Principles of Organisation and Management Span
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Questions and Answers

What is the primary purpose of every member of the organization being familiar with its goals?

  • To enhance team spirit
  • To ensure personal success
  • To concentrate all efforts on common objectives (correct)
  • To promote individual roles

    • What is the advantage of dividing work into various parts within an organization?

  • Reduces the number of employees needed
  • Increases the need for supervision
  • Encourages competition between departments
  • Facilitates specialization leading to efficiency and quality (correct)

    • Why is it important to clearly define every position in the organization?

  • To create a hierarchical structure
  • To avoid overlapping functions and clarify responsibilities (correct)
  • To foster rivalry among employees
  • To ensure promotions are based on clear metrics

    • What is the significance of separating line functions from staff activities?

    <p>To better achieve the main objectives of the company</p> Signup and view all the answers

    What must be ensured regarding areas of specialization in an organization?

    <p>They are interrelated through coordination of activities</p> Signup and view all the answers

    What type of organizational structure does IBM utilize?

    <p>Matrix structure</p> Signup and view all the answers

    Which major division is NOT part of IBM's organizational structure?

    <p>Digital Marketing Services</p> Signup and view all the answers

    How does Netflix specifically increase the significance of the Original Programming division?

    <p>By increasing the production of original content</p> Signup and view all the answers

    What is one of IBM's primary missions?

    <p>To help clients leverage technology for innovation</p> Signup and view all the answers

    What is the role of functional departments within IBM's organizational structure?

    <p>To support the entire organization across different business units</p> Signup and view all the answers

    What is referred to as the span of management?

    <p>The number of employees a manager can effectively supervise</p> Signup and view all the answers

    Which statement about a narrow span of management is true?

    <p>It allows for closer and more personalized supervision.</p> Signup and view all the answers

    What is a potential disadvantage of a narrow span of management?

    <p>Increased bureaucracy and hierarchy.</p> Signup and view all the answers

    Which factor can enable a manager to handle a wider span of management?

    <p>Strong leadership and delegation skills</p> Signup and view all the answers

    What does a wide span of management typically result in?

    <p>Decentralization and employee empowerment</p> Signup and view all the answers

    Which of the following is an influencing factor on the span of management?

    <p>Nature of the work being done</p> Signup and view all the answers

    What is the primary purpose of an organization chart?

    <p>To illustrate the organizational hierarchy and relationships</p> Signup and view all the answers

    Which of the following is NOT a use of an organization chart?

    <p>Increasing employee salaries</p> Signup and view all the answers

    What is one major benefit of formal organizations regarding decision-making?

    <p>Decisions are made based on rationality, information, and data.</p> Signup and view all the answers

    Which aspect of formal organizations contributes to their ability to maintain stability and continuity?

    <p>Structured processes that remain constant despite personnel changes.</p> Signup and view all the answers

    What is a common limitation of formal organizations in terms of creativity?

    <p>Rigidity in rules and hierarchies stifling innovation.</p> Signup and view all the answers

    How can formal organizations negatively impact communication?

    <p>By creating hierarchies that lead to communication barriers.</p> Signup and view all the answers

    What does a formal organization prioritize that might limit its response to exceptional situations?

    <p>Adherence to rules and procedures.</p> Signup and view all the answers

    Which aspect of Amazon's organization aligns with the concept of being customer-centric?

    <p>Mission to be Earth's most customer-centric company.</p> Signup and view all the answers

    What is a potential drawback of the impersonal relationships fostered in formal organizations?

    <p>Decreased teamwork, affecting collaboration.</p> Signup and view all the answers

    What may happen to a formal organization that loses its customer focus?

    <p>It may neglect customer expectations in favor of internal processes.</p> Signup and view all the answers

    What is one of the primary benefits of an organizational chart?

    <p>It shows organizational activities and identifies responsible persons.</p> Signup and view all the answers

    Which organizational structure is characterized by having little or no levels of middle management?

    <p>Flat Structure</p> Signup and view all the answers

    What limitation is associated with a hierarchical organizational chart?

    <p>It neglects to represent informal relationships.</p> Signup and view all the answers

    What factor can significantly affect the structure of an organizational chart?

    <p>Size of the organization</p> Signup and view all the answers

    Which of the following is a characteristic of a matrix organizational chart?

    <p>It often leads to conflicts of interest.</p> Signup and view all the answers

    How does the nature of work affect organizational structure?

    <p>Specialized functions often necessitate a complex organizational structure.</p> Signup and view all the answers

    What may be a consequence of introducing an organizational chart?

