Layers Of Hierarchy (Quick Revision)

Question 1

Define: Layers Of Hierarchy

Answer 1

Layers of hierarchy are levels of responsibility within an organisation.

Question 2

Removing levels of hierarchy is called d………………. State two problems of this.

Answer 2

Delayering; redundancy costs and demotivation.

Question 3

State three problems of having many levels of hierarchy.

Answer 3

• Slow decision making.
• Poor communication.
• Messages get distorted.

Question 4

State one benefit of having many levels of hierarchy.

Answer 4

More promotion prospects.

Question 5

State two ways in which large firms might overcome their communication problems.

Answer 5

• Greater use of IT.

* Decentralisation.

Question 6

What is the Examiner’s note for Layers Of Hierarchy?

Answer 6

As organisations grow, there are more people working in more departments. This makes controlling and coordinating the business more difficult. Communication can be a problem as objectives conflict and people operate on more sites.

Question 7

What is the Evaluation point for Layers Of Hierarchy?

Answer 7

The effect of reducing layers of hierarchy depends on the reaction of staff, the cost saving and the extent to which remaining staff can cope with additional work.