chapter 7 - organization and management

Question 1

what are the advantages of an organizational chart? (4)

Answer 1

• All employees are aware of which communication channel is used to reach them with messages and instructions.
• Every individual can see their own position in the organization. They can identify who they are accountable to and who they have authority over. Employees can see who they should take orders from.
• It shows the links and relationships between different departments within the organization.
• Everyone is in a department, and this gives them a sense of belonging.

Question 2

explain what a long chain of command is like (2)

Answer 2

• The longer the chain of command, the taller will the organizational structure and the narrower the span of control be.

Question 3

explain what a short chain of command is like (2)

Answer 3

• When the chain of command is short, the organization will have wider spans of control.

Question 4

what are the advantages of short chains of command (5)

Answer 4

• Communication is quicker and more accurate. Each message has fewer levels to pass through before reaching the intended person.
• Top managers are less remote from the lower level of the hierarchy. These top managers should be more in touch with people below them as there are fewer management levels to get to know.
• Spans of control will be wider. This means that each manager is responsible for more subordinates.
• If superiors have more people to manage, it will encourage managers to delegate more. This is because, as their department is larger, they cannot possibly do all the important work by themselves.
• There will be less direct control of each worker and they will feel more trusted. They will be able to take more decisions by themselves. They may obtain more job satisfaction.

Question 5

how does wider span of controls affect managers? (3)

Answer 5

• However, wider spans of control, with more people to be directly responsible for, could mean that the managers lose control of what their subordinates are doing. The subordinates could make many mistakes if they are poorly trained.

Question 6

what are to roles of management (5)

Answer 6

planning
organizing
coordinating
commanding
controlling

Question 7

describe the role “planning” of management (2)

Answer 7

• Planning for the future of the organization involves setting aims or targets. These aims or targets will give the organization a sense of direction or purpose. There will be a common feeling in the organization of having something to work towards.
• A manager must also plan for the resources which will be needed.

Question 8

describe the role “organizing” of management (2)

Answer 8

• A manager cannot do everything. Tasks must be delegated to others in the organization. These people must have the resources to be able to do these tasks successfully. It is therefore the manager’s responsibility to organize people and resources effectively.
• An organizational chart also helps to make sure that specialization occurs and that two people do not end up doing the same task.

Question 9

describe the role “coordinating” of management (2)

Answer 9

• If a manager fails to bring people in the organization together, it can be a real danger with the functional form of organization.
• A good manager will therefore make sure that all departments in the organization work together to achieve the plans set by the manager.

Question 10

describe the role “commanding” of management (2)

Answer 10

• Managers have to make sure that all supervisors and workers are keeping to targets and deadlines. Instructions and guidance must be provided by managers and it is also their responsibility to make sure that the tasks are carried out by people below them in the organization.

Question 11

describe the role “controlling” of management (2)

Answer 11

• Managers must try to measure and evaluate the work of all individuals and groups to make sure that they are on target. Managers may have to make some corrective actions if certain groups are failing to do what is expected of them. It is the manager’s job to find out why targets are not being met and then to correct the problem.

Question 12

what happens if lacks clear and effective management? (4)

Answer 12

• A sense of control and direction
• Coordination between departments, leading to wastage of effort
• Control of employees
• Organization of resources, leading to low output and sales.

Question 13

advantages of delegation for manager (3)

Answer 13

• Managers cannot do every job themselves. By delegating, managers are able to concentrate their time on other important management functions.
• Managers are less likely to make mistakes if some of the tasks are performed by their subordinates.
• Managers can measure the success of their staff more easily. They can see how well they have done in performing the tasks delegated to them.

Question 14

advantages of delegation for subordinates (2)

Answer 14

• The work becomes more interesting and rewarding
• the employee feels more important and they can make progress in the organization. It gives them career opportunities.

Question 15

why are some managers reluctant to delegate tasks? (2)

Answer 15

• Some managers are reluctant in delegating tasks to the subordinates with a fear that the subordinates might fail and the managers may want to control everything, or they are afraid the subordinates might do a better job than them.

Question 16

delegation must mean… (2)

Answer 16

• A reduction in direct control by supervisors and managers once tasks are done by workers.
• Increasing trust of workers by supervisor and managers.

Question 17

what does a good manager do? (5)

Answer 17

• Motivate employees
• Give guidance and advice to employees they manage
• Inspire employees they manage to achieve more than they thought possible
• Manage resources effectively and keep costs under control
• Increase profitability of the business.

Question 18

what are the different leadership styles (3)

Answer 18

autocratic
democratic
laissez-faire

Question 19

describe autocratic leadership (3). what are the advantage (1) and disadvantage (1).

Answer 19

 Communication in the business is mainly one way, that is, downward or top-down and the workers have little or no opportunity to comment on anything.
 Advantage: quick decision making, ex. During a crisis.
 Disadvantage: no opportunity for employee input into key decisions, which can be demotivating.

Question 20

describe democratic leadership (3). what are the advantage (1) and disadvantage (1).

Answer 20

 Information about the future plans is openly discussed before the final decision is made, often by the leader. Communication is both downward or top-down and upward or bottom-up.
 Advantage: better decisions could result from consulting with employees and using their experience and ideas as well as being a motivating factor.
 Disadvantage: unpopular decisions, such as making workers redundant, could not effectively made using this style of leadership.

Question 21

describe laissez-faire leadership (3). what are the advantage (1) and disadvantage (1).

Answer 21

 Communication can be difficult in this type of organization as clear direction is not given. The leader has only a very limited role to play.
 Advantage: encourages employees to show creativity and responsibility.
 Disadvantage: unlikely to be appropriate in an organization where a consistent and clear decision-making structure is needed.

Question 22

describe what a trade union is. (2)

Answer 22

• Forming a trade union is a way of helping employees to achieve improvement in these different aspects of their employment – a trade union is a type of pressure group. Workers will need to pay an annual subscription when joining a trade union.

Question 23

what are the benefits employee receive when joining a trade union? (9)

Answer 23

• Strength in number when negotiating
• Improved conditions of employment (ex. Rates of pay, holiday and hours of work)
• Improved environment where people work (ex. Health, safety, noise and heating)
• Improved benefits for members who are not working because they are sick, retired or have been made redundant
• Improved job satisfaction by encouraging training.
• Advice and/or financial support if a member thinks that they have been unfairly dismissed or made redundant, have received unfair treatment, or have been asked to do something that is not part of their job.
• Benefits have been negotiated or provided for union members such as discounts in certain shops, provision of sporting facilities or clubs.
• Trade unions often meet government officials to influence policies for the benefit of workers.
• More secure employment where there is a closed shop.

Question 24

disadvantages of trade union membership (2)

Answer 24

• It costs money to be a member.
• Workers may be required to take industrial.

Question 25

advantages of trade unions for employers (2)

Answer 25

• They can help improve communication between workers and management.
• Wage agreements will be easier to negotiate with a trade union than with many individual workers.

Question 26

disadvantages of trade unions for employers (2)

Answer 26

• Trade unions can organize strikes if they do not receive the pay levels and work conditions they demand.
• Ages are likely to be higher – adding to business costs – when many employees are trade union members.