Chapter 41, Organisation

Question 1

Organisational structure

Answer 1

the way in which a business is organised

Question 2

Spam of control

Answer 2

the number of employees for whom a manager is responsible

Question 3

Chain of command

Answer 3

concerned with the way responsibility is organised within a business

Question 4

Delayering

Answer 4

reducing the number of levels in the hierarchy of a business

Question 5

Empowerment

Answer 5

giving employees responsibility for the tasks they perform. A form of delegation

Question 6

Delegation

Answer 6

the more delegation the wider the span of control is
delegation takes place with  
- democratic leadership
- the willingness of employees 
- busy managers

Question 7

Types of organisational structures

Answer 7

• organisation by system
• organisation by product
• Organastic (horizontal or flat) structure
• Mechanistic (vertical or tall) structure
• centralised or entrepreneurial structure
• Decentralized structure
• Matrix organisational structures

Question 8

Organised by System

Answer 8

split into specialist areas which operate together to make the business function

• deparments sometimes act as seperate entities not taking into account other deparmanets
• business could become fragmented
• can be difficult to evaluate performance

Question 9

Organised by product

Answer 9

the business is organised around recognisable individual products. these are known as profit centers

• easy to see which products are performing well
• managers can focus their energeries
• increased motivation
• compete for resources

Question 10

Organistic structure

Answer 10

a flexible flat organisational structure with a wide span of control

Question 11

Mechanistic structure

Answer 11

a bureaucratic vertical structure with a narrow span of control

Question 12

Centralised Structure

Answer 12

the decision making process is undertaken by the leader at the top of the hierarchy

Question 13

decentralised structure

Answer 13

the decision-making process is delegated and undertaken on a regional or product basis

Question 14

Matrix organisational structures

Answer 14

where employees with similar skills are put together to complete tasks and projects with multiple managers supervising.

Question 15

Organisational culture

Answer 15

the values, attitudes, and beliefs of a business. collection of values unique to the environment of the organisation
Good culture includes 
- vision: mission statement 
- Values
- Practices 
- People 
- Narrative 
- PLace