B4-Human Resources Flashcards
(138 cards)
Why do businesses have a structure?
• All businesses have to organise what they do
• A clear structure makes it easier to see which part of the business does what, and who has which job role
• Makes communication easier across the company
• Employees should find it easier to be aware of their roles and responsibilities
What is the chain of command?
This is the flow of
information, power and
authority through the
business
What can people above others in a business do to people lower?
They can delegate tasks
to those subordinate to
them in the hierarchy
(below them)
What is the Span of control
The span of control is the control one person has over a certain group.
An example of this can be A head of department may
have 6 teachers working for
them. Their span of control
is therefore 6.
What is delegation
Delegation is where a task is
given to a subordinate
employee in the hierarchy
What is delayering?
Delayering is when one or
more of the layers of
management are removed
from the business therefore it
saves money since the
organisation no longer need
to pay the salaries of the
workers it has laid off e.g.
removing all supervisors
What does delayering do?
Delayering helps improve
communication as it will be
faster as one less layer to go
through
Advantages of a hierarchical structure
• Lots of layers in the hierarchy means lots of
opportunities for promotion
authority and responsibility
are clear and well defined
• Supervisors normally have a small span of control so they can get to know their subordinates really well
• Knowing subordinates means they can delegate the right tasks and make sure their team is well trained
Disadvantages of a hierarchical structure
• Lots of layers and a long chain of command can
mean that the business is very inflexible
• It can also mean that communications within
the organisation are slow
• This is expensive as there are more managers
and supervisors
What is a flat structure?
A flat structure is a type of organisational structure where there are few levels of hierarchy, meaning fewer layers of management between the top and bottom of the organisation.
Key features of flat structures
Wide spans of control – each manager supervises more employees.
Short chain of command – communication is quicker.
Fewer managers – may reduce costs.
More responsibility for employees – they may be more motivated.
What is a hierarchical structure?
A hierarchical structure (also called a tall structure) is an organisational structure with many layers of management and a clear chain of command.
Key features of hierarchical structures
Narrow spans of control – each manager is in charge of fewer employees.
Long chain of command – communication takes longer to reach the top or bottom.
Clearly defined roles – everyone knows who they report to and who they manage.
More opportunities for promotion – due to more levels.
Advantages of a flat structure
Fewer layers of hierarchy
between the bottom and the
top of the organisation may
mean that communication is
fast
✓ better communication and
relationships between
different roles
✓ simple, faster decision
making processes
✓ it is easier for the business
to change and adapt
✓ increase in employee
responsibility levels
• Lots of delegation means that
staff are given greater
responsibility, which might
mean more opportunities to
use their abilities
Disadvantages of a flat structure
Staff can be overstretched or
overworked in a flat structure
as there is less supervision, this
can cause stress and
demotivation
• Can create a power struggle if
the manager is rarely around as
subordinates jostle for roles
and responsibilities
• Wide span of control means
managers have too many staff
to manage and may lose touch
with them
What is decentralisation?
where a business divides
up the organisation of its business into areas for
example: north, south, east, west or UK, Europe,
and Africa. The business will have separate
budgets for each area
When is centralisation?
where a business has its
organisation of management and administration
at one central head office. The business has one
central shared budget
Key features of centralisation
Major decisions made by a small group at the top.
Little input from employees lower down.
Ensures consistency across the business.
Only small decisions
such as rotas and
stock merchandising
can be made at
branch level
Branches follow direction from
Head office. They receive all
deliveries of stock bought by
Head Office buying department
Key features of decentralisation
Local managers can make decisions.
More responsibility and autonomy and power at lower levels.
Often used by large businesses with multiple branches.
Quicker decisions
can be made as they
do not have to go
through a central
office for approval,
important in
dynamic markets
e.g. fashion
Authority and power
are given to the
divisions to make
decisions that affect
that division,
important when
working in countries
with different cultures
Advantages of centralisation
Decisions are consistent and aligned with overall strategy.
Experienced managers make the decisions.
Easier to control and coordinate the business.
Disadvantages of centralisation
Slower decision-making, especially in large organisations.
May demotivate staff who feel they have no voice.
Less responsive to local needs.
Advantages of decentralisation
Quicker decisions at local level.
Employees feel more trusted and motivated.
Business can respond better to local needs or conditions.
Disadvantages of de centralisation
Risk of inconsistent decisions across departments or locations.
Less control from the centre.
Some local managers may lack experience.