Edexcel Business A Level Revision

Tall structure - An organisational structure that has many levels of hierarchy. Flat structure - A hierarchy with few levels between staff and executives. Matrix structure - Where teams are put together from different functional areas to work on specific projects together. KEY FEATURES OF FLAT STRUCTURE Few layers of hierarchy Wide spans of control Less direct control More delegation Fewer opportunities for promotion  Greater responsibility Vertical communication is improved Fewer layers = less staff = lower costs KEY FEATURES OF TALL STRUCTURE Many layers of hierarchy    Narrow spans of control Less delegation More opportunities for promotion Takes longer for communication to pass through the layers More layers = more staff = higher costs MATRIX STRUCTURE In a matrix structure, individuals are assigned to teams according to their specialism, and work on a particular project.  This can generally encourage teamwork, empowerment and creat...

Delayering - flattens an organisational hierarchy by removing levels of management. Organisational structures are dynamic - they change! Indeed a business that doesn't regularly assess how effective its organisational structure may find itself becoming noncompetitive. Delayering involves removing layers of management from the hierarchy of the organisation. Normally it means reducing the middle managers. Frequently, the layers removed are those containing middle managers. For example, many high-street banks no longer have a manager in each of their branches, preferring to appoint a manager to oversee a number of branches. Some schools adopt this policy too – with a director of studies looking after several schools in a local area. Delayering does not necessarily involve cutting jobs and overheads. But it does usually mean increasing the average span of control of senior managers within the business. This can, in effect, chop the number of layers without removing a sin...

In terms of approaches to how management view human resources, a popular distinction is made between treating staff as an asset ("soft" HRM) and treating them as a cost ("hard" HRM). Staff as an Asset (SOFT HRM) ▪ Treats employees as the most important resource in the business and a source of competitive advantage. ▪ Employees are treated as individuals and then needs our plan accordingly. FOCUS = Concentrate on the needs of the employees - their roles, rewards, motivation etc Staff as a Cost (HARD HRM) ▪Treats employees simply as a resource of the business. ▪ Strong links with corporate business planning - what resources do we need, how do we get them and how much will they costs FOCUS = Identify workforce needs of the business and recruit and manage accordingly ( hiring, moving and firing) KEY FEATURES TO SOFT AND HARD HRM SOFT HRM Strategic focus on longer-term workforce planning Strong and regular two way communication Competi...