Organisation 2: Business: Pearson (Edexcel): GCSE (9:1)

Subordinate

A person below you with less authority

Centralised

Decisions and authority are placed with a few senior managers

Decentralised

Decisions and authority are placed in a variety of areas of the business, such as branches, shops or departments

Advantages of centralised structure

More coordinated decisions, staff have the skills and experience to make judgments, responsibility is concentrated

Disadvantages of centralised structure

Less responsive to day to day issues, slower decision making

Advantages of decentralised structure

More relevant and responsive decision making, faster and motivating for staff

Disadvantages of decentralised structure

Lack of accountability and responsibility, unable to see the big picture

Types of communication

Upward (employees to managers, senior managers) Downward senior staff to junior staff and Horizontal between staff at the same level

Insufficient communication

Not enough information to allow staff to operate efficiently

Excessive communication

Too much, information overload

Accountability

Who has ultimate responsibility to stakeholders for decisions that are made and how a business performs

Board of Directors

The senior management who control the business and are accountable to shareholders

CEO

Chief Executive Officer

Middle managers

The link between senior management and directors and more junior staff

HR

Human resources, responsible for recruitment, training, pay, and all other aspects of maintaining staff