Flat Structure
managers have a high span of control, wide span, workers are close to decision makers. Costs can be reduced. Less supervision is required.
tall structure
managers have low span of control, more levels, encourage greater communication and clearer lines of communication.
Centralised organisation
keeping major responsibilities at the centre of an organisation, decisions are made at the top of the hierarchy. tall structure
Decentralised organisation
involves giving decision making power to an organisation. flat structure
centralised advantages
easier to implement common policies and practices for the whole business.prevents other parts of the business from becoming too independent.easier to co-ordinate and control from the centrequicker decision making - easier to show strong leadership.
Centralised disadvantages
more bureaucratic - often extra layers in the hierarchy local or junior managers are likely to much closer to customer needslack of authority down the hierarchy may reduce manager motivation customer service does miss flexibility and speed of local decision making
Decentralised advantages
widespread delegation and the passing down to lower levels in the hierarchy for decision making. Other people also make decisions taking control away from the topthis can motivate junior staff and supervisors leading to greater innovation and enthusiasm.
decentralised disadvantages
this can lead to loss of control from senior managers and head office which can lead to lack of direction or less consistency of product.
what is shamrock structure
the organisation has core staff who are supported by in sourced part-time workers and consultants and by outsourced staff and contractors. also made up of 3 different leaves
Shamrock structure leaf 1
core workforce - employed to carry out the main operations of the business
shamrock structure leaf 2
freelance contractors - used to complete support of specialists functions of the business
shamrock structure leaf 3
flexible workforce - used to me changing demand
What does shamrock do that no other structure does
outsource - where a specialist or another business is paid a free to carry out a function e.g it support
what does mangement do
- Gives formal role in the business to carry out management functions.- (authority delegated)- More focussed on making sure the business rules effectively and productively- (day to day)- Leadership and management not always mutually exclusive
what does a leader do
o Inspire others to take actiono (Leaders need followers)o You don't have to be in management to be able to be a leader.o You aren't delegated to do something, you are able to take leadership yourself and inspire otherso Can be formal and informal
Manager Characteristics
- Maintainso Goal-orientedo Transactionalo Achievero Reactiveo Short-termo Money-orientedo Instructso Head-driveno plans
Leader Characteristics
o Proactiveo Facilitatoro Visionaryo Value-orintedo Passionateo Transformativeo Dreamso Heart-driveno Long-termo Change
four main roles of a manager
-Planning- involves setting goals and outlining how the goals will be achieved and who is responsible for meeting the goals.o Organising- involves ensuring that there are enough resources in he business to meet the business goals.o Leading- is to be able to motivate staff to achieve their tasks.o Controlling- this requires managers to monitor the progress of staff and the achievements of the business goals. The managers also re-plan by adjusting goals or finding better strategies.
3 main level of mangement
o Senior managers-usually called the managing director, chief executive officer (CEO), general managers or Chief financial officer (CFO)o Middle managers- usually called department heads, or managers.o Front-line managers- usually called team leaders or supervisors.
what are the 3 leadership styles
autocratic, democratic, laissez-faire
autocratic leadership
leadership style that involves making managerial decisions without consulting others
democratic leadership
a leadership style in which managers work with employees to make decisions
laissez-faire leadership
A leadership style that leaves much of the business decision-making to the workforce - a 'hands off' approach and the reverse of the autocratic style
autocratic advanatages
works well for unskilled workers, or workers who need much direction, or time critical situations who need an autocratic approach
autocratic disadvanatges
can demotivate staff and hinder employee creativity and intiative. also could prevent staff from being able to ask questions and not taking their own actions due to always being controlled
democratic advanatages
good communication with employer and employees, workers feel valued which can lead to greater motivation
Democractic disadvantages
decisions may take longer and this style of management is not appropriate with dealing with crisis or work places where safety is critical
Laissez-faire advanatages
appropriate for highly skilled and motivated professionals as they are left to do their own jobs as they 'manager' themselves
Laissez-faire disadvantages
very hands off, if workers are unskilled, need training or supervision this will not work well
what are policies
policies are clear, simple statements or how an organisation intends to conduct services, actions or business
what do policies do
provide a set of guiding principles to help with decison making
what do procedures do
procedures describe how each policy will be put into action in an organisation
outline of procedures
- who will do what -what steps they need to take-which forms or documents to use
Why are policies and procedures important?
