Term
| What is meant by organizational structure? |
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Definition
| This refers to the levels of management and division of responsibilities within an organization. |
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Term
| How, as a business expands and employs more people, will the organizational chart be likely to change? |
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Definition
| The structure will probably show more levels of hierarchy as more managers are needed to deal with a larger business. More levels in the organization widens the spans of control. |
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Term
| Explain how an organizational chart for a business could be useful when informing new employees about the business. |
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Definition
| It shows who should report to which manager. |
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Term
| What do you understand by the term delegation? |
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Definition
| Delegation means passing down authority to the lower levels. |
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Term
| Why might it be important for a busy manager to delegate to other members of staff? |
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Definition
| Gives manager more time to concentrate on more strategic issues. It also helps train people to accept authority and prepare to be managers themselves. |
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Term
| Examine two possible benefits and one drawback that could result from delegation for the manager. |
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Definition
A: more time for strategic work, managers are less likely to make mistakes
D: may be loss of control |
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Term
| Explain what is meant by the term span of control. |
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Definition
| The number of people that a manager is directly responsible for. |
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Term
| Explain the difference between line and staff managers. |
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Definition
| Staff managers are specialists who provide support to all sections in the business. Line managers are part of the chain in command carrying out the primary purpose of the business. |
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Term
| Explain one benefit to a firm of all existing staff knowing the organizational structure of the business. |
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Definition
| Employees are aware where they fit into the organization. |
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Term
| Explain what is meant by the term functional department. |
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Definition
| A section of the business with responsibility. |
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Term
| Give 2 examples of decisions that you think would be made by the Board of Directors and not decentralized to lower level managers. Explain. |
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Definition
| Overall objectives and new organizational proposals. |
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