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Questions and Answers
What does authority flow downwards only in the line organization?
What does authority flow downwards only in the line organization?
- Functional organizational chart
- Committee organizational chart
- Line organizational chart (correct)
- Staff organizational chart
In which type of organizational chart is every employee clear about who they are answerable to and who is accountable for them?
In which type of organizational chart is every employee clear about who they are answerable to and who is accountable for them?
- Functional organizational chart
- Committee organizational chart
- Line organizational chart (correct)
- Staff organizational chart
What is a key advantage of the line organizational structure mentioned in the text?
What is a key advantage of the line organizational structure mentioned in the text?
- Overloading of the executive
- Lack of specialization
- Unified control
- Quick decisions made (correct)
Why might a line organizational structure face challenges with lack of specialization?
Why might a line organizational structure face challenges with lack of specialization?
In which setting is the line organizational structure commonly found according to the text?
In which setting is the line organizational structure commonly found according to the text?
Which type of organizational chart depicts a straight line of command?
Which type of organizational chart depicts a straight line of command?
Which of the following factors does not influence the span of control?
Which of the following factors does not influence the span of control?
What does the term 'authority' refer to in an organizational context?
What does the term 'authority' refer to in an organizational context?
Which concept best illustrates the unofficial relationships that exist in a firm?
Which concept best illustrates the unofficial relationships that exist in a firm?
How does an organizational chart illustrate the hierarchy system in an organization?
How does an organizational chart illustrate the hierarchy system in an organization?
Which of the following factors determines the placement of individuals on an organization chart?
Which of the following factors determines the placement of individuals on an organization chart?
What is the primary function of an organizational structure?
What is the primary function of an organizational structure?
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Study Notes
Organizational Structure
- Refers to the way a business is structured to achieve maximum efficiency
- Defines how activities such as task allocation, coordination, and supervision are directed towards the achievement of organizational aims
Types of Organizational Charts
- Line Chart: depicts a straight line of command, authority flows downwards only
- Staff Chart: not mentioned in detail
- Functional Chart: not mentioned in detail
- Committee Chart: not mentioned in detail
Line Organizational Structure
- Found in schools or the military
- Authority flows downwards only
- Advantages:
- Simplicity: easy to understand and implement
- Fixed Responsibility: every employee knows who they are accountable to
- Unified Control: good control and direction
- Quick Decisions: made quickly
- Flexibility: adaptable to changing circumstances
- Disadvantages:
- Overloading of the Executive: too many duties to manage independently
- Lack of Specialization: different jobs are supervised, leading to a lack of expertise
Organizational Charts
- A diagram of the organization of an enterprise
- Pyramid shape illustrates the hierarchy system
- The most senior position is placed at the apex, with the pyramid getting wider towards the bottom
- Those with the power to issue commands have authority in an organization
- The sales manager has authority in the Sales department, with all persons with the same level of authority placed at the same level on the chart
Responsibility and Authority
- Responsibility: the capacity to accept duties and carry out tasks
- Authority: the power to issue commands, with those having authority placed at the same level on the chart
Span of Control
- Refers to the number of subordinates a supervisor has
- Factors that influence the span of control:
- Competence, skill, and experience of workers
- Nature of the job (complexity)
- Skill of the manager
- Motivation of workers
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