Organisation and Management

Question 1

What roles do managers fulfil?

Answer 1

1. Planning - involves setting business objectives and deciding on business strategies and actions needed to achieve them.
2. Organising - involves organising employees and other resources in order to achieve business objectives.
3. Co-ordinating - the business operations are co-ordinated by the manager.
4. Motivating employees
5. Commanding - involves giving instructions to employees.
6. Controlling - where employees performance is measured and assessed, if they are not on target corrective actions can be put in place.

Question 2

What is a hierarchical organisation?

Answer 2

An organisation in which people are ranked according to their level of authority.

Question 3

What is the chain of command?

Answer 3

The order in which authority and power in an organisation is held at every level of an organisation. Instructions flow down the chain of command and accountability flows up it.

Question 4

What is a tall structure?

Answer 4

A type of organisational structure where there are many levels of organisation. There are typically many managers which are only in charge of a small amount people. There is a long chain of command.

Question 5

What is a flat structure?

Answer 5

An organisational structure with few or no levels of middle management between staff and executives. It has a very short chain of command.

Question 6

What is the span of control in an organisation?

Answer 6

Span of control refers to the number of subordinates who are directly managed by a manager.

Question 7

What is an autocratic management style?

Answer 7

A style of management centred on the manager who makes all the decisions without consulting employees.

Question 8

What is a democratic management style?

Answer 8

A style of management where the manager makes decisions after consulting employees.

Question 9

What is a laissez-faire style of management?

Answer 9

A style of management in which decision making is left to those who do the work. The manager only becomes involved when they need to resolve issues.

Question 10

What are the advantages of an autocratic management style?

Answer 10

1. The leader feels in control of the situation.
2. With an autocratic leader know what to do and what to expect.
3. Enables fast decision-making.

Question 11

What are the disadvantages of an autocratic management style?

Answer 11

1. People can feel like they are not trusted and become demotivated and frustrated, decreasing productivity.
2. Allows no individual contributions from employees.

Question 12

What are the advantages of a democratic management style?

Answer 12

1. Develops a greater feeling of loyalty and commitment from employees as they feel trusted when they get to take part in decision-making. This can increase motivation and productivity.

Question 13

What are the disadvantages of a democratic management style?

Answer 13

1. Decision making may be slow.

2. Team members may not have sufficient knowledge or experience to make decisions.

Question 14

What are the advantages of an laissez-faire style of management?

Answer 14

1. Encourages loyalty and the commitment of employees.
2. Employees can feel more valued because of the responsibility they are given, this may increase their motivation and productivity.

Question 15

What are the disadvantages of a laissez-faire style of management?

Answer 15

1. No real direction.

2. Poor co-ordination could lead to duplication of effort.

Question 16

What is delegation?

Answer 16

Where tasks, authority and responsibilities are assigned from employees to their subordinates which are in their chain of command.

Question 17

What is a managing director?

Answer 17

The person who is responsible and in charge of running a business, also called a CEO.

Question 18

What is a centralised organisation?

Answer 18

Where decision-making is done by the senior managers of an organisation.

Question 19

What is a decentralised organisation?

Answer 19

Where decision-making is done further down the hierarchy.

Question 20

What is a trade union?

Answer 20

An organisation designed to protect and further its members rights and interests, normally in a particular trade or industry.

Question 21

What is arbitration?

Answer 21

The process of bringing a business dispute before a disinterested third party for resolution.

Question 22

What is a single union agreement?

Answer 22

Where an employer agrees for a trade unions to represent all the workers in a particular workplace.

Question 23

What is industrial action?

Answer 23

When negotiations between a trade union and employer fail, employees may take action which puts pressure on their employer.

Question 24

What is collective bargaining?

Answer 24

Where a trade union negotiates on behalf of its members with an employer.

Question 25

What is hierarchy?

Answer 25

Where employees are ranked according to relative status or authority in the business.