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What is an organisational structure?

The internal, formal framework of a business that shows how management is organised, how authority is passed down, and how reporting relationships and communication lines are structured.

What is a hierarchy in business?

A system where people or groups are ranked one above another according to status or authority. Usually shown as layers from top management to shop-floor workers.

What is span of control?

The number of employees (subordinates) for whom a manager is directly responsible.

What is chain of command?

The formal route through which authority passes down from the chief executive through the organisation. Instructions flow down; information flows up.

What are levels of hierarchy?

The number of layers or tiers in an organisational structure from top to bottom.

What is a tall (mechanistic or vertical) structure?

Many layers of hierarchy, narrow span of control, longer chain of command. Communication is slower but supervision is closer. Example: UK civil service.

What is a flat (horizontal or organistic) structure?

Few or no middle management layers, wide span of control, decentralised decision-making. Faster communication and more employee empowerment. Example: Valve Corporation.

Give two advantages of a flat structure.

1. Faster decision-making. 2. Greater employee empowerment and motivation.

Give two disadvantages of a tall structure.

1. Slow communication and decisions. 2. Bureaucratic and inflexible.

What is delayering?

Removal of one or more levels of hierarchy from an organisational structure to reduce costs and shorten the chain of command.

Give one benefit and one risk of delayering.

Benefit: Reduced costs and faster communication. Risk: Increased workload and stress for remaining managers.

What is centralisation?

Keeping all important decision-making powers within head office or the centre of the organisation.

What is decentralisation?

Passing decision-making powers down to empower subordinates, regional managers, or product managers.

Give one advantage of centralisation.

Consistent policies and standardised approach across the whole organisation. Example: McDonald's.

Give one advantage of decentralisation.

Decisions reflect local conditions and customer needs, leading to better customer focus and faster responses.

What is a matrix organisational structure?

Employees with similar skills are put together into project teams and report to more than one manager (e.g., both a functional manager and a project manager).

Give one advantage and one disadvantage of a matrix structure.

Advantage: Cross-functional collaboration and flexibility. Disadvantage: Dual reporting can cause confusion over who to listen to.

What is organisational culture?

The shared values, attitudes, beliefs, and practices that characterise how employees work, interact, and represent the business.

Name the four types of organisational culture in Cameron and Quinn's framework.

1. Clan (family-like, collaborative). 2. Adhocracy (dynamic, risk-taking, innovative). 3. Market (competitive, results-driven). 4. Hierarchy (structured, formal, efficient).

What is a job description?

A detailed document listing the key tasks, duties, responsibilities, reporting lines, and working conditions of a job.

What is a person specification?

A document listing the qualifications, experience, skills, and personal attributes an ideal candidate should have for a job.

What is internal recruitment?

Filling a vacancy from within the existing workforce (promotion or transfer).

Give two benefits of internal recruitment.

1. Cheaper and faster (no advertising). 2. Candidate already knows the business culture.

Give two benefits of external recruitment.

1. Brings new ideas and fresh perspectives. 2. Wider talent pool to choose from.

Give one disadvantage of external recruitment.

More expensive, slower process, and risk of poor cultural fit despite good qualifications.

What is shortlisting?

Reducing a large number of applicants to a smaller list of candidates to be interviewed, based on the person specification.

Name three selection methods besides face-to-face interviews.

1. Psychometric tests (personality). 2. Aptitude tests (specific skills). 3. Telephone or video interviews (initial screening).

What is induction training?

Training given to new recruits to introduce them to the organisation, their colleagues, health and safety, and their role.

What is on-the-job training?

Instruction at the normal workplace, often by shadowing an experienced worker ("sitting next to Nellie").

Give one advantage and one disadvantage of on-the-job training.

Advantage: Cheaper and tailored to the business. Disadvantage: Bad habits can be passed on; trainer may not be a good teacher.

What is off-the-job training?

Training undertaken away from the workplace, such as at a college, university, or specialist training centre.

Give one advantage and one disadvantage of off-the-job training.

Advantage: Employees feel valued; can focus without workplace distractions. Disadvantage: Expensive (course fees + lost working time).

What is a training needs analysis (TNA)?

A process to identify the gap between current employee skills and the skills needed to achieve business goals, ensuring training is effective and not wasted money.

Name two methods of evaluating training effectiveness.

1. Reaction (feedback forms). 2. Results (sales figures, error reduction).

What are the five functions of management according to Fayol?

1. Planning, 2. Organising, 3. Commanding (Leading), 4. Coordinating, 5. Controlling.

What are Peter Drucker's five management tasks?

