The subodrinate is given the authority to make decisions but the manager remains accountable and responsible for making sure the job is done.
- Meet workers self actualisation which motivates them (Maslows theory)
- Managers workload reduces,less stress
- Managers benefit from expertiese and ideas of other members
- Extra responsibilties can make some workers pressured and stressed
- Training the staff to carry out these roles can be expensive.
To work there needs to be:
- Realistic work load/challenging, not just tasks the manager doesn't want to do
Key Elements of an Organisational Structure
OS is the formal and systematic way the management of a business is organised.
- Different business functions
- Lines of authority
- Span of control-the number of employees that a manager is directly responsible for
- Layers of the hierarchy-number of layers that show managerial levels and supervisory
- Lines of communication
How info is passed around an organisation, including vertically, horizontally and through the "grapevine" or gossip network. Vertical communication takes place between the manager and subordinate. Formal communication flows in an organisation are shown by the organisational chart.
Benefits of good communication:
- Improve efficiency in reaching business objectives
- Customer needs are more easily identified and met
- Managers benefit from ideas and suggestions from colleauges
- Allows the firm to be quickly aware of changes to the business, improve response times
Horizontal communication; takes place between two individuals at the same level of the hierarchy
- Appointed by shareholders to oversee running of business
- Overall leadership of company
- Not involved in day to day running of large firms but are hands on in smaller firms
- Responsibility for functional area
- Ultimately accountable
- Co-ordinates work of a group of employees
- Ensure workload is evenly spread
- Meet deadlines
- Line managers that liaise with team leaders in porder to guide operatives
- Responsible for allocating jobs to subordinates
- Tasks carried are out to a satisfactory level
The main body of employees in a department e.g. in a factory they would make the product.