Creating the formal hierarchy that establishes who is answerable to whom throughout the organisation
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What is a centralised structure?
Where the decision making and control remains in the hands of the top management level
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What is a decentralised structure?
Decision making is delegated to workers lower down in the organisation
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What are the advantages of centralised structure?
Consistency for customers
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What are the disadvantages of centralised structure?
Restricting for local managers, could be demotivating
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What are the advantages of decentralised structure?
Staff are more motivated as they make more decisions, shops could be seen as more personal to local shoppers
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What are the disadvantages of decentralised structure?
No consistency for customers
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What are levels of hierarchy?
The number of layers of authority within and organisation
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What is the chain of command?
Shows how authority is organised through various levels of hierarchy
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What is the span of control?
The number of subordinates reporting directly to a manager, depends on experience of delegator/delegatee, size of business, nature of the business, and whether its centralised or decentralised
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What are the advantages of tall structures?
Less people to oversee, lots of support, more opportunities of promotion
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What are the disadvantages of tall structures?
Communication and control issues, costs more, over supervision (intimidating and not motivating)
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What are the advantages of flat structures?
Better for communication, less cost, more room for independence, more motivation
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What are the disadvantages of flat structures?
Less enhanced supervision, more people to oversee, less productive
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What are matrix structures?
One in which teams of employees with appropriate skills are assembled to carry out particular tasks, employees are often from different functional areas to bring their expertise
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What are the advantages of matrix structures?
Working in teams can motivate staff, quicker and better decisions made as specialists bring their expertise
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What are the disadvantages of matrix structures?
Workers have 2 managers to report to causing confusion, team decisions can take longer due to differing opinions
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What is delayering?
Removing one or more layers of hierarchy
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What is delegation?
Passing authority down the chain of command to a subordinate
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Other cards in this set
Card 2
Front
What is a centralised structure?
Back
Where the decision making and control remains in the hands of the top management level
Card 3
Front
What is a decentralised structure?
Back
Card 4
Front
What are the advantages of centralised structure?
Back
Card 5
Front
What are the disadvantages of centralised structure?
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