Organising staff

Question 1

Structure of a business

Answer 1

As a business grows in size and takes on more staff, managers need to make sure employees understand their role within the company. Organisation is the way a business is structured.

Question 2

Hierarchy

Answer 2

Hierarchy refers to the management levels within an organisation.

Question 3

Line managers

Answer 3

Line managers are responsible for overseeing the work of other staff.

Question 4

Subordinates

Answer 4

Subordinates report to other staff higher up the hierarchy. Subordinates are accountable to their line manager for their actions.

Question 5

authority

Answer 5

Authority refers to the power managers have to direct subordinates and make decisions.

Question 6

delegation

Answer 6

Delegation is when managers entrust tasks or decisions to subordinates.

Question 7

empowerment

Answer 7

Empowerment sees managers passing authority to make decisions down to subordinates. Empowerment can be motivational.

Question 8

the span of control

Answer 8

The span of control measures the number of subordinates reporting directly to a manager.

Question 9

the chain of command

Answer 9

The chain of command is the path of authority along which instructions are passed, from the CEO downwards.

Question 10

lines of communication

Answer 10

Lines of communication are the routes messages travel along.

Question 11

tall organisation

Answer 11

Tall organisations have many levels of hierarchy. The span of control is narrow and there are opportunities for promotion. Lines of communication are long, making the firm unresponsive to change.

Question 12

flat organisation

Answer 12

Flat organisations have few levels of hierarchy. Lines of communication are short, making the firm responsive to change. A wide span of control means that tasks must be delegated and managers can feel overstretched.

Question 13

centralised organisation

Answer 13

In centralised organisations, the majority of decisions are taken by senior managers and then passed down the organisational hierarchy.

Question 14

decentralised organisation

Answer 14

Decentralised organisations delegate authority down the chain of command, thus reducing the speed of decision making.

One method of reducing costs is to remove a layer of management in a hierarchy while expecting staff to produce the same level of output. This is called delayering.