7. Organisation and management

1 The best definition of a firm’s organisational structure is that:

1) it shows exactly what job everyone does

2) it shows a plan of the offices and factory

3) it shows the levels of management and division of responsibilities

4) it refers to the way in which products are made and pass through the factory

• 1)

• 2)

• 3)

• 4)

2 As an organisation expands, it is usual for managers to delegate. Which of the following is the best definition of delegation?

1) Giving authority to junior managers to do particular tasks

2) Passing down full responsibility to subordinates

3) Ordering workers to do certain jobs

4) Keeping full control in the hands of senior managers

• 1)

• 2)

• 3)

• 4)

3 One of the advantages of delegation is that:

1) workers have less work to do

2) managers can concentrate on more important tasks

3) managers lose some of their responsibilities

4) managers are able to control the work of staff more closely

• 1)

• 2)

• 3)

• 4)

4 One of the potential disadvantages of delegation is that:

1) workers are given more authority and job enrichment

2) there is less control over the work done by staff

3) managers have more work to do

4) there is less trust shown between workers and managers

• 1)

• 2)

• 3)

• 4)

5 The chain of command in an organisation is:

1) the links that exist between different departments

2) the method of communication used in the organisation

3) the line of authority which allows orders to be passed down the organisation

4) the lines of communication that exist between workers in one department

• 1)

• 2)

• 3)

• 4)

6 The span of control is:

1) the number of subordinates directly controlled by one manager

2) the number of departments in a business

3) the number of managers who report directly to each worker

4) the number of levels of hierarchy in the organisation structure

• 1)

• 2)

• 3)

• 4)

7 One of the benefits of wider spans of control is that:

1) delegation is encouraged as a large number of people are answerable to each manager

2) it will lead to a longer chain of command and better communication

3) staff will be able to spend more time with their manager having their work checked

4) there will be more managers in the organisation

• 1)

• 2)

• 3)

• 4)

8 If a business ‘delayered’ its organisation structure (i.e. removed a layer of management) then spans of control would:

1) fall and the chain of command would lengthen

2) increase and the chain of command would shorten

3) fall and the chain of command would shorten

4) increase and the chain of command would lengthen

• 1)

• 2)

• 3)

• 4)

9 An advantage of a short chain of command is that:

1) there are many different layers of management to share responsibilities

2) communication tends to be inaccurate as there are so many people involved in passing a message on

3) spans of control tend to be narrower than with a long chain of command.

4) communication between the top management and the other staff levels is quicker

• 1)

• 2)

• 3)

• 4)

10 Which of the following is not an advantage of an organisational chart?

1) The chart shows how everybody is linked in the organisation

2) Every member of staff can see their own position in the organisation

3) It shows the chain of command and how authority passes down the organisation

4) It indicates the detailed job description of each employee

• 1)

• 2)

• 3)

• 4)