1. Setting objectives, 2. Organising resources, 3. Motivating and communicating, 4. Measuring performance, 5. Developing people.

Name Mintzberg's three categories of management roles.

Interpersonal, Informational, Decisional.

What is an autocratic leadership style?

Leader makes decisions unilaterally without consulting employees. Communication is one-way (top-down). Employees are expected to follow instructions precisely.

Give one advantage and one disadvantage of autocratic leadership.

Advantage: Fast decision-making in emergencies. Disadvantage: Demotivates skilled employees and stifles creativity.

What is a democratic leadership style?

Leader involves employees in decision-making, encourages two-way communication and employee input. Final decision often remains with the leader.

Give one advantage and one disadvantage of democratic leadership.

Advantage: Higher employee motivation and better quality decisions. Disadvantage: Slower decision-making process.

What is a laissez-faire leadership style?

Leader provides minimal direction, allowing employees significant autonomy and independence. Works best with highly skilled, motivated teams.

Give one advantage and one disadvantage of laissez-faire leadership.

Advantage: Fosters creativity and innovation. Disadvantage: Lack of direction may cause confusion with inexperienced employees.

What is a paternalistic leadership style?

Leader acts as a 'father figure', making decisions with employees' best interests in mind while maintaining authority. Common in Asian and Central Asian business cultures.

According to McGregor's Theory X, how do managers view employees?

Employees are inherently lazy, dislike work and responsibility, lack initiative, and are largely motivated by money.

According to McGregor's Theory Y, how do managers view employees?

Employees enjoy work (if conditions are right), accept responsibility, are creative and willing to contribute, and are not just motivated by money.

What is the 'self-fulfilling prophecy' in McGregor's Theory X and Y?

Managerial assumptions about workers shape employee behaviour. Theory X assumptions lead to tight controls and demotivation. Theory Y assumptions lead to trust and higher productivity.

In Blake and Mouton's Leadership Grid, what does (9,9) represent?

Team Leader - High concern for both people and production. The ideal style achieving results through committed, motivated teams.

In Blake and Mouton's Grid, what does (1,9) represent?

Country Club - High concern for people, low concern for production. Creates comfortable atmosphere but may sacrifice results.

In Blake and Mouton's Grid, what does (9,1) represent?

Authoritarian - High concern for production, low concern for people. Task-focused, may generate resentment and high turnover.

In Blake and Mouton's Grid, what does (5,5) represent?

Middle of the Road - Moderate concern for both people and production. Achieves adequate but not outstanding performance.

In Blake and Mouton's Grid, what does (1,1) represent?

Impoverished - Low concern for both people and production. Minimal effort to get work done or build relationships.

According to Tannenbaum and Schmidt's Continuum, name the four main styles from boss-centred to subordinate-centred.

Tell, Sell, Consult, Participate.

What is the 'Tell' style in Tannenbaum and Schmidt's model?

Manager makes a decision and announces it to employees. Autocratic approach with no employee involvement.

What is the 'Sell' style in Tannenbaum and Schmidt's model?

Manager makes a decision but attempts to 'sell' it to employees through persuasion, allowing some feedback.

What is the 'Consult' style in Tannenbaum and Schmidt's model?

Manager presents ideas to employees and invites discussion. Two-way communication and collaborative approach.

What is the 'Participate' style in Tannenbaum and Schmidt's model?

Focus is on employees. Manager permits subordinates to function within limits and make decisions.

According to Adair's Action-Centred Leadership, what three overlapping needs must a leader balance?

1. Task needs, 2. Team needs, 3. Individual needs.

What is Trait Theory of leadership?

Theory that leaders are born, not made. Certain innate qualities (drive, integrity, self-confidence, creativity, intelligence) make natural leaders.

What is one criticism of Trait Theory?

No universal set of traits guarantees leadership success. Ignores situational factors and underestimates learned skills.

What is the difference between a manager and a leader?

Manager focuses on processes and systems, minimises risk, prefers status quo. Leader focuses on people and vision, embraces change, inspires others.

What is a line manager?

Manager who manages employees with direct input into delivering products or services. Has line authority to order subordinates to perform tasks.

What is a staff manager?

Manager who provides advice and support to line managers (e.g., HR, IT, Legal). Has no direct line authority over line staff.

What is an appraisal?

A formal assessment of an employee's performance, usually an annual meeting between employee and line manager to reflect on achievements, workload, and development needs.

Give three benefits of appraisal.

