Chapter-7 Flashcards
Organization and management
What is an organisational structure?
Organisational structure is the formal internal framework of a business that shows how it is managed and organised.
What are functional departments in a business?
Functional departments are the main activities of a business, including finance, marketing, operations, human resources, and research & development.
What is hierarchy in an organisational structure?
Hierarchy is the number of levels in an organisational structure.
What is the chain of command?
The chain of command is the route through which authority is passed down through an organisation.
What is delegation?
Delegation is passing authority down through the organisational hierarchy to a subordinate.
What is the span of control?
The span of control is the number of subordinates reporting to each supervisor or manager.
What factors influence the span of control?
1) The difficulty of tasks: Simple, repetitive tasks allow for a wide span of control, while complex tasks require a narrow span.
2) The experience and skills of workers: More skilled and experienced workers often lead to a wider span of control.
3) The size of the business: Larger businesses can afford more managers, often resulting in narrower spans of control.
4) Levels of hierarchy: Tall organisational structures tend to have narrower spans of control, while flat structures have wider ones.
5) Management style: Businesses with greater control over the workforce typically have a narrower span of control.
What are the advantages of a wide span of control?
1) Less expensive as fewer managers are needed.
2) Less supervision improves worker motivation.
3) Faster communication and decision-making.
What are the disadvantages of a wide span of control?
1) Fewer promotion opportunities.
2) Less control over subordinates’ work.
3) Effective communication may be difficult.
What are the advantages of a narrow span of control?
1) Effective communication is easier.
2) Better control over workers and their work.
3) More promotion opportunities.
What are the disadvantages of a narrow span of control?
1) Communication and decision-making is often slower.
2) More expensive due to more managers.
3) More supervision may reduce worker motivation.
What is delayering?
Delayering is reducing the size of the hierarchy by removing one or more levels, most often middle management.
What are the advantages of delayering?
1) Reduces costs.
2) Reduces the chain of command, making communication and decision-making quicker and more effective.
3) Wider span of control increases the opportunity for delegation, developing workers’ skills and motivating them.
4) Senior managers are in closer touch with business activities.
What are the disadvantages of delayering?
1) Increased workload for remaining managers may affect task completion and decision quality.
2) Redundancy payments for managers losing their jobs increase costs.
3) Workers may fear redundancy, reducing job security.
4) A wider span of control may reduce effective management of subordinates.
What is a centralised organisation?
A centralised organisation is one where all the important decision-making power is held at the Head Office, or the centre.
What is a decentralised organisation?
A decentralised organisation is one where the decision-making powers are passed down the organisation to lower levels.
What are the advantages of centralized organizations?
1) Decision-making is often quicker.
2) Decisions are taken for the benefit of the whole business.
3) Greater use of specialist staff improves decision-making.
What are the disadvantages of centralized organizations?
1) Slower communication.
2) Unable to respond quickly to changes in local markets.
3) May reduce worker motivation.
What are the advantages of decentralized organizations?
1) Decisions are made based on local needs.
2) Can be used to train junior managers.
3) Delegation helps improve worker motivation.
What are the disadvantages of decentralized organizations?
1) Decisions might not be in the interests of the whole business.
2) Poor decisions might be made due to lack of skills and experience.
What are directors in a company?
Directors are appointed or elected members of the Board of Directors who have the responsibility for determining and implementing the company’s policy. Some directors, like a Marketing Director, may also have a management role.
What is an Annual General Meeting (AGM)?
An Annual General Meeting (AGM) is a meeting for shareholders that limited companies must hold once every year.
What are the responsibilities of directors?
1) Setting strategy — the long-term plans for the business.
2) Ensuring resources are available to achieve objectives.
3) Reviewing the performance of managers.
4) Protecting the interests of shareholders and other stakeholders.
5) Providing leadership to ensure the success of the business.
What is a Chief Executive Officer (CEO)?
A Chief Executive Officer (CEO) is the most senior manager responsible for the overall performance and success of a company.
