unit 3 management activities - organising Flashcards
what is organising ?
the process of combining human and physical resources to achieve a goal. bring people and resources together to achieve implement plans or policies. the arrangement of resources is called organising
what is a functional organisational structure ?
it divides the business into its main functions and groups employees of similar skill sets together in departments
benefits of a functional structure - specialisation
due to specialisation, where each department is concentrating on one function such as marketing, this builds up high levels of skill and expertise through reputation and practice this leads to efficiencies within the business
benefits of a functional organisational structure - clear lines of authority
the chain of command and line of authority is clear, as such employees know who to report to. there is a person in charge of each department which improves co-ordination and motivation, as employees know what is expected of them and when
benefits of a functional structure -clear communication channels
the structure helps create a clear communication line between the top and bottom of the business. instructions flow downward from top management along the chain of command and information is communicated upward, leading to quicker decision making
benefits of a functional organisational structure- allows for a wide span of control
there are economies of scale as resources are used efficiently with no duplication of resources. The wide span of control releases top management from micromanaging operations, so they can focus on the overall strategy of the business
challenges of a functional organisational structure- focus on department goals
employees may work towards department objectives, rather than the overall business goals. this can slow business growth
challenges of a functional organisational structure - slow communication
communication can be slow between departments, this can mean the business is slow to react to change
challenges of a functional organisational structure-lack of trust
lack of trust between employees working in cross departmental teams, this reduces the overall productivity of the firm
what is a matrix organisational structure
a team based structure which allows for projects to be undertaken by a cross section of employees from several different departments
benefits of matrix- new ideas
personnel from various different departments bring new ideas to the project (innovation)
benefits of matrix - improved communication
improved relationships between the team
benefits of matrix- co ordinated approach
solving problems can be achieved due to the existence of a team. team members have the support of a project leader who is responsible for co-ordinating team effort and task completion
benefits of matrix- new skills
shared skills and experience. employees can learn new skills from each other. leads to professional development and improved motivation
challenges of matrix - all talk no action
teams can be a talking shop. certain people in the project team may dominate the task and only one voice is heard