Organizational Structure Quiz
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Questions and Answers

What is the primary goal of quality assurance?

  • To check quality standards after production
  • To minimize costs
  • To ensure maximum production speed
  • To achieve quality by preventing mistakes (correct)

Total Quality Management focuses on achieving zero defects in products and processes.

True (A)

What does TQM stand for?

Total Quality Management

Quality assurance emphasizes ________ rather than checking by inspectors at the end of the process.

<p>self-checking</p> Signup and view all the answers

Match the following concepts with their descriptions:

<p>Quality Assurance = Checking quality standards throughout production Total Quality Management = Continuous improvement of quality Location Decision = Choosing a site for business operations Self-Checking = Individual responsibility for quality checks</p> Signup and view all the answers

Which method involves employees observing experienced coworkers to learn job skills?

<p>Shadowing (D)</p> Signup and view all the answers

Off-the-job training occurs within the workplace.

<p>False (B)</p> Signup and view all the answers

Name one benefit of employee training.

<p>Increased productivity</p> Signup and view all the answers

Reduction in workforce size due to machinery taking over roles is an example of __________.

<p>redundancy</p> Signup and view all the answers

Match the following reasons for workforce reduction with their descriptions:

<p>Lower product demand = Employees are let go due to decreased sales. Relocation = Moving business operations to a more cost-effective location. Redundancy = Job positions no longer exist. Dismissal = Termination due to rule violations or incompetence.</p> Signup and view all the answers

What is the term for when an employee leaves a job on their own accord?

<p>Resignation (D)</p> Signup and view all the answers

Dismissal can occur for either incompetence or breaking company rules.

<p>True (A)</p> Signup and view all the answers

What might happen to employees if an organization automates their roles?

<p>They may be made redundant.</p> Signup and view all the answers

Which redundancy system prioritizes the retention of longer-serving employees?

<p>Last in First Out System (C)</p> Signup and view all the answers

Voluntary redundancy is when employees are forced to leave their jobs.

<p>False (B)</p> Signup and view all the answers

What is the primary purpose of having Human Resources professionals in a business?

<p>To ensure compliance with employment laws and fair treatment of employees.</p> Signup and view all the answers

An ______ contract is a legally binding agreement between an employer and an employee.

<p>employment</p> Signup and view all the answers

Match the following key components of an employment contract with their descriptions:

<p>Job Title and Description = Specifies role and duties Working Hours = Outlines hours and breaks Salary and Benefits = Details pay and perks Notice Period = Indicates time before termination</p> Signup and view all the answers

What can happen if a business violates employment laws?

<p>Legal action and damaged reputation (D)</p> Signup and view all the answers

Employees close to retirement are often prioritized for redundancy.

<p>True (A)</p> Signup and view all the answers

List one legal component that must be included in an employment contract.

<p>Job Title and Description, Working Hours, Salary and Benefits, Holiday Entitlement, Notice Period.</p> Signup and view all the answers

What characterizes a tall organizational structure?

<p>A long chain of command with a small span of control (D)</p> Signup and view all the answers

A flat organizational structure has a long chain of command.

<p>False (B)</p> Signup and view all the answers

What is the chain of command?

<p>The structure that allows instructions to be passed from senior managers to lower levels of management.</p> Signup and view all the answers

In a short chain of command, communication is _________ and more _________.

<p>quicker, accurate</p> Signup and view all the answers

Match the organizational structure types with their characteristics:

<p>Tall structure = Long chain of command, small span of control Flat structure = Short chain of command, wide span of control Chain of command = Mechanism for instructions flow Span of control = Number of employees under a manager</p> Signup and view all the answers

Which of the following is an advantage of a short chain of command?

<p>Encourages delegation of responsibility (B)</p> Signup and view all the answers

A wider span of control typically results in a longer chain of command.

<p>False (B)</p> Signup and view all the answers

What is meant by 'span of control'?

<p>The number of employees working directly under a manager.</p> Signup and view all the answers

What is the first step in the employee selection process?

<p>Shortlisting (C)</p> Signup and view all the answers

An unstructured interview has a fixed set of questions asked to all candidates.

<p>False (B)</p> Signup and view all the answers

What is the purpose of a job description?

<p>To detail the job role, responsibilities, and expectations.</p> Signup and view all the answers

The process of identifying the qualities, skills, and experience required for a role is known as _________.

<p>Person Specification</p> Signup and view all the answers

Match the following recruitment methods with their descriptions:

<p>Employee Referrals = Employees recommend candidates for a position Recruitment Agencies = Third-party services helping find candidates Job Advertisements = Promoting job openings through media and websites Headhunting = Direct recruitment for senior-level positions</p> Signup and view all the answers

Which of the following is NOT a type of testing done during the selection process?

