Organisational Structures

Question 1

Define ORGANISATIONAL STRUCTURE

Answer 1

An organisational structure tells us the way the roles within the business are arranged. It shows the job roles that exist, the levels of hierarchy, who is responsible for what and who, the communication channels messages travel through.

Question 2

Define SPAN OF CONTROL

Answer 2

A span of control refers the number of subordinates a manager or supervisor has under his or her direct control.

Question 3

Define CHAIN OF COMMAND

Answer 3

A chain of command is the route of communication as it travels down the hierarchy.

Question 4

What are the advantages of a tall organisational structure?

Answer 4

• Closer supervision is possible
• Greater specialisation among teams which may improve efficiency
• More levels of hierarchy mean more opportunity for promotion

Question 5

What are the disadvantages of a tall organisational structure?

Answer 5

• Slower vertical communication
• Slow decision making process
• More supervision required
• Less delegation

Question 6

Define DELAYERING

Answer 6

Delayering is the process of removing layers of management from the hierarchy of an organisation.

Question 7

What are advantages of a flat organisational structure?

Answer 7

• Short chain of command means that vertical communication is quick, so the business can respond quickly to changes in the market.
• Overheads are lower as there are few salaries.
• Employees are likely to be more motivates are they have more responsibility.

Question 8

What are the disadvantages of a flat organisational structure?

Answer 8

• Manager/supervisor stress increases as they have more subordinates
• Quality of communication between managers and subordinates may be poor
• Lack of promotional opportunities which may lead to lower motivation

Question 9

How should the organisational structure be decided?

Answer 9

• Size of the business
• Skill of the employees and the nature of their work
• Is it a dynamic market?
• Business objectives

Question 10

Define a MATRIX STRUCTURE

Answer 10

A matrix structure includes task orientated individuals working in teams as well as in their own department.

Question 11

What are the advantages of a matrix structure?

Answer 11

• Helps to break down traditional department barriers, improving communication
• Individuals can use skills in a variety of contexts
• Encourages sharing of good practice

Question 12

What are the disadvantages of a matrix structure?

Answer 12

• Members of project teams may have divided loyalties between their two managers
• May not be a clear line of accountability for teams
• Difficult to co-ordinate
• Team members may neglect functional responsibilities

Question 13

What is involved in a centralised structure?

Answer 13

Key decisions are made by senior management (head office) and instructions are simply given out.

Question 14

What is involved in a decentralised structure?

Answer 14

Decisions are made by both senior management and local managers, with guidance and feedback exchanged.

Question 15

What are the disadvantages of a centralised structure?

Answer 15

• Local conditions will be ignored
• Local managers experience not used
• Local staff may be alienated and demotivated
• Change will occur slowly

Question 16

What are the advantages of the centralised structure?

Answer 16

• Senior management have control over decisions
• Marketing message, appearance and quality are the same in every store.
• Economies of scale keep costs low

Question 17

What are the advantages of a decentralised structure?

Answer 17

• Local managers and staff are more empowered
• Local conditions and differences are taken into account
• The stores can be more responsive to the changes in the market

Question 18

What are the disadvantages of a decentralised structure?

Answer 18

• Local managers may lack the skills and experience needed
• Scope for economies of scale is limited
• Corporate image may not be consistant

Question 19

Define a TALL ORGANISATIONAL STRUCTURE

Answer 19

A tall organisational structure exists in a business that has many levels of hierarchy.

Question 20

Define a FLAT ORGANISATIONAL STRUCTURE

Answer 20

A flat organisational structure exists in a business that has few levels of hierarchy.

Question 21

Define a CENTRALISED STRUCTURE

Answer 21

A centralised structure is a HR strategy where the responsibility for decision making is concentrated with a few key individuals at the top of the organisation.

Question 22

Define a DECENTRALISED STRUCTURE

Answer 22

A decentralised structure is a HR strategy where the responsibility for decision making is delegated to a number of middle managers throughout the organisation.

Question 23

Define a FLEXIBLE WORKFORCE

Answer 23

A flexible workforce is a HR strategy that involves the use of temporary, part time and peripheral workers to make it easier to respond to fluctuations in demand.