Organisational Structure

Question 1

What is an organisational chart?

Answer 1

A pictorial diagram of an organization that shows lines of authority and responsibility within a firm

Question 2

How does authority flow in a line org. chart?

Answer 2

It flows from the top to the bottom

Question 3

The advantages of a line org chart:

Answer 3

• Easy to understand
• Lines of authority are well defined
• Decisions can be reached quickly
• Employees are clear about whom they report to

Question 4

The disadvantages of a line org chart:

Answer 4

• Effective communication can be obstructed between management and the employees if it becomes too tall
• The structure is rigid and will not be able to show cross departmental teams
• Dictatorial
• Overloads key persons

Question 5

Line structures best suit the following:

Answer 5

• Small business
• The business operation is simple in nature
• The activities are of routine nature or machine-based

Question 6

A staff org structure is an…

Answer 6

Expansion of a line organisation structure

Question 7

What does a line org structure comprise of?

Answer 7

It comprises all the non-revenue-generating departments

Question 8

What is the aim of a line and staff org chart?

Answer 8

The aim is to show the main relationships and staff or supporting relationships within an organisation.

Question 9

The advantages of a line and staff org chart are:

Answer 9

• Facilitates the work faster and better
• Promote efficiency in the org
• Experience and advice are properly utilized

Question 10

The disadvantages of a line and staff org chart are:

Answer 10

• Complex and difficult to understand
• If powers are undefined it can lead to confusion and conflict
• No unity of command

Question 11

What does a functional org structure identify?

Answer 11

It identifies the business in terms of the basic functions

Question 12

For a functional org chart the managers have a…

Answer 12

Horizontal and lateral relationship

Question 13

The advantages of a functional org chart are:

Answer 13

• Simple to understand
• Unity of command
• Specialization allows for more productivity

Question 14

The disadvantages of a functional org chart are:

Answer 14

• Departments may compete for scarce resources which can cause conflict
• Communication gaps between departments

Question 15

List the things that must be done when drawing an org chart

Answer 15

• Use blue or black ink
• Charts should be fully labelled and dated
• Boxes at the same level of authority should be drawn at the same level and the same size
• Consultants, advisors, administrative assistants and secretaries are drawn to the side of the main structure

Question 16

What are the three limitations of org charts?

Answer 16

• They don’t reveal the leadership style
• They don’t reflect the informal relationships which influence the org’s success
• They may become very complex and difficult to understand as an organisation

Question 17

What is the span of control?

Answer 17

The span of control is how many departments or people one person supervises.

Question 18

If the workers don’t need supervision the span of control is _______ and _________

Answer 18

If the workers don’t need supervision the span of control is wide and flat

Question 19

If the workers need supervision the span of control is _________

Answer 19

If the workers need supervision the span of control is narrow