(23) Organisational structure and employees

Question 1

What is a formal organisation?

Answer 1

It is the internal structure of a business.

Question 2

What is a chain of command?

Answer 2

It is the route in which info and orders are passed on.

Question 3

What are the three organisational structures?

Answer 3

• Flat
• Tall
• Matrix

Question 4

What are the advantages of flat structures?

Answer 4

• Communication is better
• Management costs are lower
• Control is friendly and less formal

Question 5

What are the advantages of tall structures?

Answer 5

-There may be a clear route for promotion

Question 6

What is delegation?

Answer 6

It is where a manager hands down a more complex task to a subordinate.

Question 7

What does it mean when the decision making is centralised?

Answer 7

The employees do not have any authority to make their decision.

Question 8

What does it mean when the decision making is decentralised?

Answer 8

All employees have complete control over all their decisions.

Question 9

What are the advantages of having a centralised structure?

Answer 9

• Senior managements have complete control
• It prevents parts of the business acting independently
• Coordination and control is easier

Question 10

What are the disadvantages of having a centralised structure?

Answer 10

• Employees may be demotivated
• It brings less creativity
• Procedures maybe needed to make decision making easier.

Question 11

What are the advantages of a decentralised structure?

Answer 11

• Workers will be more motivated
• It speeds up decision making
• It takes pressure off of senior managers
• Workers get the opportunity to be more creative

Question 12

What are the disadvantages of a decentralised structure?

Answer 12

• Senior managers may loose controls resource
• Some employees may have the ability to make decisions
• Some employees may not like the extra responsibility