Organisation

Question 1

Organisation chart

Answer 1

Diagrams that show the internal structure of the business. They identify the specific roles and responsibilities of staff.

Question 2

Chain of command

Answer 2

Is the path of authority along which instructions are passed. From CEO downwards.

Question 3

Span of control

Answer 3

Measures the number of subordinates reporting directly to a manager.

Question 4

Tall structure

Answer 4

Have many levels of hierarchy. The span of control is narrow and lines of communication are long, making the firm unresponsive to change,

Question 5

Hierarchy

Answer 5

Refers to the management levels within an organisation.

Question 6

Flat structure

Answer 6

Have few levels of hierarchy. Lines of communication are short, making the firm responsive to change. A wide span of control, managers may feel overstretched.

Question 7

Centralised organisation

Answer 7

The majority of decisions are taken by senior managers and then passed down the organisational hierarchy.

Question 8

Decentralised organisation

Answer 8

Delegate authority down the chain of command, which reduces the speed of decision making.