2.5.1 Organisational charts for different types of businesses

The span of control measures what?

• The number of managers reporting directly to a subordinates

• The number of subordinates reporting directly to a manager

• How many managers entrust tasks or decisions to subordinates

• The management levels within an organisation

Delegation is....

• When managers entrust tasks or decisions to subordinates

• The number of subordinates reporting directly to a manager

• The path of authority along which instructions are passed, from the CEO downwards

• The management levels within an organisation

Hierarchy refers to...

• The number of subordinates reporting directly to a manager

• When managers entrust tasks or decisions to subordinates

• The path of authority along which instructions are passed, from the CEO downwards

• The management levels within an organisation

The chain of command is...

• The path of authority along which instructions are passed, from the CEO downwards

• When managers entrust tasks or decisions to subordinates

• The number of subordinates reporting directly to a manager

• The management levels within an organisation

Hierarchical Structures can also be known as....

• Tall

• Flat

Which of the following statements is an advantage for a business with a Hierarchical Structure?

• Control is more formal and less friendly

• There is a clear route for promotion which can motivate

• Management costs are higher

• Communication can be poor

Which of the following statements is an advantage for a business with a Flat Structure?

• Management costs are lower

• There is a clear route for promotion which can motivate

• Management costs are higher

• Communication can be poor

A centralised structure is ....

• When employees have the authority to take decisions

• Where business decisions are made at the bottom of the business or in a head office and distributed down the chain of command

• When workers have autonomy

• Where business decisions are made at the top of the business or in a head office and distributed down the chain of command

Decentralised is....

• Where a business allows decisions to be made by managers and subordinates further down the chain

• Where a business allows decisions to be made by everyone in the business