Unit 3.2 Flashcards
(14 cards)
What is an organisational structure?
It is how people and departments are arranged within a business.
What is a tall and flat organisation structure?
The tall structure will have many layers of staff from top to bottom while the flat will only have a few layers.
Advantages and disadvantages of tall organisational structure?
Pros- Clear lines of communication, Managers have less people to supervise or manage so they can monitor performance easily, there will be more opportunities for promotion which will boost motivation.
Cons- Slower communication because the message has to pass through more layers, more expensive due to having to hire more managers, slow decision making as it has to pass many layers.
Pros and cons of a Flat organisational structure?
Pros- Faster communication as there are less layers, Lower costs as there are fewer managers, the workers may feel more trusted as they can make decisions by themselves as there are less managers.
cons- Not always clear lines of communication, managers have to supervise a lot of workers, so it is hard to manage properly, promotion opportunities may be few which can reduce motivation.
What are tall and flat organisational structures most suitable for?
Tall- large organisations like large hospitals.
Flat- small businesses or sometimes creative businesses
What is an organisational chart and what can it include?
A diagram that shows the structure of the business, like job roles, levels of authority and chain of command
What are the 5-terminology used in organisational charts?
Authority, Subordinates, Delegation, Chain of command, Span of control.
What is Authority?
The power to make decisions, give orders, or control other workers.
What is a subordinate?
People who report to someone higher in the business like a manager.
What is delegation?
When a manager gives responsibility for a task to someone below them in a business.
What is Chain of command?
Order of authority in a business that shows who shows who gives orders to who.
What is span of control?
The number of employees a manager has authority over.
Three ways a business can be organised by?
Product, place and function
3 main reasons why a business may choose different organisation charts.
-Importance of effective communication as the business thinks this structure is the best for communication.
-Different job roles and responsibilities
-Different way of working as tall structures have specific tasks while flat structures need to be creative.
