IGCSE business studies chapter 7: organisational structures

The passing of authority from one level to another is called:

• Delegation

• Responsibility

• Chain of command

• Span of control

A flat organisational structure will usually have:

• A more flexible approach to decision making

• Rigid rules

• Many levels of hierarchy

• More promotional opportunities for employees

Which of the following is an advantage to a business of delayering its organisational structure?

• Staff costs will be reduced in the long term

• The duties of employees may be reduced

• Spans of control will become narrower

• Promotional opportunities will improve

The management style that is most commonly used in a tall structure is:

• Autocratic

• Laissez-faire

• Democratic

• Hands on

A line manager will usually have more effective communication links with subordinates when:

• A narrow span of control exists in the organisational structure

• A wide span of control exists in the organisational structure

• Each line manager is responsible for a large number of temporary staff

• Job roles are not clearly defined

Which of the following statements best describes the term span of control?

• The number of people that directly report to a line manager

• The formal channels of communication in an organisation

• Removal of a level in an organisational structure

• The number of levels in an organisational hierarchy

In which of the following situations would a tall organisational structure be most appropriate?

• Where managers wish to keep a tight control over their staff

• An established sole trader organisation with no additional employees

• When the business needs to make quick decisions involving all staff

• A new business start-up with five staff members

Which of the following is a key feature of centralisation?

• Major decisions are made by a small number of senior staff

• Major decisions are made by junior staff

• Delegation is actively used in the organisation

• A democratic management style exists

Which of the following is an advantage to a business of deciding to decentralise its organisation?

• Junior staff can be developed for senior roles

• Key decisions are made by a small number of senior staff

• Minimal training will be required to develop junior staff in their roles

• Different branches will always run consistently

In which of the following situations would decentralisation be the most appropriate?

• Where the business needs to make quick decisions involving all staff

• Where managers wish to keep a tight control over their staff

• An established sole trader organisation with no additional employees

• A new business start-up with five staff members