Unit 2.2 Flashcards

1
Q

Benefits of a tall/vertical organizational structure

A
  • Each team is smaller so easier to control - Better team morale as smaller teams - More opportunities for promotion - Clear hierarchy and structure
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2
Q

Benefits of a flat/horizontal organizational structure

A
  • Less managers required so less cost - Quicker communication and decision making - More delegation and responsibility – high trust environment - Empowered – closer to the top
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3
Q

What are the three ways a company can be organised?

A

By function By region By product

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4
Q

Pro and con of organizing by function

A

By function
Pro – Specialize in one function
Con – Managers only consider one function

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5
Q

Pro and con of organizing by region

A

By region
Pros – Easier communication (e.g. similar culture), EEs have local knowledge
Cons – Job duplication, Lack of consistency across areas

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6
Q

Pro and con of organizing by product

A

By product
Pro – Specialize on one product
Con – Lack of coordination (e.g. research the same thing)

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7
Q

Define span of control

A

The number of subordinates overseen by and directly accountable to a manager

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8
Q

Define levels of hierarchy

A

Refers to the organizational structure based on a ranking system. At the same level, staff have the same authority and status

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9
Q

Define chain of command

A

Formal line of authority through which orders are passed down

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10
Q

Define delegation

A

Passing on control and authority of a certain task to a person lower down in the organization

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11
Q

Define bureaucracy

A

Organized system with standardized procedures and rules - e.g. rules/regulation, policies, standardized policies

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12
Q

Define delayering

A

Process of removing one or more levels in an organizational structure

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13
Q

Pros of delayering

A

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

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14
Q

Cons of delayering

A

Cons - Less opportunities for promotion - larger span of control causing more work for the manager - redundancy costs - Less specialisation

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15
Q

Define centralization

A

When a business’ key decisions are made in Head Office - or at the centre of the business

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16
Q

Define decentralization

A

When a business’ key decisions are passed down to subordinates, e.g. middle-managers within the business

17
Q

Pros of centralization

A
  • Quick decision -making
  • Control (e.g. costs, brand)
  • standardization/ consistency
  • No duplication of work
18
Q

Pros of decentralization

A

More localization to each city/country

Empower other parts of the business - Improved morale and teamwork

Product/service tailored to customer

19
Q

What is a project (matrix) based structure

A

Structure that creates project team across many different (traditional) departments

20
Q

What is Handy’s Shamrock organization?

A

Core staff - full time, permanent, etc

Temporary workforce

Outsource (subcontractors)

E.g. FIS

Teachers - Core employees

Subs - temporary workforce

Security - outsource