Organisational Structures (AQA GCSE Business): Flashcards
Exam code: 8132
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Define organisational structure.
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Cards in this collection (28)
Define organisational structure.
An organisational structure outlines the reporting relationships, roles and responsibilities of employees.
Define hierarchy.
A hierarchy is the levels of authority within an organisation, ranking positions from top to bottom.
What does the chain of command show?
The chain of command is the formal line of authority flowing down from top management, showing who reports to whom.
Define span of control.
The span of control is the number of employees that a manager or supervisor directly manages.
What are the main features of a tall structure?
A tall structure has multiple levels of management, a long chain of command and a narrow span of control.
A flat structure has few levels of management and a __ span of control.
A flat structure has few levels of management and a wide span of control.
True or False?
Flat structures are most common in large organisations with complex operations.
False.
Flat structures are common in small organisations and start-ups. Tall structures are more common in large, complex organisations.
What are the advantages of a tall structure?
A tall structure gives clear authority and defined roles, promotes specialisation and offers opportunities for promotion.
What is a disadvantage of a flat structure?
Roles may not be clearly defined, causing confusion, and employees may take on multiple responsibilities, leading to stress.
Define delayering.
Delayering is the process of flattening a tall organisational structure by removing one or more levels of hierarchy.
True or False?
Delayering can increase the workload of the employees who remain.
True.
Removing management levels means remaining employees take on more responsibilities, although delayering can cut costs because fewer management salaries are paid.
Define centralised structure.
A centralised structure is one where authority for decision-making rests with senior management at the centre of the business.
What is an advantage of passing decision-making down the hierarchy?
Decentralised businesses can respond better to local market conditions, and staff who help make decisions may be more loyal.
Who makes the key strategic decisions in a large business?
The board of directors makes key strategic decisions, such as setting growth objectives and investing retained profit.
Define delegation.
Delegation is a process where managers give responsibility for specific tasks to subordinates, usually transferring authority to them.
Why are some managers reluctant to delegate?
Managers lose some control over decision-making and may feel threatened by highly skilled subordinates.
Why is decision-making often slow in a tall structure?
A tall structure has a long chain of command with several levels of supervision, so decisions take longer.
True or False?
Managers in a flat structure need to delegate less than managers in a tall structure.
False.
Managers in a flat structure have a wide span of control, so they must delegate more and empower employees to make decisions.
Where is authority concentrated in a tall structure?
Authority is concentrated at the higher levels of management, giving lower-level employees less autonomy.
Why do employees in a flat structure need a broad range of skills?
Flat structures tend to have more generalist roles, rather than the specialised roles found in tall structures.
Flat structures are generally more ______ than tall structures, as changes can be put in place quickly.
Flat structures are generally more flexible than tall structures, as changes can be put in place quickly.
Define communication.
Communication is the process by which information is exchanged between individuals.
Define downward communication.
Downward communication is where managers communicate with subordinates.
What is upward communication?
Upward communication is where subordinates communicate with more senior staff.
________ communication is where workers communicate with others at the same level of the hierarchy.
Horizontal communication is where workers communicate with others at the same level of the hierarchy.
True or False?
Information is more likely to be distorted in a tall structure than in a flat one.
True.
In a tall structure, information passes through numerous layers, so it can be distorted, leading to mistakes or confusion.
Why is written or electronic communication more likely in a flat structure?
Managers have wide spans of control, so they have little time to meet their many subordinates face to face.
Why is upward and downward communication less frequent in a flat structure?
Employees are empowered to make decisions, so they need less instruction from managers.
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