuses
Given out when certain performance targets have been met
Financial methods: Commission
Employee receives a reward for every sale made -> earning additional money is very motivating
Financial methods: Promotion
Employee moving to a position further up in the hierarchy -> often means higher wage and more responsibility -> feel valued
Financial methods: fringe benefits
Known as perks e.g. company car, private healthcare, free meals -> saving employees money
Non - financial methods: Job rotation
Employees are rotated between different jobs to avoid repetition
PRO: easy to find another employee to cover
CON: training costs are higher
Non - financial methods: Job enrichment
Enhancing job roles with more challenge and responsibility
PRO: increases feeling of achievement -> feel valued
CON: not all jobs can be enriched (not effective)
Non - financial methods: Autonomy
Allowing employees to make their own decisions
PRO: use their own skills -> development of skills, trusted by company
CON: some may not be capable of making viable decisions
