Organisational Structures

Question 1

What is the span of control?

Answer 1

The number of employees managed directly by another employee.

Question 2

What is the chain of command?

Answer 2

The line of authority within a business along which communication passes.

Question 3

What is delayering?

Answer 3

The removal of one or more levels of hierarchy from a business’s organizational structure. 2 main reasons - reduce costs by having fewer employees and to improve communication within the organisation

Question 4

What is delegation?

Answer 4

Passing down authority to more junior employees.

Question 5

What is a flat organisational structure?

Answer 5

A structure with a few levels of hierarchy, comparatively wide span of control and a short chain of command.

Question 6

What is a tall organisational structure?

Answer 6

A structure with many levels of hierarchy, relatively narrow spans of control and a lengthy chain of command.

Question 7

What does the organisational structure to

Answer 7

Outlines the reporting relationships, roles and responsibilities of employees. Consider - structure affects the management, communications and operations.

Question 8

What is a centralized organisational structure?

Answer 8

Authorize for decision making rests with the senior management- center of a business

Question 9

What is decentralized structure

Answer 9

When authority for decision making is delegated further down towards hierarchy towards functional or middle managers.

Question 10

Advantages of a centralized structure

Answer 10

• effective coordination and control of business operations from the centre.
• fast and decisive decision making can increase competitiveness consistency across the whole organization

Question 11

Disadvantages of centralized structure

Answer 11

• middle managers lack of autonomy can impact their motivation
• highly bureaucratic - rules and processes - slowing communication of decision making
• ignores insights of lower level staff who are likely to be closer to customers

Question 12

Decentralized advantages

Answer 12

• better able to respond to local market conditions and meet customer needs
• staff able to contribute to decision making - may be more fulfilled and loyal
• prepares junior management for career development

Question 13

Decentralized disadvantages

Answer 13

• diseconomies of scale - such as the duplication of staff roles may emerge
• may be difficult to tightly control budgets
• during times of crisis leadership may not be clear.

Question 14

Directors

Answer 14

Larger business often have a board of directors - strategic business decisions - new cooperate policies, growth objectives.

Question 15

Managers

Answer 15

Have many responsibilities to help operate effectively on day to day