Organisation Design

Question 1

5 basic steps when designing organisational structure

Answer 1

Step 1: List the work that needs to be done to accomplish organisational goals.
Step 2: divide the total work load into tasks that are logically and comfortably performed by an individual or group
Step 3: Combine tasks in a logical and efficient way.
Step 4: Set up channels of communication and co-ordination
Step 5: constantly monitor the effectiveness of the organisation structure

Question 2

Division of labour

Answer 2

Step 1: Tasks are grouped into functional units
Step 2: labour is divided into units
- functions
-products
- geography
- customer
- time
Step 3: individuals whose talents, knowledge and expertise match the functional unit are appointed to appropriate positions

Question 3

Advantages and disadvantages of division of labour

Answer 3

Advantages:
*Productivity is increased
* promotes efficiency
*no waste of time concentrating on different tasks

Disadvantages :
* individuals can suffer from alienation
*workers can become bored and this could lead to absenteeism
*The work becomes repetitive and unsatisfying

Question 4

Span of control

Answer 4

Refers to the number of subordinates who report directly to a particular manager

Question 5

Wide span of control

Answer 5

Leads to flat organisational structure which is in line with modern trends which aim to cut out too many levels of management in the workplace

Question 6

Advantages of wide span of control

Answer 6

*decision making is sped up
*it allows for participation management
*areas in which routine and repetitive work are done can be managed by a wide span of control

Question 7

Narrow span of control

Answer 7

Means that managers have relatively few subordinates reporting to them.

Question 8

Disadvantages of narrow span of control

Answer 8

*few subordinates reporting to the manager
*under-utilization and unnecessary costs
*managers are under-utilized.
*decision making is slowed down

Question 9

Factors which influence the choice of span of control

Answer 9

Internal environment
External environment
Capabilities of employees
Processes within the enterprise
Nature of the task.
Physical structure
Specialization
Departmentalisation
Managerial expertise.
Availability of funds

Question 10

Power: position power

Answer 10

Legitimate power
Coercive power
Reward power

Question 11

Power : personal power

Answer 11

Expert power
Referrent power

Question 12

Authority

Answer 12

Refers to the powers and rights to do certain things that the organisation bestows on an individual, once appointed to a Managerial position

Question 13

Delegation

Answer 13

The act of assigning formal authority and responsibility for the completion of specific activities to a subordinate

Question 14

Advantages of delegation

Answer 14

• better decisions can be taken since subordinates have a clear view of the facts
• Decision making is sped up
• subordinates are trained and this improves their self-confidence and willingness to take initiative

Question 15

Barriers to delegation

Answer 15

*when a manager fears that his authority is reduced
* when a manager is threatened by subordinate success
* when subo9wants to avoid responsibility and risk

Question 16

Barriers to delegation

Answer 16

*when a manager fears that his authority is reduced
* when a manager is threatened by subordinate success
* when subo9wants to avoid responsibility and risk