Managing Challenges

Question 1

Processes of building an organisation

Answer 1

Structuring of the organisation, setting up of teams and departments, division of responsibilities

Question 2

Fayol’s Principles (10)

Answer 2

Unity of command, hierarchy of authority, division of labour, employees feel like a team, authority, centralisation, clear communication channels, order, equality, spirit of pride and loyalty

Question 3

Additions by Max Weber to Fayol’s Principles

Answer 3

Job descriptions, written rules and guidelines, consistent procedures, staffing and promotion based on qualifications

Question 4

Centralised vs decentralised authority

Answer 4

Centralised: top management makes decisions
Decentralised: authority is delegated to lower levels

Question 5

Span of Control

Answer 5

Optimal number of subordinates that a manager oversees

Question 6

Departmentalisation

Answer 6

Division of organisational functions in different units

Question 7

Line Organisation

Answer 7

Two-way lines of authority and responsibility with all people reporting to only one supervisor

Question 8

Line-and-staff organisation

Answer 8

Line personnel that are part of chain of command for achieving organisational goals, staff personnel which give advice and assistance to line personnel

Question 9

Matrix Organisation

Answer 9

Specialists from different parts of the organisation are brought together to do specific projects together, but they will always remain part of a line-and-staff organisation

Question 10

Virtual Competition

Answer 10

Network of different firms, can leave the network if necessary