Chapter 7 & 8

Question 1

Benefits of organisational structure

Answer 1

• Clear chain of commands ensures that employees know who to report to, simplifies, improves motivation,employees know their expected standard
• Wide spans of control for managers with many direct subordinates, no duplication, encourage staff empowerment, intrapreneurship and creativity for a business
• Allows for clear communication between supervisors and subordinates, info doesn’t go through long communications channels
• Clear promotional paths for staff based on expertise. Motivating for staff, they will work hard for a promotion

Question 2

Chain of Command

Answer 2

How decisions flow from the top of an organisation through the layers at the bottom

Question 3

Span of Control

Answer 3

The number of people reporting directly to a manager

Described as wide if the manager has many direct subordinates, narrow for tight management control

Question 4

Management control

Answer 4

The continuous monitoring and checking of results t see if they are in line with the goals and targets set out in the plans

Question 5

Stock control

Answer 5

Ensures that forms have the right quantity and type of goods in stock at the right time, without incurring the stockholding costs, such as insurance, security, rent or obsolescence

Question 6

Quality control

Answer 6

Ensured that the Quality standards expected by customers are properly met

Question 7

Credit control

Answer 7

Monitoring the customers that are given credit put limits on the amount and the time period and then ensuring that they pay up by the time

Question 8

Financial control

Answer 8

Monitoring the financial affairs of the business to ensure it is profitable and always has enough money to pay its bills

Question 9

SWOT Analysos

Answer 9

A management technique used to access a business in terms of its strengths, weaknesses, opportunities and threats

Question 10

Planning

Answer 10

This involves setting targets/goals for business and choosing the best course of action

Question 11

Organising

Answer 11

Ensuring there is a clear structure within the firm to facilitate the smooth running of the business

Question 12

Delayering

Answer 12

Reducing the numbers of layers in the organisational structure of a business

Question 13

How ICT can help in business communications

Answer 13

Email allows document and audiovisual to be sent instantaneously over the Internet
Internet allows low-cost communication, WiFi and social networking
EDI allows stock to be ordered automatically when it reaches a certain limit
Social media for market research, advertising and recruitment

Question 14

Memo

Answer 14

To
From
Subject
Date
Signed

Question 15

Communication

Answer 15

Communication is a two way process that involves transferring information from one person to another in a manner that ensures that the receiver will understand the message from the send

Question 16

Internal communication

Answer 16

The informal network of communication that exists within every organisation and industry

Question 17

Functional organisational structure

Answer 17

The division of business into different departments according to the management functions of marketing, production, human resources and finance

Question 18

Principles of effective communication

Answer 18

Accuracy 
Clarity 
Timing
Feedback 
Brief
Fast
Low cost

Question 19

Communication channels

Answer 19

Routes in an organization through which information flows between people
Upward
Downward
Horizontal

Question 20

Function of business meetings

Answer 20

Provide information and instructions to staff
Discuss an issue
Make a decision

Question 21

AGM

Answer 21

Held once a year
Required by law 
Shareholders receive updates on key areas of the business 
Dividend policy decided
Election of directors

Question 22

EGM

Answer 22

Major issue arises after AGM
Discuss and resolve issues
If takeover bid threatens future of company

Question 23

Ad-hoc Meetings

Answer 23

Occasional basis

For specific issues or problems facing the business

Question 24

Virtual meetings

Answer 24

Uses audio-visual and internet technology
Videoconferencing for staff in different locations
Links employees to each other

Question 25

Terms of reference

Answer 25

Reason why the report is being written and issues it will investigate

Question 26

Internet

Answer 26

International network of computers connected through the telephone network
Lost cost communication
Social networking
Advertising

Question 27

E-mail

Answer 27

Allows documents and audiovisuals to be sent instantaneously
Saves time
Cheap

Question 28

EDI

Answer 28

Electronic Data Interchange
An automated stock ordering system which allows goods to be ordered by forms online automatically when stock reaches a certain level
Saves time

Question 29

Videoconferencing

Answer 29

A type of virtual meeting where participants can see and hear each other through use of video cameras, telephone links and monitors
Saves travel costs
Highly accessible

Question 30

ISO

Answer 30

International Standards Office

Question 31

Strategic Plan

Corporate Plan

Answer 31

Long-term plans for a business

5 or more years

Question 32

Tactical Plan

Answer 32

Short-term
Breaks down strategic plan
Shorter, more specific steps