4.1 Organisational Structures

Question 1

Why might a business have an organisational structure

Answer 1

So they are organised

They can carry out activity’s effectively and quickly

There is a clear chain of command

People know what there duties are. Who they need to report to and who reports to them.

Question 2

What is an organisational chart

Answer 2

A plan showing the roles and relationships of all the employees in a business

Question 3

What is a line manager?

Answer 3

An employees immediate superior or boss

Question 4

What is a CEO

Answer 4

Chief executive officer

Someone who has ultimate authority

Question 5

What is a span of control.

Answer 5

He number of employees managed directly by a manager

Question 6

What happens if your span of control is too wide or too short

Answer 6

If your span of control is to wide then you will find it difficult to manage all of the employees

If your span of control is too low hen you won’t have enuf people to delegate tasks to

Question 7

What is Levels of Hierachy?

Answer 7

The amount of levels in a business organisation

Question 8

What is the chain of command?

Answer 8

The line of authority within a business of which communication passes through

Question 9

What is delayering?

Answer 9

The removal of one or more layers in the organisational structure

Question 10

What are the advantages of delayering

Answer 10

Reduced wage bills

Employees may feel more motivated if they have less bosses

Question 11

What are the disadvantages of delayering

Answer 11

Junior employees may have to take on more responsibilities

Some employees may have a very wide span of control

Question 12

What is delegation?

Answer 12

Passing down responsibly (mainly tasks) to employees which are below you in the hierarchy

Question 13

What are the advantages and disadvantages of delegation

Answer 13

Advantages

You can do more important jobs

Disadvantages

If you delegate to much then the business may decide that you are no longer needed and fire you

Question 14

What is a tall organisational structure?

Answer 14

A organisational structure which has a large number of levels of hierarchy and narrow spans of control

Question 15

What is a flat organisational structure?

Answer 15

An organisational structure which has a low number of levels of hierarchy but wide spans of control.

Question 16

How might a business modify it’s organisational structure is it wan’t to give it’s employees more freedom

Answer 16

It can create a flatter organisational structure with a wider span of control

Question 17

Why might a business use a flat or tall organisational structure?

Answer 17

Flat:

To give the managers more authority

So the managers have more people to delegate work to

More skilled workers need less management and can be more independent

To give employees more freedom

Better verticle communication

Tall:

Better managment/ more organised

Better horizontal communication

Question 18

What is downwards and upwards and horizontal communication?

Answer 18

Downwards communication is when info is passed down the organisation structure

…

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Question 19

What effect would having a flat organisational structure have on communication?

Answer 19

Downward’s and upwards communication would be quicker

Horizontal communication would be harder

The bigger the span of control of a line manager may mean that the quality of communication may decrease

Question 20

What effect would having a tall organisational structure have on communication?

Answer 20

Horizontal communication becomes easier

Upwards and downwards communication may become harder

Question 21

What is centralisation?

Answer 21

When a business makes all of the decisions in one head office

Question 22

What is decentralisation?

Answer 22

When a businesses gives authority to local branches to make the big decisions.

Question 23

Advantages of decentralisation

Answer 23

Can reduce pressure on the top managers

Can motivate employees if they are making the decisions

Can lead to better and faster decisions as the managers know to local community better

Question 24

Disadvantages of decentralisation

Answer 24

Decisions may not benefit the business if the managers don’t understand the aims and objectives of the business

Training may be needed to teach employees how to make decisions which benefit the business

You need good communication or it will go badly

If a manager makes a decision it will reflect on the bran image of the business

Question 25

What are the advantages of centralisation?

Answer 25

All decisions are made by a group of people who knows what the business aims are

Question 26

Disadvantages of centralisation

Answer 26

Decisions are normally slow

You may loose an opportunity to make money

The main office don’t know the local community very well

They are normally well educated and know how to exploit the market