4.1 Organised Structures

Question 1

why are organisational structures used?

Answer 1

• so people know what there duties are, the people they report to and the other employees they are responsible

Question 2

What kind of job roles are there in an internal structure (top -down)

Answer 2

chief executive (CEO)
directors
managers
team leaders
workers

Question 3

what is a line manager?

Answer 3

an employee’s immediate superior/boss (this then works up the chain of authority)

Question 4

what are the responsibilities of the directors?

Answer 4

Establish the business’s overall goals set long-term and the targets for the business

Question 5

what are the responsibilities of the managers?

Answer 5

work to achieve the short + long term targets set by directors
can be responsible for a function within the business (e.g. marketing/finance)
use employees and resources in the best ways

Question 6

what are the responsibilities of the team leaders?

Answer 6

help managers achieve targets by reporting problems and passing on instructions
make simple decisions (e.g allocating jobs to employees)

Question 7

what are the responsibilities of the shop-floor workers?

Answer 7

carry out business’s basic duties/activities such as working on production line , serving customers and other basic duties

Question 8

what are the features of an internal structure?

Answer 8

span of control, levels of hierarchy, chain of command, delayering, delegation

Question 9

what is span of control?

Answer 9

the number of employees managed directly by another employee

Question 10

what are levels of hierarchy?

Answer 10

layers of authority within the business

Question 11

what is chain of command?

Answer 11

line of authority within a business along which communication passes

Question 12

what is delayering?

Answer 12

the removal of one or more levels of hierarchy from an organisational structure. removing excess employee costs but has consequences

Question 13

what are the consequences of delayering?

Answer 13

junior employees taking on higher duties
senior employees having wider spans of control

Question 14

what is delegation?

Answer 14

the passing down of authority to more junior employees

Question 15

what is a flat organisational structure?

Answer 15

where there are fewer levels of hierarchy, communication becomes easier as there is direct contact however, managers are responsible for larger numbers, horizontal communication becomes a struggle because of the fewer, wider levels

Question 16

what are tall organisational structures?

Answer 16

where there are more levels of hierarchy, communication becomes harder as there is not direct contact, narrow spans of control for managers means less responsibility/more supervision

Question 17

what is centralisation?

Answer 17

occurs when a small amount of senior managers in a business make all the important decisions

Question 18

what is decentralisation?

Answer 18

allows employees of all areas of the business to take decisions

Question 19

what are the advantages of decentralisation?

Answer 19

reduces pressure on senior management
motivates employees with new authority to take decisions
better decisions are taken as employees are suited to their area
allows faster decisions-making as employees do not need to wait to consult managers

Question 20

what are the challenges of decentralisation?

Answer 20

all the employees must understand the business’s aims + goals to be able to make decisions in the business’s best interest
training maybe needed for employees to take on new duties
good communication is important, so all management is aware of key decisions