2.2 Organisation and Managment
Structures
Tall Structure
Flat structure
Drawbacks
Fewer management positions so workers have fewer options for promotion
Managers have a wide span of control so it is more difficult to monitor the work of subordinates who may make costly mistakes
Benefits
Drawbacks
Communication takes longer as chains of command are longer
More management positions means the business has to pay higher salaries, increasing their costs. Businesses can cut costs through de-layering which is removing a level of management.
Leadership styles
Laissez faire
Benefits
Information can get passed through relatively quickly
Fewer management roles which reduces the need for the business to pay high management salaries
easier for managers to delegate tasks as they have a wide span of control
more delegation to subordinates which gives employee more responsibility, therefore workers' motivation might increasea
more line managerial positions makes it easier to monitor subordinates' performance
more chance of promotion for subordinates, which can be motivating
Autocratic
Trade Unions
Definition: Trade unions are organisations that represent the interests of employees within a workplace. They are normally a completely separate organisation to the business that the employees work for. The trade union exists to negotiate or bargain on behalf of the employees as a group.
Democratic
Democratic leader ship style is a type of leadership style in which members of the group take a more participative role in the decision-making process.
Laissez faire is a type of leadership style in which leaders are hands-off and allow group members to make the decisions.
Autocratic leadership is a leadership style characterised by individual control over all decisions and little input from group members.