CHAP 3

1.Identify which of the following statements about an organisation chart for Ginger plc are true.

(1)The chart will show the degree of decentralisation in Ginger plc

(2)The chart will show the span of control in Ginger plc

(3) The chart will show the scalar chain in Ginger plc

• 1 and 2 only

• 2 and 3 only

• 1 and 3 only

• 1, 2 and 3

2.  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.

Requirement

Which of the following organisational structures does Lan plc have?

• A       Entrepreneurial

• B       Machine bureaucracy

• C       Professional bureaucracy

• D      Divisionalised

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

• A       Support staff

• B       Middle line

• C       Functional division

• D      Scalar chain

• E       Ideology

4 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:

• A       ensures that an organisation follows its mission

• B       provides ancillary services

• C       standardises work processes

• D      controls the work of the operating core

  
  

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

• A  The technostructure exerts a pull towards standardised processes

• B       The operating core exerts a pull towards standardised skills

• C       The middle line exerts a pull towards fragmentation

• D      The support staff exert a pull towards collaboration

6.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.

Requirement

Which of the following basic principles of organisational structure is necessarily contravened by this type of structure?

• A       Authority and responsibility

• B       Subordination of individual interests

• C       Unity of command

• D       Division of work

7.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.

Requirement

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

• a.        The authoritarian style of its management

• b.       Its well-skilled workforce

• c.        Its large size

• d.        The slow pace of technological change in its markets

• e.        The effectiveness of communication across the company

8. 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.         A greater need to delegate

• b.       Higher administration and overhead costs

• c.        Many opportunities for promotion

• d.       Better communication between the strategic apex and operating core

• e.       Large spans of control

9.Logical Computing Ltd adopts a wide, flat organisational structure. Which of the following is likely to present problems for the company?

• a.       Ensuring enough face-to-face contact takes place between superiors and staff members

• B. High management overhead costs

• C. High management overhead costs

• D. Superiors not delegating enough work to staff

10. Which three of the following are characteristics of limited companies?

• a.       Perpetual succession

• b.       Separate legal personality

• c.        Financial statements can remain private

• d.       Simple withdrawal of capital

• f.         Regulation under the Companies Act 2006