1. Identifies employee strengths and development needs. 2. Links training to career development. 3. Considers workload and morale issues.

Give three reasons why appraisal can be ineffective.

1. Inconsistent approach by line managers. 2. Inadequate time allowed. 3. Failure to respond to employee concerns.

What does SMART stand for in target setting?

Specific, Measurable, Agreed, Realistic, Time-limited.

What is self-assessment in appraisal?

Employees evaluate their own performance before the appraisal meeting, encouraging introspection and ownership of their career path.

What is peer assessment in appraisal?

Work colleagues assess each other's performance, useful for evaluating teamwork skills that a manager might not directly observe.

What is 360-degree appraisal?

Employee receives confidential, anonymous feedback from multiple sources: manager, peers, subordinates, and sometimes customers.

Give one benefit and one risk of 360-degree appraisal.

Benefit: Removes manager bias and provides a well-rounded view. Risk: Complex to administer; may be used to settle personal scores.

What is Management by Objectives (MBO)?

A process where managers and employees collaboratively agree upon specific performance goals aligned with the organisation's objectives.

What is the formula for labour productivity?

Output (per week/month/year) divided by average number of employees.

A factory produces 1000 units with 100 employees. What is labour productivity?

10 units per employee.

What is labour turnover?

A measure of the number of employees who have left the business (usually over the past year), relative to the number employed.

What is the formula for labour turnover?

(Number of employees leaving during the year ÷ Average number employed during the year) × 100

If average employees = 150 and 25 leave, what is labour turnover?

16.7%

Is zero labour turnover desirable?

No. A workforce with zero turnover becomes stale and resistant to change. Some turnover is healthy to bring fresh ideas.

What is absenteeism?

Employees absent from work with minor ailments (headache, upset stomach) - a key indicator of low morale and motivation.

What is the formula for absenteeism (lost time rate)?

(Total days absent ÷ Total available working days) × 100

A department has 9 employees, 23 working days, 11 days lost to sickness. Calculate absenteeism rate.

(11 × 100) ÷ (9 × 23) = 1100 ÷ 207 = 5.3%

What is the difference between long-term and short-term absence?

Long-term absence is usually illness/injury. Short-term absence (absenteeism) is minor ailments and indicates low morale.

What does a high lateness rate indicate?

Low motivation. A motivated person who enjoys work is rarely late.

What is the formula for lateness rate?

(Total number of late arrivals ÷ Total number of scheduled attendances) × 100

What are OKRs at Google?

Objectives and Key Results. Objective = what to achieve (ambitious, qualitative). Key Results = how to measure progress (quantitative). Decoupled from salary to encourage risk-taking.

What did Adobe replace annual reviews with?

'Check-ins' - informal, ongoing conversations between managers and employees, resulting in 30% decrease in voluntary turnover.

What is the difference between quantitative and qualitative performance data?

Quantitative = numbers (productivity, turnover, absenteeism). Qualitative = reasons behind the numbers (exit interviews, feedback).

Give one limitation of using quantitative data alone to measure performance.

Averages can be misleading. A single figure cannot explain why employees are leaving (poor pay vs poor management).

What is productivity?

A measure of output relative to input. Output per employee in a particular period. Key indicator of employee performance.

What is marketing according to the Chartered Institute of Marketing (CIM)?

"Marketing is the management process responsible for identifying, anticipating and satisfying consumers' requirements profitably."

What are the three key questions a marketing plan must answer?

1. Where are we now? 2. Where do we want to be? 3. How will we get there?

What is a marketing audit?

An analysis of internal and external factors affecting the business to answer "Where are we now?" Includes SWOT analysis.

What does SWOT stand for?

Strengths, Weaknesses, Opportunities, Threats.

In a SWOT analysis, which factors are internal?

Strengths and Weaknesses (within the business's control).

In a SWOT analysis, which factors are external?

Opportunities and Threats (outside the business's control, e.g., economy, competitors, laws).

Give an example of a Strength in SWOT.

Well-known brand names, loyal customers, proprietary technology, skilled workforce.

Give an example of a Weakness in SWOT.

Outdated products, high debt, poor location, weak brand image, high staff turnover.

Give an example of an Opportunity in SWOT.

New developing markets, changes in technology, relaxing of regulations, growing consumer trends.

Give an example of a Threat in SWOT.

New competitors entering the market, economic recession, new laws, rising costs.

What is the main purpose of a SWOT analysis?

To help a business look objectively at its competitive situation and decide on the best strategy for the future.