Unit 2.2 - Organizational Structure

The formal route through which decisions must travel in a business organization

• Span of Control

• Chain of Command

• Hierarchy

• De-layering

Decentralization means

• Senior managers make core strategic decisions

• Middle managers have decision making authority

• Key managers allow subordinates greater freedom

• All of the above

Which term is used to describe the system of organizing people within a business in terms of their rank?

• Hierarchy

• Chain of command

• Span of Control

• Decentralization

'Bureaucracy' means

• Has fewer levels of hierarchy

• Has many rules and procedures and set ways of doing things

• Does not require a lot of paper work

• There is a lot of delegation

Delegation occurs when

• A manager gives authority for a particular decision

• The responsibility is passed on to the employee

• The authority and responsibility remains with the manager

• None of the above

A staff manager is someone who

• Has authority to make decisions

• Bears responsibility for the outcomes of decisions made

• Has authority to communicate a decision made without the responsibility for that decision

• All of the above

De-layering occurs when

• A business reduces the levels of hierarchy by removing layers of management

• A business increases the levels of hierarchy by adding layers of management

• A business is a start-up

• None of the above

In a centralized business structure

• Delegation rarely happens

• All decision making is maintained within a small group of managers

• Option 1 only

• Option 1 & 2

A personal assistant to the CEO is usually considered a

• Line Manager

• Staff Manager

• None of the above

The number of subordinates directly under the authority of a manager are known as

• Employees

• Span of control

• Delegates

• Chain of command