Organisation and management

Question 1

What is an organizational structure?

Answer 1

Organizational structure refers to the levels of management and division of responsibilities within a business. They can be represented on organizational charts (left).

Question 2

What are the two types of organisational charts?(briefly explain)

Answer 2

This is often displayed in the form of an organisational chart. The 2 common type of charts are
1)Tall organisational charts –These have a long chain of command and a
small span of control
2)Flat organisational charts –Short chain of command, wide span of control

Question 3

Give 3 advantages of organisational charts

Answer 3

Advantages:

1) All employees are aware of which communication channel is used to reach them with messages
2) Everyone knows their position in the business. They know who they are accountable to and who they are accountable for- Lines of communication are clear
3) It shows the links and relationship between the different departments
4) Gives everyone a sense of belonging as they appear on the organizational chart-Motivational

Question 4

What is the span of control?

Answer 4

The span of control is the number of subordinates working directly under a manager in the organizational structure.

Question 5

What is chain of command?

Answer 5

Chain of Command –is how the power and authority is passed down from the top of the organisation (managers) to lower employees

Question 6

The wider the span of control the shorter the ___________

Answer 6

chain of command

Question 7

State 2 advantages of short chain command

Answer 7

Advantages of short chain of command
1) Faster communication– Communication is quicker and more accurate since it is passed on by fewer people.
2)Stronger relationship between high-level managers and employees –This
is because there are fewer levels between managers and employees.
3)Each manager is responsible for more employees –This encourages them
to delegate (pass down) more work to employees.

Question 8

What is delayering?

Answer 8

De-layering – removing an entire row of management

Question 9

What is delegation of authorithy?

Answer 9

Delegation is giving a subordinate the authority to perform some tasks.

Question 10

State the 5 roles of management

Answer 10

1. Planning
2. Organising
3. Coordinating
4. Commanding
5. Controlling

Question 11

Describe the role of planning

Answer 11

Planning: [1] setting aims and targets for the organisations/department to achieve. It will give the department/firm and it’s employees a clear sense of purpose and direction[2]. Managers should also plan for resources required to achieve these targets – the number of people required, the finance needed etc.[3]

Question 12

Describe the role of Organising

Answer 12

Organising of people and resources so that the business operates efficiently [1] (Managers can’t do everything, they must delegate tasks to other employees.[2]

Question 13

Describe the role of Co-ordinating

Answer 13

Making sure all departments are working together to achieve the overall objectives and plans of the organisation.[1]This will involve effective communication between departments and managers and decision making.[2]

Question 14

Describe the role of Commanding

Answer 14

Commanding: managers need to guide, lead and supervise their employees in the tasks they do and make sure they are keeping to their deadlines and achieving targets.

Question 15

Describe the role of Controlling

Answer 15

Controlling: managers must try to assess and evaluate the performance of each of their employees to ensure that objectives will be met.

Question 16

Advantages to managers of delegation [2]

Answer 16

Advantages to managers:

1. managers cannot do all work by themselves
2. managers can measure the efficiency and effectiveness of their subordinates’ work

Question 17

Advantages to subordinates of delegation

[2-3]

Answer 17

Advantages to subordinates:

1. the work becomes more interesting and rewarding- increased job satisfaction
2. employees feel more important and feel trusted– increasing loyalty to firm
3. can act as a method of training and opportunities for promotions, if they do a good job.

Question 18

What are leadership styles?

and state the 3 types

Answer 18

Leaderships styles refer to the different approaches used when dealing with people when in a position of authority. There are mainly three styles you need to learn: the autocratic, democratic and laissez-faire styles.

Question 19

Describe the autocratic leadership style

Answer 19

Autocratic style is where the managers expects to be in charge of the business and have their orders followed. They do all the decision-making, not involving employees at all.[1] Communication is thus, mainly one way- from top to bottom.[2] This is standard in police and armed forces organizations.

Question 20

Describe the democratic leadership style

Answer 20

Democratic style is where managers involve employees in the decision-making and communication is two-way from top to bottom as well as bottom to top.[2] Information about future plans is openly communicated and discussed with employees and a final decision is made by the manager.

Question 21

what are staff managers?

Answer 21

Staff Managers are specialists who provide support, information and assistance to line managers. The IT department manager in most organisations act as staff managers.

Question 22

Describe the Laisez-faire leadership style

Answer 22

Laissez-faire (French phrase for ‘leave to do) style makes the broad objectives of the business known to employees and leaves them to do their own decision-making and organize tasks.[1] Communication is rather difficult since a clear direction is not given. The manger has a very limited role to play.[2]

Question 23

What does leadership style depend on? state 2 factors

Answer 23

Leadership style may be dependent on various factors. e.g.
 Type of business (creative or supply driven)
 Nature of task (requires cooperation?)

