LO3

Question 1

tall structures

Answer 1

Tall structures tend to have a long chain of command meaning a slow decision making and often poor communication. However it can lead to good promotional prospects due to the management of the business being broken in to many layers in the hierarchy. The CEO communicates strategy and plans through the many layers of management.

Question 2

pros and cons of tall structures

Answer 2

Pros:
- Organised chain of command
- Responsibilities clearly identified
- Clear promotion opportunities
- Greater supervision

Cons:
- Slower decision making
- Less freedom for employees
- More expensive
- Slow/difficult communication

Question 3

flat structures

Answer 3

Flat structures have fewer layers in their hierarchy, meaning quicker communication up and down the chain of command. This means they can respond quickly to changing circumstances, though there are fewer opportunities for promotion as this structure has fewer layers of management.

Question 4

pros and cons of flat structures

Answer 4

pros:
- Reduced operating expenses
- Increased responsibility
- Easier communication
- Improved coordination
- Positive workplace culture
- Talent recognition

cons:
- Higher staff turnover
- Management may struggle
- Can create a power struggle
- Can result in role confusion

Question 5

span of control

Answer 5

Span of control refers to the number of subordinates a manager has working for or reporting to them. The span of control only applies to the layer beneath the manager

Question 6

wide span of control

Answer 6

this is where the manager has many people beneath them. the more people below them, the wider the span of control

Question 7

narrow span of control

Answer 7

this means the manager has few people beneath them

Question 8

centralised organisation

Answer 8

A business whose decision-making comes from one place only is known as a centralised organisation. Normally a Head Office or central governing board will decide on the major elements of strategy

Question 9

pros and cons of centralised organisation

Answer 9

pros:
-consistency across the business
-operations & decisions are closely controlled and managed
-the chain of command and accountability are clear

cons:
-it can demotivate employees
-a standardised approach may not work in all business locations or settings
-it may lower productivity

Question 10

decentralised organisation

Answer 10

where a business decisions can be made by managers and further down the chain. For example, branch managers of a grocery store chain will be given authority to make some decisions about their branch.

Question 11

pros and cons of a decentralised organisation

Answer 11

pros:
-Improved employee motivation
-decisions made to suit local area and customers
-more responsibility for employees

cons:
-Not consistent across the business
-managers can make mistakes
-may negatively impact sales and overall business performance

Question 12

Hierarchical structures

Answer 12

A hierarchical organisation structure comes with a simple reporting system that allows subordinates to understand their duties and responsibilities easily. Business owners can use this structure to ensure smooth operations and more clear reporting structures. It works well in most workplaces and comes with many benefits for large organisations.

Question 13

pros and cons of hierarchical structures

Answer 13

pros:
-clear reporting
-distinct promotion/ career paths identified
-specialisation
- department loyalty

cons:
-information flow is typically one way
-decision making can take time as people higher up the chain will need to make decisions
-It can be expensive if executives, managers and supervisors are needed to manage an area
-Department rivalry can cause inefficiencies

Question 14

matrix structures

Answer 14

In a matrix structure, employees with similar skills occupy a single working pool. They then report to different managers across the projects they are assigned to. So, the finance team will report to the finance director and Project 1 director when working for Project 1

Question 15

pros and cons of matrix structures

Answer 15

pros:
They create a flexible working environment
Communication between employees easier,
Able to switch resources as needed
It can also make better use of limited resources

cons:
Reporting to multiple managers can make work complicated
It can be hard to set priorities to suit everyone.
Accountability can also be difficult to define
Difficult to coordinate