Organisational Structures

    Cards (21)

    • organisational structure - how people and departments are organised within a business
    • organisational chart - a diagram that shows how the workers are organised in a business and who is in charge of whom
    • The organisational structure is critical to ensure that all tasks are completed efficently
    • layers - the number of levels of authority that there are in the chain of command
    • delayering - when a business reduces the number of layers in its organisational structure, making it flatter
    • authority - the power that one person has to make decisions and to control what other workers do
    • accountability - the responsibility that a person has for a job meaning that they will take the blame for what goes wrong as well as the credit for what goes well
    • chain of command - the links in the levels of authority from those at the top with the most authority to those at the bottom with the least
    • subordinates - the workers that a line manager is responsible for
    • span of control - the number of subordinates who report directly to the line manager
    • delegation - the process of giving a managers authority to a subordinate to make decisions for which that manager is responsible
    • Organisational charts show:
      • what a person is accountable for
      • who is responsible for functions and tasks
      • which work is delegated to others
      • how different departments are linked
      • lines of communication within organisation
      • who a worker is managed by and whom they must take orders from
    • Tall organisations - an organisational structure with lots of layers of hierachy, often with narrow spans of control
    • Tall Organisational Structures:
      • span is control is narrower meaning managers have less people to look after
      • plenty of opportunites for promotion which motivates employees
      • clearer and faster communications as clear routes where messages are sent
      • clear who workers are responsible to
    • flat organisations - an organisational structure with few levels of hierarchy, often mangers have wide spans of control. Little to no management grades in the organisation
    • Flat organisations:
      • lines of communication & responsibilities of workers are clear. Communication from top to bottom may be quicker as fewer layers
      • Fewer communication mistakes as less layers
      • People at bottom can easily share ideas with the top as they know what they are like
      • Wider spans of control meaning work must be delegated and authority can be shared
    • Reasons for different organisational structures:
      • scale of business
      • roles & responsibilities of each worker
      • nature of business
      • type of leadership
    • Why do businesses have different organisational structures?
      Scale of business
      • Large business require a hierarchical structure to ensure clear lines of communication & control from top to bottom
      • Effective communication is imperative in business success
    • Why do businesses have different organisational structures?
      Roles & responsibilities of each workers
      • These will be listed and detailed in the job description
    • Why do businesses have different organisational structures?
      Nature of the business
      • Flat organisations suit creative businesses as it encourages two-way communication between workers at different levels - this is what leads to development of new ideas
    • Why do businesses have different organisational structures?
      Type of leadership
      • Some leaders are naturally autocratic and like having control over all decisions. This control can be provided from a tall structure
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