Principles of Management and Organisational Structures
- Created by: Hannah Dixon
- Created on: 20-02-14 13:23
View mindmap
- Principles of Management and Organisational Structures
- De-layering
- Removal of one or more layers from a hierarchy as organisations attempt to become LEANER
- Can assist in improving communication (shorter)
- Cuts bureaucracy and overhead costs and motivates staff by increasing individual authority and responsability
- Potentially a management term for redundancies.
- Levels of Hierarchy
- The number of layers in a hierarchy will reflect the number of supervisory and managerial levels, ranks or grades.
- Taller = greater opportunities for miscommunication or deliberately filtered communications.
- Span of Control
- The number of subordinates reporting to a manager.
- Narrow = tight supervision, less discretion and therefore less chance of mistakes or poor productivity.
- Wide = reduced supervision and leads to greater delegation and job enrichment. Used in businesses with an innovative culture.
- Accountability and Responsability
- A hierarchy and defined lines of authority lead to clear accountability and responsability.
- Can be positive as personal accountability can lead to high motivation.
- An atmosphere of mistrust accountability can be a threat and reduce morale.
- Authority
- Flows from position to position in the hierarchy and is a source of power.
- Can be used to motivate
- Chain of Command
- Information is communicated up the hierarchy through the layers and orders are communicated down.
- Managerial Functions
- An activity which can be divided neatly into functions; production, marketing, sales, accounting and finance, human resources etc
- MANAGER DIRECTORS must ensure that these functions are coordinated
- Centralisation
- Only the top levels of hierarchy have authority to make decisions.
- Geographically spread organisations take orders from decisions made at head office.
- Can simplify and speed up decision making
- May not take into account local factors
- Decentralisation
- Implies widespread delegation and the passing of power down the hierarchy for decision making
- Can lead to loss of control by senior managers and head office, lack of direction or consistency which in turn may impact the brand and marketing opportunity.
- Bureaucracy
- Where the work of the organisation closely follows rules and procedures.
- Job descriptions will be narrow and fully defined
- Individuals have very little descretion
- De-layering
Comments
No comments have yet been made