organisational structure

Question 1

functional structure

Answer 1

departments have clearly defined roles and responsibilities in a specialist area such as finance, marketing, human resource management, or operations.

Question 2

chain of command

Answer 2

the route through which authority is passed down an organization

Question 3

spans of control

Answer 3

the number of subordinates that are directly accountable to managers

Question 3

levels of hierarchy

Answer 3

the level in an organisational structure where all employees have equal status and authority

Question 4

centralisation

Answer 4

keeping all the important decision-making powers within the head office, or the centre of the organisation.

Question 5

decentralisation

Answer 5

decision-making powers are passed down the hierarchy to empower subordinates and area or product managers

Question 6

advantages of centralisation

Answer 6

rapid decision-making - as there is no opportunity for discussion

consistent policies throughout the organisation - avoids confusion in the minds of customers

senior managers take business decisions with the interest of the whole business rather than just one division

Centralized buying allows for greater economies of scale

senior managers are experienced decision makers which reduces risks