<p>Reference Checks (D)</p> Signup and view all the answers

Advertising a job is only necessary for external recruitment.

<p>False (B)</p> Signup and view all the answers

What type of tests measure general skills like numerical ability or logical thinking?

<p>Aptitude Tests</p> Signup and view all the answers

Flashcards

Organizational Structure

The way roles, authority, and responsibilities are organized within a company.

Organizational Chart

A visual representation of the organizational structure, showing reporting relationships and hierarchy.

Tall Organizational Chart

A tall chart has many levels of management with a small number of people reporting to each manager.

Flat Organizational Chart

A flat chart has fewer levels of management with a large number of people reporting to each manager.

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Chain of Command

The line of authority from the top to the bottom of an organization.

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Span of Control

The number of employees directly supervised by a manager.

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Short Chain of Command

A shorter chain of command means communication is faster because there are fewer levels to go through.

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Advantages of Wider Span of Control

Managers with a wider span of control often delegate tasks to subordinates, leading to greater employee motivation.

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Recognizing the need for a new employee

The process of identifying the need for a new employee due to factors like company growth, employee turnover, or expansion.

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Internal vs. External Recruitment

The decision to fill a job vacancy through internal or external recruitment.

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Job Description

A document outlining the job role, responsibilities, and expectations, including tasks, reporting structure, and work hours.

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Person Specification

A document that defines the skills, qualifications, and experience required for the role, like education, experience, and soft skills.

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Advertising the Job

The process of finding the best candidates for a job by publishing advertisements.

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Shortlisting Candidates

Shortlisting is the process of narrowing down candidates who meet the job criteria.

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Job Interviews

Interviews are used to assess candidates' suitability for the job, either through structured questions, open-ended discussions, or group interviews.

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Candidate Testing

Tests are used to measure candidates' skills, abilities, and personality traits, helping employers assess their suitability for the specific role.

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On-the-Job Training

Training that takes place while employees are working, including job rotation, shadowing, and mentoring.

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Off-the-Job Training

Training that occurs outside of the regular work environment, such as attending courses, workshops, or seminars.

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Resignation

When an employee voluntarily decides to leave their job, usually to pursue other opportunities or due to personal changes.

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Retirement

When an employee reaches a specific age and is legally required to stop working.

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Redundancy

When a company eliminates a job position due to a lack of work or other factors, and the employee is no longer needed.

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Dismissal

When an employee is dismissed from their job for breaking company rules or for not meeting performance standards.

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Downsizing

The practice of reducing the size of a company's workforce, often due to financial pressures or changes in the business.

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Overstaffed

A situation where a company has more employees than it needs, often leading to downsizing.

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Last In, First Out (LIFO) System

A system where the last employee hired is the first to be let go if a company needs to downsize.

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Employment Contract

A legally binding agreement between an employer and an employee that outlines the terms and conditions of their work relationship.

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Job Title and Description

The specific role an employee will hold and the tasks they are responsible for.

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Working Hours

The number of hours an employee is expected to work, including any overtime, shifts, and breaks.

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Salary and Benefits

The amount an employee is paid, how often they are paid, and any additional benefits like bonuses or company perks.

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Holiday Entitlement

The number of paid vacation days an employee is entitled to and any rules about taking leave.

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Notice Period

The amount of notice either the employee or the employer must give before ending the employment contract.

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Quality Assurance

Checking quality standards throughout the production process to ensure products meet a certain level. It aims to catch errors as early as possible, prevent mistakes, and achieve quality 'right first time'.

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Total Quality Management (TQM)

A specific approach to quality assurance that cultivates a quality-focused culture within a whole organization. It focuses on continuous improvement of processes and products, aiming for zero defects and getting things right the first time.

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Location Decisions

The process of choosing a location for a business to operate from. This happens during initial setup or when a business needs to relocate due to changes in needs, cost, or opportunity.

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What makes a location more attractive?

A site that is more appealing or profitable to a business, like cheaper rent, proximity to suppliers, or better infrastructure.

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Batch Production

A production method where a set quantity of one product is made before switching to another. Think of a bakery making a batch of cookies, then a batch of bread.

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Flow Production (Mass Production)

A production method where large amounts of a product are made continuously on an assembly line, like car manufacturing.

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Why Errors Are Expensive In Batch Production

Costly to fix problems after production, as many items are already made.

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Material Purchasing in Batch Production

Materials required for production are bought in smaller amounts due to varied products.

