Management Activities 2: Organising

Question 1

Organising

Answer 1

Organising occurs when the manager co-ordinates all business resources e,g employees, capital and raw materials into the most effective formation to achieve organisational goals.

Question 2

Types of organisational structures

Answer 2

1. Functional
2. Matrix
3. Geographic
4. Product

Question 3

Choosing an Organisation Structure

Answer 3

Consumer Demand: a business may choose a product or geographic structure so that it can satisfy consumer needs more effectively.
Specialisation: If the business wants its employees to become experts in a particular business.
Intrapreneurship: The business may choose a matrix organisation structure to encourage intrapreneurship and develop new products.

Question 4

Chain of Command

Answer 4

Span of Control: Relates to the number of employees who report directly to a manager.
Wide Span of Control: A manager has a wide span of control when he has many employees reporting directly to him.
Narrow Span of Control: Applies when a small number of employees report directly to the manager.

Question 5

Factors Affecting span of control

Answer 5

1. Trust: Management who trust staff tend to have a wide span of control.
2. Employee skills: Employees with fewer skills and less experience require greater
   management supervision therefore a narrow span of control.
3. Tasks: Employees performing repititive tasks require less supervision therefore a wide
   span of control can be used.
4. Managerial workload: Managers perform a number of duties, including supervising
   staff and communicating with stakeholders.

Question 6

delayering

Answer 6

Involves removing one or more management layers in an organisation structure.

Question 7

Advantages of organising as a management activity

Answer 7

1. Clear chain of command: It ensure that everybody in the business knows who reports
   to whom.
2. Improved Communication: It encourages better communication in the workplace.
3. Management Workload: Clear to see how many people report to a manager to
   prevent managerial workload and stress.
4. Employee motivation: Shows employees that there is a clear promotional path in the
   organisation.