Organisational Structures

Question 1

Directors

Answer 1

Establish the business’s overall goals
Set long term plans and targets for the business

Question 2

Managers

Answer 2

Work to achieve targets set by directors
May be responsible for a function within the business
Use employees and other resources in best possible ways

Question 3

Team leaders or supervisors

Answer 3

Help managers reach targets by reporting problems and passing on instructions
Take simple decisions such as allocating jobs amoung different emloyees

Question 4

Shop floor workers or operatives

Answer 4

Carry out the business’s basic duties or activities.
This could be working on a production line, serving customers in a shop or basic office duties

Question 5

Organisational structure

Answer 5

Is how a business aranges itself to carry out it’s activities. Shows everyone’s responsibilities.
Everyone must know what their duties are, who they need to report to, the other employees for whom they’re responsible for

Question 6

Organisational chart

Answer 6

A plan showing the roles of, and the relationships between all the employees in a business

Question 7

Authority

Answer 7

The power to control others and to make decisions

Question 8

Span of control

Answer 8

The number of employees managed directly by another employee. This employee’ll be the imediate boss or line manager of these employees.

Question 9

Too wide span of control

Answer 9

Makes it difficult to manage employees and means there’s less time to be spent on each employee. Experts say each manager should manage no more than 6 employees though this is exceeded by most businesses.

Question 10

Levels of hierarchy

Answer 10

The levels of authority within a business

Question 11

The chain of command

Answer 11

The line of authority within a business along which communication passes

Question 12

Delayering

Answer 12

The removal of one or more levels of hierarchy from a business’ organisational structure.

Question 13

Effects of delayering

Answer 13

Can reduce costs (less manager roles)
Junior employees may have to take on some line manager’s duties, may need to be trained and may initially be less productive
Senior employees may have a wider span of control
Makes the business’s structure more flat. Will this suit the business?

Question 14

Delegation

Answer 14

The passing down of authority to more junior employees:
For larger businesses there are too many decisions to be made by one person
Some decision making roles could be very specialist, like IT

Question 15

Flat organisational structure

Answer 15

Uses wide span of control and has fewer levels of hierarchy. Managers have a heavy workload and junior employees are given more authority

Question 16

Tall organisational structure

Answer 16

Smaller span of control with more levels of hierarchy. Junior employees have less control and managers can monitor them more closely. Senior managers make most decisions

Question 17

Skills of the workforce (as a factor influencing decisions on organisational srructure)

Answer 17

Skilled workers are more capable of making decisions so in a situation with many of them (for example a hospital) a wide organisational structure could be used

Question 18

The management style of the business (as a factor influencing decisions on organisational srructure)

Answer 18

Managers who want to retain control of their employees can use a tall structure for a smaller span of control. Opposite applies for those who don’t.

Question 19

The business’s competitive environment (as a factor influencing decisions on organisational srructure)

Answer 19

A business with high levels of competition will want costs as low as possible. Flat organisational structure requires fewer managers (fewer salaries). May also motivate junior employees as they’ll have more authority and more interesting jobs.

Question 20

Downward communication

Answer 20

From senior to more junior employees

Question 21

Upward communication

Answer 21

From junior employees to their line managers and other more senior employees.

Question 22

Horizontal communication

Answer 22

Between employees at the same level in the organisation

Question 23

Flat structures and communication

Answer 23

Downward and upward communication easier- less levels of hierarchy
Wide spans of control means managers are responsible for more people so the quality of communication may suffer
Employees having more authority could encourage upward communication
Horizontal more difficult-more people on each level

Question 24

Tall structures and communication

Answer 24

Problems passing messages with many levels of hierarchy
Smaller spans of control means better communication with managers and their employees

Question 25

Decentralisation

Answer 25

Gives more authority to employees in different areas of the business. Works best when the majority of employees are more skilled. Managers in different branches, regions ect get to take more decisions. Can lead to major changes

Question 26

Advantages of decentralisation

Answer 26

Reduces pressure on senior managers (less decisions)
More authority can motivate staff
Better decisions as managers only worrying about their branch, department ect
Faster decision making, employees don’t need to consult supervisors

Question 27

Challenges of decentralisation

Answer 27

Everyone must understand goals
More training needed
Communication is very important-senior managers must be aware of all key decisions and be able to pass down messages

Question 28

Centralistation

Answer 28

Occurs when a small number of senior managers make all decisions in a business. Means that only the most experienced ir skilled employees are in control. May be necessary when the majority of the workforce is less skilled