Chapter 6 - Organising

Question 1

List the 7 Concepts of Organising

Answer 1

1. Authority
2. Power
3. Responsibility
4. Chain of Command
5. Delegation
6. Span of Control
7. Centralised vs. Decentralised Authority

Question 2

In relation to the 7 Concepts of Organising

Define Authority

Answer 2

• The right to do something by the organisation to a manager based on his/her appointment
• All managers have authority over their subordinates and their areas of responsibilities

Question 3

In relation to the 7 Concepts of Organising

Define Power

Answer 3

• The ability to influence a person to do something without necessarily having the authority to
• All managers have authority, but not all have power

Question 4

In relation to the 7 Concepts of Organising

Define Responsibility

Answer 4

• Obligation to perform assigned tasks

Question 5

In relation to the 7 Concepts of Organising

Define Delegation

Answer 5

• Process of assigning managerial authority and responsibility to employees in lower hierachal ranks to make decisions on behalf of the manager

Question 6

In relation to the 7 Concepts of Organising

Define Chain of Command

Answer 6

• Control mechanism for making sure that the right people do the right things at the right time
• Shows the lines of authority in an organisation from top to bottom

Question 7

In relation to the 7 Concepts of Organising

Define Span of Control and discuss the 2 Different Types

Answer 7

Definition

• Number of people reporting directly to a manager

Narrow Span of Control

• Has limited number of subordinates reporting directly to a particular manager

Wide Span of Control

• Has several subordinates reporting directly to a particular manager

Question 8

Is there an Ideal Span of Control?

Answer 8

A Narrow Span of Control is advisable when

• Managers must be involved closely with their subordinates due to their complex duties

A Narrow Span of Control is advisable when

• Workers are allowed greater job autonomy
• Adequate supervision is given to employees with fewer managers, with the help of technology for communication and monitoring

Question 9

In relation to the 7 Concepts of Organising

Define Centralised and Decentralised Authority

Answer 9

Centralisation

• Important decisions are made by higher-level managers

Decentralisation

• Important decisions are made by middle and lower-level managers

Question 10

Discuss the Advantages of Centralisation

Answer 10

• Lower level managers may not effectively make high-level decisions
• Procedures are uniformly implemented throughout the organisation and easier to control

Question 11

Discuss the Advantages of Decentralisation

Answer 11

• Workers are encouraged to be independent by solve their own problems instead of relying on higher authority
• Quicker decisions increase flexibility and efficiency

Question 12

List the 3 Types of Job Design

Answer 12

1. Job Rotation
2. Job Enlargement
3. Job Enrichment

Question 13

In relation to Job Design

What is Job Rotation?

Answer 13

• Periodically moving workers from one specialised job to another
• Gives variety and the opportunity to put different skills to use

Question 14

In relation to Job Design

What is Job Enlargement?

Answer 14

• Increasing the number of tasks in a particular job but without increasing the workload
• Prevents boredom

Question 15

In relation to Job Design

What is Job Enrichment?

Answer 15

• Build motivating factors into a job
• Make employees’ work more challenging
• Suitable for capable workers
• Must be custom-made to suit individual workers