1.4b managing people

Question 1

what is a business structure knows as & what does this word mean?

Answer 1

a hierarchy
↳ the levels of authority within an organization

Question 2

how can business structure be drawn?

Answer 2

as an organisational chart

Question 3

what is an organisational chart?

Answer 3

it explains the professional relationship, responsibilities and authority between employees

Question 4

what is authority?

Answer 4

the powers in terms of decision-making that a worker has

Question 5

the higher up the hierarchy the organisational chain…

Answer 5

the powers in terms of decision-making that a worker has

Question 6

4 benefits of an organisational structure:

Answer 6

clear chain of command
↳ understand where decisions are made and how they are communicated

clear span of control
↳ know who reports to who

clarify job role
↳ responsibilities

clarify functional area
↳ HR, marketing, finance

Question 7

what makes up a hierarchy?

Answer 7

the different layers which are based on skills and experience

Question 8

what is each layer in a hierarchy given?

Answer 8

a dedicated responsibility

Question 9

what must businesses determine about their structure?

Answer 9

the best structure for them to effectively implement their ideas and achieve their objectives

Question 10

what is the chain of command?

Answer 10

the formal line of authority that flows down from the top management to lower-level employees

Question 11

key features of a chain of command

Answer 11

-defines who reports to whom and who is responsible for making decisions
-helps to establish a clear communication channel
-helps to maintain accountability within the organization

Question 12

what is the span of control?

Answer 12

refers to the number of employees that a manager or supervisor can effectively manage
(the principle that a manager can only effectively manage a limited number of employees)

Question 13

a narrower span of control means…

Answer 13

that there are more layers of management

Question 14

A wider span of control means…

Answer 14

there are fewer layers of management

Question 15

what is centralised system?

Answer 15

decision-making authority is concentrated at the top of the organization with senior management making most of the decisions

Question 16

what is a decentralised system?

Answer 16

decision-making authority is distributed throughout the organization, with lower-level employees having more decision-making power

Question 17

benefits of a centralised structure:

Answer 17

-appropriate for situations where managers have the knowledge and workers are low skilled
-suited to authoritarian leadership styles
-suitable in times of crisis

Question 18

benefits of a decentralised structure:

Answer 18

-appropriate where business is spread over a wide geographic area and local trends/needs are important
-effective at reducing workload of senior managers
-allows for flexible working conditions

Question 19

what are the roles in a business organism?

Answer 19

-directors
-managers
-supervisors
-team leaders

Question 20

directors

Answer 20

-employed to run the business
-the managing director may have ultimate authority but there will be a group of directors (board of directors) who will take responsibility for various functions of the business

Question 21

managers

Answer 21

-take responsibility for managing and cotrolling an aspect of the business
-make the day-to-day decisions
-may be responsible for a department
-report to the directors

Question 22

supervisors

Answer 22

-monitor and regulate work of other employees
-they may have delegated responsibility from a manager

Question 23

team leaders

Answer 23

members of a team who take a leadership role to guide the work of the team and ensure employees are motivated and work effectively together

Question 24

3 categories of staff

Answer 24

-professionals
-operatives
-general staff

Question 25

professionals

Answer 25

-high levels of qualifications and experience
-posts involve a level of decision-making and responsibility

Question 26

examples of professionals

Answer 26

doctors, architects

Question 27

operatives

Answer 27

-skilled workers who are involved in the production of a product or the delivery of a service
-carry out the instructions of managers and supervisors

Question 28

general staff

Answer 28

-roles carried out by workers with non-specific skills
-require limited experience, skill or training

Question 29

examples of general staff

Answer 29

receptionists, labourers

Question 30

what is delegation?

Answer 30

the process of passing down authority through the organisation

Question 31

what is the use of delegation?

Answer 31

-can be used to lighten the workload of key personnel
-leads to job enrichment for junior members of staff

Question 32

where may delegation be unsuitable?

Answer 32

in situations where junior employees don’t have the skills or in a crisis situation

Question 33

overview of a tall organisational structure

Answer 33

-multiple levels of management
-more centralised decision making process
-long chain of command
-common in large organisations with complex operation
-narrow span of control

Question 34

benefits of a tall organisational structure

Answer 34

clear hierarchy of authority
↳ defined roles and responsibilities

promotes specialisation and expertise within each department or function

more opportunities for promotion
↳ more motivation → productivity

narrow spans of control
↳ better supervision

Question 35

drawbacks of a tall organisational structure

Answer 35

longer lines of communication
↳ communication is more complex, distortion of information

slower decision making
↳ information must pass through multiple layers of management

more layers of management
↳ higher costs

expensive because of lots of managers

Question 36

overview of a flat organisational structure

Answer 36

-fewer levels of management
-more decentralised decision-making process
-short chain of command
-common in small organisations or start-ups

Question 37

benefits of a flat organisational structure

Answer 37

quick decision making
↳ fewer layers & shorter chains of command
↳ employees have more autonomy to make decisions & adopt faster to market changes

improved employee collaboration and communication
↳ innovation/creativity

more financially efficient as less managers

more motivation

Question 38

drawbacks of a flat organisational structure

Answer 38

lots of delegation may lead to over burdened employees
↳ less motivation, retention
↳ may require employees to take on multiple roles and responsibility

less promotion opportunities due to less layers

lack of well defined roles
↳ confused responsibility, leads to conflict

Question 39

overview of a matrix organisation structure

Answer 39

-teams are created to run a project (HR, finance, marketing, sales) with a specialist team that operates inside the business
-team members may come from different disciplines
-the team will disband when the project is complete

Question 40

benefits of matrix organisational structure

Answer 40

organisations are flexible
↳ adapt quickly to project/business conditions → allocate resources accordingly

efficiency
↳ expertise & skills can be shared across projects

collaboration
↳ projects have a holistic view as all functional areas are involved

Question 41

drawbacks of matrix organisational structure:

Answer 41

confusion over roles and responsibilities
especially when multiple managers are involved

power struggles between functional area and project

requires a high degree of communication and coordination, which can be challenging