Human resource decisions (Edexcel GCSE Business): Flashcards

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Organisational structures
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Organisational structure

Way a business arranges itself to meet its goals

Hierarchy in business

Different levels of authority within a company

Hierarchical structure

Many different levels of management

Chain of command

Flow from top executives down to front-line workers

Benefit of hierarchical structure

Better control over operations

Drawback of hierarchical structure

Expensive to maintain due to many managers

Flat structure

Fewer management levels

Benefit of flat structure

More flexibility & faster communication

Drawback of flat structure

Lines of authority may not be clear

Span of control

How many people one manager directly supervises

Delegation

Line managers pass authority down to subordinates

Centralised decision-making

Senior managers at head office make most decisions

Decentralised decision-making

More power to regional employees & local branches

Downsizing

Reducing workforce

Delayering

Removing entire levels from hierarchy

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