Management Structures

Question 1

Management Structure

Answer 1

Refers to the layout or internal framework of an organisation that demonstrates how management is linked to the organisation and how authority is transmitted.

Question 2

What are the different levels of management and their specialised roles?

Answer 2

Top Management - Strategic planning; monitoring of whole organisation.

Middle Management - Operational planning; supervision of lower management.

Lower Management - Front-line planning; supervision of operations

Operations - Workers/functions

Question 3

What are the characteristics of a pyramid shaped management structure?

Answer 3

• Rigid Lines of management
• Numerous levels of management
• Hierarchical information flow downwards
• Centralised control with all decisions made by senior management

Question 4

Why are structures important?

Answer 4

Because they allow stakeholders to know:

• The way that communication flows within an organisation
• The possibility of career paths
• The hierarchy of positions within the organisation

Question 5

What are the 7 elements of the internal environment?

Answer 5

• Management Structures
• Corporate Culture
• Key Management Roles
• Policy Development
• Management Styles
• Management Skills
• Ethical Management

Question 6

Bureaucracy

Answer 6

Is the combined organisational structure, procedures, protocols, and set of regulations in place to manage activity, usually in large organisations.

Question 7

Bureaucratic Structures

Answer 7

Applied to structures where there are many levels of management and a clear vertical hierarchy.

Question 8

Weberian characteristics of bureaucracy

Answer 8

• clear defined roles and responsibilities
• hierarchical structure
• a reliance in established rules and procedures within the organisation
• respect for merit
• motivation based on a sense of duty and career prospects

Question 9

Vertical Specialisation

Answer 9

Refers to the hierarchy of formal authority and decision making power within the organisation. It is the organisations chain of command.

Question 10

In relation to vertical specialisation, where can differences in LSO’s be found?

Answer 10

In relation to vertical specialisation, the main differences between organisations are found in the extent to which decision-making power is centralised at the top or decentralised throughout the organisation.

Question 11

Horizontal Specialisation

Answer 11

Refers to the division (or grouping) of people and resources within the organisation. In management theory it is usually known as departmentation.

Departments can be organised on the basis of:

• Function
• Division
• Matrix

Question 12

Functional Model

Answer 12

Staff are organised in various departments based in organisational functions.
E.g. Production, Human Resources, Finance and Marketing

Question 13

Divisional Model

Answer 13

Staff are organised in departments based in division.

E.g. Product, service, customers, geography (region).

Question 14

Matrix Model

Answer 14

Combines specialisation by function and division. Allows specialisation by project while each member of staff remains part of a department based on function. The model promotes both teamwork and flexibility.

Question 15

Simple Strucutre

Answer 15

A type of organisational structure in which there are only two layers or levels. Best suits a small or micro business where there are few employees.

Question 16

Geographic Structures

Answer 16

Represents those where business is conducted in several different locations. Best suits multinational organisations or TNC’s. Each branch could contain its own structure.

Question 17

Functional Strucutre

Answer 17

Is where the organisation is split according to the function or work performed by the people in that area of management function/area. Best suits medium-to-large organisations.

Question 18

Divisional Strucutres

Answer 18

Has the same foundation as a functional structure but each functional area is further divided into subsections with a separate manager for each. Only suitable for especially large organisations.

Question 19

Matrix Structures

Answer 19

• Consists of a team approach to separate projects.
• Suits LSO’s that work on several different projects at once.
• Control is decentralised; ensuring better monitoring of all aspects of a job.

Question 20

Organic Structures

Answer 20

• This structure has its core business maintained by employees, with non-core functions outsourced.
• May involve hiring consultants to give advice or complete a task.

Question 21

Bureaucratic Structures

Answer 21

• Hierarchical structure with many levels and a distinct chain of command.
• Associated with autocratic management styles.
• There is a clear division of tasks and centralised decision.
• Lack of teamwork
• Management and lower subordinates lack communication

Question 22

Any proposed changes to the existing structure of a large organisation must have a view to…

Answer 22

• Clearly setting out roles and line of authority
• Assessing the advantages of the proposed change against the costs of implementation
• Maintaining effective communication and information flows
• Providing the appropriate amount of control over staff

Question 23

What are the characteristics of a Tall Structure?

Answer 23

• Leads to authoritarian culture
• Opportunities for promotion
• Long lines of communication
• Many layers of management
• More people have responsibility
• Manager responsible for few people

Question 24

What are the characteristics of a Flat Structure?

Answer 24

• Improved communication flow
• More responsibility for each manager
• Fewer layers of management
• Emphasis on team work and working independently

Question 25

Corporate Culture

Answer 25

The shared values and beliefs of the people in an organisation which can influence the actions and decision making styles of managers and employees. It is a term used to describe the shared values and beliefs of the people in an organisation.

