Learn Unit 2, 4.1

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What does 'span of control' mean?
The number of people someone is in charge of.
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What does it mean if a business has a wide span of control?
Each manager is in charge of lots of employees.
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What does it mean if a business has a narrow span of control?
Each manager is in charge of just a few employees.
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Give two advantages of a tall structure...
1. Staff can be closely managed as each manager is only in charge of just a few employees 2. Opportunities for promotion.
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Give two disadvantages of a tall structure...
1. Lots of managers so large wages bill 2. Communication takes a ling time to get from the top to the bottom.
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Give two advantages of a wide structure...
1. Lower wages bill as not as many managers 2. Communication is quicker from the top to the bottom of the organisation
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Give two disadvantages of a wide structure...
1. Difficult for managers as they're in charge of a lot of employees 2. Staff not as motivated as there isn't as much of opportunity for promotion
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What is meant by centralisation?
Decisions are made centrally by senior managers.
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What is meant by decentralisation?
Decisions aren't just made by senior managers, but made by staff across the country.
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Give two advantages of decentralisation...
1. Not as much pressure on senior managers 2. Staff more motivated as they are trusted to make decisions.
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Give two disadvantages of decentralisation...
1. Senior managers may not approve the decisions made by staff across the business 2. Training costs to train staff to make the right decisions.
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Other cards in this set

Card 2

Front

What does it mean if a business has a wide span of control?

Back

Each manager is in charge of lots of employees.

Card 3

Front

What does it mean if a business has a narrow span of control?

Back

Preview of the front of card 3

Card 4

Front

Give two advantages of a tall structure...

Back

Preview of the front of card 4

Card 5

Front

Give two disadvantages of a tall structure...

Back

Preview of the front of card 5
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