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27 Cards in this Set
- Front
- Back
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What is an organizational structure |
Organizational structure refers to the various and diverse levels of management |
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What is an organizational chart |
a chart that shows the relationships within which a firm expects and intends to work.It outlines the levels of management and division of responsibilities within the organization |
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What is the difference between delegation and authority |
Delegation is the process of a senior staff member extending daily tasks to a subordinate while authority is the power to give orders |
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What are the benefits of delegation |
- the manager will have more time to concentrate on critical issues, such as planning and organizing. - the subordinate becomes more confident in his/her professional skills, because he/she is trusted with specific responsibilities by the manager |
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To what extent can managers delegate all their tasks |
Depending upon the circumstances, for instance depending on the skill and expertise of subordinates, as well as the taks being delegated. It also depends on the willingness of the manager to delegate. |
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Describe how a business may be organized by function |
It is organized by function when it is divided into departments, each with a particular job. |
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What is the difference between a line manager and staff manager |
A line manager has direct authority over subordinates in his/her department, while a staff manager provides specialist advice and reports directly to the board of directors. |
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Explain the three features of organization by function |
-The level of hierarchy refers to the authority and responsibility of each individual member of the staff. -Chain of command is the system or path used to extend decisions and instructions, from the executive managers down through the personnel responsible for carruing out the instructions -span of control refers to the number of people a person directly controls |
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To which departments do the following proffesionals belong? -Accounts clerk -Typist -Sales clerk -Promotions assistant -Industrial relations manager -Electrical engineer -Training officer -Delivery driver -Wages clerk |
-Accounts clerk: finance -Typist: administration -Sales clerk: marketing -Promotions assistant: HR -Industrial relations manager: HR -Electrical engineer: Production -Training officer: HR -Delivery driver: Marketing -Wages clerk: HR |
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Explain the difference between an organization by market and organization by product |
In an organization by market, the business can be organized according to the consumers. An organization by product occurs if a business is involved with producing several types of goods and services. |
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What is meant by organization by area |
When the structure of an organization is by geographical market or area |
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What is meant by delayering |
Having a wider to span of control and a shorter chain of command for faster Communication, higher effeciency, and better delegation |
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Advantages of broad span of control |
-Higher motivation -faster and more efficient communication -faster the decision making - more control by senior managers |
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Disadvantages of broad span of control |
-Less promotion prospects -difficult controlling large number for subordinates -difficult to identify a problems of each subordinate |
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Advantages of narrow span of control |
-More opportunities for promotion and career development -higher motivation and commitment for subordinate with manager -easy to control -easy to identify issues |
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Disadvantages of narrow span of control |
-Communication tends to be poor -slower decision-making -poor morale and commitment among employees -senior management incapable of monitoring closely what is happening |
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Relationship between chain of command and span of control? |
When chain of command is short, the span of control will be wide. when the chain of command is tall, the span of control will be narrower |
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What is more beneficial, centralized or decentralized structure? |
It is preferable for an organization to have both structures. Major strategic decisions must be centralized because higher management has more experience and making such decisions, while other everyday tasks must be delegated within a centralized management structure. This allows managers to make more informed decisions, because they have more time to study data due to the Division of Labor |
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Briefly explain the types of decentralization |
- Functional decentralization occurs when specific department are extended a certain degree authority. - Regional decentralization is based upon allowing the executive managers of a specific base to concentrate upon central issues. - Project decentralization is undertaken when a team is responsible for making decisions about a specific project. |
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Give two examples of decisions that might be made by the board of directors and one that may be passed to the lower levels of management |
Major investment and long term policy decisions Day-to-day decisions |
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Is informal organization always beneficial? |
As long as the employees believe in there employer, and formal organization can benefit both because it provides a greater job satisfaction and higher commitments. However, when their relationship is dysfunctional, informal organizations can work against the and employers subjective |
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Function of purchasing department |
Responsible for stock control |
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Function of production department |
Responsible for the conversion of raw materials to finished products |
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Function of marketing department |
Responsible for researching, designing, packaging, pricing, advertising, and distributing the product. |
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Function of after sales department |
Responsible for additional products and services |
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Function of HR department |
Aka personnel department is responsible for managing people |
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Function of administration department |
Responsible for variety of tasks such as: Reception/sorting mail/handling office work/logistics |