Question 24

What is atrade union?

Answer 24

A trade union is a group of workers who have joined together to ensure their interest are protected.

Question 25

Why join a trade union?

atleast 4 reasons

Answer 25

1. Improved conditions of employment
2. Improved work environment
3. Improved benefits
4. Improved job satisfaction
5. Advice/financial support
6. Strenght in number (many employees will join)

Question 26

what is de-centralisation?

Answer 26

It refers to a business delegating important decisions to lower divisions in the firm.

Question 27

what is a centralised structure?

Answer 27

A centralised structure is where business decisions are made at the top of the business or in a head office and distributed down the chain of command .

Question 28

What are advantages of a decentralised structure?

atleast 3

Answer 28

1-decisions can be made by managers who are closer to the action
2-Mangers ffeel more trusted and get more job satisfaction due to delegation.
3-decisions can be made more quickly
4-the firm can adapt to change much more quickly

Question 29

what are disadvantages of a decentralised structure?

state atleast 2

Answer 29

1-may lead to the problem of co-ordination at the level of an entreprise as the decision making authority isn’t concentrated.
2-may be lead to incosistencies(e.g absense of uniformity_
3-it is costly as it raises administrative expenses on account of requirement of trained personnel to accept authority at lower levels.

Question 30

what are the functions of trade unions?

[5]

Answer 30

1) Defending their members’ rights and jobs- e.g unfair dismissal
2) Negotiate for improvements in working conditions
3) Ensure better health and safety regulations for the members
4) They negotiate for better wages on behalf of their members
5) They influence government decision to favour their members

Question 31

What are the 5 types of trade union actions?

Answer 31

Industrial Action

Strike

Work to rule

Go slow

picketing

Question 32

explain the four types of trade unions?

Answer 32

Types of Trade Unions

General Unions: people from many different occupations and industries e.g. commercial workers

Industrial Unions: people from the same industry e.g.
telecommunications

Craft Unions: people with the same skills across
different industries e.g. artists

Non-manual Unions: people with professional
occupations e.g. doctors

Question 33

what are the benefits to workers of joining a trade union?

atleast 4

Answer 33

Benefits to workers of joining a trade union:

1) strength in number- a sense of belonging and unity
2) improved conditions of employment, for example, better pay, holidays, hours of work etc
3) improved working conditions, foe example, health and safety
4) improved benefits for workers who are not working, because they’re sick, retired or made redundant (dismissed not because of any fault of their own)
5) financial support if a member thinks he/she has been unfairly dismissed or treated
6) benefits that have been negotiated for union member such as discounts on firm’s products, provision of health services.

Question 34

what are disadvantages to workers of joining a trade unions?

atleast 2

Answer 34

Disadvantages to workers of joining a trade unions:

1) costs money to be member- a membership fee will be required
2) may be asked to take industrial action even if they don’t agree with the union- they may not get paid during a strike, for example.
3) Workers might get lesser wages or none if they go on strike – as the output and profits of the firm falls and they refuse to pay.

Question 35

what are advantages to firms of trade unions?

atleast 2

Answer 35

Advantages to firms:
1)Time is saved in negotiating with a union when compared to negotiating with individuals workers.

2) When making changes in work schedules and practices, a trade union’s cooperation can help organise workers efficiently.
3) Mutual respect and good relationships between unions and firms are good for business morale and increases productivity.

Question 36

what are some disadvantages of trade unions to firms?

atleast 2

Answer 36

1) Decision making may be long as there will be need of lengthy discussions with trade unions in major business decisions.
2) Trade unions may make demands that the firm may not be able to meet – they will have to choose between profitability and workers’ interests.
3) Higher wages bargained by trade unions will reduce the firm’s profitability.
4) Businesses will have high costs and low output if unions organise agitations. Their revenue and profits will go down and they will enter a loss. They may also lose a lot of customers to competing firms.

Question 37

what is an advantage to the economy of trade unions?

Answer 37

Advantages to the economy:

Ensures that the labour force in the economy is not abused and that their interests are being represented.

Question 38

State Disadvantages to the economy of trade unions

atleast 2

Answer 38

Disadvantages to the economy:

1) Can negatively impact total output of the economy.
2) Firms may decide to substitute labour for capital if they can’t meet trade unions’ expensive demands, and so unemployment may rise.
3) Higher wages resulting from trade union activity can make the nation’s exports expensive and thus less competitive in the international market

Question 39

What is likely to influence the success of trade unions?

atleast 4

Answer 39

1) size of membership
2) proportion of membership in particular industries
3) skills of workers
4) financial strength of unions
5) support from the general public
6) degree of influence on employers and on government
7) quality of negotiating skills