Organizational Structure & Governance

Question 1

Functional structure layout

Answer 1

• Managing Director
  -Sub directors (production, marketing etc)
  -Sub managers (sales, advertising etc)
• Cont.

Question 2

Divisional structure layout

Answer 2

• Board of directors
  -Regional boards

Question 3

Matrix structure layout

Answer 3

• Product/project managers A,B,C each with own sales dept etc.

Question 4

What does span of control mean?

Answer 4

• The ratio of workers to each line manager
• Flat organization (high ratio, wide span of control)

Question 5

What does scalar chain mean?

Answer 5

• The number of management levels
• Flat organization (fewer levels, short scalar chain)

Question 6

Corporate governance - layout of company control

Answer 6

Company:
- Owned by SHAREHOLDERS
- Managed by DIRECTORS

Question 7

UK Corporate Governance Code - KEY ASPECTS

Answer 7

• CEO and Chair roles are split
• Use of non-executive directors
• Using remuneration committee

Question 8

Centralized control - KEY ASPECT

Answer 8

• Power and decision making at head office

Question 9

Decentralized control - KEY ASPECT

Answer 9

• Delegate more control to divisional heads

Question 10

Strategic control - KEY ASPECTS

Answer 10

• Long-term
• Strategy & objectives

Question 11

Management control - KEY ASPECTS

Answer 11

• Medium-term
• Budgets & tactical plans

Question 12

Operational control - KEY ASPECTS

Answer 12

• Short-term
• Day-to-day tasks & planning

Question 13

What is RISK?

Answer 13

• The possibility that results will turn out differently from those expected
• Use past experience to estimate probability & impacts

Question 14

What is UNCERTAINTY?

Answer 14

• The inability to predict the outcome
• A lack of previous experience to estimate probability & impact

Question 15

What is a buisness risk?

Answer 15

It’s a risk relating to the industry

Question 16

What is a non-business risk?

Answer 16

A general environment risk