2.2 Flashcards
(32 cards)
What is delegation?
when managers assign responsibilities for a task to someone further down the chain of command
What is the advantage of delegation?
delegation can help in building skills and motivating people
delegation gives managers the chance to focus on other decisions
employees now feel trusted
What is span of control
refers to the number of employees working under a manager
What is narrow and wide span of control?
narrow: few people to supervise, more layers, more costly, easier to control
wide: many people to supervise, less layers, lower costs, hard to control
What is hierarchy?
hierarchy refers to the ranking of people in an organisation according to status/authority
What is levels of hierarchy?
Identify advantage and distadvantage
refers to number of layers of authority in an organisation.
it creates a sense of belonging but isolation between departments
What is chain of command?
the line of authority in an organisation; orders are passed down
What is bureaucracy?
refers to a system of administration using procedures and rules.
What is centralisation?
a situation where the decision-making is done by one person/small group of people
What is decentralisation?
a situation where decision-making is spread among many people
What is delayering?
involves the reducation of a layer in the levels of hierarchy
What are advantages and disadvantages of delayering?
it reduces costs and chain of commands become shorter
it creates confusion within the removal of employees
What is a flat (horizontal) organisational structure?
few layers of hierarchy, short chain of command, and wide span of control
decision making is widespread among employees
What is an advantage and disadvantage of flat organisational structure?
employees become more motivated due to decision making
Accountability becomes an issue without a full hierarchy
What is a tall (vertical) organisational structure?
many layers in the hierarchy, long chain of command, and narrow span of control
the structure is more bureacratic and formal
What is an advantage and disadvantage of a tall organisational structure?
the structure is bureacratic and formal but decision making often takes a long time
What is an organisational structure?
a graphic illustration of the structure and relationships of the employees between departments in the organisation
What is organisational structure by product?
the organisation is divided into different departments, each focused on a different product
What is advantage and disadvantage of organisational structure by product?
can create competition between departments but functions can be duplicated making it confusing
What is organisational structure by function?
the organisation is divded by areas of function
What is advantage and disadvantage of organisational structure by function?
businesses structured this way operate well in stable environments where changes do not happen often
The level of bureacracy makes it hard to respond to changes in market
What is organisational structure by region?
the organisation is organized by different locations around the world
What is advantage and disadvantage of organisational structure by region?
the organisation’s offices in each region can operate individually, but decision-making become decentralized easily as the regional units have greater autonomy
How can economic changes change the organisational structure of a company?
changes in economy can result in recession
recession may reduce staffing, and lead to delayering