Changes To Internal Structures Flashcards
(8 cards)
what is downsizing and the advantages and disadvantages
reducing product capacity by closing factories, making surplus staff redundant, reorganisation of job grades, roles
adv-reduced cost,empowers staff, competitiveness
neg-not able to meet sudden change in demand, poorer public image
what is delayering and the advantages and disadvantages
removing layers of middle management, making a flatter structure
adv-improved communication, fast decisions, staff motivation as more empowerment
neg-reduced promotional opportunity, harder to monitor
what is wider span of control
connected to delayering, they are in charge of more workers
what are the advantages of wider span control
- empowered staff
- manager can delegate tasks to staff with certain skills
- manager feels more motivated as they have more responsibilities
what are the disadvantages of wider span control
- can be stressful
- slower decisions
- manager has less discussion time with individuals about their work
what is outsourcing
a firm hires an external agency to complete non core activity
what are the advantages of our sourcing
- firms produce better quality as they are experts
- has specialised equipment so org can access it without payment
- reduces costs of employing staff
- service only paid for when needed
what are the disadvantages of outsourcing
- dependent on agency so has less control
- agency can take longer to make decisions affecting deadlines
- no guarantee the standard will be good
- cost of fees as paying for expert help
