Definitions
What is accountability?
Shows who is held responsible for a particular job.
Tall organisational structures have wide span of control, long chain of command, and many levels in the hierarchy.
False
narrow span of control, long chain of command, many levels in the hierarchy.
What is the advantage of having a hierarchical structure?
Show clear lines of communication.
What is an organizational chart?
The most common form of presenting the structure of an organization. Outlines formal roles, responsibilities, and reporting lines.
The three ways to structure a business are by function, product, and area.
True
What is the disadvantage of having a hierarchical structure?
Rivalries may occur leading to a tense and rigid atmosphere within the organization.
What is chain of command? Give an example.
A formal line of authority shown in an organization chart, which formal orders are passed down. (shows who's in charge of whom)
Ex. At high school teachers report to Mr. Rich (high school coordinator),who then reports to Mr. Bennettt
The different functional departments are Operation, PR, Marketing, and Finance.
False
Operation, HR, Marketing, Finance
State one advantage for both wide and narrow span of control.
Wide: less expensive as fewer managers/ supervisors are needed.
Narrow: Better control over employees & their work.
What is the difference between delayering and downsizing?
Delayering reduces the # of layers and widens the span of control, without anyone necessarily losing their jobs while downsizing involves a reduction in the workplace, typically in the company's effort to reduce costs.
True
State 2 disadvantages for both wide and narrow span of control.
Wide: reduces promotion opportunities b/c fewer managers and less control over subordinates' work
Narrow: more expensive b/c more managers needed and excessive supervision may reduce employee motivation
What is wide span of control and narrow span of control? Give examples for both.
Wide
When managers are responsible for many employees. ( Ex. 1 CEO, 10 employees)
Narrow
When managers are responsible for fewer employees but there are more levels in the hierarchy. (Ex. 1CEO, 3 managers, 3 employees under each manager)
The experience, competence, and traits of the manager as well as the type of production used are the main factors that affect the decision of downsizing.
False
They are factors that affect the type of span of control (narrow or wide).
Adv1: reduces costs b/c there will be fewer levels of management.
Adv2: improves the speed of communication because the hierarchical structure will be flattened.
Disadv1: creates anxiety & a sense of insecurity among workers worried about losing jobs.
Disadv2: managers have to deal with larger teams, so decision making can take longer.