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Business studies > unit 7 > Flashcards

unit 7 Flashcards

1
Q

Describe Organizational structure

A

Formal internal framework of a business that shows how the business works.

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2
Q

Describe Functional departments.

A

Formal internal framework of a business that shows how the business works

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3
Q

Describe chain of command?

A

The route through which authority is passed in a business.

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4
Q

Describe subordinate?

A

An employee who is below another employee.

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5
Q

Describe span of control.

A

Number of subordinates reporting to each manager.

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6
Q

Describe centralized organization.

A

An organization where the decisions are made by higher members of authority.

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7
Q

Describe Directors

A

Elected members of authority that maintain the policy of the company.

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8
Q

Annual General meeting:

A

A meeting for shareholders that limited companies must hold every year.

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9
Q

Chief executive officer:

A

The most senior manager responsible for overall performance and success of a company.

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10
Q

Manager:

A

An individual who is in charge of certain tasks in an area.

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11
Q

Supervisor:

A

An individual who checks and controls the work of subordinates.

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12
Q

Delegation:

A

Passing authority down the hierarchy to a subordinate.

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13
Q

Autocratic leadership:

A

A leadership system where only the leader makes all the decisions.

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14
Q

Democratic leadership:

A

A leadership system where the employees take part in decisions.

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15
Q

Laissez-faire leadership:

A

A leadership system where most of the decisions are left to the employees.

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16
Q

Trade union:

A

An organization of employees aimed at improving pay and working conditions of employees.

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17
Q

What are the main features of organizational structure?

A

1) Levels of hierarchy.
2) Chain of command.
3)Span of control.

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18
Q

What are the factors that affect span of control?

A

1) Difficulty of tasks.
2) Experience of employees.
3) The size of business.
4) Levels of hierarchy.
5) Management style.

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19
Q

How does Difficulty of tasks affect span of control?

A

If the tasks are simple and repeating, a wider span of control can be used. However, if the tasks are complex and hard, that means a more narrow span of control is required.

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20
Q

How does experience of employees affect span of control?

A

Highly skilled employees need less control, and less skilled employees need more control. The span of control is wider with more skilled employees.

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21
Q

How does size of business affect span of control?

A

Larger businesses are able to have more employees than smaller businesses. As larger businesses can afford more managers.

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22
Q

How does size of business affect span of control?

A

Larger businesses are able to have more employees than smaller businesses. As larger businesses can afford more managers.

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23
Q

How does levels of hierarchy affect span of control?

A

Managers with tall organizational structure will usually have a more narrow span of control than a flat organizational structure.

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24
Q

How does management style affect span of control?

A

Some businesses use a management style with more control over the workforce. In this business, managers have a more narrow span of control.

