Unit 7: organisation and management

Question 1

Organisational structure

Answer 1

the levels of management and division of responsibilities within an organisation.

Question 2

Organisation charts

Answer 2

charts that display the organisation of a company. They are a hierarchy, which means that there are different levels in the organisation each with a different level of authority. They are organised into departments such as marketing, human resources or finance. Finally, they have a chain of command.
o Advantages: employees are aware of which communication channel is used to reach them. Moreover, every individual can see their own position in the organisation being able to easily know who they account to and who they have authority over. Finally, it shows the relationships within the different departments.

Question 3

Chain of command

Answer 3

the structure in an organisation which allows instruction to be passed down from senior management to lower levels. If an organisation chart has a tall structure then it has a long chain of command, whereas a wide structure means it has a short chain of command.

Question 4

Span of control

Answer 4

Number of subordinates working directly under a manager. The longer the chain of command the narrower the span of control (many managers with few subordinates).

Question 5

Advantages of short chains of command

Answer 5

 Communication is quicker as each message has fewer levels to pass through.
 Top managers are less remote from the lower levels.
 Each manager is responsible for more subordinates (wide span of control) which forces them to delegate more. Furthermore, there will be less control of each worker which will make them feel more trusted and they will be able to take decisions by themselves. (The advantages for wider spans of control as well).

Wider span of control could mean that the managers lose control of what their subordinates are doing. (Disadvantage)

Question 6

Role of management

Answer 6

 Planning: involves setting aims or targets which will give the organisation a sense of direction or purpose. The manager should also plan for the resources which will be needed for this targets to be achieved.
 Organising: managers should organise people and resources effectively. An organisational chart helps to show who has authority in the different areas and it also guarantees that specialisation occur and that 2 people do not do the same job
 Coordinating: managers should bring the company together. Departments should work closely together and it’s a manager’s task to make sure that these inter-relationships occur.
 Commanding: guiding, leading and supervising people, and making sure that all supervisors and workers are keeping to targets and deadlines.
 Controlling: Managers should try to measure and evaluate the work of all individuals. They should find out why targets are not being met and to solve it.

Question 7

Delegation

Answer 7

Giving a subordinate the authority to perform a particular task.
Advantages for the manager
Manager cannot do everything themselves
Less likely to commit mistakes if some task are being done by a subordinate
Easily to measure the success of the staff

Advantages for the subordinate
Work becomes more interesting
Employee feels more important
It helps to train workers

Question 8

Why is a good manager important?

Answer 8

To motivate employees, to give guidance, to inspire employees, to keep costs under control and to increase profitability.

Question 9

Leadership Styles

Answer 9

different approaches to dealing with people at a position of authority.
 Autocratic leadership
 Democratic leadership
 Laissez-faire leadership

Question 10

Autocratic leadership

Answer 10

where managers expect to be in charge of the business and to have their orders followed. They make virtually all the decisions and keep information to themselves. Communications is mainly downwards.

Question 11

Democratic leadership

Answer 11

they will get other employees involved in the decision making process. The information is openly discussed and communication is both downwards and upwards.

Question 12

Laissez-faire leadership

Answer 12

makes the objectives of the business known to employees but then they are left to make their own decisions and organise their work. Communication may be difficult and the leader has a very limited role to play.

Question 13

Trade unions

Answer 13

A group of workers who have joined together to ensure their interest are protected.

Advantages for the workers
 Strength in numbers
 Improved working conditions
 Improved environment
 Encourages training
 Advice and financial support
 Employment where there is a closed shop

Disadvantages for workers
Costs money to be a member
May require to take industrial action if they don’t agree

Question 14

Closed shop

Answer 14

all employees must be a member of the same trade union.