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Question 1

how can an organisation be structured

Answer 1

• function
• product of services
• geographical location

Question 2

organisation by function

Answer 2

• most common
• employees work with others in the same function

Question 3

organisation by product or services

Answer 3

• common in businesses that make a range of products or services
• employees work with others who produce a particular product or service

Question 4

organisation by geographical location

Answer 4

• common in tertiary sector - need to be located close with customers
• emploees of all status levels will be employed at each branch

Question 5

elements of organisational structures

Answer 5

• division of work
• span of control
• chain of command

Question 6

division of work

Answer 6

• tasks that a business needs to do are shared out across the workforce.
• mostly based on functional area

Question 7

span of control

Answer 7

number of employees an employee or manager is responsible for
- manager with narrow span of control is directly responsible for few employees
- a manger with a wide span of control is directly responsible for many employees

Question 8

chain of command

Answer 8

prescribes who is in charge of whom and whose permission must be obtained

Question 9

3.3 WRIGHT

Question 10

organisational structures

Answer 10

-tall
-flat
-matrix
-centralised
-decentralised

Question 11

tall

Answer 11

-many levels
- more people at the bottom
- chain of command is clear

Question 12

tall advantages and disadvantages

Answer 12

+ narrow span of control
+ opportunities for promotion
+ can spot areas / departments to develop as its clear to see who is accountable
x them and us culture
x long chain of command - decison making will take longer and messages can get distorted

Question 13

flat

Answer 13

• very few levels between top and bottom
• chain of command tends to be short and span of control to be wide

Question 14

flat advantages and disadvantages

Answer 14

+ feels like a team
+ fewer managers (cut costs)
+ quicker communication
x larger span of control (workload)
x more likely to be unorganised
x less opportunities for promotion

Question 15

matrix

Answer 15

• teams of employees taken from different functional areas to carry out a specific project and when required

Question 16

matrix advantages and disadvantages

Answer 16

+ good communication and share good practice in the business
+ help with motivation
+ understand each other
x unclear who is immediate manager
x potential conflicting messages from function and project managers
x can cause conflict

Question 17

centralised

Answer 17

• decisions made higher up in the organisational structure (head office)

Question 18

centralised advantages and disadvantages

Answer 18

+ decisions made by expert - trained in the role
+ decisions made tend to unify the business, benefiting the organisation as a whole
x lower ranked workers may feel alienated and unimportant
x decisions made by high status employees who have limited understanding of customer needs

Question 19

decentralised

Answer 19

• decisions are made in branch or lower down in the hierarchy

Question 20

decentralised advantages and disadvantages

Answer 20

+ increased job satisfaction to more motivated workforce
+ decisions made by those who deal with the customer so more responsive to local need
x employees who make the decision s may lack the skills of experienced decisions makers
x decisions may be made to benefit an individual / department rather than the business as a whole

Question 21

the use of organisation charts

Answer 21

• organisational hierarchy
• the division of work
• spans of control
• status level
• chain of command

Question 22

organisational hierarchy

Answer 22

number of levels

Question 23

the division of work

Answer 23

how work is distributed

Question 24

spans of control

Answer 24

number of subordinates an employee manages

Question 25

status level

Answer 25

shown by the horizontal levels

Question 26

chain of command

Answer 26

how instructions are passed through an organisation