Unit 2.2 Flashcards
Benefits of a tall/vertical organizational structure
- Each team is smaller so easier to control - Better team morale as smaller teams - More opportunities for promotion - Clear hierarchy and structure
Benefits of a flat/horizontal organizational structure
- Less managers required so less cost - Quicker communication and decision making - More delegation and responsibility – high trust environment - Empowered – closer to the top
What are the three ways a company can be organised?
By function By region By product
Pro and con of organizing by function
By function
Pro – Specialize in one function
Con – Managers only consider one function
Pro and con of organizing by region
By region
Pros – Easier communication (e.g. similar culture), EEs have local knowledge
Cons – Job duplication, Lack of consistency across areas
Pro and con of organizing by product
By product
Pro – Specialize on one product
Con – Lack of coordination (e.g. research the same thing)
Define span of control
The number of subordinates overseen by and directly accountable to a manager
Define levels of hierarchy
Refers to the organizational structure based on a ranking system. At the same level, staff have the same authority and status
Define chain of command
Formal line of authority through which orders are passed down
Define delegation
Passing on control and authority of a certain task to a person lower down in the organization
Define bureaucracy
Organized system with standardized procedures and rules - e.g. rules/regulation, policies, standardized policies
Define delayering
Process of removing one or more levels in an organizational structure
Pros of delayering
Pros - Reduces salary costs - Easier and quicker communication – more efficient organisational structure and chain of command is shorter - More control for the manager - Higher EE motivation
Cons of delayering
Cons - Less opportunities for promotion - larger span of control causing more work for the manager - redundancy costs - Less specialisation
Define centralization
When a business’ key decisions are made in Head Office - or at the centre of the business
What is a project (matrix) based structure
Structure that creates project team across many different (traditional) departments
What is Handy’s Shamrock organization?
Core staff - full time, permanent, etc
Temporary workforce
Outsource (subcontractors)
E.g. FIS
Teachers - Core employees
Subs - temporary workforce
Security - outsource
