Topic 4: Human Resources Flashcards
What is an organisational structure?
The way in which a business arranges itself internally to carry out its activities
What is a hierarchy?
Levels where people are ranked according to status, authority or power
What does delegate mean?
To give another person responsibility
What is a subordinate?
A person who is under the authority of another
What is a chain of command?
An order where instruction are passed from one person to another
What is a span of control?
The number of subordinates a manager is responsible for
What does a wide span of control mean?
That a manager has a lot of people to be in charge of
What does a narrow span of control mean?
That a manager has few people to be in charge of
What is authority?
Having the power over other employees
What is a line manager?
A manager who has direct responsibility for their employees
Why are organisational structures important?
Shows clear lines of responsibility
Shows communication routes clearly & who to report to
Enables the business to function efficiently
What are properties of a tall organisational structure?
Lots of layers of hierarchy
Narrow span of control
What are properties of a flat organisational structure?
Few lawyers of hierarchy
Wide span of control
What are advantages of a tall organisational structure?
Workload is shared
Clear chain of command
Easier to control
More promotion opportunities
What are disadvantages of a tall organisational structure?
Communication could be misunderstood or misinterpreted
Higher cost - more employees
Harder to contact the managers
Decision making is slow
What are advantages of a flat organisational structure?
More responsibility for staff - could motivate them
Cheaper - less employees
Quick communication and decision making is faster and easier
There’s more freedom - could motivate
What are disadvantages of a flat organisational structure?
Harder to control all of the employees
Quality could suffer - hard to check everyone is performing to standard
Staff has more control - may get carried away
What is delayering?
The removal of one or more levels of hierarchy from a business’s organisational structure
What are advantages of delayering?
Allows for quicker communication
Reduces costs
What are disadvantages of delayering?
Redundancy pay will have to be payed
Will make a higher workload on others
What is communication?
The exchange of information between 2 or more people
What are the 3 types of communication?
- Downward
- Upward
- Horizontal
What is downward communication?
When CEO and management communicate downwards to employees
What is upward communication?
Subordinates communicating upwards to seniors
What is horizontal communication?
People who are on the same level of the hierarchy communicate horizontally
What is centralised decision making?
Keeps decision making firmly at the top or in one area of the hierarchy
What is decentralised decision making?
When decision making is spread out to include more managers in the hierarchy as well as the individual business units or branches
What are the 2 types of decision making?
- Centralised
- Decentralised
What are advantages of centralised decision making?
Easier to implement policies and practices for the whole business
Easier to control and coordinate
What are disadvantages of centralised decision making?
Lack of authority down the hierarchy
Local managers are more likely to know customers needs - will make better decisions for their branch
What are advantages of decentralised decision making?
It’s allows for decisions to be better adapted to local circumstances
Decisions are made closer to the customer - better customer service - may increase retention and loyalty
What are disadvantages of decentralised decision making?
Harder to ensure consistent practices at each branch
Harder to achieve tight financial control - risk of cost overruns
What is internal employment?
Employing someone who is already within the business