Organising and Delegating

Question 1

What is the Chain of Command made up of?

Answer 1

Unity of Command and Scalar Principle.

Question 2

What does Unity of Command mean?

Answer 2

Each employee is accountable to one supervisor.

Question 3

What does the Scalar Principle mean?

Answer 3

A clearly defined line of authority in the organisation that includes all employees.

Question 4

What does line authority mean?

Answer 4

People in management positions have formal authority to direct and control immediate subordinates.

Question 5

What does staff authority mean?

Answer 5

Staff authority is narrower and includes the right to advise,
recommend, and counsel in the staff specialists’ area of expertise.

Question 6

What is the difference between a tall and flat structure of control in an organisation?

Answer 6

A tall structure has an overall narrow span and more hierarchical levels. A flat structure has a wide span, is horizontally dispersed, and has fewer hierarchical levels.

Question 7

What is centralisation?

Answer 7

Centralisation means that decision authority is located near the top of the organisation.

Question 8

What is decentralisation?

Answer 8

Decentralisation means that decision authority is pushed downward to lower organisation levels.

Question 9

What are the factors that can influence centralisation vs decentralisation?

Answer 9

-Greater change and uncertainty in the environment are usually associated with decentralisation.
-The amount of centralisation or decentralisation should fit the
firm’s strategy.
-In times of crisis or risk of company failure, authority may be centralised at the top.

Question 10

What is departmentalisation?

Answer 10

Departmentalisation is the basis for grouping positions into departments, and departments into the total organisation.

Question 11

What are the traditional approaches to departmentalisation?

Answer 11

Functional, divisional, and matrix

Question 12

What are the two innovative approaches to departmentalisation?

Answer 12

Teams and virtual networks

Question 13

What is the functional approach?

Answer 13

activities are grouped together by common function from the bottom to the top of the organisation. The functional structure groups positions into departments based on similar skills, expertise, work activities, and resource use.

Question 14

What are the advantages of the functional approach?

Answer 14

• Efficient resource use and economies of scale.
• In-depth skill specialisation and development.
• Centralised decision making and unified direction from top managers.

Question 15

What are the disadvantages of the functional approach?

Answer 15

• Poor communication and coordination across
• Slow response to environmental changes
• Decisions involving more than one department may pile up at the top of the organisation creating delay.

Question 16

What is the divisional approach?

Answer 16

The divisional structure occurs when departments are grouped together based on similar organisational outputs.

Question 17

What are the advantages of the divisional approach?

Answer 17

• Flexible and responsive to change.
• Fosters concern for customers’ needs.
• Good coordination across functional departments and within divisions.

Question 18

What are the disadvantages of the divisional approach?

Answer 18

• Poor coordination.
• Duplication of resources.
• High cost of running separate divisions.
• Loss of efficiency and economies of scale.
• Lack of technical specialisation, expertise and training.

Question 19

What is the matrix approach?

Answer 19

The matrix approach combines aspects of both functional and divisional structures simultaneously, in the same part of the organisation.

Question 20

What are the advantages of the matrix approach?

Answer 20

• More efficient use of resources than single hierarchy.
• Flexibility, adaptability to changing environment.
• Interdisciplinary cooperation, expertise available to all divisions.

Question 21

What are the disadvantages of the matrix approach?

Answer 21

• Frustration and confusion
• High level of conflict
• Time lost to meetings and discussion to resolve conflicts than action.

Question 22

What are the advantages of the team approach?

Answer 22

• Reduced barriers
• Adapt more quickly to customer requests and environmental changes.
• Shorter response time and quicker decision-making.
• Better morale, enthusiasm from employee involvement.

Question 23

What are the disadvantages of the team approach?

Answer 23

• Dual loyalties and conflict.
• Time and resources devoted to meetings increasing coordination time.
• Unplanned decentralisation and decisions may be made against the organisation’s good.

Question 24

What is the network approach?

Answer 24

The organisation may be viewed as a central hub surrounded by a network of outside specialists, sometimes spread all over the world.

Question 25

What are the advantages of the network approach?

Answer 25

• Flexibility and competitiveness on a global scale.
• Respond quickly to changes in the environment and customer needs.
• Reduced overhead costs as little supervision is required.

Question 26

What are the disadvantages of the network approach?

Answer 26

• Lack of hands-on control.
• Greater uncertainty and demands on managers.
• Customer service and loyalty can suffer.
• Employee loyalty can weaken.