LO3 - Understand the effect of different organisational structures on how businesses operate

Question 1

Define:

Flat organisational structure

Answer 1

Few or no levels of middle management between staff and executives

Question 2

Define:

Hierarchical/Tall organisational structures

Answer 2

Many management between staff and executives

Question 3

Define:

Centralised organisational structure

Answer 3

Head office makes all the decisions on how business runs

Question 4

Define:

Decentralised organisational structure

Answer 4

People not at the top in local branches are given more decision making power

Question 5

Define

Matrix organisational structure

Answer 5

Teams from different departments are created to run different projects, to focus on different products

Question 6

Define:

organisation by function

Answer 6

organises a company into different departments based on areas of expertise (functional areas)

Question 7

Define:

organisation by product/service

Answer 7

organises a company into different departments based on product/service

Question 8

Define:

organisation by geographic location:

Answer 8

organises a company into different departments based on geographic location

Question 9

Define:

Span of control

Answer 9

Number of subordinates a line manager supervises

Question 10

Define:

Chain of command

Answer 10

The route through which messages are passed

Question 11

In terms of narrow:

How does span of control affect:
1. communication paths
2. accountability, authority and responsibility
3. delegation
4. empowerment

Answer 11

1. More direct and easy to manage messages
2. Easy to manage employees, so its easy to hold them accountable
3. Less delegation needed as managers can closely supervise
4. Employees feel less powerful as they make most decisions

Question 12

In terms of short chain of command

How does chain of command affect:
1. communication paths
2. accountability, authority and responsibility
3. delegation
4. empowerment

Answer 12

1. Communication is quick and direct
2. Accountablility is more direct as there are fewer
3. Faster delegation due to less layers between top and bottom
4. More empowerment, they are closer to the decision-makers

Question 13

Advantages and disadvantages of:

Flat organisational structure

Answer 13

+Quick comms
+Team feeling
-Large span of control
-Less chance for promotion

Question 14

Advantages and disadvantages of:

Hierarchical/Tall organisational structure

Answer 14

+Oppurtunity for promotion
+Narrow span of control
-Messages can be distorted
-Less team feeling

Question 15

Advantages and disadvantages of:

Centralised organisational structure

Answer 15

+Head office is experienced
+Economies of scale (Buying more for cheaper)
-Less creative
-Less delegation = less motivated

Question 16

Advantages and disadvantages of:

Decentralised organisational structure

Answer 16

+Subordinates have better knowledge of local area
+Motivated workers
-Slower decision making
-Less economies of scale as different purchase orders will be done locally

Question 17

Advantages and disadvantages of:

Matrix organisational structure

Answer 17

+Good comms
+Motivated workers
-Unclear who immediate manager is
-Potential for conflicting messages from different managers

Question 18

The status and responsibilities of

CEO (Chief Executive Officer)

Answer 18

• Highest ranking role in an organisation
• Responsible for strategy of an enterprise, and makes all the high level decisions

Question 19

The status and responsibilities of

Directors

Answer 19

• Under CEO in ranking
• Responsible for a major functional area of the enterprise

Question 20

The status and responsibilities of

Question 21

The status and responsibilities of

Question 21

The status and responsibilities of