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Business
Spec 2.5.1 (Organisational Sturctures)
| Question | Answer |
|---|---|
| What are the 2 types of organisational structure? | 1. Hierarchical organisational 2. Flat organisational |
| What are the 2 defining features of a hierarchical structure? | 1. Long chain of command 2. Narrow spans of control |
| Name 2 advantages of a hierarchical structure | 1. More promotional opportunities due to many layers 2. Mangers can manage subordinates easily due to narrow span of control |
| Name 3 disadvantages of a hierarchical structure | 1. Increased costs of management salaries 2. Decision making could be slow 3. Lack of flexibility due to rigid structure |
| What are the 2 defining features of a flat structure? | 1. Short chain of command 2. Wide spans of control |
| Name 3 advantages of a flat structure | 1. Reduced costs from less managerial salaries 2. Communication from top to bottom is easier 3. More flexible structure |
| Name 3 disadvantages of a flat structure | 1. Subordinates may not feel valued by managers with little time for them 2. Lack of promotional opportunities 3. Lack of management could cause confusion |
| What happens in centralised organisations? | Important decisions are made by senior managers at a head office and branches must follow instructions given |
| What are 2 advantages of centralised organisations? | 1. Senior managers will have experience of making big decisions 2. Consistent customer experiences at various locations |
| What happens in a decentralised organisation? | Authority to make big decisions is passed on to different areas of the business, such as specific stores |
| What is unique about branch managers in a decentralised organisation? | They have the authority to make key decisions that specifically affect his/her branch |
| Name 2 advantages of decentralised organisations | 1. Reduces workload on senior management 2. Decisions made closer to customer can respond effectively to local circumstances |
| Name 2 disadvantages of decentralised organisations | 1. More training required 2. Decisions taken a local level may not be in best interest of whole business |
| What factors might affect what organisational structure a business chooses? (Name 3/6) | 1. Stage of business 2. Nature of business 3. Preferred management style 4. Skills of workforce 5. Competition 6. Financial situation |
| What are the 3 types of communication within a busines? | 1. Upwards 2. Downwards 3. Horizontal |
| What are the 3 reasons for communication within a business? | 1. Pass on aims/objectives 2. Share important information 3. Gather staff feedback |
| Name 3 potential barriers to effective communication | 1. Technical language not understood 2. Noisy environment 3. Misinterpretation of tone of message |
| What are the 3 ways of working? | 1. Part-time 2. Full-time 3. Flexible hours |
| What are the 3 types of contract? | 1. Permanent 2. Temporary 3. Freelance |
| Name an advantage to the business of part-time employment | Allows business to hire more staff, bringing in more ideas |
| Name an advantage to the employee of part-time employment | Allows better work life balance |
| What is part-time employment? | When employees work less hours than full-time staff |
| What is full-time employment? | Number of hours equivalent to normal working week, typically 35+ |
| Name an advantage to the business of full-time employment | Staff are more loyal and committed to the business |
| Name an advantage to the employee of full-time employment | Feel more involved and part of the organisation |
| What are the 2 ways of working a flexible contract? | 1. Work a set number of hours each year 2. Zero hours |
| What is zero hours? | When employees are not guaranteed any hours of work each week, although they may be offered them |
| Name an advantage to the business of working a set number of hours each year with flexible hours | More people likely to apply for jobs, being able to fit hours around other commitments |
| Name an advantage to the employee of working a set number of hours each year with flexible hours | Flexibility that hours/days can be worked around other commitments |
| Name an advantage to the business of working zero hours with flexible hours | Staff are only paid when they are really needed |
| Name an disadvantage to the business of working zero hours with flexible hours | Low staff retention as staff may seek more secure jobs in terms of pay and hours |
| What is a permanent contract? | Contract that is ongoing until terminated by employer or employee |
| Name an advantage to the business of a permanent contract | Increased motivation, as workers view job as long-term career |
| Name an advantage to the employee of a permanent contract | High degree of job/financial security |
| What is a temporary contract? | A contract issued only for a set period of time |
| Name an advantage to the business of a temporary contract | Flexibility with staffing to cope with changes in workload |
| Name an advantage to the employee of a temporary contract | Increased flexibility could suit certain lifestyles, such as students |
| What is a freelance contract? | A contract to hire someone for a specific job or task. Freelancers are self-employed |
| Name an advantage to the business of a freelance contract | Staff only paid when they are really needed |
| Name a disadvantage to the business of a freelance contract | Freelance staff could want more permanent employment |
| Name an advantage to the employee of a freelance contract | Able to choose from a variety of employers |
| Name a disadvantage to the employee of a freelance contract | Lack of financial security in the long-term |
| What is remote working? | Working from home or in an area away from the business |
| Name an advantage to the business of remote working | Lower carbon footprint |
| Name a disadvantage to the business of remote working | Difficult to monitor staff and their actions |
| Name an advantage to the employee of remote working | Lower carbon footprint |
| Name a disadvantage to the employee of remote working | Isolation and separation can lower motivation |
Created by:
JoeMather
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