ORGANISATIONAL STRUCTURES, BY LEVEL AND FUNCTION

Question 1

WHAT IS MEANT BY AN ORGANISATIONAL STRUCTURE?

Answer 1

-REFERS TO THE LEVELS OF MANANAGEMENT AND DIVISIONS RESPONSIBILTY WITHIN AN ORGANISATION

Question 2

WHAT IS MEANT BY CENTRALISED/CENTRALISATION?

Answer 2

REFERS TO A MANAGEMENT STRUCTURE IN WHICH MOST DECISIONS ARE TAKEN AT THE CENTRE OR AT A HIGHER LEVELS OF MANAGEMENT

Question 2

WHAT IS MEANT BY DECENTRALISATION/DECENTRALISATION?

Answer 2

REFERS TO THE MANAGEMENT STRUCTURE IN WHICH MANY DECISIONS ARE NOT TAKEN AT THE CENTRE OF THE BUSINESS BUT ARE DELEGATED TO LOWER LEVELS OF MANAGEMENTS

Question 3

WHAT ARE THE ADVANTAGES OF CENTRALISATION?

Answer 3

• DECISIONS ARE TAKEN BY EXPERIENCED PEOPLE
• THERE ARE CONSISTENT POLICIES THROUGHOUT THE FIRM
• ALLOWS ECONOMIES OF CALE BY BUYING IN BULK
• THERE IS A TIGHT CONTROL ON DECISIONS
• THERE IS PRUPOSE AND DIRECTION IN THE BUSINESS

Question 4

WHAT ARE THE ADVANTAGES OF DECENTRALISATION?

Answer 4

-MANAGERS THAT ARE CLOSE TO ACTIONS TAKE DECISIONS
- AS DECENTRALISATION IS A FORM OF DELEGATION, MANAGERS THAT TAKE DECISIONS FEEL TRUSTED AND WILL HAVE MORE SATISFACTION IN THEIR WORK
- THEY REACT QUICKER TO MARKET TRENDS

Question 5

WHAT IS THE IMPORTANCE OF AN ORGANISATIONAL STRUCTURE?

Answer 5

• IT ENABLES DISTRIBUTION OF AUTHORITY
• EASIER TO EVALUATE WORKERS PERFORMANCE IF THERE IS AN ORGANISATIONAL STRUCTURE
• A CLEAR STRUCTURE HELPS TO ORDER THE WORK ENVIRONMENT AND TO RESOLVE DISAGREEMENTS
• HELPS INDIVIDUALS TO SEE THEIR POSITION IN THE BUSINESS/FIRMS

Question 6

DEFINE THE FOLLOWING TERMS, HIERARCHY, RESPONSIBILTY, AUTHORITY, SPAN OF CONTROL, WIDE AND NARROW SPAN OF CONTROL, LINE ORGANISATION, LINE AND STAFF ORGANISATION

Answer 6

HIERARCHY
- REFERS TO A SYSTEM IN WHIC PEOPLE OR THINGS ARE ARRANGED ACCORDING TO THEIR IMPORTNACE OR AUTHORITY

RESPONSIBILTY
- IS A DUTY OR OBLIGATION TO SATISFACTORILY PERFORM OR COMLPETE A TASK AND WHICH HAS A CONSEQUENT PENALTY FOR FAILURE

AUTHORITY
- IS THE RIGHT TO GIVE ORDERS, MAKE DECISIONS AND ENFORCE COMPLIANCE

SPAN OF CONTROL
- REFERS TO THE NUMBER OF SUBORDINATES WORKING DIRECTLY UNDER A MANAGER

WIDE SPAN OF CONTROL MEANS MANY SUBORDINATES WHILE NARROW SPAN OF CONTROL MEANS FEW SUBORDINATES

LINE ORGANISATION
- MEANS TOP MANAGEMENT HAS COMPLETE AUTHORITY. THE CHAIN OF COMMAND IS ISMPLE AND CLEAR. LINE MANAGERS HAVE DIRECT CONTROL OVER SUBORDINATES IN THEIR DEPARTMENT

LINE AND STAFF ORGANISATION
- MEANS MULTIPLE LAYERS OF AUTHORITY EXIST WITHIN THE ORGANISATION.
-MAKES USE OF DEPARTMENTS TO SUPERVISE AND ADVICE THE DIFFERENT DEPARTMENTS.
- THERE IS MORE THAN ONE LAYER OF AUTHORITY WITHIN THE BUSINESS.
-IT IS USUALLY USED BY LARGE BUSINESSES

Question 7

WHAT ARE THE ADVANTAGES OF EMPLOYING STAFF AND LINE MANAGERS

Answer 7

• STAFF MANAGERS PROVIDE ADVICE TO LINE MANAGERS ON CERTAIN ISSUES
• LINE MANAGERS HAVE MORE TIME AVAILABLE TO CONCENTRATE ON HIS/HER TASK

