Unit 2 : People In Business

Question 1

What is an organisational structure and why do businesses have them

Answer 1

An organisational structure depicts the lines of authority within a business and is a hierarchy of authority .

Businesses use organisational structures to recognise subordinates and superiors for delegation and lines of communication.

Question 2

Hierarchy

Answer 2

The levels of authority within a business

Question 3

Span of control

Answer 3

The number of subordinates a superior has authority over

Question 4

Line manager

Answer 4

An employee with managerial responsibility over subordinates

Question 5

Function

Answer 5

The role undertaken by an employee in a business

Question 6

Chain of command

Answer 6

Depicts the lines of authority and hierarchy in a business

Question 7

Subordinate

Answer 7

A person who has less authority than their superior and who they are delegated tasks from.

Question 8

Delegation

Answer 8

When a superior lays out tasks to their subordinates

Question 9

Tall organisational structures

Answer 9

Long lines of communication, narrow span of control, Many levels of hierarchy
+ Less stress on superiors
+ More Employees have Authority over others- Increases motivation
+ Employees have a greater opportunity for promotion
- Messages get to the CEO slower

Question 10

Flat organisational structure

Answer 10

Short lines of communication, wide span of control, little levels of hierarchy
+ Superiors feel more important
- Difficult to oversee all subordinates

Question 11

When does Delegation occur

Answer 11

When a manger gives out tasks
+Employees know what to do
-manager may give employees tasks out of their skill range

Question 12

Centralised organisational structure

Answer 12

All decisions are made and finalised by the CEO and the CEO delegates tasks to employees through the chain of command
+ Decisions complement each other
+ CEO has more control
-employees feel less valued

Question 13

Decentralised organisational structure

Answer 13

Employees are entrusted to make own decisions and delegate tasks
+ Motivation by empowerment
- Decisions are inconsistent
- CEO has less control

Question 14

Recruitment

Answer 14

The process of removing a vacancy within a business by hiring or promoting staff the fill the position

Question 15

Process of recruitment

Answer 15

Identify a vacancy
Draw up job description 
Draw up person specification
Advertise the vacancy
Shortlist applicants 
Interview candidates
Select a candidate

Question 16

Internal recruitment

Answer 16

Filling a vacancy with current employees 
\+motivating
\+familiarity with the business
- New vacancies
- perhaps no ideas gained

Question 17

External recruitment

Answer 17

Filling a vacancy with new employees
+ New ideas
- Longer induction training

Question 18

Appraisal

Answer 18

The annual job performance review of an employee

Question 19

Retention

Answer 19

When a business retains employees

Question 20

Management styles

Answer 20

Autocratic
Democratic
Paternalistic
Lassiez-faire