business and management 2.2

advantages of centralization

- a fixed set of rules and procedures -consistent policies prevent conflicts between divisions -senior management considers the whole business not just one division -central buying should allow for economies of sale -senior managers will be experienced decision-makers

disadvantages of delayering

- one-off-costs redundancy payments -increases workloads for those that remain -fear of redundancy used to cut costs threatens security of workforce

advantages of traditional hierarchical structure

- power starts at the top and works down or authority may be passed down -divisions can be based on departments, geographic regions, or product category -the levels of promotion are clear for employees -the role of each employee is clear -clear chain of command

advantages of the matrix structure

-communication between all departments on a project or task -less chance of focusing on what is good for "my" department -increase chance of focusing on what is good for the project or task -more successful solutions created by crossover ideas from many people who are specialists in their fields -new project teams can be crated quickly to address changing markets or business needs

tall organization structure

-communication tends to be slow -span of control is narrow -sense of remoteness at lower levels

flat organization structure

-few hierarchical levels -wider span of control

advantages of delegation

-gives senior management more time to focus strategic role -shows trust and can be motivating and challenging -develops and trains staff for more senior positions -encourages staff to be accountable

traditional hierarchical structure

-has layers with fewer and fewer people on each higher levels - as we move up, the number of people get smaller ex: ceo-president-vp-middle management- team leaders- hard working employees

limitations of delegation

-if task is not well defined or training is inadequate, success is unlikely -insufficient authority given to subordinate to perform the task result in task failure -managers sometimes delegate only the boring jobs

disadvantages of matrix structure

-less control from the top -junior managers may have authority that is difficult for more senior managers to handle -faster reaction to new situations may be resisted by senior managers -team members may have 2 leaders- the team/project leader and the original hierarchy leader

advantages of decentralization

-local decisions reflect local conditions and customer needs -junior managers develop skills for more senior positions -empowerment at lower levels will have positive motivation effects -decision making is quicker and more flexible

advantages of delayering

-reduces business costs -shortens the chain of command and should improve communication -increases span of control and opportunities for delegation -may increase motivation by less remoteness from top layers and more quality work to perform

factors influencing organizational structure

-size of business -style of leadership -retrenchment causes flattening organizational structure for cost savings -corporate objectives - expanding to new markets -new technologies can make current employee types obsolete

disadvantages of traditional hierarchical structure

-top to bottom communication is typical and not usually efficient -horizontal communication is usually limited creating tunnel vision -is often flexible and leads to resistance of change-managers defend their turf and position in the hierarchy

product organized hierarchical structure advantages

allow team to focus on a single product or single service

matrix structure

an organizational structure that creates project teams that cut across functional departments. this method is usually task or project focused

bureaucracy

an organizational system with standardized procedures and rules (typical in governmental structures)

region organized hierarchical structure advantages

communication between representatives can be more efficient within region

decentralization

decision-making powers are passed down to empower subordinates or regional managers

neutral cultures

do not show emotion in business dealings but keep them carefully subdued

emotional cultures

emotions are shown by freely laughing, smiling, or perhaps scowling or walking out of the room

sequential cultures

give full attention to one agenda item after another

region organized hierarchical structure disadvantages

if organizations are all over the world then it could lead to potential inefficiencies with duplication of services in different places

centralization

keeping all of the important decision-making powers within head officer center of organization

function organized hierarchical structure advantages

managers can train developing employees to be proficient in their role

product organized hierarchical structure disadvantages

may make one company compete with others, the divisions may be fighting over cuts

delegation

passing authority down the organizational hierarchy

potential limitations of communication technology

staff training, reduces social contract and promotes isolation, security issues, information overload

function organized hierarchical structure disadvantages

tends to reinforce top down effect, certain sections will only make their decisions- really separated, may make communication tricky

effective communication

the exchange of information between people or groups with feedback

synchronic cultures

the flow or times are all interrelated. deadlines are strategic thinking are impacted

span of control

the number of subordinates that report directly to a manager

accountability

the obligation of an individual to account for their activities and disclose results in a transparent way

delayering

the removal of one or more of the hierarchy from an organizational structure

feedback

the response to a message by the receiver

chain of command

the route through which authority is passed down an organization