Chapter 7: Organistion & Management

The best definition of a firm's  organizational structure is

• it shows exactly what job everyone does
• it shows a plan of the offices and factory
• it shows the management structure & responsibilities

What is delegation?

• Giving authority to junior managers to do a particular task
• Passing down full responsibility to subordinates
• Ordering workers to do certain jobs
• Keeping full control with senior managers

An advantage of delegation is

• workers have less work to do
• managers can concentrate on more important tasks
• managers lose some of their responsibilities
• managers can control subordinates more  closely

One of the disadvantages of delegation is that

• workers are given more authority
• there is less control over the work done by staff
• managers have more work to do
• workers may gain job enrichment

The chain of command in an organisation is

• the link that exists between different departments
• the method of communication used in the organisation
• the line of authority flowing down the organisation

The span of control can be defined as

• the number of subordinates directly controled by one manager
• the number of departments in a business
• the number of managers who report directly to each worker
• the number of levels in a firm's hierarchy

One of the benefits of wider spans of control is that

• delegation is wanted as many people are heard by the manager
• it will lead to a long chain of command
• there will be more managers in the organisation

When businesses "delayer" their organisational structure then the span of control will

• fall and the chain of command will lengthen
• increase and the chain of command will shorten
•  fall and the chain of command will be shorter
• increase and the chain of command will be longer

Which of the following is not an example of a functional department in a business?

• Finance
• Marketing
•  Information Technology
• Production

An advantage of a short chain of command is that

• the company will gain unlimited liability
• managers will have greater bonuses
• fringe benefits will become more common
• communication between managers and staff will improve