A system in a business where employees are ranked due to their status and authority
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Who is usually towards the top of the hierarchy?
The most important people
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What do employees seek during their career?
To move up the hierarchy to improve their salary and working conditions
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What is the chain of command?
The flow of imformation, power and authority through the organisation
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What do people at the top have?
More power and authority
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What can people at the top do?
Delegate tasks to those subordinate to them in the hierarchy
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What is chain of command in terms of a hierarchy?
The flow of tasks, information and delegation down from manager to subordinates
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What flows up the chain of command?
Complaints and status
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What flows down the chain of command?
Orders
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What is decentralisation?
Where a business divides up the organisation of its business into areas. Seperate budgets for each area
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Whatis centralisation?
Where a business has its organisation of management and admin at one central head office. One central shared budget
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What are three factors of decentralisation?
Authority and power are given to the divisions to make decisions, important when working in countries, quicker decisions
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What are four factors of centralisation?
Less delegation as HQ will make decisions, major decisons are made at head office, branches follow direction from head office and only small branch level decisions such as rotas can be made
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What do managers use their authority and power for?
To assign tasks to subordinates and lower down chain of command
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What is delegation?
The transfer of reponsibility down the chain of command
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What is the span of control?
The number of people that a manager is responsible for
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What will there be if there's a small span of control?
a tall hierarchy and jobs will be very specialised
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What will there be of there's a wide span of control?
A flat hierarchy and employees will be given more responsibility and larger roles
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What are 3 factors of a tall structure?
Lots of layers, long chain of command and narrow span of control
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What are 3 factors of a flat structure?
Information flows quickly, be more flexible and can be stressful for the manager
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When is the matrix structure more suitable?
When there is more than one product or more than one project running at a time
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When is the matric used?
Where projects need lots of co-ordination between the fucntions
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What does the matrix do?
Breaks down the barriers between departments so means everyone has to work as team, tighter control and people can share their ideas
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What are 3 disadvantages of the matrix?
Each member has two bosses, can cause a lot of arguments and it can be hard for the employee to resolve priorities
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Why does a structure need to be set up?
To meet the company objectives
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What does a hierarchy and reporting structure need to ensure?
The right people have authority, responsibility and accountability
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What should the whole organisation be structured towards?
Strategy
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Why does the decision making power need to be in the half term?
So creative ideas are not lost in a mountain of paperwork and communication is still strong in a company
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