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25
Characteristics of tall organizational structure.
1) Many layers of hierarchy. 2) Each layer of hierarchy except for the bottom one is layer of management, therefore more managers. 3) Narrow span of control. 4) Long chain of command. 5) Communication and decision making is slower as they must pass through several stages.
26
Characteristics of short organization structure.
1) Few levels of hierarchy. 2) There are less managers. 3) Wide span of control. 4) Short chain of command. 5) Communication and decision making is faster as the structure of organization is short.
27
Roles of trade union
1) Negotiating with employers for better pay and working conditions. 2) Resolving conflict. 3) Providing legal support and advice. 4) Providing support from members.
28
Benefits of delegation?
1) Managers have time to focus on more complex tasks. 2) Motivating employees with opportunities. 3) Develops skills and flexibility of workforce. 4) Quality of work is improved.
29
What are the roles of management
1) Setting objectives. 2) Motivating employees. 3) Making sure employees have resources to complete tasks.
30
Responsibilities of managers
1) Making sure decisions of directors are carried out. 2) Delegating tasks to members of departments. 3) Taking decisions needed to achieve departmental targets. 4) Motivating employees in the department to achieve goals of the business. 5) Solving day-to-day problems that arise in the department.
31
Responsibilities of managers and other employees
1) Complete tasks efficiently with quality. 2) Work towards achieving individual, group or department targets.
32
What are the functions of management?
1) Planning, 2) Organizing, 3) Commanding, 4) Controlling.
33
Define function of management: planning.
Looking at where the business is now and where it wants to be in the future and set goals accordingly.
34
Define function of management: Organizing.
Preparing and organizing resources needed to achieve the planned goals and objectives.
35
Define function of management: commanding.
Control of supervision of subordinates and motivating employees.
36
Define function of management: controlling.
Checking if all the functions are working correctly and making necessary corrections.
37
What are the activities of managers?
1) Understand people who work for them. 2) Set good example. 3) Treat subordinate fairly. 4) Delegate tasks. 5) Communicate effectively.
38
Effects and reasons of leadership style: Democratic
1) More likely to delegate authority. 2) Motivates employees. 3) Tasks completed without close supervision. 4) Suited when staff is experienced. 5) Two-way feedback is encouraged. 6) Employees are given information to choose decisions.
39
Effects and reasons of leadership style: Autocratic.
1) Faster decision making, 2) Well suited to situations requiring immediate action. Ex: health issues. 3) No employee feedback. 4) Closely supervised. 5) Employees have limited information. 6) Motivation likely to be low.
40
Effects and reasons of leadership style: Laissez-faire.
1) Effective for employees involved in creative tasks like research, development and advertisement. 2) May or may not require leader input. 3) Little feedback from the manager. 4) No supervision by leader. 5) Employees are provided with all information to make decision. 6) Motivation could be high or low.
41
Activities of managers?
1) Understand people who work for them. 2) Set good example. 3) Treat subordinate fairly. 4) Delegate tasks. 5) Communicate effectively.
42
Factors of choosing leadership style?
1) Skill and experience of workforce. 2) Available time to make decision. 3) Personality of manager. 4) Type of task.
43
Describe factor of choosing leadership style: Type of task.
If the task is more related to creativity, it may require the employees to take decisions by themselves with minimum input from leader.
44
Describe factor of choosing leadership style: Personality of manager
Manager may be democratic or autocratic by nature, using a style against their nature may be difficult.
45
Describe factor of choosing leadership style: Time available to make a decision
If decisions are needed to be taken quickly, it is easier for the leader to take the decision without discussing.
46
Describe factor of choosing leadership style: Skill and experience of workforce
More experienced workforce means less decisions need to be taken by leaders.
47
Benefits of being in a trade union?
1) Employees have greater power while dealing with employers. 2) Employees receive legal support and advice. 3) Job security is ensured.
48
Drawbacks of being in a trade union?
1) Membership fee is needed. 2) Employees must take actions for the decisions taken even if they do not agree with the decision. 3) Employees lose wages that cannot be recovered.
49
Effects of trade union on employers?
1) Single point contact between employer and employee. 2) Help improve working conditions in the workplace. 3) Can often force employers to meet the high wage requirements by employees. 4) Unions can use industrial actions like strikes to force employers to meet demands.
50
Advantage of centralized organization?
Decision making is quicker. Decision are taken for the benefit of the whole business. More use of experienced staff improves decision making.
51
Disadvantage of centralized organization?
Slower communication. Unable to respond quickly to changes. May reduce employee motivation
52
Advantage of decentralized organization?
Decisions based on local needs. Can be used to train junior managers. Delegation helps improve employee motivation.
53
Disadvantage of decentralized organization?
Decisions may not be in the interest of the business. Poor decisions might be made.
54
Advantage of delayering?
Reduced costs. Reduces chain of command, communication is faster. Wider span of control increases opportunity for delegation. Senior managers are closer in touch with the workforce.
55
Disadvantage of delayering?
Increased workload, may lead to uncompleted tasks. Redundancy payment to fired managers, one of increase in costs. Employees might fear redundancy, reduces job security. Wider span of control may reduce effective management of subordinates.
56
What are the advantages of wide span of control?
(1) Less expensive. (2) Less supervision improves motivation. (3) Faster communication and decisions.
57
What are the disadvantages of wide span of control?
(1) Reduced promotion opportunities. (2) Less control over subordinates. (3) Effective communication difficult.
58
What are the advantages of a narrow span of control?
(1) Effective communication is easier. (2) Better control over employees and work. (3) More promotion opportunities.
59
What are the disadvantages of a narrow span of control?
(1) Communication and decision making slower. (2) More expensive. (3) More supervisors reduce motivation.
60
What are the types of leadership methods?
(1) Democratic. (2) Laissez-faire. (3) Autocratic.

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