Organisation and Management (Chapter 7).

Question 1

What is an organisational structure?

Answer 1

Organisational structure refers to the level of management and division of responsibilities within an organisation.

Question 2

What is an organisational chart?

Answer 2

Organisational chart refers to a diagram that outlines the internal management structure.

Question 3

What is a hierarchy?

Answer 3

Hierarchy refers to the levels of management in any organisation, from the highest to the lowest.

Question 4

What is a level of hierarchy?

Answer 4

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

Question 5

How is an organisational structure presented?

Answer 5

This structure is often presented in the form of an organisational chart with several levels of hierarchy.

Question 6

What are the two advantages of writing a job description?

Answer 6

• People applying for the job could see if they were suitable for the work expected of them.
• Once the job, the new employee would know exactly what their duties and responsibilities were.

Question 7

What is a chain of command?

Answer 7

Chain of command is the structure in an organisation which allows instructions to be passed down from senior management to lower levels of management.

Question 8

What are the three important features of an organisational chart?

Answer 8

• It is a hierarchy meaning that there are different levels in the organisation, and each level has a different degree of authority.
• It is organised into departments and each department has a particular job or function.
• As there are different levels of management, there is a chain of command. Bigger businesses are likely to have many more levels of hierarchy and there a longer chain of command.

Question 9

What are the 3 advantages of an organisational chart?

Answer 9

• Every individual can see their own position in the organisation. They can identify who they are accountable to, who they have authority over, and who they should take orders from.
• Shows the links and relationships between different departments within the organisation.
• Everyone is in a department and this gives them a sense of belonging.

Question 10

What is the span of control?

Answer 10

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

Question 11

What are the two terms of the span of control?

Answer 11

The longer the chain of command, the ‘taller’ will be the organisational structure and the ‘narrower’ the span of control.

The shorter the chain of command, the ‘shorter’ will be the organisational structure and the ‘wider’ the span of control.

Question 12

What is delayering?

Answer 12

Removing a layer of management to have a shorter chain of command and a wider the structure.

Question 13

What are the 3 advantages of short chains of command?

Answer 13

• Communication is quicker and more accurate because they are fewer levels for information to pass through before reaching the intended person.
• These top managers should be more in touch with people below them as there are fewer management levels to get to know.
• Spans of control will be wider and this means that each manager is responsible for more subordinates.

Question 14

Spans of control will be wider and this means that each manager is responsible for more subordinates. What are the 2 advantages of this statement?

Answer 14

• If superiors have more people to manage, it will encourage managers to delegate more.
• There will be less direct control of each worker and they will feel more trusted and therefore obtain more job statisfaction.

Question 15

What is a disadvantage of wider spans of control?

Answer 15

Wider spans of control, with more people to be directly responsible for, could mean that the managers lose control of what their subordinates are doing leading to the subordinates making mistakes because of poor training.

Question 16

What are the 3 key feature of large business organisational charts?

Answer 16

• It is still largely arranged into functional departments.
• Regional division responsible for stores in other countries.
• They are other departments which do not have a typical function and which employ specialists in particular areas.

Question 17

It is still largely arranged into functional departments. What is a disadvantage of this?

Answer 17

Workers may feel more loyalty to their department than to the organisation as a whole leading to conflict between departments.

Question 18

The regional division responsible for stores in other countries. What is the advantage of this department?

Answer 18

This department has the advantage of being able to use specialist knowledge to help it run the stores abroad, such as knowledge of local cultures and customs.

Question 19

What are directors?

Answer 19

Directors are senior managers who lead a particular department or division of a business.

Question 20

What are line managers?

Answer 20

Line managers have direct responsibility for people below them in the hierarchy of an organisation.

Question 21

What are supervisors?

Answer 21

Supervisors are junior managers who have direct control over the employees below them in the organisational structure.

Question 22

What are staff managers?

Answer 22

Staff managers are specialists who provide support, information, and assistance to line managers.

Question 23

What are the 5 main roles and functions of managers?

Answer 23

• Plan for the future.
• Organise and delegate.
• Coordinate departments.
• Command and guide others.
• Control and assess the work of departments.

Question 24

What does planning for the future of an organization involve?

Answer 24

Planning for the future of an organization involves setting aims or targets and the resources which will be needed.

Question 25

What is the benefit of planning for the future of an organization by setting aims and targets?

Answer 25

These aims or targets will give the organization a sense of direction or purpose. There will be a common feeling in the organization of having something to work towards.

Question 26

A manager cannot do everything meaning that an effective manager will organize people and resources very carefully indeed.

What can be done to organize people and what is the effect of this?

Answer 26

An organizational chart can help to show who has the authority to do different jobs. It also helps to make sure that specialization occurs and that two people do not end up doing the same task.

Question 27

Coordinating means ‘bringing together.’
How can a good manager make sure that all departments in the organization work together to achieve the plans originally set by the manager?

Answer 27

This could be done by regular meetings between people in the different departments.