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Flexibility in Batch Production

Production can be easily adjusted to make different products.

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Cost of Moving in Batch Production

Moving semi-finished products around to different stages in the process can be expensive.

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High Storage Costs in Batch Production

Storing a lot of different products until sold requires space and cost.

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Machine Resetting in Batch Production

Machines need to be reset between different batches, which can be time-consuming.

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Study Notes

Organizational Structure

  • Organizational structure dictates how responsibility and authority are shared within a business.
  • Two common types are tall and flat organizational charts.
  • Tall organizational charts have a long chain of command and a narrow span of control.
  • Flat organizational charts have a short chain of command and a wide span of control.

Advantages of an Organizational Chart

  • Clearly shows how every individual contributes to the overall business.
  • Demonstrates clear lines of communication.
  • Aids in motivating employees by showing career paths.

Chain of Command

  • The chain of command outlines the organizational structure for instruction flow from senior management to lower levels of management.
  • A shorter chain of command often corresponds with a wider span of control, and vice-versa.

Advantages of a Short Chain of Command

  • Communication is quicker and more accurate.
  • Top managers are more engaged with lower employees.
  • Higher employee motivation results from delegation and trust.

De-layering

  • Removal of management levels to reduce costs.
  • Encourages delegation to lower levels of management.
  • Can lead to increased workload for remaining management.

Centralized Decision-Making

  • Key decisions are made by top management, typically senior executives or the board of directors.
  • Decisions are typically consistent across the organization.
  • Strong control over operations and consistent implementation of company goals.

Disadvantages of Centralized Decision-Making

  • Lower-level employees may feel disempowered.
  • Decision processes may be slow and inflexible.
  • Fewer innovations from lower-level employees are possible.

Decentralized Decision-Making

  • Decision-making authority is shared among multiple levels.
  • Middle and lower-level managers make decisions based on their area of responsibility.
  • Encourages flexibility and quick response to issues.

Advantages of Decentralized Decision-Making

  • Faster responses to changes in local circumstances.
  • Increased employee motivation by providing more autonomy.
  • More creative and innovative ideas from lower levels.

Disadvantages of Decentralized Decision-Making

  • Potential inconsistency across departments.
  • Difficulty coordinating overall company objectives.
  • Reduced control by senior management.

Recruitment, Selection and Training

  • The process of attracting, identifying, and selecting suitable candidates for open positions.
  • Internal recruitment is filling vacancies with existing employees.
  • External recruitment involves hiring from outside the company.
  • Key steps include job analysis, description, person specification, advertising, selection (shortlisting, interviews, testing, background checks).

Benefits of Training

  • Increased productivity.
  • Improved employee motivation.
  • Reduced employee turnover.
  • Easier adaptation to changes in the workplace.

Reasons for Reducing Workforce Size

  • Lower demand for products.
  • Machinery or AI taking over roles.
  • Shifting production to regions with lower costs.
  • Employment contract is a legally binding agreement outlining the terms and conditions of employment.
  • Protection from unfair dismissal, discrimination is provided by laws.
  • Businesses must ensure compliance with legal requirements regarding health and safety, employee rights and other relevant matters.

Production of Goods and Services

  • Production involves providing goods to meet consumer needs.
  • Operations management focuses on transforming inputs into outputs.
  • Key roles include factory managers, purchasing managers, and research and development managers.
  • Productivity measures output relative to input.

How to Improve Efficiency and Productivity

  • Enhance quality of products and inventory control.
  • Replace labor with technology, particularly repetitive tasks.
  • Improve training and development for employees.
  • Introduction of new technology in operations.

Lean Production

  • Lean production aims to minimize waste and maximize efficiency.
  • Aims are to cut down on overproduction, waiting, transportation, unnecessary inventory and motion, over-processing, and defects.
  • Techniques include just in time inventory control methods.

Location Decisions

  • Location is crucial to a business.
  • Factors impacting location choices include availability of workers, proximity to customers and/or supplies, access to efficient transportation, and financial incentives.
  • Consideration of factors like trade barriers, lower taxes and labour costs is vital for international locations.

Quality Control and Quality Assurance

  • Quality control is verifying quality at the conclusion of the production process.
  • Quality assurance involves checking quality throughout the production process.
  • The emphasis is on preventing imperfections from arising in the first place.
  • Total Quality Management (TQM) seeks to develop a corporate quality culture.

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Description

Test your understanding of organizational structures, including types such as tall and flat charts. Learn about the advantages of clear chains of command and how organizational charts influence communication within a business. This quiz will help reinforce your knowledge of these fundamental business concepts.

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