Organisational structure

Question 1

Organisational structure

Answer 1

The way in which work is divided up and allocated, outlines roles of individuals and groups in the organisation (it changes over time)

Question 2

Entrepreneurial structure

Answer 2

Built around owner manager and typical for small businesses in early stages, also entrepreneur may have specialist knowledge of product

Question 3

2 +ve’s and -ve’s of entrepreneurial structure

Answer 3

+ve
fast decision making
close bond to workforce

-ve
lack of career structure
can’t cope with fast growth

Question 4

Functional/departmental structure

Answer 4

Group together employees that have similar tasks, found in organisations that have outgrown the entrepreneurial structure

Good for small businesses with few products existing in stable environment

Question 5

2 +ve’s and -ve’s of functional/departmental structures

Answer 5

+ve
economies of scale
career opportunities

-ve
slow decision making
conflicts between functions

Question 6

Divisional/ product structure

Answer 6

Organisation is split into several divisions, each overseeing something. Each division will have a functional structure, with all departments it needs in order to operate in market

Divisions ran as separate units

Question 7

Geographical structure

Answer 7

Similar to divisional structure, but involves each division covering specific location

Question 8

2 +ve’s and -ve’s of geographical structure

Answer 8

+ve
clear responsibility for areas
allows local decision making

-ve
potential loss of control
allocation of central costs could be a problem

Question 9

Matrix structures

Answer 9

• Combo of functional and divisional structures

- Requires dual reporting to two managers

Question 10

What is the aim of matrix structures?

Answer 10

To combine benefits of both divisional and functional structures

Question 11

2 +ve’s and -ve’s of matrix structures

Answer 11

+ve
encourages teamwork and exchange of opinions and expertise
flexibility

-ve
dual command and conflict
time-consuming meetings

Question 12

Authority

Answer 12

relationship between participants within an organisation

the right to give orders and the power to exact ‘obedience’

Question 13

Responsability

Answer 13

liability of person to be called to account for his or her actions

Question 14

Can responsibility be delegated to others?

Answer 14

No

Question 15

Delegation

Answer 15

process where manager assigns part of his authority to a subordinate to fulfil his duties

Question 16

When can delegation occur?

Answer 16

when a manager initially possesses the authority to delegate, responsability can never be delegated

Question 17

Scalar chain

Answer 17

line of authority which can be traced up or down the chain of command

relates to no. of levels of management within an organisation

Question 18

Tall organisation

Answer 18

• Has many levels of management and narrow span of control
• More bureaucratic and take longer to make decisions due to large number of levels of management that need to be involved

Question 19

Flat organisation

Answer 19

• Few levels of management and a wide span of control
• Weaker control and fewer chances for employees to progress or be promotes (can have adverse impact on motivation of employees)

Question 20

Where are decisions made in a centralised structure?

Answer 20

Upper levels of organisation’s hierarchy

Question 21

Where are decisions made in a decentralised structure?

Answer 21

authority to take decisions is passed down to units and people at lower levels

Question 22

3 factors that affect amount of decentralisation:

Answer 22

• management style
• geographic spread
• size of organisation

Question 23

2 +ve’s and -ve’s of decentralisation:

Answer 23

+ve
senior management free to focus on strategy
better local decisions due to local expertise

-ve
loss of control by senior management
poor decisions made by inexperienced managers

Question 24

Virtual organisation

Answer 24

When an organisation outsources many of its functions to other organisations and exists only as a network of contacts, with few functions staying in-house

Question 25

Anthony triangle (levels of planning)

Answer 25

• Strategic planning
• Tactical planning
• Operational planning

Question 26

Strategic planning

Answer 26

Undertaken by senior managers, involves making long-term decisions for whole firm

Question 27

Tactical planning

Answer 27

Undertaken by middle management and looks at plans for specific divisions and specifies how to use resources

Question 28

Operational planning

Answer 28

Undertaken by junior managers and supervisors, short-term, detailed and practical

Question 29

3 reasons why charities would engage in strategic planning are:

Answer 29

• helps create long term vision and direction
• helps gain commitment from donors to particular cause
• Increase awareness of charities’ cause and helps to build stronger link with appropriate governmental bodies and private sector organisations

Question 30

Management

Answer 30

effective use of business resources in order to achieve key objectives with max. efficiency

Question 31

when will a manager become a leader?

Answer 31

if they can influence people to achieve goals of organisation without relying on use of formal authority

Question 32

supervisor

Answer 32

person given responsibility for planning and controlling the work of group of employees
responsible for ensuring specified tasks are performed correctly

Question 33

who is lowest level of management?

Answer 33

supervisors

Question 34

key functions of supervisors:

Answer 34

• undertake technical/operational work
• provide advice and support to teams in order to solve problems
• monitor work by means of detailed, daily information which is summarised and passed on to senior management

Question 35

Role and key concern of R&D department

Answer 35

Improves existing products and develops new products by use of new tech.

product features and functionality

Question 36

Role and key concern of purchasing (procurement) department

Answer 36

acquiring products necessary for business

quality and stock levels

Question 37

Role and key concern of production department

Answer 37

converting raw materials into finished products

quality of finished products

Question 38

Role and key concern of HR department

Answer 38

ensuring sufficient staff are available to support ops

recruitment and training

Question 39

Role and key concern of marketing department

Answer 39

identifying customer needs

market research

Question 40

Role and key concern of finance department

Answer 40

financial controls

accuracy and completeness of record keeping