Organisational Structures

Question 1

Chain of command

Answer 1

The rate that decisions flow from top to bottom

Question 2

Span of control

Answer 2

The number of subordinates you are responsible for

Question 3

Delayering

Answer 3

Removing levels of management from structure

Question 4

Delayering advantages x4

Answer 4

Reduced management costs which increases profit
Quicker communication due to less layers
Quicker decision making and info passed through org
Responsive to change

Question 5

Delayering disadvantages x4

Answer 5

High redundancy costs
Loss of key members of staff
Ill feeling in workplace
Fewer promotional opportunities

Question 6

Tall structure is…

Answer 6

A tall, pyramid structure with lots of levels of hierarchy, suitable for large organisations

Question 7

Tall advantages are… x3

Answer 7

Narrow span of control means less stress for managers
Clear chain of command so employees know who to report to
Many promotional opportunities that motivates staff

Question 8

Tall disadvantages are…x3

Answer 8

Slow to respond to change e.g. PESTEC factors
Demotivated staff due to little input
Slow to pass info and communication

Question 9

Flat structures are…

Answer 9

Pyramid structure with few levels of hierarchy suitable for a small organisation

Question 10

Flat advantages are…x3

Answer 10

Motivated staff as they can input ideas
Quick response to change due to less levels
Quick to pass on info

Question 11

Flat disadvantages are…x3

Answer 11

Fewer promotional opportunities due to less levels
Wide span of control
Managers are stressed as they take on extra responsibility

Question 12

Entrepreneurial structures are…

Answer 12

When a businesses decision are made by one person suitable for small organisations

Question 13

Entrepreneurial advantages are…x3

Answer 13

High quality decisions
Decisions made by experienced owner
Staff know who to report to

Question 14

Entrepreneurial disadvantages are…x3

Answer 14

High level of pressure on entrepreneur as they are one person making decisions
Demotivated staff due to no input
No decision can be made if entrepreneur isn’t available

Question 15

Matrix structures are…

Answer 15

When a business puts together a cross-functional team for a specific project

Question 16

Matrix advantages are…x4

Answer 16

Job satisfaction in specialist role
Learning opportunities to make workers flexible
Socialist staff can solve specific problems as they are knowledgeable
Different viewpoints

Question 17

Matrix disadvantages are…x3

Answer 17

High managerial wage costs
Staff loyalty on who to report to and having priority issues
Duplication of resources reduces profits and increases wastage

Question 18

Centralised structures are…

Answer 18

Keeping control in the centre of the organisation

Question 19

Centralised advantages are…x3

Answer 19

Decisions made by senior manager with interest of whole company
Decisions made by skilled and experienced managers
Greater uniformity with standardised procedures

Question 19

Centralised advantages are…x3

Answer 19

Decisions made by senior manager with interest of whole company
Decisions made by skilled and experienced managers
Greater uniformity with standardised procedures

Question 20

Centralised advantages are…x3

Answer 20

Decisions made by senior manager with interest of whole company
Decisions made by skilled and experienced managers
Greater uniformity with standardised procedures

Question 21

Centralised disadvantages are…x3

Answer 21

Slow to react to local PESTEC factors
Demotivated staff with little input
Decisions made may not be suitable for local markets

Question 22

Decentralised structures are…

Answer 22

Control is delegated to individual branches and departments

Question 23

Decentralised advantages are…x3

Answer 23

Quicker to respond to local PESTEC factors and local competitors
Employees motivated due to input in decisions
Frees senior managers to focus on strategic decisions

Question 24

Decentralised disadvantages are…x3

Answer 24

Damages corporate image if branches act differently
Inexperienced staff may need more training which increases costs
Local branches may compete with each other