Unit 2 - People In Business 2

Question 1

What are the three main ways that businesses can be structured

Answer 1

Function
Product
Region

Question 2

Disadvantage of each organisational structure

Answer 2

Function- different departments will not work well together.
Product- there can be a wasteful duplication of resources.
Region- same thing as above

Question 3

What is a centralised organisational

Pro and cons

Answer 3

When all major decisions are made by one person or a few senior managers at the top of the hierarchy.

Senior managers tend to have plenty of experience
It can slow down decision making

Question 4

What is a decentralised organisation

Pro and cons

Answer 4

The authority to make most decisions is shared out.
Employees can use expert knowledge of their sector to make decisions. (Decisions=quick)

Inconsistencies may develop between departments or regions.