Organisation

Question 1

What is Human Resource Management (HRM)?

Answer 1

It’s about how people are managed by a business in order to meet the strategic objectives of the business.

Question 2

What is an organisational chart?

Answer 2

This is a diagram that shows the hierarchy in a business, usually from top to bottom in terms of seniority (importance).

Question 3

What is span of control?

Answer 3

The number of employees (or subordinates) for who a manager is responsible for.

Question 4

What is chain of command?

Answer 4

The chain of command is concerned with the way in which responsibility for employees is organised within a business.

Question 5

What is levels of hierarchy/layers?

Answer 5

This refers to the number of levels or layers in a business organisation.

Question 6

What is line relationships?

Answer 6

The vertical relationships (in the organisational hierarchy) between managers and subordinates.

Question 7

What is staff relationships?

Answer 7

The horizontal relationship between a manager and another organisation member to/from whom the manager gives or receives information or advice.

Question 8

What is delayering?

Answer 8

A process of reducing the number of levels or layers in an organisational structure.

Question 9

What is delegation?

Answer 9

Involves the assignment to others of the authority for particular functions, tasks and decisions. (Where responsibility for carrying out a task or role is passed onto someone else in the business)

Question 10

What is empowerment?

Answer 10

Giving employees the power to do their job. For example, the authority to make decisions, plan their own work and solve their own problems.

Question 11

What is a centralised structure?

Answer 11

Authority and decision making is firmly at the top of the hierarchy (amongst the m most senior management)

Question 12

What is a decentralised structure?

Answer 12

Decision-making is spread out to include more junior managers in the hierarchy, as well as individual business units or trading locations.

Question 13

What is a tall organisation/structure?

Answer 13

They are associated with narrow stands of control so therefore more direct supervision. Communication will be more bureaucratic, and employees may be more motivated by the promotion opportunities.

Question 14

What is a flat organisation/structure?

Answer 14

Associated with wide stands of control so therefore more delegation and responsibility for employees. Communication will be quicker and more accurate.

Question 15

What is organisation by function/system?

Answer 15

The business is arranged into specialist/function areas. This means that each function has some input into the output of the business’ product(s)/service(s).

Question 16

What is organisation by product?

Answer 16

The business is organised according to the different products made. Each product becomes a ‘mini company’ with its own finance, marketing, HR departments etc.

Question 17

What is a matrix structure?

Answer 17

In a matrix structure, individuals work across teams and projects as well as within their own department or function. Each team member can find him/herself with two managers - their normal functional manager as well as the team leader of the project. These teams can be temporary or permanent depending on the tasks they are asked to complete.

Question 18

What is organisational culture?

Answer 18

The organisational culture of a business is the collection of values and behaviour which are unique to the environment of the organisation.