Organisational+Management Structures Flashcards
Define organisation structure
An organisation structure is the way in which a business is arranged to carry out its
activities
What the organisation structure shows ?
- The communication routes – to pass on news, information, ideas, etc. to others parts of the business.
- Delegation – to pass work, responsibilities, etc. to others (generally) lower down the hierarchy.
- Promotion/career path.
- Control – who has authority over whom and who has responsibility for whom.
- Problem solving.
- Specialisation
Define Layers of Hierarchy
The management structure of
an organisation and indicates who is responsible to whom.
Define Chain of Command
The paths that communication
takes place along. Instructions or orders are passed down.
Define Levels of Responsibility
Each layer of the hierarchy will have its own level of responsibility. The amount of responsibility and the freedom to make decisions based on this responsibility will depend on the amount of control that has been delegated from above.
Define Span of Control
The number of subordinates answerable directly to a manager.
* When there has been a high level of delegation the span of control is often wide. Employees are trusted to achieve quality and complete
their tasks without constant supervision or monitoring.
* A narrower span of control operates in strictly hierarchical organisations where control is tight and centralised.
Define Line manager
The person who is immediately
above the employee, to whom they are answer.
Define a subordinate
The person who is immediately
below the line manager.
Define the traditional hierarchical structure
A series of levels within a business
where each level has responsibility and authority over the levels below.
*
* *
* * * *
Advantages of the traditional hierarchical structure
☑ Control is at the centre, and senior management fully understand exactly who does what, and what their responsibilities are.
☑ Paths of communication and responsibility are clearly defined.
☑ Departments understand their position in relation to other departments within the organisation.
☑ Each employee knows how they fit into the organisational structure.
Disadvantages of the traditional hierarchical structure
☒ Because it relies on agreed procedures it can be bureaucratic.
☒ The organisation may be slow to respond to customers.
☒ Communication can be poor between departments.
☒ There might be between departments
Define an independent structure
An independent structure exists
where the organisation does not have an obvious structure. This is common in the case of professional practices, such as lawyers, doctors and accountants, where members operate as a team.
Define a Entrepreneurial Structure
Entrepreneurial structure exists when a few key workers at the core of the business (frequently the owner) make all major decisions. Usually in small businesses this will be the owner or the entrepreneur. There is a workload issue for the decision makers as responsibility for many tasks will fall to them.
Define a centralised organisation
A centralised organisation is one
where the majority of decisions are taken by senior managers at the top of the business.
Characteristics of a centralised organisation
- key decisions made at head office
- tight control on activities
- company-wide strategies are used
- quick decision making
- good direction
- communication can be poor
- can demotivate staf
Define a decentralised organisation
A decentralised organisation is one where authority has been passed down to lower levels in the
hierarchy for decision-making.
Characteristics of a decentralised organisation
- key decisions made by lower levels
- motivates and empowers staff
- individual strategies used
- good communication
- loss of control by Head Office
- lack of direction
- decision making takes longer
Define downsizing
When a business closes down or merges aspects of their operations in order to reduce costs and remain competitive in the marketplace
Define a tall organisation
A long chain of command, many levels of hierarchy and narrow spans of control leading to close control over employees. Many companies are now delayering, that is, removing levels of hierarchy, thus flattening the
organisation structure.
Define a flat organisation
a short chain of command, few levels of hierarchy and wide spans of control, leading to employees operating with more independence.
Advantages of a flatter organisation
☑ increased motivation as a result of the delegation of authority
☑ decisions are made more quickly by those nearest the ‘ground’
☑ communication is quicker and suffers less distortion
☑ empowerment of employees
Disadvantages of a flatter organisation
☒ different departments may not be working to the same objectives
☒ loss of central control of the workforce
Define a matrix structure
Often used when cross-functional teams are created to run a project. Team members may come from different disciplines. Emphasises
getting people with particular specialist skills together into project teams – co-ordination
and support of specialist teams. Run by project managers who call upon the skills/expertise of specific people in the organisation to help achieve a certain goal. The team will disband when the project is complete
Advantages in favour of the matrix
☑ It allows individuals with specific skills to contribute to a number of different projects.
☑ It breaks down barriers to communication and ensures that projects can be better coordinated.
☑ It helps ideas and innovation spread throughout the business.
☑ There is more efficient use of human resources. The structure can improve flexibility and the
motivation of employees
