2.2

Question 1

Organisational Structure

Answer 1

The internal formal framework of a business that shows the way in which management is organised and liked together and how authority is passed through the organisation.

Question 2

Organisation chart Advantages

Answer 2

• Clear identification of each individual
• Can spot communication problems
• Shows Chain of command
• Shows Span of control

Question 3

Organisation chart Disadvantages

Answer 3

• Difficult to identify extent of manager’s authority
• Doesn’ t show informal relationships

Question 4

Hierarchial (tall) Structure

Answer 4

A tall pyramid with many layers of management. Most common in organisations:
- Decisions and instructions passed down
- Information passed back up

Question 5

Hierarchial Structure Benefits

Answer 5

• Narrow span of control
• Closer supervision
• Staff specialisation
• Greater chance of promotion

Question 6

Hierarchial Structure Costs

Answer 6

• Long chain of command
• Reduced effectiveness and communication
• Slow down of decision making
• Costly to run

Question 7

Flat structure

Answer 7

Low pyramid with few layers of management.

Question 8

Flat Structure Advantages

Answer 8

• Fewer levels of management which saves costs
• Short chain of command
  -> Quick decision making
  -> Good communication from top to bottom
• Wide span of control
  -> Better motivation (empowerment)

Question 9

Flat Structure Disadvantages

Answer 9

• Employee workload likely to increase
• Employees may need to take further training
• Fewer opportunities for promotion

Question 10

Chain of Command

Answer 10

Shows the way instructions and authority are passed down vertically through an organisation. More layers of management = loger chain of command.

Question 11

Span of Control

Answer 11

Number of subordinate employees a manager has responsibility for. A tall hierarchy has a narrow span of control and a flat has a wide span of control.

Question 12

Narrow Span of Control

Answer 12

• Manager can supervise staff closely
• Subordinates can ask for help more often
• Manager may not have enough staff to share ideas with
• It may put workers under pressure

Question 13

Wide Span of Control

Answer 13

• Manager is responsible for a large number of employees
• Empowement for subordinates, greater decision making and responsibility as manager isn’t around often
• Manager has higher workload and less time for each employee

Question 14

Delegation

Answer 14

Passing authority down the organisational hierarchy meaning workers are accountable for their work which can help motivate them. The wider the span of control, the greater the degree of delegation.

Question 15

Delayering

Answer 15

Reducing staffing levels through cutting out levels of management and flattening the structure. Creates a smaller hierarchy and each manager has a bigger span of control.

Question 16

Bureaucracy

Answer 16

System most commonly found in government organisations. Discourages initiative and enterprise as decisions are taken centrally and then put into effect by staff following set procedures. Higher costs as processes need to be followed and increases the time taken to complete each task.

Question 17

Centralised Structures

Answer 17

All control and decisions depend on senior management in head office. Procedures are standardised throughout the entire business.

Question 18

Centralised Structures Advantages

Answer 18

• Decisions benefit the business as a whole
• Fewer decision makers lead to better communication
• Easier to promote and enforce corporate culture

Question 19

Centralised Structure Disadvantages

Answer 19

• Lower level staff may be demotivated due to lack of responsibility
• Managers workload is high as they make all the decisions

Question 20

Decentralised Structures

Answer 20

Control and decisions is delegated to individual departments. Relieves managers from day-to-day tasks.

Question 21

Decentralised Structure Advantages

Answer 21

• Empowers and motivates employees
• Reduces stress and burdens from senior management
• More proactive approach
• Quicker more responsive decision making

Question 22

Decentralised Structure Disadvantages

Answer 22

• Training may be required for staff to make decisions
• Corporate image is hard to cultivate when each department is making their own decisions

Question 23

Different types of Organisational Structures

Answer 23

Organisation by Function: departments where staff have similar skills and expertise and do similar jobs.
Organisation by Product: each division has its own fumctional staff and concentrate on the individual product it offers
Organisation by region: organise employees according to their geographical location