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Unit 1 Buissness Enviroment
different organisational structures
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Give an example of a
centralized structure.
A traditional school where the headteacher makes all major decisions.
Give an example of a decentralized structure.
A school where teachers have autonomy in
curriculum
design and classroom
management.
What is the main characteristic of a decentralized structure?
Decision-making power
is distributed among various levels or
departments.
What is one advantage of centralized structures?
Consistent
decision-making
due to a small group making
decisions.
How does a centralized structure ensure efficient resource allocation?
Central control
allows for
better distribution
of resources across the organization.
What is a key disadvantage of centralized structures regarding communication?
Communication
bottlenecks
can occur as information passes through
multiple
levels.
How can centralized structures lead to an overload at the top?
Senior management may become overwhelmed with
decisions
, leading to
burnout
or poor choices.
What is a disadvantage of decentralized structures regarding consistency?
Different parts of the organization might make conflicting
decisions
, leading to
inconsistency.
How does decentralization enhance employee motivation?
Increased
autonomy
can lead to higher job satisfaction and
initiative.
What is one advantage of decentralized structures?
Faster decision-making
as
local
managers can make quick decisions without waiting for approval.
What is a key difference between centralized and decentralized structures regarding decision-making speed?
Centralized structures are slow for minor issues but
fast
for major ones, while decentralized structures are
fast
for local issues.
How can decentralized structures lead to duplication of efforts?
Various
units
might unknowingly repeat work done elsewhere,
wasting
resources.
What are the advantages of centralized structures?
Consistent decision-making
Clear chain of command
Efficient resource allocation
Economies of scale
Rapid response to major issues
What are the advantages of decentralized structures?
Faster
decision-making
Flexibility
Employee
motivation
Better
use of
local knowledge
Reduced
burden
on
top management
What are the
disadvantages
of centralized structures?
Slow
decision-making
Lack of
flexibility
Demotivation
of lower-level employees
Communication
bottlenecks
Overload
at the top
What are the disadvantages of decentralized structures?
Inconsistency
Duplication
of
efforts
Difficulty
in
coordination
Potential for
suboptimal resource allocation
Risk of
lower-quality decisions
How do centralized and decentralized structures differ in terms of employee motivation?
Centralized structures can lead to
lower
motivation, while decentralized structures generally result in higher motivation due to increased
autonomy.
What is the impact of centralized structures on coordination compared to decentralized structures?
Centralized structures make coordination easier, while decentralized structures can make it more
challenging.
Which structure would be more suitable for a company aiming for flexibility and local responsiveness?
Decentralized structure would be more suitable for
flexibility
and
local responsiveness.
How does the decision-making speed differ between centralized and decentralized structures for local issues?
Decentralized
structures allow for
faster
decision-making for local issues compared to centralized structures.
What does organizational structure refer to?
It refers to how a company arranges its
teams
and reporting
relationships.
What are the characteristics of a tall structure?
Many
hierarchical
levels
Narrow
span of control (fewer employees reporting to each manager)
Vertical
communication flow
What are the characteristics of a flat structure?
Few
hierarchical
levels
Wide
span of control (more employees reporting to each manager)
Horizontal
communication flow
How does a tall structure differ from a flat structure in terms of management levels?
A tall structure has
many
management levels, while a flat structure has
few
management levels.
In a flat structure, how does the span of control differ from that in a tall structure?
A flat structure has a wide span of control, meaning more
employees
report to each
manager.
In a tall structure, what is the typical flow of communication?
The communication flow is vertical.
What is an example of a flat structure in a retail setting?
CEO
> Department Heads >
Employees.
What is an example of a tall structure in a retail setting?
CEO >
Regional Managers
> Store Managers >
Department Heads
> Team Leaders > Employees.
What are the advantages of tall structures?
Clear
career path
Specialization
Close
supervision
Clear chain of
command
Why might employees prefer a tall structure?
Because it provides a clear
career path
and opportunities for
progression.
What is a disadvantage of tall structures regarding decision-making?
Decisions often need to pass through
multiple
levels, causing
delays.
How can communication be affected in a tall structure?
Information may become
distorted
as it passes through many
layers.
What is a financial disadvantage of tall structures?
They incur
higher salary
expenses due to more management
levels.
What is a flexibility issue associated with tall structures?
The
rigid hierarchy
can make it
difficult
to adapt quickly to changes.
What are the disadvantages of tall structures?
Slow
decision-making
Communication
challenges
Higher
costs
Inflexibility
How does the number of management levels in a tall structure affect decision-making speed?
More management levels typically
slow down
decision-making.
In what way does a tall structure impact the clarity of the chain of command?
A
tall structure
provides a very clear chain of
command.
What happens to the span of control as you move up the hierarchy in a tall structure?
The span of control
decreases
as you move
up
the hierarchy.
Who typically has the largest span of control in a tall structure?
Lower-level
management typically has the
largest
span of control.
In a tall organizational structure, which level of management would likely have the smallest span of control?
Top-level
management would likely have the
smallest
span of control.
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