UB8 : Structures

Question 1

What is a Tall Hierarchical Structure?

Answer 1

Chain of Command – how instructions are passed from one level to another​.

Question 2

Name the advantages of Tall Structures

Answer 2

Advantages
- more opportunities for promotion which can lead to
greater staff motivation
- staff gain more support from their line manager
- there is a higher degree of supervision as each line
manager has a limited number of people they are
responsible for

Question 3

Name the Disadvantages of Tall Structures

Answer 3

Disadvantages
- many levels of hierarchy
- span of control is narrow, and the chain of command
is long, making communication slower as
instructions take longer to travel through the levels
of the organisation.
- longer lines of communication can make the firm
less responsive to change.
- can be expensive to run due to high wage costs

Question 4

Name the advantages of Flat Structures

Answer 4

Advantages
- few levels of hierarchy
- lines of communication are short, making the firm
responsive to change and decision-making quicker
- staff working in a flat management structure can be
empowered to work independently and take on
more responsibility

Question 5

Name the disadvantages of Flat Structures

Answer 5

Disadvantages
- wide span of control means that tasks must be
delegated, which can lead to employees feeling
stressed and managers feeling overstretched
- less promotion opportunities within a flat structure,
which may lead to the company losing staff to other
organisations

Question 6

Describe Delayering

Answer 6

Within hierarchical structures a method that can be used to reduce costs is to remove a layer of management, while expecting staff to produce the same level of output. This can:
- save the company money on managerial wages
- make the business more responsive to change due
to the reduction of layers of management

Question 7

Describe Downsizing

Answer 7

Downsizing is when a firm closes down or merges aspects of their operations in order to:
- reduce costs
- remain competitive in the marketplace

Question 8

Centralised Organisation

Answer 8

Where most decisions are taken by senior managers and then passed down the organisational
hierarchy. This structure relies on having strong and competent managers and involves very little delegation.

Question 9

Decentralised Organisation

Answer 9

Important decisions made by managers​ and
employees are motivated and empowered​.

Question 10

Matrix Structure

Answer 10

Specialists are in​ project ​teams to have ​specific ​
tasks. Therefore, there is no hierarchy and everyone is empowered​.

Question 11

Entrepreneurial Structure

Answer 11

Decisions are made centrally usually with very little staff input – relies on a few key workers.

Question 12

Functional Grouping

Answer 12

The traditional method of organising a firm into departments based on their core activities such as marketing or finance. This means that staff with similar expertise work together.

Question 13

Place/Territory Grouping

Answer 13

This is common among large multinationals. This is where the organisation divides its operations by geographical area.

Question 14

Product Grouping

Answer 14

This is when an organisation is divided into divisions based on a product they make or a product range.

Question 15

Technological Grouping

Answer 15

This is where the organisation divides its operation by the type of technology they require. It can often be used in the manufacturing industry where departments are created based on the stage in the production process such as design or welding.

Question 16

Customer Grouping

Answer 16

This is when an organisation divides its operations by types of customer. It may divide its customers into:
- retail (high street sales)
- online operations