1.4.3 organisational design Flashcards
hierarchy definition
ranking workers according to level of importance or status in a business
job roles:
- chief executive officer (CEO)
- senior managers/directors
- managers
- supervisors
- operatives
- trainees/apprentices
tall structure definition
where there are lots of layers of management responsible for relatively few employees
- NARROW SPAN OF CONTROL:
flat structure definition
where there are few layers of management responsible for lots of employees
- WIDE SPAN OF CONTROL
chain of command definition
the reporting system from top to bottom- the rout by witch information travels through the business
TALL= long chain of command
FLAT= short chain of command
line manager definition
every employee in the business will report to someone above them
martix structure definition
a temporary structure where staff work in project teams that are cross functional
advantages and disadvantages of tall structure
+ less mistakes as everyone is closely supervised
+ clear management structure with clear defined roles
+ more opportunities for promotion
- workers may not feel like they ae trusted
- higher management costs as salaries are bigger
- communication and decision making can be slow
advantages and disadvantages of tall structure
+ allows faster communication and decision making
+ less levels of management so cost of management salaries is less
+ less supervision so employees get more flexibility
- lack of promotion opportunities
- managers may loose control of the workers
- managers may become overburdened with work
advantages and disadvantages of matric structure
+ break down traditional department barriers which should increase communications across the business
+ allows individuals to use their particular skills in a variety of contexts
+ lining departments together should avoid delays in getting things done
- divided loyalties if employees have two managers
- clear line of accountability may not be present (like a traditional structure)
- difficult to coordinate
centralised structure definition (+&-)
decision making power and control remains in the hands of the top management levels
- less autonomy (freedom) for managers
+ good for consistency for customers
de-centralised definition (+&-)
decision making power and control is delegated to workers lower own in the hierarchy
+ allows decisions to be made locally- closer to customers
- may be less consistency
- managers have more responsibility and authority
advantages and disadvantages of centralised structure
+easier to implement common procedures and practices for the whole business
+ prevents each part of the business from becoming too independent
- head office is less likely to know local needs compared to local managers
- lack of authority down the hierarchy may reduce motivation of managers
advantages and disadvantages of de-centralised structure
+ good way of training and developing junior managers
+ may motivate managers if they are given authority to make their own decisions
- may be some diseconomies of scale e.g. duplication of roles
-harder to achieve total financial control as there is a risk of departments going over budget
efficiency definition
reducing unnecessary resources to produce a given amount of output