    <p>It helps new employees understand their relationships.</p> Signup and view all the answers

    In which scenario is a hierarchical structure most likely utilized?

    <p>In large manufacturing companies with clear reporting practices.</p> Signup and view all the answers

    Which statement about the limitations of organizational charts is true?

    <p>They can lead to misunderstanding due to formalized authority.</p> Signup and view all the answers

    How can organizational goals influence chart structure?

    <p>By dictating the need for a flatter structure for innovation.</p> Signup and view all the answers

    Study Notes

    Principles of Organisation

    • Unity of Objective: All members should be aware of and work towards achieving the same goals.
    • Division of Work & Specialisation: Divide work into specialized tasks for efficiency and quality, but ensure coordination across departments.
    • Definition of Jobs: Clearly define responsibilities and relationships between positions within the organisation to prevent overlap.
    • Separation of Line & Staff Functions: Separate operational activities (line) from support roles (staff) whenever possible.

    Span of Management

    • Narrow Span: Manager oversees a small number of subordinates, allowing for closer supervision but leading to a hierarchical, potentially less efficient structure.
    • Wide Span: Manager oversees a larger number of subordinates, promoting a flatter structure, decentralization, and employee empowerment.

    Influencing Factors for Span of Management

    • Nature of Work: Complex tasks require a narrower span, routine tasks allow for a wider span.
    • Managerial Skills: Effective managers can handle a wider span.
    • Technology: Tools like project management software enable wider spans.
    • Organisational Culture: Some organizations prefer flatter structures and wider spans.

    Organisation Chart

    • Definition: A visual representation of an organization's structure, showing relationships between individuals and departments.
    • Uses: Assign responsibilities, identify control, simplify management, facilitate budgeting and scheduling, provide security, outline fundamental relationships, establish authority, support communication, serve as a reference document.
    • Benefits: Show organizational activities, identify responsibility, clarify reporting relationships, define job scope, illustrate interrelationships, resolve complexities, introduce organizational relationships to new employees.
    • Limitations: Does not represent human relationships, can create obstacles, shows only formal authority relationships, does not depict authority at all points, requires updates for changes in hierarchy.

    Types of Organisation Charts

    • Hierarchical: Most common type, resembling a pyramid with levels of authority.
    • Matrix: Employees have multiple managers, promoting communication and cooperation, but potentially leading to conflicts.
    • Flat: Limited to two levels (top administrators & workers), empowering workers and encouraging direct involvement in decision-making.

    Factors Affecting Organizational Chart

    • Size of Organisation: Smaller organizations have simpler structures, larger ones have more hierarchical and complex charts.
    • Nature of Work: Specialized and diverse functions require complex structures, single core function organizations have simpler structures.
    • Industry and Sector: Different industries have specific structures, e.g., manufacturing vs. creative agencies.
    • Organizational Goals and Strategy: Objectives like innovation or rapid product development influence structure.

    Importance of Formal Organisation

    • Decision-Making: Established procedures for rational and data-driven decisions.
    • Accountability: System for individuals to be responsible for actions and outcomes.
    • Stability and Continuity: Organization functions regardless of individual personnel changes.
    • Efficiency and Productivity: Improves operations by defining processes, roles, and responsibilities.

    Limitations of Formal Organisation

    • Rigidity: Stifles creativity, limits adaptation to change.
    • Communication Barriers: Creates hierarchy-based communication barriers.
    • Impersonal Relationships: Affects teamwork and employee satisfaction.
    • Overemphasis on Rules & Procedures: Limits flexibility and problem-solving.
    • Lack of Customer Focus: Prioritizes internal processes over customer needs.

    Amazon (Example)

    • Mission: Earth's most customer-centric company where customers can find anything online.
    • Organisational Design: Supports marketing effectiveness through geographical divisions.
    • Structure: Supports content distribution and production through divisions like Original Programming.

    IBM (Example)

    • Mission: Help clients leverage technology to drive innovation and growth.
    • Organisational Structure: Matrix structure combining functional and divisional elements.
    • Divisions: Cloud and Cognitive Software, Global Business Services, Systems.
    • Functional Departments: Finance, Human Resources, Legal.
    • Global Matrix: Employees belong to both business units and functional departments.

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    Organization and Organization Structure PDF

    Description

    This quiz covers key principles of organization including unity of objectives, division of work, and defining job roles. It also explores the concept of span of management, discussing narrow vs. wide spans and their impact on organizational efficiency. Test your knowledge on how these principles influence effective management.

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