o They are a guideline for the business to make sure the business runs smoothlyo Communicates expectation to both employee and customers.o Can be an important part of improving operations in a business.o The quality of the product is up to the best standard it can be ato To reduce miscommunication through the businesso They give guidance for decision makingo They set expectationso Identify how to carry out specific roles/tasks (procedures)
benefits of policies
employees feel fairly treatedcustomers get a consistent experience between stores or staff membersstaff can clearly see the expectations written policies increase the transparency of the organisation
benefits of writing procedures
H&S of employees and customers are protected, because employees know how the complete tasks safelymistakes are minimised quality standards = customer expectations metorganisation can protect itself against fraudorganisation is sticking to the law and being complient
why do we have financial info
so the business has accurate and up to date accounts for controlling, reporting and decision making
type of financial reports
income statement (profit and loss)statement of financial position (balance sheet)cash flowbudget
what is an income statment
shows revenue, expenses and the profit for a period of time
income statement advantages
to have a visual understanding of how well the business is doing, can compare statements with previous years and see if changes need to be made to achieve more success.
what is a balance sheet (financial position)
shows the financial structure or position of the business - highlights assests, liabilities and equity at the end of a period
how do stakeholders use a balance sheet
potential investments = if the business is financially securecurrent investors = see if business is successful and still a good investment to continue owners = can see how much the business is worth, if its successful and what changes could be made to be more successfulbanks = can see if the business is financially secure, can determine if a loan were to be given they would be paid back
what is a cash flow statement
gives details of all the cash that has come into the business and what it has been spent on
solutions to cash flow issues
- pay then and not later approach (no credit)-decrease prices-purchase materials in bulk -pay for materials using an invoice-apply for an overdraft loan-find an alternative supplier-sell some assets
budget definition
planned financial reports containing predicted financial figures for a business
what are budgets used for
estimating, revenue and expenses for the coming periodoutlining any expected assests or liabilities to be incurredwriting out planned financial statements for the coming period
benefits of budgets
expenditure can be tracked being able to demonstrate tangible results = motivating staff helps to ensure a contingency plan is in placecan be used to plan company growth and expansion
variance analysis definition
the investigation of the differences between budgets and financial accounts
first strategy of variance analysis
maintaining - to understand the variance occured and attempt to maintain the variance (variance is large positive in sales and negative in expenses)
second strategy of variance analysis
change = when sales are below budget implementation of marketing, advertisting and sales training may be needed to improve actual figures when expenses are above budget, costs must be minimised.(variance is large negative in sales and postive in expenses)
inputs in a production process
capital, natural, human and enterprise
transformation process in production
batch, flow, service, job
outputs in production
goods and services
what is job production
Making one off, specialised products for each customer
what is batch production
Making groups of identical products at a time. Each batch is exactly the same e.g. same colour
what is flow production
mass production on a continuous production line with division of labour
job advantages
low overheads, skilled worked = quality job, highly customisable
job disadvantages
labour intensive, high per-unit costs of labour, long lead-time to complete production, low volume - no economies of scale
batch advanatages
customisable, lower costs than job, greater output rates
batch disadvantages
efficient and precise planned required to be effiicient, wait times between stages or batches can be inefficient, one mistake can ruin an entire batch
flow advantages
high output, very efficient, low per-unit cos to pass on to customer
Flow disadvantages
expensive to set up, breakages in the flow can lead to significant wastage, needs high demand
what is productivity
productivity measures the relationship between inputs into the production process and the resultant outputs
importance of high productivity
more efficient business can produce goods for a lower cost than competitors = high profit or the business can offer goods for a lower priceinvesting in production assests is expensive - business must maximise return it makes on these assets
solutions to low productivity
training to improve employee skillsgreater motivation - motivated employees tend to produce morestalling more or better capitial equipmentbuying better quality raw materials better organsiation of products