Organisational Structure (AL)

Question 1

Organisational structure

Answer 1

Internal framework of the business that show show the management is organised and linked together

Question 2

Functional structure

Answer 2

Departments that have clearly defined roles and responsibilities in area

Question 3

Benefits and limitation of functional structure

Answer 3

Benefits
-Employees splay pride and loyalty in their department
-Encourages employees to become specialists
-Departments are let by managers who are specialists

Limitations
-Vertical structure does not allow for good connections
-Coordination is difficult
-Communication is only though director and managers so employees feel remote

Question 4

Hierarchical structure

Answer 4

Structure consisting of all members of an organisation, where one is subordinate to other

Question 5

Span of control

Answer 5

Number of subordinate employees directly accountable to a manger

Question 6

Chain of command

Answer 6

The route where authority is passed down from the CE to directors to managers and so on in an organisation

Question 7

Benefits and limitations of hierarchical structure

Answer 7

Benefits
-Incentive for employee to move up career ladder
-Role of each individual is clear
-Identifiable chain of command

Limitations
-No coordination(horizontal links)
-Inflexible and resistance to change
-One way communication

Question 8

Delayering

Answer 8

Removal of one or more layers of hierarchy from an organisation

Question 9

Benefits and limitations of delayering

Answer 9

Benefit
-Reduces costs
-Improves chain of command and communication
-Opportunities for delegation

Limitations
-One off cost due to redundancies
-Increased work load of existing managers
-Fear of redundancy ,reduced security

Question 10

Matrix structure

Answer 10

Structure that creates project teams that cut across traditional function department

Question 11

Benefits and limitations of matrix
structure

Answer 11

Benefits
-Good communication
-Focuses on what’s good from the business as a whole
-New project teams can bet created quickly thus flexible

Limitations
-Less direct control from mangers
-Reduced bureaucratic control opposed by mangers
-Cross departmental teams cause conflict of interests

Question 12

Delegation

Answer 12

Passing authority down the organisational structure

Question 13

Benefits and limitation of delegation

Answer 13

Benefits
-Managers could focus on other important roles
-Can motivate subordinates
-Develops employees for senior positions

Limitations
-Delegation is unlikely to succeed if inadequate training is given
-Unsuccessful if lack of authority is given
-Managers may only delegate the boring jobs reducing motivation

Question 14

Centralisation

Answer 14

Keeping all important decision making powers within head office or the centre of organisation

Question 15

Benefits of centralisation

Answer 15

-Rapid decision making
-Decisions in the interest of the whole business
-Experienced decision makers

Question 16

Decentralisation

Answer 16

Decision making powers are passed down the hierarchy to empower subordinates

Question 17

Benefits of decentralisation

Answer 17

-More local decisions
-Junior managers can develop skills
-Positive effect on motivation

Question 18

Line manager and staff managers

Answer 18

-Managers that have direct authority over people, decisions and resources within a hierarchy

-Managers that provide support, information and assistance to senior line managers