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Business A Level > 5 > Flashcards

5 Flashcards

(52 cards)

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1
Q

What does HRM stand for

A

Human resource management

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2
Q

What does the HRM department concern

A

How people are managed by the business in order to meet the strategic objectives of the business

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3
Q

What is an organisational chart

A

A diagram that shows the hierarchy in a business, usually from top to bottom in terms of seniority, authority, responsibility or control

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4
Q

What is meant by hierarchy

A

The structure in which items are ranked according to levels of importance

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5
Q

What do organisational charts show

A
  • responsibility and authority
  • Who is a line manager of who
  • progression opportunities
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6
Q

What is meant by span of control

A

The number of employees or subordinates for whom a manager is responsible

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7
Q

What are the 2 types of span of control

A

Wide and narrow

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8
Q

Advantage of a narrow span of control

A

Manager can spend more time giving staff clear and direct instructions

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9
Q

What is a disadvantage of a narrow span of control

A

Staff may feel little trust and responsibility so are demotivated

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10
Q

What is an advantage of a wide span of control

A

Independence may be motivating for staff

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11
Q

What is a disadvantage of a wide span of control

A

Staff may perform worse if manager has less control

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12
Q

What are some factors the influence the effectiveness of the span of control

A
  • Personality it manager
  • Skills/qualities of subordinates
  • Size of business
  • Industry
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13
Q

What is meant by chain of command

A

The way in which responsibility/authority for employees is organised within a Business

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14
Q

What are the 2 types of chain of command

A

Long and short

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15
Q

What is meant by levels/layers of a hierarchy

A

Refers to the number of levels in an organisation

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16
Q

What are line relationships

A

Vertical relationships (in a hierarchy) between managers and subordinates

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17
Q

What is meant by staff relationships

A

Horizontal relationships between members of the hierarchy on the same level
May exchange info and advice

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18
Q

What is meant by authority

A

The power of a person to allocate resources, make decisions and give orders

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19
Q

What is meant by responsibility

A

The duty or obligation to complete a task or do something that has been assigned to you be a person with authority

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20
Q

What is meant by delayering

A

The process of reducing the number of levels in an organisational structure

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21
Q

What are advantages of delayering

Study These Flashcards
A
  • Reduce costs
  • More employee responsibility/delegation so improve motivation
  • Faster communication and thus decisions made quickly
22
Q

What are disadvantages of delayering

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A
  • Increase span of control (need for investment in training)
  • Redundancy costs
  • Damage staff morale due to loss of friends and fear of losing job
23
Q

What is meant by delegation

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A

when Responsibility is authorised to a subordinate by a manager

24
Q

What is meant by empowerment

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A

Giving employees the power to do their job

25
What is meant by a centralised structure
Where authority and decision making is controlled by those at the top of the hierarchy (senior management)
26
Example of a business with a centralised structure
McDonald’s
27
What are benefits of a centralised structure
- Easier to implement common policies for whole business - Easier to achieve EOS - Quicker decision making due to less consultation - Easier to coordinate and control eg budgeting
28
Disadvantages of a centralised structure
- Local/junior managers feel lack of responsibility - They’re more likely to be close to customers so understand they’re demands and can operate with better customer service - More layers so Increase costs
29
What is meant by a decentralised structure
Decision making is spread out to include more junior managers in the hierarchy, as well as individual trading units or trading locations
30
What is an example of an industry that may operate with a decentralised structure
Hotel chains
31
Benefits of decentralised structure
- Decisions made to closer to customer (more speed and understanding) - Flatter hierarchy (reduce costs) - more responsibility gives empowerment and motivation - Better for future promotions (development further down hierarchy)
32
Drawbacks of decentralised structure
- Decision making may not be strategic - Difficult to ensure common policies across whole business - Diseconomies of scale (duplication of roles in each region) - Lack of strong leadership
33
How do most businesses operate in terms of a centralised and decentralised structure
A mixture of both
34
What is a tall structure
An organisational chart with more layers
35
What are characteristics of a tall structure
- Narrow span of control - Slower communication - More promotion opportunity - Long chain of command
36
What reasons are there for using a tall structure
- Line of communication is clear - Managers know who to delegate to - Strong leadership + guidance
37
What is a flat structure
An organisational chart with few layers
38
What are the characteristics of flat structures
- Wide span of control - More delegation and responsibility - Faster communication to the top, maybe slower communication to manager though
39
Reasons for using a flat structure
- Empowerment due to less controlling - Teamwork - Flexible work environment - Easy communication - Lower costs
40
What is meant by organisation by function
The business is organised into departments/specialist areas
41
What is meant by organisation by product
Business is organised according to the different products made Each product department has its own functional areas
42
Advantages of organisation by function
- Specialists can concentrate on what they do best and share ideas with each other - Less duplication of departments
43
Disadvantages of organisation by function
- Conflict May occur - Slower communication due to segregation - Difficulty In crediting success or Blake - Can’t identify their outcome
44
Advantages of organisation by product
- Easier to see which product is performing best - Communication barriers for specialists broken down - Can see direct result of work - Independence of teams
45
Disadvantages of organisation by product
- Different products competing for resources may cause conflict - Duplication of departments (waste resources) - Less specialisation, lose sight of overall direction of business
46
What is meant by organisation by division
Business is organised by location
47
Advantages of organisation by division
- Can see which area is performing best - Teams see direct result of work - Increase independence
48
Disadvantages of organisation by division
- Competing for Resources May cause conflict - Duplication of department - Less focus on direction of whole business
49
What is meant by a matrix structure
An organisational system where individuals work as part of both a project and their own department Have 2 managers Can be temporary or permanent
50
What is an example of an individual who is working within a matrix structure
A person from accounting working an a team launching a new product
51
Advantages of a matrix structure
- Allows more than one large scale project to take place at the same time - Teamwork with a number of people can boost morale within a workplace
52
Disadvantages of a matrix structure
- Confusion May occur due to conflicting orders from management - May be time consuming (less efficient) - Team members may neglect their functional responsibilities

Business A Level (16 decks)

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