Unit 2.2 - Organisation and management Flashcards
Define organisational structure
How roles, responsibilities and
management authority are allocated within an organization
Define department
Subdivision of a business organisation that
specialises in performing a particular job or function;
Define levels of hierarchy
The layers of management and command in an
organization; how many levels there are between ceo and factory worker
Chain of Command
The route by which authority is passed down the hierarchy; as hierarchies grow, more managers are needed to supervise the employees. Senior managers pass the ability to make decisions to managers lower down the hierarchy. This is called delegation
What is the purpose of an organisational chart?
The show the internal stucture of the business; to show the roles and responsibilities of employees.
Explain the advantages and disadvantages of a short chain of command
Flat organisational structure.
Advantages:
- easier communication (fewer mistakes)
- employees have more responsibility (motivation)
Disadvantages:
- possibility of mistakes as employees work independently/under less supervision
- less chance of promotion
Explain the advantages and disadvantages of a long chain of command
Tall organisational structure.
Advantages:
- more managers = easier supervising
- more chance of promotion (motivation)
Disadvantages:
- more difficult communication
- more managers salaries, which are higher = more cost for business
Define span of control
The number of employees the manager is responsible for
Explain good and bad of wide span of control
A:
- fewer managers/supervisiors needed = less expensive for business
- less supervision (motivation)
D:
- fewer managers=less opportunities for promotion
- less control over subordinates = mistakes & wasted resources
Explain a and d of narrow span of control
A:
- less need for training bc employees are closely supervised
- closer supervision = higher quality of work?
D:
- communication + decision making is slower due to more managers
- more expensive bc more managers
What is a centralized and decentralized organisation?
C- organisation where authority, responsibility and decision making is concentrated at the top of the chain of command. Managers/other employees have little say.
D - authority, responsibility and decision making is delegated (passed) down the chain of command.
What is the role of a director?
- Highest ranking managers in organisation. May be multiple, together as board of directors
- usually employed by ceo of limited company and voted in by shareholders
- Duties: lead the business, decide on strategy, set corporate objectives, meet with shareholders, etc.
- managing director : responsible for ensuring that decisions made by board of directors are carried out (e.g. appointing senior manager)
What is the role of managers?
- responsible for everyday running of department/section of business
- specialists that ensure that business objectives are being made
- Duties: motivating staff, holding regular meetings, managing budgets, etc
- can be senior managers supported by middle and junior managers
What is the role of supervisors?
- responsible for monitoring work of subordinates
- providing training/guidance to employees if needed
- assign work to individuals based on instructions received by managers
- delegate task to employees, middle man?
What is the role of ordinary employees?
- complete roles that support the production of goods/services
- work towards achieving targets set by managers
What are the 5 functions of management?
- Planning - developing a strategy on how to achieve a clear business target/goal
- Coordinating - bringing resources together to allow the business to produce goods (e.g. human resources must be coordinated by being instructed and monitored)
- Organizing - allocating time and resources effectively to minimize costs
- Commanding - directing staff while maintaining their respect and motivation
- Controlling - monitoring of employees to be certain that all tasks are being completed to a high quality on time
Explain the importance of delegation and a&d
Managers will be willing to give their subordinates responsibility for making decisions if they trust them, but are willing to lose some control.
A:
- reduces management stress and workload
- subordinates are empowered and motivated
- may allow for better decision making/use of resources
D:
- may increase workload/stress of subordinates
- some situations managers should not delegate
- dependent on quality/experience of subordinates and size of firm
Define autocratic leadership and its a&d
- when leaders make all of the decisions and do not involve employees.
- communication is one way. Delegation is not used
- common in emergency situations
A: - employees may feel secure because their expectations and tasks are clearly defined
- fast decision making
- good in times of crisis/emergency
D: - demotivating because employees cannot express their ideas and feelings
- potential rise in labour turnover if staff feel like they cannot make suggestions/aren’t listened to
Define democratic leadership and its a&d
- when leaders involve employees in decision making
- communication is 2 way. Delegation is used. Employees are encouraged to share ideas
A: - employees more motivated as their ideas are being heard/used
- more efficient as specific skills/experience is used, not only the manager’s own ideas
- time used more effectively due to delegation
D: - difficulty reaching decision if many employees disagree
- decision making will take longer and be more inefficient
What is collective bargaining?
The process of working as a group to increase their bargaining power, rather than working as individuals.
Define Laissez-faire leadership and explain its a&d
- when managers allow employees freedom in how they complete tasks
- managers set tasks and deadlines but completely delegate the process of completing the task and do not supervise employees
A: - may create motivated employees who can make their own decisions
- allows innovative approaches and new ideas to be used to complete tasks
- promotes trust in workplace
D: - productivity and quality may drop due to low supervision
- employees may not have sufficient knowledge to manage tasks efficiently
State 4 types of industrial action
- Overtime ban
- Work to rule (deliberately slow down production by obeying every rule)
- Go slow (work is carried out slow on purpose)
- Strike (workers refuse to work and may protest/picket outside the workplace, stopping deliveries)
What is a trade union?
An organisation/association who work together to achieve improvements in the pay and working conditions of its members (representing employees of a certain workplace/industry).
By forming/joining a trade union, employees can increase their bargaining power against management.
What is arbitration?
Where a 3rd part (e.g. trade union) works with management and employees to resole conflict
Explain the positive and negative effects of a trade union membership on a business
P:
- employees may be motivated because they have job security and having their social needs met by having a group where they can share their ideas
- lower labour turnover due to greater job security
N:
- trade unions have power to demand higher wages, increasing costs for business
- industrial action orchestrated by trade unions may give bad publicity to the business
- during a dispute, union members may refuse to work, resulting in lowered production
What is a closed shop?
when trade union membership is compulsory condition of a job
