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INTERNAL STRUCTURES AND ORGANISATIONAL GROUPING
Pages 20-25 (Management Structures)
Terms in this set (13)
Has a narrow span of control & many hierarchical levels.
Has a wide span of control & few hierarchical levels.
The removal of one or more of the levels of hierarchy from an organisational structure to make it flatter.
Decision making and control kept in centre at top level. In organisations with many branches, important decision making is kept in the Head Office.
Decision making and control delegated to branches or departments - best used in retail chains needing to respond to local market needs i.e. supermarkets.
Temporary team projects to carry out a particular task i.e. large scale construction operation. Teams made up of employees from different functional areas and different levels of management.
One main decision maker usually the owner who can make quick decisions with little consultation and staff know who to report to.
Grouping an organisation into departments called functional areas, based on skills and expertise. The main areas are Finance, HR, Operations and Marketing.
Geographical divisions where each operation serves customers in a particular location eg it might have a Glasgow, London, San Francisco office. Each division can meet needs of its local market and can react to external factors quickly.
Large organisation who have a large product portfolio eg Diversification i.e. Virgin (money/ trains/Atlantic/media) can then react to external factors quickly, easy for management to identify struggling products/services.
Organising activities according to the technological or production processes used.
Deals with different types of customers e.g. retail/wholesale/online customer divisions. This then means the organisation can tailor products/ services to its own type of customer and customer loyalty can build up due to the high level of personal service that can be achieved.
An organisation closes an unprofitable division, such as a location group, altogether or merges two divisions together.
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