Organisational structure Flashcards
(11 cards)
Types of structure business can use for their business
- Functional structure
- Product based structure
- Regional Structure
- Matrix structure
What is functional structure
Employees are grouped into specific departments dependant on their skills and expertise
What is product based structure
When a business structures itself around the products/services they produce
What is regional structure
Employees are allocated to a specific geographical region the business has organised itself to
What is matrix structure
This is used when employees, from different areas of the business are combined together to work on a project
Factors that determine what type of organisational structure is chosen
- Performance of the business
- Products: Range, Amount
- Size of the business
Financial position: Is it strong or week - Consumer base for the business
What is span of control in the business
The number of employees a manager is responsible for
What is chain of command in a business
A vertical line of authority which orders are passed down
What is Delayering in a business
When a layer of management in a business is removed
What is centralisation in a business
Decision making is kept at the top of the hierarchy
What is decentralisation
Decision making powers are passed down to junior managers
