Organisation and management

What does organizational structure refer to?

• The arrangement of roles, responsibilities, and authority within an organization.

• The physical layout of office space.

• The marketing strategy of a company.

• The financial budget of an organization.

Answer explanation

Organizational structure refers to the arrangement of roles, responsibilities, and authority within an organization, making it the correct choice. The other options pertain to different aspects of a business.

What is one advantage of having a clear organizational structure?

• Higher operational costs.

• Increased employee turnover.

• Improved communication and efficiency.

• Reduced team collaboration.

Answer explanation

A clear organizational structure enhances communication and efficiency by defining roles and responsibilities, which helps streamline processes and reduces misunderstandings among team members.

How does an organizational chart benefit employees?

• It eliminates the need for teamwork among employees.

• An organizational chart benefits employees by providing clarity on roles, responsibilities, and communication pathways.

• It provides a list of all employees' personal interests.

• It helps employees avoid communication with their managers.

Answer explanation

An organizational chart benefits employees by clarifying their roles and responsibilities, which enhances understanding of communication pathways within the organization, fostering better collaboration and efficiency.

What is meant by 'span of control'?

• The amount of time a manager spends with each employee.

• The total number of employees in a company.

• The level of authority a manager has in an organization.

• The number of subordinates a manager can effectively supervise.

Answer explanation

'Span of control' refers to the number of subordinates a manager can effectively supervise. This concept is crucial for organizational structure and management efficiency.

In the context of management, what does 'chain of command' refer to?

• The process of employee training and development.

• The method of employee performance evaluation.

• The hierarchical structure of authority and responsibility in an organization.

• The financial budget allocation for departments.

Answer explanation

'Chain of command' refers to the hierarchical structure of authority and responsibility in an organization, defining how decisions are made and communicated.

Why is it important for employees to know their position in the business?

• To know the company's financial status.

• To determine their salary range.

• To understand the office layout.

• It is important for employees to know their position in the business to understand their roles and contributions.

Answer explanation

It is important for employees to know their position in the business to understand their roles and contributions. This awareness helps them align their efforts with company goals and enhances overall productivity.

How can an organizational chart enhance communication within a company?

• An organizational chart enhances communication by clarifying roles and reporting relationships within the company.

• It creates a more hierarchical structure that limits communication.

• It focuses solely on employee performance metrics.

• It reduces the need for meetings and discussions.

Answer explanation

An organizational chart enhances communication by clearly defining roles and reporting relationships, making it easier for employees to understand who to communicate with for various issues.

What might happen if the span of control is too wide?

• Improved productivity through streamlined decision-making processes.

• Increased employee morale and motivation due to autonomy.

• Decreased supervision and support, leading to communication breakdowns and lower productivity.

• Enhanced communication and collaboration among team members.

Answer explanation

A wide span of control can lead to decreased supervision and support for employees. This often results in communication breakdowns, which negatively impacts productivity and overall team effectiveness.

What is the role of a managing director in an organizational structure?

• The managing director is responsible for hiring entry-level employees.

• The managing director only focuses on marketing strategies.

• The managing director leads the organization, making strategic decisions and overseeing operations.

• The managing director manages the company's social media accounts.

Answer explanation

The managing director is crucial in an organization, as they lead the company, make strategic decisions, and oversee operations, rather than focusing on hiring, marketing, or social media.

How does the organizational structure show relationships between departments?

• Departments operate independently without any defined structure or connections.

• Organizational structure is solely based on employee performance metrics.

• The organizational structure shows relationships between departments through visual representations like organizational charts that depict hierarchy and interconnections.

• The organizational structure only lists the names of departments without showing their relationships.

Answer explanation

The correct choice highlights that organizational structure visually represents relationships between departments, using tools like organizational charts to illustrate hierarchy and interconnections.