Question 28

Managers have to make sure that all supervisors and workers are keeping to targets and deadlines.
What must managers provide to ensure this?

Answer 28

Instructions and guidance must be provided by managers and it is also their responsibility to make sure that the tasks are carried out by people below them in the organization.

Question 29

Controlling is a never-ending task of management. What must managers do to make sure that groups and individuals are on target?

Answer 29

Managers must try to measure and evaluate the work of all individuals and groups to make sure that they are on target.

Question 30

Without clear and effective management, a business is going to lack: 4 objectives.

Answer 30

• A sense of control and direction.
• Coordination between departments, leading to wastage of effort.
• Control of employees.
• Organisation of resources, leading to low output and sales.

Question 31

Define delegation.

Answer 31

Delegation means giving subordinates the authority to perform particular tasks.

FURTHER NOTICE - It is the authority to perform a task that is being delegated - not the final responsibility and if the job is done badly by the subordinate then it is the manager who has to accept the responsibility for this.

Question 32

What are the three advantages of delegation for the manager?

Answer 32

• Delegation allows managers to concentrate their time on other important management tasks.
• Managers are less likely to make mistakes if some of the tasks are performed by their subordinates.
• Managers can measure the success of their staff more easily.

Question 33

What are the three advantages of delegation for the subordinate?

Answer 33

• The work becomes more interesting and rewarding.
• The employee feels more important and believes that trust is being put in them to perform a job well.
• Delegation helps to train workers and they can then make progress in the organization giving them career opportunities.

Question 34

What does delegation mean in terms of what must be increased and what must be reduced?

Answer 34

There needs to be an increase in trust in order to reduce control over workers.

Question 35

A good manager should: 5 objectives.

Answer 35

• Motivate employees.
• Give guidance and advice to employees they manage.
• Inspire employees they manage to achieve more than they thought possible.
• Manage resources effectively and keep costs under control.
• Increase the profitability of the business.

Question 36

What are the six qualities of managers?

Answer 36

• Intelligence.
• Self confidence.
• Determination.
• Initiative.
• Good communication skills.
• Enthusiasm.

Question 37

Define leadership styles.

Answer 37

Leadership styles are the different approaches to dealing with people and making decisions when in a position of authority - autocratic, democratic, or laissez-faire.

Question 38

What is autocratic leadership?

Answer 38

Autocratic leadership is where the manager expects to be in charge of the business and to have their orders followed.

Question 39

What direction is communication in an autocratic leadership business?

Answer 39

Communication in the business is mainly one way, downward or top-down and the workers have little to no opportunity to comment on anything.

Question 40

What is a potential advantage of autocratic leadership?

Answer 40

• Quicky decision making.

Question 41

What is a potential disadvantage of autocratic leadership?

Answer 41

No opportunity for employee input into key decisions, which can be demotivating.

Question 42

What is democratic leadership?

Answer 42

Democratic leadership gets other employees involved in the decision making process.

Question 43

What direction is communication in an democratic leadership business?

Answer 43

Communication is both downward or top-down, and upward and bottom-up.

Question 44

What is a potential advantage of democratic leadership?

Answer 44

Better decisions could result from consulting with employees and using their experience and ideas - as well as being a motivating factor.

Question 45

What is a potential disadvantage of democratic leadership?

Answer 45

Unpopular decisions such as making workers redundant, could not effectively be made using this style of leadership.

Question 46

What is laissez-faire leadership?

Answer 46

Laissez-faire leadership makes the broad objectives of the business know to employees, but then they are left to make their own decisions and organise their own work.

Question 47

What is a possible advantage of laissez-faire leadership?

Answer 47

Encourages employees to show creativity and repsonsiblity.

Question 48

What is a possible disadvantage of laissez-faire leadership?

Answer 48

Unlikely to be appropriate in organisations where a consistent and clear decision-making structure us needed.

Question 49

What is a trade union?

Answer 49

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

Question 50

What are the 9 advantages of a trade union?

Answer 50

• Strength in numbers.
• Improved working conditions.
• Services such as insurance, and social facilities.
• Possible influence in government decisions.
• Employment if there is closed shop.
• Improved conditions of employment.
• Advice if unfairly treated.
• Improved pay.
• Improved communications between employees and management.
• Advice if dismissed (unfairly or made redundant.
• Representation in grievances with management.

Question 51

What is a closed shop?

Answer 51

A closed shop is when all employees must be a member of the same trade union.

Question 52

What are the two disadvantages for an employee of trade union memberships?

Answer 52

• It costs money to be a member.
• Workers may be required to take industrial action even if they don’t agree.

Question 53

What are the two advantages of trade unions to employers?

Answer 53

• They can help improve communications between workers and management.
• Wage agreements will be easier to negotiate with trade union than with many many individual workers.

Question 54

What are the two disadvantages of trade unions to employers?

Answer 54

• Trade unions can organize strikes if they do not receive the pay levels and work conditions they demand.
• Wages are likely to be higher.