Chapter Two - SAC STUDY (part 1)

Question 1

Who is at the top level of the management hierarchy and what are their responsibilities? (3)

Answer 1

• Senior management team: CEO, board of directors
• Vision & mission statement,
• strategic planning

Question 2

Who is at the middle level of the management hierarchy and what are their responsibilities? (3)

Answer 2

• Middle management team: Department head, store manager
• Departmental/divisional objectives
• tactic (medium-term) planning

Question 3

Who is at the bottom level of the management hierarchy and what are their responsibilities? (2)

Answer 3

• Frontline management team: Team manager, team leader

- operational (short-term) planning

Question 4

What are 2 characteristics of a bureaucratic management structure?

Answer 4

• numerous levels of management

- chain of command showing who is responsible for whom

Question 5

What factors can cause changes in an organisational structure?

Answer 5

advances in technology and globalisation can result in flatter structures

Question 6

What are 2 advantages of a flatter structure?

Answer 6

• Communication: more open, direct, quicker, and fewer layers of staff between top and bottom
• Employees are more involved in decision making: which leads to increased motivation and empowerment

Question 7

what is 1 disadvantage of a bureaucratic structure?

Answer 7

• info has to go through the supervisor, manager, and then to board of directors before decisions can be made which is time consuming

Question 8

what are 2 advantages of a functional structure?

Answer 8

• employees are grouped according to the task they perform - allows for specialisation and improves productivity through well-trained staff
• a defined career pathway for employees

Question 9

what are 2 disadvantages of a functional structure?

Answer 9

• may lead to a lack of flexibility and cooperation due to it’s bureaucratic nature
• empire building behaviours among personnel in each department; that is, gaining and keeping control over resources, finances and human resources

Question 10

what may employees be grouped together by in a divisional structure? (4)

Answer 10

customers - grouping of jobs and people according to customers being served
geography - grouping of jobs and people according to their location
products - grouping of jobs and people based on single products or services
processes - grouping of jobs or people who are part of the same process

Question 11

what are 2 advantages of a divisional structure?

Answer 11

• employees are grouped according to customers, products, regions and processes, which allows for greater expertise at these areas
• greater flexibility in adapting to environmental changes

Question 12

What are 2 disadvantages of a divisional structure?

Answer 12

• the possibility of duplicated work,
  and
• potential to create rivalries between divisions

Question 13

what are 2 adv. of a matrix structure?

Answer 13

• enhanced communication, cooperation and teamwork

- enhanced decision making: expert project teams become a critical course of info for other managers

Question 14

what is 2 disadvantage of a matrix structure?

Answer 14

• decision making in teams can undermine authority

- unity of command principle may be challenged because people may be reporting to two managers

Question 15

how can dress code indicate corporate culture? (2)

Answer 15

• indicates how professional or strict an organisation is

- shows pride in the way they are presenting themselves

Question 16

how can the layout of working environment indicate corporate culture?

Answer 16

open plan fosters teamwork, whereas closed offices do not

Question 17

how can a manger develop a positive corporate culture? (4)

Answer 17

develop:

• rituals, rights celebrations
• dress code
• heroes
• layout of working environment

Question 18

what are the three types of planning?

Answer 18

• strategical planning
• tactical planning
• Operational planning

Question 19

What is an example of tactical planning?

Answer 19

developing their store

Question 20

What is an example of operational planning?

Answer 20

Making the roster for employees

Question 21

What are steps 1- 5 of the planning process?

Answer 21

1 - define the objective
2 - work out where the organisation currently stands (SWOT analysis)
3 - Figure out strategies to help the organisation meet objective
4 - put agreed strategy into place
5 - seek feedback on the implemented strategy

Question 22

what does SWOT stand for?

Answer 22

strengths (internal
weaknesses (internal)
opportunities (external)
threats (external

Question 23

what are the 3 steps of the organisational process?

Answer 23

1 - determine the tasks
2 - group together similar tasks
3 - determine who is to carry out the work and who will ensure the work is done

Question 24

what 3 qualities do effective leaders display?

Answer 24

interpersonal
informational
decision making

Question 25

What is involved in the control process? (EMM)

Answer 25

1 - establishing objectives
2 - measuring performance against those standards
3 - making changes to ensure objectives have been met

Question 26

how can ethical organisational behaviour be encouraged?

Answer 26

• training may be given to employees to ensure they understand the values of the organisation
• implement a code of conduct - set of ethical standards for managers and employees

Question 27

what are 2 differences between profit and not for profit organisations objectives?

Answer 27

profit: aim to increase profit, not-for-profit: aim to provide a specific service to the community
profit: generate profit to increase shareholder value, not-for-profit: generate profit to enable continued operation