Flashcards in Organisational Structures Deck (22):
What is meant by an organisational structure?
The way in which management is organised, both horizontally and vertically.
What is meant by an organisational chart?
A diagram showing the lines of authority and levels of hierarchy within an organisation.
What is meant by levels of hierarchy?
This refers to the number of layers of authority within an organisation
What is meant by span of control?
The number of subordinates reporting directly to a manager.
What is meant by a tall structure?
An organisation with many levels of hierarchy and narrow spans of control.
What is meant by a flat structure?
A management structure with wide spans of control, requiring relatively few layers of hierarchy
What is meant by delayering?
The removal of one or more layers of hierarchy from the organisational structure.
What are the advantages of tall structures?
1. Small spans of control = managers can keep close control over subordinates
2. More experience gained with more managers within the business
3. Easier workload for employees
4. Less training costs
5. Easier promotion prospects, resulting in higher motivation
What are the disadvantages of tall structures?
1. Decision making could be slower and miscommunicated due to more layers of hierarchy
2. Less responsibility for subordinates - less motivation with less duties
3. Expensive wage costs
4. Less opportunity to prepare for promotion? (In textbook so dunno)
What are the advantages of flat structures?
1. Communication of decisions is quicker and clearer as needs to be passed through fewer people.
2. Less formal and smaller chain of command
3. Enables senior management to be aware of what has been decided more frequently
4. Lower wage costs
5. Gives junior employees wider range of duties and responsibilities = more inderpendance and motivation
What are the disadvantages of flat structures?
1. Harder for managers to keep close control of subordinates as they're likely to have so many
2. Experience of middle managers may be missed
3. Staff may have a heavy workload with many subordinates = impairs efficiency.
4. Increased training costs
5. Broadly similar duties = boredom and demotivation
What are the advantages of delayering?
1. Can improve job competitiveness
2. Gives junior employees more responsibility
3. Communication more effective
What are the disadvantages of delayering?
1. Loss of experience and middle management
2. Fear of of losses among staff
3. Increased training workloads
4. Heavier workloads = less efficient
What is meant by centralisation?
Drawing decision making powers from the local level parts of the organisation and centralising them into one head office or centre.
What is meant by decentralisation?
Devolving power from the head office to local branches or divisions. This includes passing authority for decision making 'down the line' thereby accepting less uniformity in how things are done.
What are the advantages of decentralisation?
1. Improved motivation as junior employees gain greater responsibility = improved performance and loyalty.
2. Reduces senior managements workloads
3. Juniors gain a better understanding of the operations -= easier promotions
4. Decisions made are closer to customers
What are the disadvantages of decentralisation?
1. Loss of communication and co-ordination between branches
2. Loss of economies of scale
3. Company objectives not followed
What are the advantages of centralisation?
1. Can provide rapid decision making
2. Less people needed for decision making = reduced costs
3. Ensures the business pursues their objectives
5. Economies of scale
What are the disadvantages of centralisation?
1. Lack of experience lower down
2. Head office doesn't have knowledge of local markets
3. Miscommunication can occur
4. Reduces motivation locally
What is meant by a matrix structure?
The organisation of management of a task along lines that cut across normal department boundaries.
Advantages of matrix structure?
1. Flexible - can use best skills, knowledge and experience for a task
2. Allows additional dimension for the job - improves motivation and communication
3. Team members have clear objectives and responsibilities - efficient