Week 1 - Lecture 1 Flashcards
Business Structure
What is the importance of structures in business operations
Role in Achieving Objectives: Clear framework and objectives, employees understand their responsibilities and who to report to, aligning individual efforts with company’s overall goals.
Influence on Efficiency: Communication patterns, reduce redundancy, right people in right roles.
Impact on Culture and Behaviour: Communication patterns, decision making processes, work environment, complying with rules,
What is a hierarchy structure
Traditional clear top-down command chain , each employee has a single manager to report to, decisions flow top down with formal communication, promotion opportunity, narrow span of control
Advantages of hierarchy structure
Clarity of Role, Career Path, Centralised Decisions
What is the disadvantages of hierarchy structure
Inflexibility, slower decision making, slower in responsive to market changes, potential for bureaucracy
What is a flat structure
No middleman, wide span of control, common in tech and
creative industries, flexibility and quick decisions are
essential.
Advantages of flat structure
enhanced flexibility, faster decisions, empowerment and innovation
Disadvantages of flat structure
Management competition, role ambiguity
What is a matrix structure
Employee report to more than one manager (normally functional and project manager), input required by multiple departments for projects, common for construction
Advantages of matrix structure
Resource Efficiency, improved communication within functions, flexibility in project management
Disadvantages of matrix structure
complexity in management, potential for confusing priorities and objectives, higher demand and workload for employees, large overhead costs, who takes ownership for mistakes
Purpose of profit organisation
Maximise financial returns for owners and stakeholders, profits typically reinvested, expand market share, improve efficiency and innovate.
Sole proprietorship
Single ownership, no sharing profit loss, one capital, unlimited liability (if business is unsuccessful person who makes business is responsible for failure rather than splitting loses even), less legal formalities, solo control
Partnerships
2 or more sharing profits/loses, management responsibility, share liability and decision making with profits distributed accordingly with the partnership agreement.
Corporations definition
legal entity separate from owners providing limited liability protection for its shareholders (can be anyone), managed by board of directors and operated by officers with ownership through shares of stock.
non profit organisations
Entities operating primarily for a social, educational, charitable or community purpose rather than profit generation. Profits reinvested into organisation to further its mission. They rely on donations, grants and fundraising efforts.
