Organisational Structures
Overview
A driver on a delivery round in Lima finds a customer's gate locked and nobody answering. He has two choices. He can leave the parcel with the neighbour and note it on the sheet, or he can call his supervisor, who calls the depot manager, who checks with the customer service team, who telephone the customer, and by the time an answer comes back the van is nine streets away. Nothing about that difference is a rule of logistics. It is a decision the business made months earlier about who is allowed to decide.
This lesson is about that decision and its consequences. You will learn to read an organisational structure the way an examiner does, counting spans of control and levels in the chain of command rather than admiring the shape. You will work out what changes when a business is tall rather than flat, what delegation actually transfers and what it does not, why delayering saves money and costs something else, and where the line between a centralised and a decentralised business really falls. Two of the four multiple choice questions on the November 2020 Paper 1 came from this single topic, so it is worth more marks than its three objectives suggest.
Objectives
- Organisational structures.
- Appropriateness of organisational structures.
- Centralisation and decentralisation.
Mind map
This topic is mapped out so you can see how the ideas connect.
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Lesson Note
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Lesson Evaluation
Congratulations on completing the lesson on Organisational Structures. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.
You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.
Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.
- A manager has 3 supervisors reporting directly to her. Each supervisor has 8 operatives reporting to them. What is the manager's span of control? A. 3 B. 8 C. 11 D. 24 Answer: A
- What term describes an organisational structure where decision-making power is spread out among all levels of the structure? A. Centralised B. Decentralised C. Delayered D. Hierarchical Answer: B
- Which one of the following is most likely to happen when a business delayers? A. The chain of command becomes longer B. Spans of control become narrower C. Spans of control become wider D. The number of employees increases Answer: C
- Which one of the following can a manager NOT pass to a subordinate when delegating? A. Authority to make a decision B. Accountability for the outcome C. The task itself D. The information needed to do the task Answer: B
- Which one of the following is a likely disadvantage of a tall organisational structure? A. Employees are supervised too little B. There are few opportunities for promotion C. Communication between the top and the bottom is slow D. Managers each have too many subordinates Answer: C
Work through these questions in the app
Work through these questions in the app
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