Question 8

DISADVANTAGES OF EMPLOYING STAFF AND LINE MANAGERS

Answer 8

• CONFLICT MAY RISE BETWEEN STAFF AND LINE EMPLOYEES
• LINE EMPLOYEES MAY BE CONFUSED ABOUT WHOM TO TAKE ORDERS FROM

Question 9

DEFINE CHAIN OF COMMAND AND DELEGATION

Answer 9

CHAIN OF COMMAND
- REFERS TO A STRUCTURE WITHIN AN ORGANISATION, WHICH ALLOWS INSTRUCTIONS TO BE PASSED DOWN FROM SENIOR MANAGEMENT TO LOWER LEVELS OF MANAGEMENT

DELEGATION
- REFERS TO GIVING A SUBORDINATE THE AUTHORITY TO PERFORM PARTICULAR TASKS
- IT IS THE AUTHORITY TO PERFORM A TASK THAT IS DELEGATED, NOT THE FINAL RESPONSIBILTY

Question 10

WHAT ARE THE ADVANTAGES OF DELEGATION FOR MANAGERS?

Answer 10

-MANAGERS CAN’T DO EVERY JOB THEMSELVES. THUS, MANAGERS DELEGATE IN ORDER TO DO THE JOBS THEY CONSIDER SHOULD BE LEFT TO THEM

• IF SUBORDINATES PERFORM SOME TASKS OF MANAGERS, FEWER MISTAKES ARE MADE

-MANAGERS CAN SEE HOW WELL SUBORDIANTES PERFORM A TASK DELEGATED TO THEM

Question 11

ADVANTAGES OF DELEGATION TO THE SUBORDINATES

Answer 11

• WORK BECOMES MORE INTERSTING AND REWARDING
• EMPLOYEES FEEL IMPORTANT IF THEY ARE TRUSTED TO PERFORM CERTAIN TASKS
  -GIVES WORKERS CAREER OPPORTUNITIES BECAUSE THEY RECEIVE TRAINING IN CERTAIN PARTS OF THE JOB

Question 12

DESCRIBE THE NEED TO CHANGE THE ORGANISATIONAL STRUCTURE AS THE BUSINESS EXPANDS

Answer 12

• WHEN A BUSINESS GROWS AND REACHES ITS NEW STAGE OF DEVELOPMENT IT MAYNEED TO CHANGE THE WAY IT IS ORGANISED
• STRUCTURE CHANGE IS NECESSARY IN ORDER FOR THE BUSINESS TO ACHIEVE ITS OBJECTIVES
• THE WORKLOAD MAY BECOME TOO MUCH FOR THE OWNER AND ANOTHER MANAGER OR SUPERVISOR MIGHT BE NECESSARY

Question 13

HOW DOES CHANGE OF THE ORGANISATIONAL STRUCTURE OF A BUSINESS AFFECT THE BUSINESS?

Answer 13

• THIS CHANGE WILL PROBABLY SHOW MORE LEVELS OF HIERARCHY AS MORE MANAGERS ARE NEEDED
• THE NEED TO DELEGATE WILL CREATE MORE LEVELS IN THE ORGANISATION, THUS WIDENINGTHE SPAN OF CONTROL

Question 14

DESCRIBE THE 4 TYPES OF ORGANISATIONAL STRUCTURES

Answer 14

BY FUNCTION
- BUSINESSES ARE ORGANISED INTO DEPARTMENTS ACCORDING TO THEI ROLES AND THIS IS CALLED DECENTRALISATION

• JOBS AND ACTIVITES ARE GROUPED TOGETHER
• IN THIS STRUCTURE, DIVISION OF WORK IS THE MOST IMPORTANT PART

BY PRODUCT
- THE BUSINESS IS ORGANISED INTO DEPARTMENTS AND EACH DEPARTMENT WILL FOCUS ON A DIFFERENT PRODUCT

• WORKERS ARE ALSO ASSIGNED ACCORDING TO THE PRODUCT THEIR WORK RELATES TO

BY MARKET
- BUSINESS ACTIVITIES ARE ORGANISED ACCORDING TO GEOGRAPHICAL AREAS

• EACH BRANCH CAN THEN OPERATE ACCORDING TO THEIR LOCAL DEMAND BUT IS STILL DIRECTED BY THE BUSINESS POLICY

BY SYSTEM
- THE BUSINESS IS ORGANISED ON APROJECT-BASED SYSTEM
- THIS SYSTEM IS USED WHEN AN ORGANISATION NEEDS TO RUN ACCORDING TO THE PROJECTS THEY HAVE TO DO