Human Resources

Question 1

What is meant by the key term organisational structure?

Answer 1

a system used to define a hierarchy within an organization.

Question 2

State what is meant by span of control?

Answer 2

is the number of subordinates for whom a manager is directly responsible for.

Question 3

Two benefits of a narrow span of control.

Answer 3

• close relationships between workers and employees - possibility for more upward growth for employees

Question 4

Two benefits of a wide span of control.

Answer 4

• Less expensive because the business employs fewer managers - With only one manager, or a manager with a supervisor or team leader in the hierarchy below, most employees are all on the same level and can work with each other with clear delegation of duties.

Question 5

What is a line relationship?

Answer 5

authority and control are exercised from above and pass down through the hierarchy.

Question 6

Define Delegation?

Answer 6

is the assignment of any responsibility or authority to another person

Question 7

Define Delayering?

Answer 7

involves removing one or more levels of hierarchy from the organisational structure.

Question 8

Two advantages of delayering to a business.

Answer 8

• It can improve communication within the business as messages have to pass through fewer levels of hierarchy - It can reduce costs as fewer (expensive) managers are required

Question 9

Two disadvantages of delayering.

Answer 9

• Delayering can have a negative impact on motivation due to job losses. - Those managers remaining will have a wider span of control which, if it is too wide, can damage communication within the business.

Question 10

Outline the relationship between delayering and increased delegation.

Answer 10

Because delayering creates a wider span of control job delegation is easier as there is more people to delegate work to.

Question 11

Explain what is meant by chain of command.

Answer 11

• refers to the different levels of command within the organization.

Question 12

Examples of Tall and Flat organisational structures.

Answer 12

Question 13

What is a Tall organisation?

Answer 13

have many levels of hierarchy. The span of control is narrow and there are opportunities for promotion. Lines of communication are long, making the firm unresponsive to change.

Question 14

What is a Flat organisational structure?

Answer 14

have few levels of hierarchy. Lines of communication are short, making the firm responsive to change. A wide span of control means that tasks must be delegated and managers can feel overstretched.

Question 15

What is a Centralised Organisation?

Answer 15

the majority of decisions are taken by senior managers and then passed down the organisational hierarchy. (decisions made at the top)

Question 16

What is a Decentralised Organisation?

Answer 16

delegate authority down the chain of command, thus reducing the speed of decision making.

Question 17

Two disadvantages of flat structures.

Answer 17

• It Is Cost Efficient as there are fewer managers meaning less wages
• Promotes faster decision making because fewer people have to be consulted about making a decision

Question 18

Two advantages of tall strucutres.

Answer 18

• provide a clear, distinct layers with obvious lines of responsibility and control
• clear promotion structure.

Question 19

What is meant by organisation by function?

Answer 19

• when the organization is divided into smaller groups based on specialized functional areas

Question 20

One benefit of organising a business by function.

Answer 20

• It achieves greater operational efficiencies, as employees with shared skills and knowledge work together and perform similar functions.

Question 21

One drawback of organising a business by function.

Answer 21

• Communication in organizations with functional organizational structures can be rigid.
• Slow to react in response to environmental changes.

Question 22

What is meant by organisation by product?

Answer 22

is the grouping of sales and production efforts of a business as per the line of products and services of the business

Question 23

Two advantage of organising a business by product.

Answer 23

• extend knowledge or expertise within specialised divisions
• focus on specific market segments

Question 24

Two drawback of organsing a business by product.

Answer 24

• duplicating functions and resources, eg a different sales team for each division
• losing central control over each separate division

Question 25

If ‘Sky’ was organised by product indentify three products that the business might be organised around?

Answer 25

• Broadband
• TV
• Mobile Phone

Question 26

Advantage of a Centralised structure.

Answer 26

Prevents other parts of the business becoming too independant

Question 27

One disadvantage of a centralised structure.

Answer 27

Lack of authority is likely to demotivate staff