Question 26

What are the indicators of 'real' corporate culture?

Answer 26

- The prevailing management style in the organisation - Attitudes of management to staff and staff to management - Relations among staff - Budgets and other statements of the organisation's priorities - Customer relations - Style of dress and language within the organisation

Question 27

How can a desired culture be cultivated?

Answer 27

- Management providing an example of the culture in action - Management recognising and rewarding appropriate action - Management communicating aspects of the desired culture - Recruitment and selection practices in line with the desired culture - Training in line with the desired culture Corporate culture can also be moulded to emphasise strategies and objectives such as customer service, innovation, ethical behaviour.

Question 28

Managers who are aiming to develop a learning culture in their organisation should...

Answer 28

- Make use of team structure - Communicate significant information throughout the organisation - Encourage staff to take on new tasks and responsibilities - Support staff with realistic training opportunities - Employ other managers who are capable of exploring their own values and beliefs - Employ staff who show they are open to learning

Question 29

What types of corporate culture are there?

Answer 29

- Mutual respect - Productive/Efficient - Creative - Corporate responsibility - Hard work - Equal opportunities/non-discrimination - Social environment - Teamwork

Question 30

Why is corporate culture important?

Answer 30

- Unites workforce, promotes creativity, boosts morale, guides recruitment. - Staff retention/absenteeism, customer service - Respond to change and improves worker productivity

Question 31

What determines corporate culture?

Answer 31

- Management style - Product or area of business - Morale of employees - Recruitment strategy - Mission statements - Communication - Dress code - Working environment - Teamwork

Question 32

Corporate culture can be learnt or observed through...

Answer 32

- Practices - Material symbols - Behaviour of management - Staff employment - Language used - Training method - Skills that are trained

Question 33

Causes of change of culture?

Answer 33

- Time - New managers - New employees - Merge - Macro factors

Question 34

Official or formal culture

Answer 34

The corporate culture expressed in LSO's internal and external documentation presented to stakeholders. It is the culture displayed to the public.

Question 35

Real or unofficial corporate culture

Answer 35

The corporate culture that actually exists within an organisation as felt by the employees and other stakeholders day to day, it is their actual culture.

Question 36

What is a policy?

Answer 36

A policy is a written statement detailing the processes, procedures, rules and regulations that must be observed in a given situation. Policy provides the broad framework for an organisations activity. It is a general guide to decision making and action. Must be consistent with its objectives and help the organisation achieve its objectives. - Policies must reflect the organisations mission and goals. - They should provide the guiding or governing principles tat mandate or constrain the actions of people with the organisation. - A policy guides a member of the organisation about that they are expected to do in a given situation.

Question 37

How are policy's linked to procedures?

Answer 37

- Procedures are practical ways of putting policy into action - Procedure is more detailed and usually more routine in nature than policy.

Question 38

How can policies be effective?

Answer 38

For policy to be effective it must be plainly expressed (worded) and communicated clearly throughout the organisation. - This requires training of management and employees on policy - Training should include the organisational procedures

Question 39

Policies that are based on an organisations mission and goals will...

Answer 39

- Reflect the mission and objectives of the organisation - Establish intentions of senior management - Include procedure - Offer guiding principles for actions within the organisation - Assist with compliance and acceptance desired behaviours within the organisation - Recognise the rights and obligations of people - Identify means and procedures for resolution of conflict

Question 40

Why are policies necessary in LSO's?

Answer 40

- They can help enforce legal requirements - They ensure consistency in approaches to work - They can prevent accidents - They allow works to clearly know the boundaries in which they work

Question 41

What are the pressures on policy development?

Answer 41

``` External/Macro Environment -Legal/legislative -Technology -Social responsibility -Changing markets and other international pressures Operating -Customers -Competitors -Special interest groups -Regulatory bodies Internal -Managers -Staff -Structures -Owners/shareholdersj ```

Question 42

The Policy development process

Answer 42

1. Issue identification -Management become aware of the need for a policy 2. Research and Analysis -Research is conducted into policies of competitors, trading partners, and organisations to determine possible alternatives -Assessment of what is needed in the new/updated policy is conducted 3. Stakeholder Input -Stakeholders are informed of possible impending policy change -Comment and feedback is called for from interested stakeholders 4. Policy Development -A draft policy is prepared by a working party taking stakeholder views and ideas into account 5. Draft Policy Posted -Draft policy displayed in a public place Stakeholders are given the opportunity to make comments -Comments are invited and advanced notice if intended change is issued 6. Policy Approval -Feedback is considered -Changes are made -Appropriate level of management approval is obtained -Final copy issued 7. Evaluation -Did it work?