Organisational Design Quiz

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Questions and Answers

What is one positive effect of labour turnover in an organization?

New staff bring fresh ideas and skills to the business.

How does organizational design contribute to a business?

It aligns the structure of a business with its aims and objectives.

Define authority in the context of a business.

Authority is the power of a person to use and allocate resources to achieve business objectives.

What is the role of responsibility in the workplace?

Responsibility is the duty to perform tasks to the required standard. Signup and view all the answers

What defines the hierarchy of a business?

The hierarchy is the order or levels of management from the highest to the lowest rank. Signup and view all the answers

Explain the term 'span of control.'

Span of control is the number of employees directly under a manager's supervision. Signup and view all the answers

What is the difference between a wide and narrow span of control?

A wide span allows greater decision-making powers, while a narrow span involves closer supervision. Signup and view all the answers

How does a narrow span of control benefit a business?

It results in better control of employees' activities through closer supervision. Signup and view all the answers

What is the primary purpose of organisational design?

To align the structure of a business with its aims and objectives for improved efficiency and effectiveness. Signup and view all the answers

How does authority differ from responsibility in a business context?

Authority is the power to allocate resources, while responsibility is the duty to perform tasks to a required standard. Signup and view all the answers

Define a business hierarchy and its significance.

A business hierarchy is the order of management levels from highest to lowest rank, demonstrating the chain of command. Signup and view all the answers

What is meant by a chain of command?

It refers to the organization of authority to make decisions within a business. Signup and view all the answers

Explain the difference between a wide and a narrow span of control.

A wide span of control allows more employees under a manager, promoting decision-making, while a narrow span provides closer supervision of fewer employees. Signup and view all the answers

What is the effect of a wide span of control on employee job satisfaction?

It may improve job satisfaction as employees have greater decision-making powers. Signup and view all the answers

How does a narrow span of control contribute to employee oversight?

It results in closer supervision, which can lead to better control of employee activities. Signup and view all the answers

Why might a sole trader represent the ultimate form of authority in a business?

Because they have complete power to make decisions and allocate resources to achieve business objectives. Signup and view all the answers

Study Notes

Organisational Design

Aligns business structure with aims and objectives to enhance efficiency and effectiveness.
Essential for improving productivity within the organisation.

Authority

Defined as the power to use and allocate resources for achieving business objectives.
For sole traders, the individual is the primary source of authority.

Responsibility

Involves the obligation to perform tasks to required standards.
Example: Workers in a production line may have quotas to meet per hour, emphasizing accountability.

Hierarchy of a Business

Represents levels of management from highest to lowest rank.
Illustrates the chain of command, indicating lines of authority throughout the organisation.

Chain of Command

Organises decision-making authority within the organisation.
Helps clarify who is responsible for making certain decisions.

Span of Control

Refers to the number of subordinates directly reporting to a manager.
A wide span of control allows more employees to make decisions, potentially leading to increased job satisfaction.
A narrow span of control limits decision-making power for employees but enables closer supervision for better control over their activities.

Positive Effects of Labour Turnover

Introduction of new staff can bring innovative ideas and skills to the workplace.
Fresh perspectives may challenge inefficient or outmoded practices.
Can lead to increases in overall productivity, refreshing organisational dynamics.

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Description

Test your understanding of organisational design and its key concepts such as authority and responsibility. This quiz will help you assess how well you can align a business's structure with its aims to enhance efficiency. Dive into the essential elements that contribute to effective organisational practices.