Organisation Structures

Question 1

Organisational structure

Answer 1

The way in which job tasks are formally divided, grouped and co-ordinated

Question 2

Functions of an organisational structure

Answer 2

*Give stability it the whole organization
*keep the organisation logical and orderly
*promote communication
*support better co-ordination and control
*indicate method of delegation

Question 3

Features of all organisational stuctures

Answer 3

• unbending
  *defined
  *planned
  *last for a long time
  *structured

Question 4

Lime organisation

Answer 4

The line structure is strictly hierarchical where a straight line of command flows from the top manager, connecting all other managers of the different functions, and ends with the operating level of the enterprise

Question 5

Advantages of line structure

Answer 5

• Cheap to set up
• it is stable
• quick decision making is possible.
• relationships are minimal
• a manager has complete authority in his department

Question 6

Disadvantages of line structure

Answer 6

• unbending and cannot adapt easily to changes
  *Managers are overloaded with work
  *The organisation is dependant on multi-skilled managers who cannot be replaced easily

Question 7

Functional organization structure

Answer 7

The traditional structure that develops as management see the advantages of specialization

Question 8

Advantages of a functional structure

Answer 8

*suits a single business
*Ensures management control of results
*promotes in-depth functional expertise

Question 9

Disadvantages of functional structure

Answer 9

*Limits profit responsibility to top management
*slows down communication that moves up and down functional ‘silos’ rather than across functions
* creates barriers to developing cross-functional competencies.

Question 10

Advantages of a divisional structure

Answer 10

*suits a business with a diverse product range
*promotes in-depth expertise for each product catergory
*Provides a training ground for top management

Question 11

Disadvantages of divisional structure

Answer 11

*creates barriers to co-operation between divisions
*creates duplication and adds extra layers of management
*Limits top management control and can allow poor divisional performance to be ‘hidden’

Question 12

Advantages of geographic structure

Answer 12

*Ensures that the business is geared up to meet the needs of each geographic market
*Ensures profit responsibility is delegated in regional heads
*Provides a training ground for top manager

Question 13

Disadvantages of geographic structure

Answer 13

*creates barriers to co-operation between regions
*creates extensive duplication and adds extra layers of management
*can negatively impact on overall corporate culture as regions develop their own identities

Question 14

Advantages of project structure

Answer 14

*emplyees involved in the project can give their undivided attention to the project
* authority relationships are complicated but adaptable
* members co-opted to the project gain invaluable experience

Question 15

Disadvantages of project structure

Answer 15

*authority relationships can cause conflict
*success is determined by the original organisational structure and the capabilities and expertise of existing exployees