6. Organisational structure

Question 1

define organisational structure

Answer 1

specification of jobs and the way they relate to one another

Question 2

5 determinants of organisational structure

Answer 2

• mission
• strategy
• size
• internal environment (SWOT)
• external environment

Question 3

3 steps to build organisational structure

Answer 3

1. specialisation
2. departmentalisation
3. decision making hierarchy

Question 4

5 departmentalisation

Answer 4

• product
• process
• functional
• customer
• geographic

Question 5

how to distribute authority in decision making (important)

Answer 5

1. centralised - upper level management
2. decentralised - below to top

Question 6

2 organisational structure

Answer 6

• flat
• tall

Question 7

flat organisational structure

Answer 7

• decentralised
• few layers of management
• wide span of control

Question 8

tall organisational structure

Answer 8

• centralised
• multiple layer of management
• narrow span of control

Question 9

define span of control

Answer 9

number of people supervised by a manager

Question 10

define delegation

Answer 10

• allocates works to subordinates

Question 11

3 steps in delegation process

Answer 11

1. assigning responsibility
   - duty and task
2. granting authority
   - the power to make necessary decision
3. creating accountability
   - obligation for succesful completion of task

Question 12

3 forms of authority

Answer 12

1. line - direct chain of command from top to below
2. staff - expertise involve counselling and advising
3. committee and team - for firm’s daily operation

Question 13

4 basic form of organisational structure

Answer 13

1. functional - group function and activities (starbucks)
2. divisional - grouped together based on the product (mcd)
3. matrix - combination (nestle)
4. international - in global market