Management structures
Formal Structure
Informal Structure
Manager Skills
Advantages/
Disadvantages
100

In which structure are managers in charge of those beneath them?

Line authority.

100

What are formal structures usually?

Departmentalized.

100

What type of businesses can often be run informally?

Smaller businesses.

100

What does it mean that managers are task-oriented?

They can handle many tasks at the same time.

100

What is one reason managers usually earn more money than other employees?

Because they have more responsibility.

200

What is one advantage of the line authority structure?

Authority is clearly defined.

200

What does departmentalization divide?

Responsibility among specific units or departments.

200

Why don’t some businesses need a lot of managers?

Because they do not need a big marketing or distribution network.

200

What must managers do to decide which tasks are most important?

Plan their time.

200

Why do some people want become managers?

Because they have the ability to lead.

300

What is one disadvantage of the line authority structure?

Managers have few specialists to help them.

300

What is another word used for “specific units” in a formal structure?

Departments.

300

What can employees do in an informal structure?

Be more flexible and share duties.

300

What two skills are a must for solving problems and working under pressure?

Problem-solving skills and time-management skills.

300

What do good managers gain when they are respected?

Prestige.

400

What do dotted lines show on a line and staff authority organizational chart?

Staff who advise the line personnel.

400

Name one way departments can be organized.

By geographical location, function, customer groups, or product.

400

How can partners work in an informal structure?

Alone or together on projects.

400

What important part of communication involves listening?

Interacting with other people.

400

Why do managers have more influence and authority than other employees?

Because they plan, organize, direct, and control company resources.

500

What is one advantage of a centralized organization?

It helps managers be consistent in decision making.

500

What is the purpose of departmentalization in a formal structure?

To divide responsibility among specific units or departments.

500

For whom does the informal structure often work well?

Partners.

500

What type of skills help managers deal with people?

Human relations skills.

500

Why are managers under a lot of pressure to make the right decisions?

Because their mistakes can be very costly to a company.