2.2 Organisational structure Flashcards
What are the benefits of a tall organizational structure?
- Each team is smaller so easier to control
- Better team morale as a smaller team
- More opportunities for promotion
- Clear hierarchy and structure
What are the benefits of a horizontal (flat) organizational structure
Less managers required so less cost
Quicker communication and decision making
More delegation and responsibility - high trust environment
Empowered - closer to the top
Define delegation
Passing on control and authority of a certain tasks to a person lower down in the organization
What is the span of control?
The number of subordinates overseen by and directly accountable to a manager
what are the levels of hierarchy?
Refers to the organizational structure based on a ranking system. At the same level, staff have the same authority and status
What is the chain of command
Formal line of authority through which orders are passed down
Define bureaucracy
An organized system with standardized procedures and rules - e.g. rules or policies
Define centralization
When a business’ key decisions are made in the Head Office - or at the centre of the business
Define decentralization
When a business’ key decisions are passed down to suborder
E.g. middle - managers within the business
Define de-layering
Process of removing one or more levels in an organizational structure
Pros of centralization
Pros
- Quick decision -making
- Control (e.g. costs, brand)
- standardization/ consistency
- No duplication of work
What is Handy’s Shamrock organization?
Core staff - full time, permanent, etc
Temporary workforce
Outsource (subcontractors)
E.g. FIS
Teachers - Core employees
Subs - temporary workforce
Security - outsource
What is a project (matrix) based structure
Structure that creates project team across many different (traditional) departments
Pros of de-layering
Reduces salaries cost
Easier to communicate with the EE between manager and EE
More control for the manager
Higher motivation
Cons of de-layering
Less organization
More work for the manager
Redundancy cost
Less specialization
Fewer opportunities for promotion
