Human resource management within a business environment - organisation

Question 1

what is an organisational chart?

Answer 1

diagram that shows the hierarchy in a business, usually from top to bottom in terms of seniority

Question 2

what does an organisational chart show?

Answer 2

• who is responsible for which functions
• who has authority
• line of communication
• how departments are linked
• progression opportunities

Question 3

what is span of control?

Answer 3

number of employees for who a manager is responsible for, can be narrow or wide (generally based on cost)

Question 4

what are the advantages of a narrow span of control?

Answer 4

• cost savings –> less salaries
• easier communication
• closer management
• Better employee development
• monitor performance

Question 5

what are the disadvantages of a narrow span of control?

Answer 5

• more levels = more cost
• managers may watch over employees too closely
• slower decision making

Question 6

what are the advantages of a wide span of control?

Answer 6

• more people in charge
• cost efficiency - fewer managers
• faster decision making
• employees have more freedom

Question 7

what are the disadvantages of a wide span of control?

Answer 7

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Question 8

how to determine the effectiveness of a structure?

Answer 8

depends on:
- personality of manager
- skills of subordinates
- size of the business
- industry the business is in

Question 9

define chain of command

Answer 9

order of authority and delegation within a business
long chain = narrow
short chain = wide

Question 10

define levels of hierarchy/layers

Answer 10

refers to number of levels/layers in a business organisation
more layers = narrow
less layers = wide

Question 11

define line relationships

Answer 11

vertical relationships between managers and subordinates

Question 12

define staff relationships

Answer 12

horizontal relationship between a manager and another organisational member to/from whom the manager gives/receives or advice

Question 13

what is the difference between a tall and flat structure

Answer 13

tall has many layers
short has few layers

Question 14

what are the reasons for a tall structure?

Answer 14

• more promotional opportunities
• easier to see who is in charge
• easier to delegate tasks
• more structured

Question 15

what are the reasons for a flat structure?

Answer 15

• easier communication
• more teamwork
• less tension over roles, equality
• cheaper - less managers

Question 16

what is delayering?

Answer 16

when you take out a layer of management by laying them off

Question 17

what are the advantages of delayering?

Answer 17

• reduces wage costs (LT)
• more employee responsibility due to increased delegation
• faster communication
• fast decision making

Question 18

what are the disadvantages of delayering?

Answer 18

• redundancy payments (ST)
• damages to staff morale (colleagues leaving and anxieties about further costs)
• span of control widens

Question 19

define delegation?

Answer 19

where managers give a portion of their work to subordinates - responsibility is passed to someone else

Question 20

define empowerment?

Answer 20

giving staff the authority and resources to make decisions and take action without first receiving management approval

Question 21

what does successful delegation depend on?

Answer 21

• type of employee
• type of task
• training

Question 22

what is a centralised structure?

Answer 22

decision making process is undertaken by the leader at the top of the hierarchy

Question 23

what is a decentralised structure?

Answer 23

the decision making process is delegated and undertaken on a regional or product basis

Question 24

what are the advantages of a centralised structure?

Answer 24

• quicker decisions (no consulting)
• strong leadership
• standardised approach to business
• consistent organisation (consumers recognise this)
• less duplication of resources, reduce costs

Question 25

what are the disadvantages of centralised structure?

Answer 25

- decisions made w/o benefit of local knowledge - lack of involvement in decision making process is demotivating - experts of region may be ignored

Question 26

what are the advantages of decentralised structure?

Answer 26

- local regions are better informed - employees are motivated as they can make decisions - delegation or empowerment = opportunities for local initiative - more flexible - less time on communication and arguing case for specific region

Question 27

what are the disadvantages of decentralised structure?

Answer 27

- consumers may not recognise corporate identity as regions are varied - decisions may not be appropriate for whole business - duplication of resources occurs, which could be reduced is centralised

Question 28

define organisation by function?

Answer 28

organising business by job roles

Question 29

advantages of organisation by function?

Answer 29

- specialists can concentrate on what they know best - need the rest

Question 30

define organisation by product?

Answer 30

organising the business around recognisable products

Question 31

what are the advantages of organisation by product?

Answer 31

- easier to see which products are performing well - managers can concentrate energies on one product rather than central - centre has considerable autonomy = increased motivation

Question 32

what are the disadvantages of organisation by product?

Answer 32

- different products compete for resources --> conflict - duplication of departments can waste resources --> cost

Question 33

define organisation by system?

Answer 33

business is split into specialist areas which operate together

Question 34

what are the advantages of organisation by system?

Answer 34

- contains a specialist which makes the business more efficient

Question 35

what are the disadvantages of organisation by system?

Answer 35

- tendency for departments to treat their department as the most important part - business may become fragmented due to lack of co-ordination - difficult to evaluate performance due to several departmental inputs affecting performance

Question 36

define organisation by division?

Answer 36

refers to a large/multinational organisation where there are divisions which can be geographically separated or separated by product

Question 37

advantages of organisation by divisions?

Answer 37

- understand division in depth - managers have full control - communication barriers are broken down between individuals - team is closer to customer needs --> tailor approach - compare location's performance

Question 38

disadvantages of organisation by division?

Answer 38

- not involved in wider strategic outlook of business - duplication of jobs and resources - may lose consistency - potential conflict for resources

Question 39

explain what is meant by organisational culture?

Answer 39

reflects the values, attitudes and beliefs of a business

Question 40

what are the factors affecting organisation culture?

Answer 40

- vision - values - practices - people - narrative - place

Question 41

what is the benefit of organisational culture?

Answer 41

- conducts the business - treats its customers - shows concern for local community - employees involved in business - communicates within the business - commitment of business the values

Question 42

what are the benefits of an organisational structure?

Answer 42

- brings order to the business - can see who is responsible for whom - communication is clear - spans of control can be viewed - can see if delayering is possible - stakeholders can see strengths and weaknesses - employees can see possibility for promotion