BTF Chapter 3: Organisational Structures (combined)

Identify which of the following statements about an organisation chart for Ginger plc are true. I The chart will show the degree of decentralisation in Ginger plc

II The chart will show the span of control in Ginger plc III The chart will show the scalar chain in Ginger plc

• I and II only

• II and III only

• I and III only

• I, II and III

Lan plc trains bankers. It has been established for over 30 years. Lan plc has a large operating core which consists of all the well-qualified lecturing staff. They need to keep their teaching material constantly updated to reflect current issues in the complex banking industry, and to ensure that the company's courses remain competitive. The lecturers are supported by a large administrative team which follows procedures to ensure the smooth delivery of courses. Which of the following organisational structures does Lan plc have?

• Entrepreneurial

• Machine bureaucracy

• Professional bureaucracy

• Divisionalised

Identify which three of the following are Henry Mintzberg's building blocks of an organisation.

• Support staff

• Middle line

• Functional division

• Scalar chain

• Ideology

Jane's job description at Glue Pot plc states that her role is part of the company's technostructure. According to Henry Mintzberg, a technostructure

• ensures that an organisation follows its mission

• provides ancillary services

• standardises work processes

• controls the work of the operating core

Benton plc is a machine bureaucracy. Which of the following characteristics is the company most likely to exhibit?

• The technostructure exerts a pull towards standardised processes

• The operating core exerts a pull towards standardised skills

• The middle line exerts a pull towards fragmentation

• The support staff exert a pull towards collaboration

Amy has just joined the finance function of a local hospital. She identifies that its managers belong to the 'classical school' because of their adherence to the concept of unity of command. This means that in general the managers believe that

• a subordinate should receive orders from only one manager there

• should be only one manager of each activity

• authority should flow down a single chain of command

• work should be specialised into single tasks

Justin works for Edwinstone plc. He is part of a project team developing a large construction site. The team has a matrix structure with employees from many different departments working on this project.

Which of the following management principles set out by Henri Fayol is necessarily contravened by this type of structure?

• Authority and responsibility

• Subordination of individual interests

• Unity of command

• Esprit de corps

The Chief Executive of Acton plc has identified problems caused by the centralised nature of the company's decision-making processes. These have led to accusations from staff and some customers that the company is increasingly slow and unresponsive. The Chief Executive wants to increase the amount of decentralised decision-making over the next year.

Which three of the following characteristics of Acton plc are likely to increase the amount of decentralisation that is possible?

• The authoritarian style of its management

• Its well-skilled workforce

• Its large size

• The slow pace of technological change in its markets

• The effectiveness of communication across the company

Martina is a Human Resources Manager with Wardman Ltd. She is working on a project to increase the spans of control of managers in the company's largest subsidiary. She needs to identify any factors about the subsidiary that indicate increases in spans of control are possible.

Which of the following factors identified by Martina suggests that increased spans of control are possible?

• Subordinates carry out very similar tasks

• Subordinates are geographically dispersed

• Frequent, time-consuming problems arise

• Managers are engaged in large amounts of non-supervisory work

In terms of structure, Platlet plc is a wide, flat organisation.

Which three of the following characteristics is the company most likely to exhibit?

• A greater need to delegate

• Higher administration and overhead costs

• Many opportunities for promotion

• Better communication between the strategic apex and operating core

• Large spans of control