Chapter 11-Organisation

Question 1

Functional organisational structure

Answer 1

Shareholders
Board of directors
CEO
Finance directors (accountants)
Productions directors(prod.
assistants)
Marketing directors (sales rep)

Question 2

Organisational structure / chart

Answer 2

Refers to the internal structure of an organisation and outlining the levels of management and division of responsibilities.

Question 3

Delegation

Answer 3

Manager passes authority to a subordinate to carry out a task and a project

Question 4

Span of control

Answer 4

The measure of the number of employees whom a manger has direct control over

Question 5

Chain of command

Answer 5

The route where managers issue instructions to their staff and matters are passed up to managers

Question 6

Layers of hierarchy

Answer 6

The number of different levels of management and responsibility ina structure

Question 7

Functional organisation structures

Answer 7

Department are divided by their functions (what they do)

Question 8

Functional organisational Advantages

Answer 8

Allows for wide span of control (managers are more likely to delegate , delegate can motivate employees)

Responsibility (employees know who’s responsibility for what and who they should ask their questions to)

Expert knowledge (allows employees to become experts)

Question 9

Functional organisation disadvantage

Answer 9

Slow communication (between employees increase mistakes)

Lack of trust(lack of teamwork between employees and reduce productivity)

Working in isolation(employees may only focus on their department)

Question 10

Product organisation structure

Answer 10

Divided into units based on the type of products it provides
GO TO PHOTOS

Question 11

Product organisation advantages

Answer 11

Meeting customer needs:(staff can focus on one products)
Expert knowledge
Separate profit centres(each group can monitor their profit)

Question 12

Product organisation disadvantage

Answer 12

Product competition (each group competes for same customers)
Duplication of resources (each group had their own resources)
Poor communication (each group focus on their own product)

Question 13

Matrix organisational structure

Answer 13

Structure that creates project teams that cut across traditional functional departments
Employees in functional departments are chosen to work on a project when completed they go back to functional department

Question 14

Matrix organisational structure advantages

Answer 14

Increased motivation (part of a project team)
Improved communication (work towards common goals)
Improved decision making(wide range of skills)

Question 15

Matrix organisation structure disadvantage

Answer 15

Multiple managers (conflicting instructions)
Training costs (may need training in teamwork and communication)
Lack of trust(different parts of firm)

Question 16

Geographic organisation structure

Answer 16

Business is divided into geographical areas

Question 17

Geographical advantages

Answer 17

Local mangers (local consumers with products that satisfy their needs = in erase consumers loyalty)

Friendly comp(each unit tries to outdo others to increase sales)

Promotion (mangers make decisions on behalf of the business thus prepares them for future promotion opportunities)

Question 18

Geographical disadvantage

Answer 18

Duplication of work (increase costs)

Conflict between management (can have a negative effect on local areas eg redundancies)

Communication (development of new products or processes may not be shared)