Unit 6.4 - organisational structures

Question 1

Define organisational charts.

Answer 1

A plan showing the roles of, and relationships between, all the employees in a
business.

Question 2

Define hierarchy.

Answer 2

: The layers of authority within a business.
Where each level has responsibility and authority
over the levels below.

Question 3

Define chain of command.

Answer 3

The path along which orders pass within a business from the management to the shop floor.

Question 4

Define span of control.

Answer 4

The number of subordinates a person is responsible for/has control over.

Question 5

Define delegation.

Answer 5

The passing down of authority to more
junior employees.

Question 6

Define subordinate.

Answer 6

A person under the authority or control
of a line manager within an organisation. They take
orders from their line manager and refer directly to
them if they require assistance.

Question 7

Explain the difference between a flat and tall structure.

Answer 7

A tall structure involves organisational charts where there are many levels of
hierarchy. In these organisations, there
are usually many managers, and each manager has a small span of control whereas a flat structure Involve organisational charts
where there are few or no levels of middle management between staff and executives.

Question 8

Define delayering.

Answer 8

Removing tiers of management,
usually in the middle.

Question 9

Name the advantages (2) and disadvantages (3) of a tall structure.

Answer 9

Limit managers workloads
Clear and more regular opportunities for promotion of junior employees
Communication may be more difficult as it passes through many levels of hierarchy
Decisions can be made slowly as information has to be passed through the organisation
Misunderstandings may occur due to poor communication

Question 10

Name the advantages (3) and disadvantages (3) of a flat structure.

Answer 10

Fewer managers can help to
reduce costs
Junior employees may be motivated by being given more authority
Communication can be quick and effective as fewer levels of hierarchy
Managers may have spans of control that are too wide
The business may have to spend heavily on training to give junior employees the necessary skills
Workloads are increased at each level

Question 11

Name the benefits of organisational charts. (6)

Answer 11

To improve communication
To delegate
Possible specialisation
To improve motivation
To improve control
Workers know who to report to if there is a problem

Question 12

Name the importance of effective communication. (4)

Answer 12

Increased employee involvement
Improved motivation
Working towards the same aims and objectives
Feedback

Question 13

Name the problems with poor communication. (5)

Answer 13

Low employee morale
Increased absenteeism
Reduced employee cooperation
Incomplete actions and activities
Supplies not being ordered on time

Question 14

Name the factors to think about when deciding on which communication method to use. (7)

Answer 14

Cost
Speed of delivery
Speed of reply/response
Length of message
Detail in message
Confidentiality
Keeping record of message

Question 15

Name the barriers to effective communication. (4)

Answer 15

Physical barriers
Cultural barriers
Language barriers
Perception

Question 16

Define function or departmental organisational structure.

Answer 16

Allocate people and their job roles into departments that carry out particular tasks or functions.

Question 17

Define product structure.

Answer 17

Structures based for each of the products manufactured.

Question 18

Define geographical structure.

Answer 18

Multinational businesses will want structures based in the countries in which they operate.

Question 19

Name the benefits (4) and problems (5) of a departmental structure.

Answer 19

Employees are experts in their areas
A clear chain of command
Employees understand their roles
Accountability
Coordination between departments may become difficult
Departments may become resistant to changes
Individuals may become more interested in their department than the business as a whole
Organisation may become too large to manage effectively
Workers may feel demotivated because they feel unimportant as a small part of a large organisation

Question 20

Name the benefits (5) and problems (3) of a product structure.

Answer 20

Employees will be more able to meet customer needs for individual products
Employees are experts in specific products
Competition between employees in different areas can be encouraged to promote sales and growth
Accountability
Easily identify which parts of the business are performing well
There may be duplication of resources - increasing costs
There may be a lack of control by the leaders
Can lose overall identity of the company

Question 21

Name the benefits (5) and problems (4) of a geographical structure.

Answer 21

Local customers are easier to contact
Local needs can be met - can alter the products to meet these needs
Local workers generally work well together rather than being accountable to distant managers
Better knowledge of the market
Can reduce production costs
Duplication of resources
Economies of scale may be lost as individual offices run themselves
Difficult to monitor
Can be inefficient

Question 22

Explain the difference between internal and external communication.

Answer 22

Internal communication is where instructions and requests for information are passed downwards between leaders and operatives and responses are returned upwards whereas external communication is where messages are passed between the business and its customers and suppliers.

Question 23

Define flexible hours.

Answer 23

Allows employees the chance to work at different times to suit their individual needs.

Question 24

Define job sharing.

Answer 24

When two or more employees agree to share the responsibilities of a single job.

Question 25

Define zero hour contracts.

Answer 25

A contract without any guaranteed hours of work.

Question 26

Name the advantages (3) and disadvantages (2) of flexible hours.

Answer 26

Workers are more motivated
Businesses will have workers available for longer hours
Employees may combine extra hours worked to take days off
The system is difficult to use when workers are not available during factory hours
Customers may find it difficult to contact workers

Question 27

Name the advantages (2) and disadvantages (2) of job sharing.

Answer 27

Employees will have more time at home for family commitments
Employers will benefit from having workers with different skills doing a job
Workers will need to communicate with each other to discuss the work done
Customers may be confused by dealing with different workers over an issue

Question 28

Name the advantages (2) and disadvantages (2) of zero hours.

Answer 28

Businesses do not have to pay employees when no work is available
Employees who are not available full time appreciate the ability to work occasionally
Some workers may be reluctant to turn down work in case they are not asked again
Employees will not receive a regular income, so it will be difficult to pay bills

Question 29

Define trade union.

Answer 29

A group of people who work together to improve their pay and working conditions