organisational structure

What is the primary purpose of an organizational structure?

It outlines how certain activities are directed to achieve the goals of an organization and provides clear roles, routines, and ranks for workers.

What defines a functional organizational structure?

It is a traditional structure focused on the functions, departments, and main activities of a business.

What are the benefits of a functional organizational structure?

It is logical, allows specialist people to work in their own areas, has a short chain of command with clear lines of communication, and supports vertical management.

What are the drawbacks of a functional organizational structure?

Each functional head may have a wide span of control leading to a heavy workload, and employees may feel isolated and demotivated.

How is a product organizational structure organized?

It is built around the product portfolio of a business, often separating operations by different products or models like car manufacturers by separate models.

What are the advantages of a product organizational structure?

Workers are more focused, leading to increased labor productivity; it can better meet the needs of customers serving different products; and employees become more specialized.

What are the disadvantages of a product organizational structure?

Work may become repetitive, and there can be a duplication of resources, which is not efficient.

What is a regional organizational structure?

It allows a business to organize itself into different regions of a country, with units operating independently in separate locations, adapting operations and strategies to local needs.

What are the benefits of implementing a regional organizational structure?

It fosters strong collaborative teams at each location, allows adaptation of operations and strategies to local needs, encourages close communication with local customers, and enables tailoring approaches to specific local markets.

What are the drawbacks of a regional organizational structure?

It can be expensive due to the duplication of resources across multiple locations.

How is a matrix organizational structure characterized?

It combines traditional functional departments with project teams, where individuals work across teams and projects in addition to their own department or function.

What advantages does a matrix organizational structure offer?

It encourages creativity and interactions between functions, offers different perspectives, and should allow a business to be more successful.

What are the potential drawbacks of a matrix organizational structure?

Employees may feel overworked, stressed, and demotivated due to having multiple people to please, and it can be time-consuming.

What is 'span of control'?

The number of employees a manager is responsible for.

What is 'delegation' in an organizational context?

The passing down of work through the hierarchy.

What is the 'chain of command'?

A way of communicating through hierarchies.

What is 'delayering' and why is it done?

The removal of a hierarchy layer, often done to improve communication and cut costs.

What is 'centralisation'?

Where decisions are made by senior managers.

What is 'authority' in a role?

The right or power assigned to a particular role, delegated from the top-down.

What does 'decentralisation' mean for decision-making?

Decisions are made by employees, rather than just senior managers.

What is a 'hierarchy' in a business structure?

A layer of business structure.

What does 'organisational structure' show?

How people and management are organized in a business.

What is an advantage of a wide span of control?

Managers can delegate and motivate employees through responsibility.

What are two disadvantages of a wide span of control?

Employees may feel demotivated and unseen, and it can be difficult to communicate with subordinates.

What are two advantages of a narrow span of control?

It allows for easier communication and a closer relationship with subordinates.

What is a potential disadvantage of a narrow span of control?

Employees may be less productive as the manager is constantly monitoring them.

Define delegation.

Delegation is the assignment to others lower down in the hierarchy of the authority for particular tasks, functions, and decisions.

How do flat structures relate to delegation and span of control?

Flat structures delegate more frequently and managers in these structures typically have a wider span of control.

What is a characteristic of a 'Tall' organizational structure regarding hierarchy and promotion?

It has more layers of hierarchy, leading to more promotion opportunities.

In a 'Tall' organizational structure, what is the typical chain of command and span of control?

It has a long chain of command and a narrow span of control.

How does delegation typically operate in a 'Tall' organizational structure?

It generally involves lower levels of delegation.

What is a characteristic of a 'Flat' organizational structure regarding hierarchy and promotion?

It has fewer layers of hierarchy, leading to less promotion opportunities.

In a 'Flat' organizational structure, what is the typical chain of command and span of control?

It has a short chain of command and a wide span of control.

How does delegation typically operate in a 'Flat' organizational structure?

It generally involves higher levels of delegation.

How does communication speed generally differ between 'Tall' and 'Flat' organizational structures?

Communication tends to be slower in a 'Tall' structure and faster in a 'Flat' structure.

Where does authority originate in both 'Tall' and 'Flat' organizational structures?

Authority comes from the top in both types of structures.

What are three features of a tall organizational structure?

Longer chain of command, more hierarchies, and less delegation.

How might a change in leadership style from democratic to autocratic (or decentralized to centralized) affect a company's employees and productivity?

Employees may feel demotivated due to lack of authority, which can lead to decreased productivity levels, a fall in labour productivity, and an increase in unit costs.

What is human resource flow?

The movement of employees through an organisation.

What are the three elements of human resource flow?

Human in-flow, internal human flow, and human out-flow.

What does managing human in-flow involve?

Decisions about recruitment, selection, and induction of new employees.

What does managing internal human flow involve, and why is it important?

Decisions about the training and development of employees, ensuring that their skills and competencies meet the needs of the organisation.

What does managing human out-flow involve?

Decisions about how and when employees leave an organisation.