What is a manager?
A manager is an individual in charge of a certain group of tasks or a specific area or department of a business, such as a Factory Manager.
What are the main responsibilities of departmental managers?
1) Ensuring that the decisions of the directors are carried out.
2) Delegating tasks to members of their department.
3) Making decisions to achieve departmental targets.
4) Motivating workers to achieve departmental and company objectives.
5) Solving day-to-day problems within the department.
What is a supervisor?
A supervisor is an individual who checks and controls the work of subordinates.
What are the functions of management?
1) Planning: Setting objectives and deciding actions to achieve them.
2) Organising: Preparing and arranging resources to complete tasks efficiently.
3) Commanding: Supervising and motivating subordinates to achieve objectives.
4) Coordinating: Ensuring all parts of the business work together towards goals.
5) Controlling: Checking progress and taking corrective action if needed.
What are the advantages of delegation?
1) Managers can focus on more complex and important tasks.
2) Motivates workers by giving them responsibility and skill development.
3) Increases workforce flexibility and improves worker skills.
4) Work quality improves as lower-level workers may have better task-specific skills than managers.
What is autocratic leadership?
Autocratic leadership is a leadership style where the leader makes all the decisions.
What is democratic leadership?
Democratic leadership is a leadership style where workers take part in decision-making.
What is laissez-faire leadership?
Laissez-faire leadership is a leadership style where most of the decisions are left to the workers.
What factors determine the best leadership style for a business situation?
1) Skills and experience of the workforce: Skilled workers may need less supervision, making a democratic style more suitable.
2) Time available for decision-making: Urgent decisions require an autocratic style, while more time allows for a democratic approach.
3) Personality of the manager: Managers may naturally prefer autocratic or democratic styles.
4) Nature of the task: Simple tasks may suit autocratic leadership, while creative tasks may benefit from a laissez-faire approach.
How do leadership styles differ in objectives, decision-making, communication, supervision, availability of information, and motivation levels?
1) Objectives:
Autocratic: Set by the leader without worker input.
Democratic: Set by the leader, but workers are consulted.
Laissez-faire: Usually set by the leader, with or without worker input.
2) Decision-making:
Autocratic: Taken by the leader alone.
Democratic: Workers participate, but the leader makes the final decision.
Laissez-faire: Delegated to workers.
3) Communication:
Autocratic: One-way, from leader to worker, no feedback.
Democratic: Two-way, feedback encouraged.
Laissez-faire: Mostly upward from workers, little feedback from the leader.
4) Supervision of workers:
Autocratic: Closely supervised by the leader.
Democratic: Leader is available for help, but close supervision is not needed.
Laissez-faire: No supervision.
5) Availability of information:
Autocratic: Workers receive very limited information.
Democratic: Workers get full information for participation.
Laissez-faire: Workers receive all necessary information for decision-making.
6) Motivation levels:
Autocratic: Likely low.
Democratic: Likely high.
Laissez-faire: Can be high or low, depending on tasks and worker skills.
What is a trade union?
A trade union is an organization of workers aimed at improving pay and working conditions, and providing other services, such as legal advice, for its members.
How do trade unions help their members?
1) Negotiating with employers: Trade unions negotiate on issues like pay, working hours, holidays, and health and safety through collective bargaining.
2) Resolving conflict: They help resolve disputes between employers and workers that couldn’t be settled by the workers themselves.
3) Providing legal support and advice: Trade unions offer advice and legal services if workers are unfairly treated, such as wrongful dismissal.
4) Providing services for members: They offer benefits like pension schemes, insurance, and holiday schemes to their members.
What are the main benefits of trade union membership for workers?
1) Greater power through collective bargaining: Workers in a trade union have more power when negotiating with employers than individuals, leading to better pay and conditions.
2) Support and legal advice: Trade unions offer legal support to members who are unfairly treated or injured at work, which would often be too costly for individuals to afford.
