Organisation and Management

Question 1

Define Organisational Structure

Answer 1

The levels of management and division of responsibilities within a company.

Question 2

Define Organisational Chart

Answer 2

refers to diagrams that outline the internal management structure.

Question 3

Levels of Hierarchy

Answer 3

refers to management/supervisors/other employees who are given a similar level of responsibility in an organisation.

Question 4

Benefits of Organisational Chart

Answer 4

The chart shows how everybody is linked in the organisation, which allows employees to be aware of their communication channel (chain of command).
Everyone can see what they are accountable for, which they have authority over, and who to take orders from.
Everyone is in a department, thus giving a sense of belonging

Question 5

Define Chain of Command

Answer 5

The structure in an organisation allows instructions to be passed down from senior management to subordinates

Question 6

Define Span of Control

Answer 6

The number of subordinates working directly under a manager.

Question 7

Advantages of Short Chain of Command

Answer 7

Communication and decision-making are quicker.
Fewer management levels to build connections with by the top management.
The span of control will be wider, encouraging managers to delegate more and allowing workers to feel trusted.

Question 8

Advantages of long chain of command

Answer 8

As decisions get passed down, it is checked by multiple people, thus reducing error and preventing bad decisions from happening
Lesser subordinates means management can focus more on their designated workers.

Question 9

Factors affecting the size of the span of control:

Answer 9

Difficulty of the task
The experience and skill of workers
The size of the business
the level of hierarchy
Management style

Question 10

Define Delayering

Answer 10

reducing the size of the hierarchy by removing one or more levels, often the middle management.

Question 11

Advantages of Delayering

Answer 11

Reduces cost
Communication and decision-making are quicker due to reduced chain of command.
Increases the opportunity for delegation, which helps in motivation
Senior managers are in close touch with what is going on in the business

Question 12

Disadvantages of Delayering

Answer 12

Increased workload on managers, thus decreasing the quality of work and its completion.
Have to make redundancy payments to employees who lost their job
Reduction in job security
Reduce effective management of subordinates

Question 13

Define Delegation

Answer 13

Giving a subordinate the authority to perform particular tasks.

Question 14

Advantages of Delegation

Answer 14

Application of job enrichment, leading to job satisfaction
A form of training for junior managers
Achieving the Esteem needs (Maslow’s hierarchy)

Question 15

Disadvantages of Delegation

Answer 15

Some managers are reluctant to delegate, as they will be held accountable for any errors
Managers lose some control over subordinates

Question 16

Functions of Manager

Answer 16

Planning – Planning is about where the business is now and where it wants to be. Once it has been decided, management must set clear objectives and an action plan.
Organising – Management will have to decide the best way of completing important tasks at the lowest possible cost to the business.
Communicating - Control and supervision of subordinates also aim to motivate workers to achieve the planned objectives.
Coordinating - Making sure that all the different parts of the business are working together to achieve the business’s goals and corporate objectives.
Controlling – involves checking to make sure that the plan is working and if it would be completed in time and the required standard, and if not, then correcting it