Unit 3.4

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  • Created by: shre8
  • Created on: 20-03-18 14:13
Unit 3.3 revision:what is organisational structure?
Is the way in which a business is structured to achieve its objectives.This is normally through a Hierarchy.A hierarchy is a structure of different levels of authority in a business organisation,one on top of the other.
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How is a business organised?
Function-Structure based on department. Product-also known as divisional structure based on different products. Regional-also known as geographic structure is based on location.
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How can organisational structures be represented?
Through organisational charts as line mangers can pass on authority to their subordinates through delegation.
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centralised or decentralised ?
Centralised decisions are made by senior managers ( head office normally). Decentralised decisions are delegated to regional employees at local stores and branches.
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Advantages of being centralised ?
Better control/better standardization.
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Disadvantage of being centralised?
less flexibility,slower to decide and respond and it can be demotivating for workers.
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Advantages of being decentralised?
Decisions devolved to branches or divisions that may know their local customers better.
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Disadvantage of being decentralised?
Loss of control.
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How a business increases size ?
As businesses expand they will naturally employ more people,increasing chain of command and span of control.The size and structure of an organisation can have an impact on communication,control and flexibility of a business.
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Downsize/delayer
A business cam downsize (reduce size) or delayer (reduce the number of layers in the hierarchy) to: reduce costs,improve efficiency,improve communication.
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Motivation theory: what can a motivated workforce lead to:
A hard working and flexible workforce,that is willing to 'go the extra mile' for the business.Greater commitment to the organisation.Staff retention which leads to lower recruitment costs.Improved customer service.Increased productivity.
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Maslow's hierarchy of needs: clue:By identifying where the staff are on the hierarhy a,business can tailor its reward system.
Maslow suggested that people are motivated by five needs.In theory people are driven to meet these needs in order.Once a need is met,it no longer motivates the employee.
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Maslow's hierarchy of needs
Level 1-physiological,Level 2-safety,Level 3-love and belonging,level 4-self esteem &Level 5 - self-actualization
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How can a business promote physiological needs?
Providing a clean and safe working environment and a well-paid job.
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How can a business promote safety needs?
Ensuring a long term progression and job security.
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How can a business promote love and belonging needs?
organising the workforce into teams,creating opportunities for employees to socialise.
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How can a business promote self esteem needs?
Creating promotion opportunities,empowering employees,using rewards to recognise the achievement of employees.
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How can a business promote self- actualization needs?
creating job opportunities,promotion and training to allow employees to achieve their potential.
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The communication process:
For communication to be effective the sender has to choose an appropriate medium to reach the reciever.Feedback should also be available to ensure the communication has been successful.
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How can insufficient or excessive communication have an impact on:
employee motivation,customer service,the number of mistakes made,the understanding of employees,speed and implentation of decisions and the image/brand of the business( through advertising)
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Types of communication including formal and informal:
Formal communication-is approved by the organisation.It lays down the rule of communication withing a business.Informal communication-(grapevine) can be used in a business,such as gossip.It can get in the way of effective communication.
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What are the barriers to effective communicatiom?
Using inappropriate mediums or emai system failure,being angry or tired,cultural differences and use of jargon.
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Remuneration/Types of workers.
Is the payments systems adopted by a business to pay and reward employees.Parttime workers,Full time workers,temporary workers,freelance workers ( self-employed),Mannual workers (blue collar),non mannual ( white collar).
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Whats the reason for different payment methods?
Different types of employees will require different types of payment systems to ensure they are motivated and paid fairly.
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Payment methods:Time based systems,salaries,results-based systems( suitable where output or success can be measured) and Fringe benefits:
wages for part time or full time workers and overtime.salaries for non-manual jobs and for proffesional workers.Such as piece rates,commision and bonus schemes.Fringe benefits include company car,healthcare,pension schemes and company discounts.
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Choosing a payment system:
Nature of the job-a piece-rate job may not fit the job of a secrectary.Cost-a business will choose the most cost effective method.Motivation-pay,as we have seen,is closely linked to employee motivation
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Choosing a payment system (2):
Flexibility-a business might pay a one off fee to a consultant so that they do not have to pay them over a long period. Different payment methods motivate workers in different ways.For example commision may motivate sale staff to sell more.
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Choosing a payment system (3):
This will maximise productivity and the wrong system could waste money. A business will often use a variety of remuneration methods to motivate and get the best out of its employees.
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Other cards in this set

Card 2

Front

Function-Structure based on department. Product-also known as divisional structure based on different products. Regional-also known as geographic structure is based on location.

Back

How is a business organised?

Card 3

Front

Through organisational charts as line mangers can pass on authority to their subordinates through delegation.

Back

Preview of the back of card 3

Card 4

Front

Centralised decisions are made by senior managers ( head office normally). Decentralised decisions are delegated to regional employees at local stores and branches.

Back

Preview of the back of card 4

Card 5

Front

Better control/better standardization.

Back

Preview of the back of card 5
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