Business

Question 1

How do businesses show their organisation?

Answer 1

Using an organisational chart

Question 2

What key concepts are shown within an organisational chart?

Answer 2

Types of Hierarchy, Span of control, Communication. Line management, Chain of Command, Accountability

Question 3

What is span of control?

Answer 3

Number of employees (subordinates) where a manager is responsible. From 4 -5 employees under 1 manager.

Question 4

Factors that affect span of control

Answer 4

Personality of manager, Skill of employee, Size of business, If the business is centralised, Market Competition

Question 5

What is an Organisational Structure

Answer 5

The way the business is organised

Question 6

What is the Chain of Command

Answer 6

Shows the way responsibility is organised within a business

Question 7

Why can the Chain of Command chart be helpful

Answer 7

Shows the lines of communication within a business

Question 8

What is levels of hierarchy

Answer 8

Refers to the layers within an organisation

Question 9

What is delayering

Answer 9

Reducing the number of level of hierarchy within a business

Question 10

Why may delayering take place

Answer 10

Rationalise the business and ensure that costs are kept under control

Question 11

Advantages of delayering

Answer 11

Reduces costs, Provides opportunities (motivation), Quicker decision making, Better communication

Question 12

Disadvantages of delayering

Answer 12

Increase span of control, Short term costs (redundancies), Reduce sense of job security (demotivation)

Question 13

What is Empowerment

Answer 13

Giving employees responsibility for the tasks they perform. (A form of Delegation)

Question 14

Benefits of Empowerment

Answer 14

Could motivate the workers, Gives opportunity for delayering

Question 15

What are the types of organisational structure models

Answer 15

Organisation by system, by product, organistic structure, mechanistic structure, centralised, decentralised

Question 16

What is Organisation by system

Answer 16

System where each part of the system has some input into the output of the business products

Question 17

What is Organisation by product

Answer 17

Each product is ‘a company in miniature’ with its own finance

Question 18

Advantages of Organisation by product

Answer 18

Easier to see each product performance, Managers put energy on one product, each centre has autonomy, Managers see direct results

Question 19

Disadvantages of Organisation by product

Answer 19

Different products compete for resources, Depends on style and personality of manager

Question 20

What is an Organistic structure

Answer 20

Flexible, flat structure with a wide span of control. Usually associated with a democratic style

Question 21

What is a Mechanistic structure

Answer 21

A bureaucratic, vertical (tall)structure with a narrow span of control. Style of leadership is usually autocratic

Question 22

What is a Centralised structure

Answer 22

Decision making process is taken by leader at the top of the hierarchy. Usually associated with democratic leadership

Question 23

What is Decentralised structure

Answer 23

Decision making process is delegated based on product basis

Question 24

Advantages of Centralised structure

Answer 24

Decisions are quicker, Strong leadership, Standardised approach in the way business is operated

Question 25

Disadvantages of Centralised structure

Answer 25

Lack of involvement in decision making process, Experts may be ignored, Decisions made without benefit of local knowledge

Question 26

Advantages of Decentralised structure

Answer 26

Delegation means more opportunity for local initiative to be used, More flexible approach, less time spent on communication