Essay about Hierarchy and Business Efficiency

Submitted By Shakirah-Hajiismael
Words: 688
Pages: 3
Open Document
Shakirah Hajiismael
2.2.A Case Study

1. Define
a) Hierarchical structure

Hierarchy in business often refers to an organize system structure based on ranked authority or skills. For examply, the level of the hierarchy structure is based on ranking so, a CEO of a company would be at the top of the structure while the other employees would be at the bottom as can be seen for the director of ASS which current status on the structure is too high.

b) Productivity

Productivity is the measures of the level of product, work, or profit efficiency of the business which is seen that ASS raise their labor productivity to see efficient profits.

2. The current hierarchical organizational structure of ASS can contribute to lower levels of labor productivity before it show that the structure of rankings (hierarchical structure) shows the the decreasing rate of labor productivity compared to others. Another reason can be that since the hierarchical system has many levels which means they must not have much control of their employees. Another reason can be the expansive cost in the labor area in ASS. Also because of the many levels and rankings in ASS hierarchical structure systems can also lead to miscommunications between the employees or loss in communication which can lead to employees at the lower levels of the system to work not as well.

3.
a) AAS Staff Removing one or more levels in a hierarchical structure is referred to delayering. By delayering AAS organization can cause many in positive and negative ways. If AAS staff were to delayer from five to two level of hierarchy the span of control would be wife which would allow employees to have more opportunities to take responsibilities of the jobs that has been removed from delayering and will also develop more professional careers. Also, will allow staff on the higher level to interact more with staff on the lower levels which will create a bond between employees and the feel will feel more valued and included. However, the negative ways that this can effect the AAS staff is that, staff who are high can be demoted and this can have a huge impact on the others because it can cause motivations to lower and the staff to not have the loyalty bond with their bosses and tensions between new bosses and what not.

b) Business efficiency Delayering can also have an impact on the business’s efficiency. By delayering can cause tention and anxiety between the workers, it can also impact the staff’s motivation and increase insecurities of being aware of increases demotions and lay offs which means the business efficiency can decrease in motivation or
Show More

Related Documents: Essay about Hierarchy and Business Efficiency

Avalanche: Management and Business Essay

Avalanche (30 marks) a) (i) A hierarchy is a system where people or groups are ranked one above the other according to status or power within the company. i.e. the manager of a store would be above an intern or a new employee. (ii) A department is a section within a business, dealing and managing with a separate aspect or area of activity. You put your business into departments if it’s large with members of authority above different people or groups of people within the business. i.e. a school has different…

Words 916 - Pages 4

Advantages Of Rational Organisation

Cost versus benefit should run through every business decision” is the opinion expressed by Evan Davis in 2007 as part of his article on value engineering. Value engineering involves providing the most efficient product or service possible (Davis 2007), which is comparable to rational organisational design, which generally strives to create the most efficient organisation possible. However there are a few different approaches to maximising efficiency through rational organisation which will be mentioned…

Words 1561 - Pages 7

Essay on Bureaucracy in Organization: Advantages, Disadvantages

The importance of organizations in modern economy and development of new and large organization are facts that make the issues like efficiency and control on the centre of attention in different social sciences . Efficiency in organization is directly linked with its organizational system. This essay firstly will review the characteristics of bureaucracy in organization on base of classical theory. Secondly it will outline the advantages and disadvantages of bureaucracy by focus on Weber’s bureaucratic…

Words 2117 - Pages 9

Futurice - SME HR practices Essay example

ID493 BUSINESS REPORT Executive Summary Futurice is an IT company developing online- and mobile software and is one of the fastest-growing companies in Finnish information technology market. The report considers three human resource and operation strategies that are important for the success and profitability of Futurice: information transparency, non-hierarchy work system, and enhancement of employee values. The conclusion drawn from the analysis is that Futurice has been following a right path…

Words 1547 - Pages 7

Max Weber's Theory Of Bureaucracy

theory. Several definitions exist under the term ‘bureaucracy’, however Max weber’s theory focuses on the “organisational form with certain dominant characteristics, such as a hierarchy of authority and a system of rules” (Cole, 2004, p.25). Weber’s theory focuses on six key characteristics, namely division of labour, hierarchy, written documentation, trained experts, full working capacity and general rules (Gale and Hummel, 2003, p.412). In today’s world, Weber’s theory of bureaucracy is used by…

Words 1065 - Pages 5

Classical Management Approach Essay

productivity in a business. Planning is referred to as the primary management function which is the key to short and long term success of the business. It is preparing a predetermined course of action for a business so that it can achieve its objectives and stated mission. A business that uses classical management needs planning as it will give the business direction and goals. Planning is crucial if the business wants to survive. There are 3 different types of planning in a business. These include…

Words 764 - Pages 4

Organisational Behaviour Essay

HND Business Management Organisational Behaviour Individual Assignment TASK - 1 a) ABC Ltd is a management consultancy firm who are involved in providing objective advice, expertise and specialist skills with the aim of creating value, maximizing growth or improving the business performance of their clients. They are primarily concerned with the strategy, structure, management and operations of an organization. ABC Ltd can assist…

Words 2057 - Pages 9

Auditing: Risk Management Essay

a. What are the main points that the report identifies and why do you think this is so? The report identifies the economic instability and uncertainty in the business organisation. It also identifies the efficient approach of government,risk and compliance (GRC). It identifies how to set the effective GRC approaches for greater insight into major risk and compliance obligations and how they are managed. it also identifies the effectiveness & adequacy of the internal control. It also identifies board…

Words 842 - Pages 4

A Global Nutrition Company: Fonterra, Newzeland

Fonterra stronger, better, more innovative and more successful. It could write a novel about our values. It is company that spans many countries and cultures, and values are hugely important to us. Laws and Regulations that govern the company’s business activities are as under: Compliance with Securities Laws: An employee who knows important information about the Company that has not been disclosed to the public must keep that information confidential. He/She may not buy or sell securities of any…

Words 1006 - Pages 5

Essay on Management: Maslow ' s Hierarchy of Needs and Scotia Airways

http://mcdowell-incentives.com/beyond-maslow-and-herzberg According to Maslow, the above pyramid illustrates the needs of the workers. In brief, they are simply divided into the following factors: The PHYSICAL factor: * A person starts at the bottom of the hierarchy and will initially seek to satisfy basic needs (e.g. food, water). * Once these physiological needs have been satisfied, they are no longer a motivator. The individual moves up to the next level. The SECURITY factor: * Safety needs at work…

Words 1443 - Pages 6