NCEA business 2.1

What is an organisational structure?

A hierarchical structure that shows the way that employees and their job roles are organised within a business.

Advantages of an organisational structure?

• makes clear who is responsible for which workers.

• makes clear who people should communicate with and take instructions from

• clearly shows how different departments and layers of management there are.

What does span of control mean?

Refers to the number of people a manager is responsible for and refers to how many people report to an individual.

Flat organisational structure advantages

• There is quicker communication as there aren't many levels of hierarchy to pass through.

• decision making is faster as the chain of command is shorter.

Flat organisational structure disadvantages

•bigger workload for managers

• managers have more subordinates to look after.

• lack of progression opportunities

What is a centralised structure?

Centralised structure means that decisions are made by one person or a few senior managers at the top of the hierarchy.

Advantages of centralised structure?

• More coordinated decisions as management have the skills and experience to make correct judgment

• policies will be uniform and consistent throughout the business

Disadvantages of centralised structure?

• the business can be slow to react to change.

•it can demotivate employees.

What is a decentralised structure?

When authority to make decisions is shared out to other managers or employees within the business.

Advantages of decentralised structure?

• employees can use expert knowledge in their area to make decisions

• decisions can be made quickly

• increase in employee motivation

Disadvantages of decentralised structure?

• decision makers may not see the overall needs of the business

•consistency is not achieved across the business.

What is the matrix organisational structure?

A matrix organisational structure divides the work into projects. Employees are brought together with various specialist skills, with the goal of completing the project successfully.

Matrix organisational structure advantage?

• allows the business to use internal expertise instead of using money to recruit external expertise in the specialised project area.

• productivity is high therefore motivation is increased.

disadvantages of matrix structure

- Many managers across all project teams mean high wage and salary costs.

-multiple managers per project risks potential conflict.

- Staff can be confused as to who to report to as they have two or more managers

Geographical organisational structure

When businesses have divided offices into regions or nations.

Geographical organisational structure advantage?

Spreading management between regions make day to day control easier

Geographical structure disadvantage?

There can be wasteful duplication or resources between regions.

What is a Shamrock Organisational structure?

An organisational structure divided into three parts

• core employees

• outsource work to subcontractors

•temporary workers

What causes an organisational structure to change?

• business growth

•change in market conditions

• ownership changes

• customers needs change

What is the difference between a leader and a manager?

A leader is one who influences positive effects in an environment and a manager is someone who is usually authorative to their workers and employees without having much impact.

What are the 5 stages of management?

- Senior management

-Middle management

-Low level management

-Foreman

-Rank and file

What is an autocratic leader?

A leader who makes decisions for the group without consulting them.

What is a paternalistic leader?

A paternalistic leader makes decisions but after consulting with workers

What is a democratic leader?

A leader who allows the input of their employeres in decision making. Its more of "we" and less "I"

What is a Laissez-Faire leader?

are only minimally involved in decision making and encourage group members to make their own decisions

What is the maori business philosophy for leadership?

Rangatiratanga

What is a policy?

a policy is a set of principles that guide in decision making

What is a procedure?

Detailed plan of action that is similar and closely related to a policy

What are examples of policies?

-Staff dress code

-Return policy

-Financial policies

What are examples of procedures?

- onsite safety procedure

-ordering procedure

-Complaints proceduresWhy

Why are policies important?

Policies help managers and workers make good decisions

They help a business to run smoothly, consistently and in a way that is aligned with the organisational values.

What are benefits of policies?

-Employees feel fairly treated through consistent application of employment rules.

-Customers get a consistent experience between stores or between staff members

-Written policies increase the transparency of the organization, letting stakeholders

see how it does business which improves stakeholders trust in the organisation.

The importance of Procedures?

Procedures set how workers and managers complete tasks each day so the business

operates. Having procedures in place shows that the organisation has clearly informed

all staff and managers about the right way to do things.

What are advantages of procedures?

-Mistakes are minimised so there is little waste

-Quality standards and therefore customer expectations can be met

-The organisation can protect itself against fraudulent behaviour and protect business

assets.

What is the maori business philosophy for policies and procedures?

Tikanga.

Tikanga can be defined as the values, guidelines, rules, priorities and ways of doing business that frame the business operations.

What is corporate social responsibility?

Corporate social responsibility is the concerns businesses have for society.

What are the triple bottom lines in CSR?

Environment, Social, Economy

What are examples of a fourth bottom line in CSR?

Morals and ethics, spirituality, purpose

What Maori business concepts align with CSR?

Putake and Kaitiakitanga