Organising Staff

Question 1

What is organisation?

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

Whats a method of organisation?

Answer 2

One method of organisation is to set up departments covering the four main areas of business activity:
finance
human resources
marketing
operations

Question 3

Whats an organisation chart?

Answer 3

Organisation charts are diagrams that show the internal structure of the business. They make it easy to identify the specific roles and responsibilities of staff. They also show how different roles relate to one another and the structure of departments within the whole company.

Question 4

Whats a hierarchy?

Answer 4

Hierarchy refers to the management levels within an organisation.

Question 5

What are line managers?

Answer 5

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

Question 6

What are subordinates?

Answer 6

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

Question 7

Whats authority?

Answer 7

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

Question 8

What is delegation?

Answer 8

Delegation is when managers entrust tasks or decisions to subordinates.

Question 9

Whats empowerment?

Answer 9

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

Question 10

Whats the span of control?

Answer 10

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

Question 11

Whats the chain of command?

Answer 11

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

Question 12

What are lines of communication?

Answer 12

Lines of communication are the routes messages travel along.

Question 13

What are tall organisations?

Answer 13

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 14

What are flat organisations?

Answer 14

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 15

What are centralised organisations?

Answer 15

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

Question 16

What are decentralised organisations?

Answer 16

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

Question 17

What is meant by delayering?

Answer 17

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.