Organisational Structures

• organisational structure:


  the way in which the organisation is divided into levels of management, functions and responsibilities
• types of organisational structure:

  -hierarchical (long chain of command, managers have narrower span of control, relatively small number of subordinates)

  -flat (more modern/small businesses, managers have wide span of control, short chain of command)
• span of control:

  the number of staff that a manager has responsibility for
• chain of command:

  the route by which instructions and communications flow from the top to the bottom of a business, explaining who is answerable to whom
• delayering:

  a process where a business removes layers of its management to make its structure more flat
• delegation:


  a process where tasks are given to members of staff, where often managers give tasks to employees further down the chain of command
• subordinates:


  members of staff below a manager in the chain of command
• centralised management structure:

  business decisions are made at the top of the business or in a head office and distributed down the chain of command (respond slowly to changes in business environment)
• centralised structure: advantages

  -consistency across the business

  -clear business direction

  -operations and decisions are closely controlled and managed/monitored

  -chain of command and accountability are clear
• centralised structure: disadvantages

  -demotivate employees

  -standardised approach may not fit all locations

  -lower productivity
• decentralised management structure:

  a business allows decisions to be made by managers and subordinates further down the chain (respond quickly to changes in business environment)
• decentralised structure: advantages

  -improved employee motivation

  -allows managers to make decisions suited to the local area and customers

  -more employee responsibility
• decentralised structure: disadvantages

  -consistency is not achieved across the business

  -managers may make ineffective decisions

  -may negatively impact sales, overall business performance (ineffective decisions)
• communication methods:

  -emails

  -text messages

  -online shared spaces

  -communication apps

  -letters

  -reports

  -phone calls

  -video-conferencing

  -face-to-face meetings
• insufficient communication:

  -employees don't understand what's required

  -negatively impacts efficiency and motivation

  -negative impact on overall business performance

  -decrease the productivity of employees
• excessive communication:

  -employee confusion,stress and overloading

  -negative impact on efficiency and motivation
• barriers to effective communication:

  -poor explanations

  -poor spelling/grammar

  -incorrect language

  -technology issues

  -poor information structure

  -use of jargon/slang/technical language

  -lack of understanding
• communication barrier impacts:

  -reduce business efficiency

  -increase mistakes

  -confuse customers

  -sales and profitability
• full time:

  -35+ hours a week

  -spread over 5 days

  -e.g nurses, teachers. doctors
• part-time:

  -working a proportion of full-time hours

  -2/3/4 days a week

  -e.g retail jobs
• zero hour contract/flexible hours:

  -contract of employment where the employer is not obliged to provide any minimum hours of work; the employee is not obliged to accept any work that is offered

  -can lead to higher staff retention and better productivity

  -lack of certainty for employees
• permanent contracts:

  -no fixed end date

  -stable, long-term
• temporary contracts:

  -specific end date

  -retail industries seasonal demand
• freelance contracts:

  -a self-employed individual is engaged to carry out a specific piece of work over a defined period of time

  -advertisements, promotional photographs etc
• increased efficiency:

  -able to produce items/services more quickly + accurately, with fewer resources

  -messages can be sent quickly, to a large number of people with reduced risks of barriers to communication
• remote working:

  -where employees are able to work from home or somewhere that is not the main working environment of their employer

  -increased flexibility for employees

  -may decrease productivity