Chapter23 (Organization Structure and Employees)

Question 1

What does running a business involve?

Answer 1

Planning, decision making, co-ordination, communication.

Question 2

What can make running a business easier?

Answer 2

If workers are organized into a structure made up of different functions or department.

Question 3

What is formal organization?

Answer 3

Internal structure of a business as shown by an organization chart.

Question 4

What is organization chart?

Answer 4

Chart diagram that shows the different job roles in a business and how they relate to each other.

Question 5

What can organizational chart show?

Answer 5

• How the business is split into functions and departments
• Roles of employees and their job titles
• who has responsibility
• To whom people are accountable
• Communication channels
• Relationship between different positions

Question 6

How the roles played by employees vary?

Answer 6

Depending on the size and type of the business.

Question 7

Who appointed directors?

Answer 7

Owners

Question 8

What is the roles of directors?

Answer 8

make all the important decisions in the business.

Question 9

What are managers responsible for?

Answer 9

Planning, controlling, organizing, motivating, problem solving and decision making.

Question 10

What are the overall role of managers?

Answer 10

To achieve the objects of the owners using the resources given.

Question 11

What are role of supervisors?

Answer 11

They monitor the work in their particular area.

Question 12

Who are operatives?

Answer 12

They are skilled workers who involved in the production process.

Question 13

Who do operatives accountable to?

Answer 13

Supervisors and managers

Question 14

Who are general staffs?

Answer 14

Staffs that do not have any specific skills.

Question 15

General staffs have authority?

Answer 15

False

Question 16

Who are professional staffs?

Answer 16

Skill and highly trained staffs

Question 17

What are features of organization structure?

Answer 17

• Chain of command
• Span of control
• Flat and tall structure
• Delegation

Question 18

What happen if the chain of command is long?

Answer 18

• Messages may get lose or confused
• Changes might not be accepted lower down the chain

Question 19

What is span of control?

Answer 19

Number of people a person is directly responsible for in a business.

Question 20

What is the mean by business having wide span of control?

Answer 20

It means a person controls more subordinates.

Question 21

What are flat structures?

Answer 21

Structure which have fewer layers in the hierarchy.

Question 22

What are the features of flat structure?

Answer 22

• Better communication with short chain of command
• Lower manage costs with few layers of management
• Friendly and less formal control

Question 23

What are features of tall structure?

Answer 23

• Poor communication through whole structure
• Higher management cost
• Help to motivate staffs with clear rout for promotion
• Formal and less friendly control

Question 24

What is delegation?

Answer 24

Delegation is authority to pass down work from superior to subordinate?

Question 25

What is the benefit and disadvantage of delegation?

Answer 25

• motivate workers as they feel trust by carrying our more difficult tasks
• They may be dissatisfied by these extra works with no rewards

Question 26

What is centralized?

Answer 26

Type of organization system where most decisions are made at the top of the organization and then passed down the chain of command.

Question 27

What is decentralized?

Answer 27

Type of organization system where decision making is pushed down the chain of command and away from the top.

Question 28

Employees will have authority to make decision if the decision making is decentralized.

Answer 28

True

Question 29

What are the advantages and disadvantages of centralized?

Answer 29

Advantages

• Senior management have complete control
• Senior managers are trained and experienced
• Prevent parts of business acting independently
• Coordination and control is easier

Disadvantages

• Employees may demotivated
• Brings less creativity
• Procedure may be needed to make decision making easier
• People at top hierarchy may be out of touch with the need of customers by their employees

Question 30

What are advantages and disadvantages of decentralized?

Answer 30

Advantages

• Workers have autonomy and may be motivated
• Speeds up decision making
• It takes pressure of senior managers
• Workers are given opportunity to be creative
• Provide more promotion opportunities at different managerial levels

Disadvantages

• Senior management may lose control of resources
• Higher cost owing to inconsistent decision making process
• Some employees lack the ability to make decisions
• Some employees may not like extra responsibility

Question 31

Which kind of structure do small business have?

Answer 31

Entrepreneurial structure

Question 32

What is entrepreneurial structure?

Answer 32

Where decision are made centrally, by the owner or key workers.

Question 33

What kind of structure do large business use?

Answer 33

Traditional structure
Matrix structure

Question 34

What is traditional structure?

Answer 34

Where the structure is based on hierarchy and decision making is shared throughout the business.

Question 35

What is matrix structure?

Answer 35

Where employees are put into teams cut across department roles who may work together on a specific project.