Business Chapter 8

Question 1

Organising

Answer 1

The process of delegating and co-ordinating tasks, activities and resources in order to achieve organisational objectives

Question 2

Organisational structure

Answer 2

The set of formal tasks assigned to individuals and departments
Formal reporting relationships
The design of systems to ensure effective co-ordination of employees across departments

Question 3

Importance of organising

Answer 3

*Organising entails a detailed analysis of work to be done and resources to be used
to accomplish the aims of the business
*Organising divides the total workload into activities that can comfortably be
performed by an individual or a group
*Organising promotes the productive deployment and utilisation of resources.
*Related activities and tasks of individuals are grouped together rationally in
specialised departments, such as marketing, personnel or finance departments, in
which experts in their particular fields carry out their given duties.
*The development of an organisational structure results in a mechanism that coordinates the activities of the whole business into complete, uniform, harmonious
units

Question 4

Fundamentals of organising

Answer 4

1.Designing jobs
2.Grouping jobs (departmentalisation)
3.Establishing reporting relationships
4.Establishing authority relationships
5.Co-ordinating activities.

Question 5

Designing jobs

Answer 5

1.Job design is the
determination of an employee’s work-related responsibilities
2.Specialisation is the way in which a task is
broken up into smaller units to take advantage of specialised knowledge or skills to
improve productivity. Job specialisation is normally an extension of organisational
growth.
3.Job rotation involves systematically moving employees from one job to another
4.Job enlargement was developed to increase the total number of tasks that a worker
performs
5.Job enrichment is a more comprehensive approach than job rotation and job
enlargement. It involves increasing both the number of tasks the worker does and the
control the worker has over the job
6.Work teams allow an entire
group to design the work system it will use to perform an interrelated set of tasks

Question 6

Grouping jobs:departmentalisation(formation of deps)

Answer 6

*Functional departmentalisation;
*Product departmentalisation;
*Location departmentalisation;
*Customer departmentalisation;
*The virtual organisational structure and
*The matrix organisational structure

Question 7

Product departmentalization

Answer 7

Managers focus more on their products and forget about the other products

Question 8

Location departmentalization

Answer 8

A business that manufactures and sells its products in different geographical areas

Question 9

Customer departmentalization

Answer 9

Business concentrates on some special segment of the market /group of consumers, or industrial products where they sell to a limited group

Question 10

Virtual organizational structure

Answer 10

A boundary less organization, consisting of individuals working out of physically dispersed workplaces or even individuals working from mobile devices and not tied to any particular workspace

Question 11

Establishing reporting relationships

Answer 11

Step 1:Determine who reports to whom
Chain of command(clear and distinct line of authority among the positions in
an organization)
Unity of command(each person within an organization
must have a clear reporting relationship to one, and only one, supervisor)
The scalar principle(there must be a clear and unbroken line of authority that extends
from the lowest to the highest position in the organization)
Step 2:Span of management

Question 12

Establishing authority relationships

Answer 12

How authority should be distributed among positions
Responsibility: The duty to perform the task/activity as assigned
Authority: The right to command/to give orders and the power that has been legitimized by the org

Question 13

Co-ordinating activities

Answer 13

Process of linking the activities of the various deps
without co-ordination, individuals and departments lose sight of the org’s primary goals and of their part in that effort, they are interdependent

Question 14

What is co-ordination?

Answer 14

Is the synthesis of separate parts in to a unity and, as such, it is the binding factor in the managerial process, it means the integration of goals and tasks at all levels, and the integration of all the deps and function to enable the deps to work as a whole
Co-ordination is a endeavor by management to develop congruence, or harmony of goals, through organizing

Question 15

Management should encourage informal orgs because:

Answer 15

*Informal communication takes place much more rapidly than formal
communication, and therefore decision-making could be expedited.
*The informal organization promotes teamwork within departments, as well as cooperation between departments.
*The informal organization supports the formal organization.

Question 16

The size of the business

Answer 16

structure also depends on the number of employees and
managers to be co-ordinated. An increase in the size of the business also creates a need
for greater specialization, more departments

Question 17

Staff employed by the business

Answer 17

There is also a close relationship between an organisational structure and the
competence and role of staff, whether this competence is a result of training or
experience, availability or attitude.

Question 18

The organizational culture

Answer 18

This so-called culture is a concept that may be defined as the beliefs and values
shared by people in a business.

Question 19

The matrix organizational structure

Answer 19

Is important because no organizational structure ,whether designed according to function, location, product, location/customer will necessarily meet all the organizational needs of a particular business

Question 20

Span of management

Answer 20

A narrow span of management will result in
a relatively tall organizational structure, which may mean that managers are being underutilized and that there is excessive control over employees. A wide span of management will result in a flat organizational structure, in which it may be difficult to co-ordinate and control the tasks of a large number of employees

Question 21

Formal authority is distinguished by three characteristics:

Answer 21

*Formal authority is vested in organizational positions, not in people.
*Formal authority is accepted by employees.
*Formal authority flows down the vertical hierarchy of an organization.

Question 22

Line authority

Answer 22

authority delegated down through the line of command the managing director has line authority over the financial, human resource and
marketing managers

Question 23

Staff authority

Answer 23

an indirect and supplementary authority
Their source of authority is usually their
special knowledge of a particular field

Question 24

Delegation vs decentralization

Answer 24

Delegation is the process that managers use to transfer authority and
responsibility to positions below them in the organizational hierarchy
Decentralization is the process of systematically delegating power and
authority throughout the organization to middle- and lower-level managers