Internal Organisations

Question 0

Functional grouping

Answer 0

Departments where staff have similar skills & expertise & do similar jobs e.g. Marketing, Finance, HR, Operations, R&D

Question 1

Types of organisational groupings

Answer 1

Functional, product/service, customer, place/territory, technology, line/staff

Question 2

Advantages of functional grouping

Answer 2

Staff with similar expertise are kept together allowing specialisation, Organisation has clear structure, Staff know who to go to when they need a job done

Question 3

Disadvantages of functional grouping

Answer 3

See sheet

Question 4

Product/service grouping

Answer 4

Divisions/departments where each deals with a different product or product range. Each division has it’s own functional staff. E.g. TV company: sports, film, music, children’s divisions

Question 5

Advantages of product/service grouping

Answer 5

See sheet

Question 6

Disadvantages of product/service grouping

Answer 6

See sheet

Question 7

Customer grouping

Answer 7

Divisions dealing with different types of customer e.g. Retail, Trade, Overseas, Mail Order

Question 8

Advantages of customer grouping

Answer 8

Each division is able to give a service, price & promotions suited to its own type of customer. Customer loyalty builds up because of personal service

Question 9

Disadvantages of customer grouping

Answer 9

See sheet

Question 10

Place/territory grouping

Answer 10

Staff are divided into divisions, each dealing with a different geographical area e.g. Scotland, midlands, south/north of England

Question 11

Advantages of place/territory grouping

Answer 11

Allows an organisation to cater for the needs of customers in different geographical locations

Question 12

Disadvantages of place/territory grouping

Answer 12

It can be expensive to staff as administration, finance & marketing procedures are duplicated in various divisions

Question 13

Technology grouping

Answer 13

A manufacturing company groups it’s business activities according to technological or production processes. Only suitable for large organisations which have different products & production processes

Question 14

Line/staff grouping

Answer 14

Organisation is divided up into line departments involved in generating revenue and staff departments providing specialist support for the whole organisation e.g. Finance & HR

Question 15

An organisational chart shows:

Answer 15

Relationship between staff, who has authority over whom, who is in charge of organisation/each department, chain of command & lines of communication

Question 16

Features of a Narrow Span of control

Answer 16

See sheet

Question 17

A wide span of control means:

Answer 17

See sheet

Question 18

Factors which affect the Formal Structure of an organisation:

Answer 18

See sheet

Question 19

Types of (formal) organisational structure

Answer 19

Hierarchical, flat, entrepreneurial, matrix, decentralised, centralised

Question 20

Hierarchical structure

Answer 20

See sheet

Question 21

Flat structure

Answer 21

See sheet

Question 22

Entrepreneurial

Answer 22

See sheet

Question 23

Matrix structure

Answer 23

See sheet

Question 24

Decentralised structure

Answer 24

See sheet

Question 25

Centralised structure

Answer 25

See sheet

Question 26

Responsibility of management to ensure:

Answer 26

See sheet

Question 27

Organisational relationships

Answer 27

Line, lateral, functional, staff, informal

Question 28

Line relationship

Answer 28

Vertical relationship that exists between manager and their subordinate(s). Work allocated from manager to subordinate. Manager has authority over subordinate.

Question 29

Lateral relationship

Answer 29

Exists between staff on the same horizontal level of the organisation

Question 30

Functional relationship

Answer 30

Exists where a specialist function is given to a department e.g. HR That department is given responsibility for the function throughout the organisation

Question 31

Staff relationship

Answer 31

When someone has an advisory relationship with another member of staff. They have no authority over departments as they only advise e.g. Computer consultant

Question 32

Informal relationship

Answer 32

Can develop between staff at breaks, during work, when socialising. See sheet

Question 33

Changes in organisational structure

Answer 33

Delayering | Downsizing

Question 34

Delayering

Answer 34

Involves reducing staff levels by cutting out levels of management. See sheet

Question 35

Downsizing

Answer 35

Involves removing certain areas of the organisations activities by closing factories or merging divisions together. See sheet

Question 36

Delayering helps to:

Answer 36

See sheet

Question 37

Disadvantages of delayering

Answer 37

Causes redundancies. | Gives fewer promotion opportunities for staff which can lower morale

Question 38

Downsizing helps to:

Answer 38

Cut costs & increase profits Become more competitive & efficient Empower remaining staff

Question 39

Disadvantages of downsizing

Answer 39

Lose valuable skills, experience & knowledge of many staff resulting in low staff morale during the downsizing process

Question 40

Empowerment means:

Answer 40

See sheet

Question 41

Empowering staff may lead to:

Answer 41

See sheet

Question 42

An organisation benefits from empowerment by having:

Answer 42

See sheet

Question 43

Empowerment may not be successful because:

Answer 43

See sheet

Question 44

Corporate culture is:

Answer 44

The values, beliefs, and norms relating to the company or organisation that are shared by all it's staff

Question 45

Corporate culture is developed through:

Answer 45

See sheet

Question 46

Communication of corporate culture is done through:

Answer 46

Honouring employees for excellent work, training courses, company magazines/newsletters, company events, social events, staff uniforms, company videos

Question 47

Advantages of strong corporate culture

Answer 47

Employees feel part of the organisation. Improved employee relationships. Increased staff motivation, employee loyalty, productivity