2.2 Organisation and management

Question 1

What is an ‘organisational structure’?

Answer 1

Levels of management and division of responsibilities within a business

Question 2

Hierarchy

Answer 2

management levels within an organisation

Question 3

Line managers

Answer 3

people responsible for overseeing work of other staff

Question 4

Authority

Answer 4

power managers have to direct subordinates and make decisions

Question 5

Delegation

Answer 5

when managers entrust tasks or decisions to subordinates

Question 6

Span of control

Answer 6

number of subordinates reporting directly to a manager

Question 7

Chain of command

Answer 7

path of authority which instructions are passed, from highest downwards

Question 8

Lines of communication

Answer 8

routes messages travel along

Question 9

Directors

Answer 9

most senior, sets out strategies, makes sure resources available, reviews performances of managers, provide leadership to ensure success

Question 10

Managers

Answer 10

Day-to-day running of a department, delegation, motivation, solving problems that may arise within department

Question 11

Workers

Answer 11

complete tasks efficiently at require quality standard set by managers

Question 12

What are the features + advantages + disadvantages of tall organisations.

Answer 12

Tall organisations have many levels of hierarchy - span of control is narrow

Ads:

• Opportunities for promotion → motivational
• Managers not overstretched, effective workload

Disads:

• Lines of communication long → firm unresponsive to change
• Have to pay a large range of salary to motivate workers to try to get promoted

Question 13

What are the features + advantages + disadvantages of flat organisations.

Answer 13

Flat organisations have few levels of hierarchy

Ads:

• Lines of communication narrow → responsive to change
• Salary range = narrower → less competition

Disads:

• Wide span of control → managers can feel overstretched
• Not many opportunities for promotion → demotivating

Question 14

Planning

Answer 14

managers should have a clear plan of what employees need to follow (aims, tasks, objectives)

Question 15

Organising

Answer 15

Managers expected to organise by setting up systems, procedures and structures in efficient way

Question 16

Coordination

Answer 16

related to organisation, making sure interrelated activities are integrated and carried out in a structured way

Question 17

Commanding

Answer 17

give direction, ensures directions are followed

Question 18

Controlling

Answer 18

create effective control system to make sure on track

Question 19

Why is delegation important?

Answer 19

• Managers cannot do all tasks (overstretched)
• Can be delegated if they can be completed correctly
• Enables more work to be completed + motivating

Question 20

Features of democratic

Answer 20

Encourages participation in decision making

• Strong coaching, listening + motivating skills
• Teamwork + communication important

Question 21

Features of autocratic

Answer 21

Leader has full control of decision making.

• Employees have little/no input
• Good in crisis situations

Question 22

Features of laissez-faire

Answer 22

Gives employees much freedom as possible (art)

• Managers communicate goals employees, allow them to choose how to complete objectives

Question 23

Features of bureaucratic

Answer 23

Done by the books/policy

• Reinforces rules

Question 24

What are ‘trade unions’?

Answer 24

Pressure groups that have ability to influence business activity, improving working conditions

Question 25

What are the aims of trade unions?

Answer 25

• Defend employees rights and jobs
• Improve pay + other benefits e.g. holiday entitlement, sick pay
• Influence government policies
• Negotiate wages and other non-wage benefits
• Develop skills of union members by providing training/educational courses

Question 26

What are the benefits of being union member?

Answer 26

• Strength in numbers
• Improved working conditions
• Improved sickness benefits, pensions, and retrenchment benefits
• Improved job satisfaction and encourage training
• Advice/Financial support if a worker is dismissed unfairly/made redundant or is asked to do something not part of their job
• Improved fringe benefits