organisational structure

What is an Organisational Structure?

An organisational structure shows the levels of authority and responsibility within a business and how employees are organised.

What is the Chain of Command?

The chain of command is the line of authority showing who is responsible for whom in an organisation.

What are the advantages of a clear chain of command?

Employees know who they report to, reduces confusion, improves communication, and makes it clear who has authority.

What is a Hierarchy?

A hierarchy is the number of levels of authority in an organisation, with tall structures having many levels and flat structures having fewer levels.

What is Span of Control?

Span of control is the number of employees directly supervised by one manager.

What are the advantages of a wide span of control?

Fewer managers needed, employees may have more responsibility, and communication is faster.

What are the disadvantages of a narrow span of control?

More managers are needed, increasing costs, and communication may be slower.

What are the characteristics of a Tall Organisational Structure?

A tall structure has many levels of management and a narrow span of control, providing clear authority and closer control.

What are the advantages of a Flat Organisational Structure?

Faster communication, lower management costs, employees have more responsibility, and decisions can be made quickly.

What is Delegation?

Delegation is when a manager passes authority to a subordinate to complete a task, but the manager remains accountable for the result.

What does Centralisation mean in an organisation?

Centralisation is when most decisions are made by senior managers at the top of the organisation.

What is Decentralisation?

Decentralisation is when decision-making authority is passed down to lower levels of management.

How is communication classified in organisations?

Communication is classified as internal (within the business) and external (with people outside the business).

What are the benefits of good communication in organisations?

Reduces mistakes, improves teamwork, helps decisions to be made, increases efficiency, and improves relationships with customers.

What are the problems caused by poor communication?

Mistakes occur, employees become confused, poor customer service, lower productivity, and conflict between employees.

What is Centralisation?

Centralisation is when most decisions are made by senior managers at the top of the organisation.

What are the advantages of Centralisation?

Decisions are consistent across the business, senior managers have more control, and it reduces the risk of poor decisions.

What are the disadvantages of Centralisation?

Decisions may take longer, employees may feel less valued, and senior managers may become overloaded.

What is Decentralisation?

Decentralisation is when decision-making authority is passed down to lower levels of management.

What are the advantages of Decentralisation?

Faster decision making, employees feel trusted, and local managers can respond quickly to customer needs.

What are the disadvantages of Decentralisation?

Different departments may make inconsistent decisions, and lower-level managers may lack experience.

What are Functional Departments in a business?

Most businesses are divided into departments that specialise in certain tasks.

What are the functions of the Marketing Department?

Market research, advertising and promotion, pricing decisions, and increasing sales.

What are the functions of the Finance Department?

Managing cash flow, preparing budgets, keeping financial records, and controlling costs.

What are the functions of the Human Resources (HR) Department?

Recruiting employees, training staff, managing employee welfare, and handling employee issues.

What are the functions of the Operations/Production Department?

Producing goods or services, maintaining quality, and managing production processes.

What are the functions of the Research and Development (R&D) Department?

Developing new products and improving existing products.

What is the importance of good communication in organisations?

Good communication reduces mistakes, improves teamwork, helps decisions to be made, increases efficiency, and improves relationships with customers.

What are the problems caused by poor communication in organisations?

Mistakes occur, employees become confused, there is poor customer service, lower productivity, and conflict between employees.

What is the importance of a clear chain of command?

A clear chain of command enhances understanding of roles, responsibilities, and reporting relationships within an organization.

What are the features of a Tall Organisational Structure?

Tall organisational structures have multiple management levels, a narrow span of control, and generally clear lines of authority.

What are the features of a Flat Organisational Structure?

Flat organisational structures have fewer management levels, a wide span of control, and promote faster communication and decision-making.

What is the role of Delegation in management?

Delegation allows managers to distribute tasks and empower subordinates while retaining ultimate accountability for outcomes.

How does Centralisation affect decision making?

In centralised organisations, decision-making is concentrated at the top, potentially leading to uniformity but slower responses to local issues.

How does Decentralisation enhance employee performance?

Decentralisation can enhance employee performance by allowing local managers to make decisions tailored to their specific contexts.

What are the potential drawbacks of a Tall Organisational Structure?

Drawbacks include higher costs due to more managers, potential slow communication, and less employee responsibility.

What are the potential benefits of a Flat Organisational Structure?

Benefits can include quicker decision-making, greater employee responsibility, and lower management costs.

What are the risks associated with Delegation?

Risks include potential mistakes by employees, the need for training, and managers losing some control over tasks.

What is the significance of good internal communication?

Good internal communication fosters teamwork, reduces errors, and supports efficient operation within the organization.

What role do Functional Departments play in a business?

Functional Departments facilitate specialization, improving efficiency and effectiveness in task completion across various business functions.