Foundations of Business – Organisational Structure, Management, Production & CSR

A comprehensive set of question-and-answer flashcards covering organisational structures, leadership and management, production processes, lean production, and corporate social responsibility.

What is meant by an organisational structure in business?

The way jobs, responsibilities, accountability and power are arranged within a business, showing levels of management and division of responsibilities.

What are “levels of hierarchy” in an organisational structure?

The layers of management within the organisational structure.

What does the term “span of control” refer to?

The number of people for whom a manager is directly responsible.

Give one key benefit of having a clear organisational structure.

It clarifies who is responsible for each department and which workers report to whom.

What characterises a tall organisational structure?

Many layers of hierarchy with managers supervising a small number of employees each.

State one advantage of a tall organisational structure.

Managers can closely supervise quality because they control fewer staff.

State one advantage of a flat organisational structure.

Communication is faster because there are fewer management layers.

In a centralised structure, where are major decisions made?

By one person or a small group of senior managers at the top of the hierarchy.

Give one advantage of a centralised structure.

Senior managers have wide experience and maintain uniform policies across the business.

Give one disadvantage of a centralised structure.

Decisions can take longer to filter through to employees, making the business slow to react to change.

In a decentralised structure, how is authority distributed?

Decision-making power is shared among managers and employees throughout the organisation.

Give one advantage of a decentralised structure.

Employees can apply their specialist knowledge and decisions can be made quickly.

Give one disadvantage of a decentralised structure.

Different departments may develop inconsistent policies because they act independently.

What is a functional organisational structure?

A structure where each functional area (e.g., marketing, finance) performs one part of the overall work; common in limited companies.

State one advantage of a functional structure.

Specialists can focus on their particular jobs, improving expertise.

State one disadvantage of a functional structure.

Different departments may not cooperate effectively with each other.

What defines a matrix organisational structure?

Teams of specialists are formed around specific tasks or projects, cutting across traditional departments.

Why can a matrix structure be motivating for employees?

Employees are encouraged to use their individual skills within project teams.

How is a geographical organisational structure arranged?

Management and operations are divided by region or nation, spreading day-to-day control to local divisions.

Give one disadvantage of a geographical structure.

It can cause wasteful duplication of resources between regions.

Name two qualities often found in a good leader.

Inspirational and motivating, able to think outside the box, calm under pressure, a good communicator, driven and well-informed (any two).

Which managerial role involves setting aims and targets for the business?

Planning.

Which managerial role aligns departments with overall business goals?

Coordinating.

Which managerial role measures and evaluates employees’ work?

Controlling.

Which managerial role ensures messages are passed on and understood?

Communication.

Which level of management makes strategic, long-term decisions?

Senior management.

Which management style allows the workforce to have some influence over decisions?

Democratic management.

Which management style lets workers decide how to do their work with minimal interference?

Laissez-faire management.

What is a formal leader?

A person given leadership responsibility due to their official position in the organisation.

According to Theory X, how are workers viewed?

They dislike work, lack ambition and avoid responsibility, requiring close supervision.

According to Theory Y, how are employees viewed?

They are ambitious, self-motivated and capable of self-control and responsibility.

Define a supply chain.

A system of organisations, people, technology and activities that move a product or service from supplier to consumer.

What are the three key parts of a supply chain?

Input, production process and output.

When is flow (mass) production typically used?

When a business produces large volumes of identical goods using a continuous process.

Give one advantage of flow production.

High output at low per-unit cost due to efficiency and economies of scale.

Give one disadvantage of flow production.

It is expensive to set up and stoppages can create significant waste.

What is batch production?

Producing groups (batches) of identical items through each stage of production before moving to the next batch.

Give one advantage of batch production.

Products can be customised at lower cost than job production while achieving higher output rates.

Give one disadvantage of batch production.

Waiting times between stages can be inefficient and one mistake can ruin an entire batch.

What is job production?

Producing a single, unique product tailored to a specific customer’s requirements.

Give one advantage of job production.

High customisation and use of skilled labour with low overheads.

Give one disadvantage of job production.

It is labour-intensive with high per-unit costs and long lead times.

What is the aim of lean production?

To maximise output while minimising inputs and eliminating waste throughout the production process.

Define efficiency in a business context.

Achieving maximum results or output while using the minimum possible resources or cost.

What does productivity measure?

The relationship between inputs used and outputs produced; a key indicator of efficiency.

Why is high productivity important to a business?

It lowers unit costs, allowing higher profit per unit compared to competitors.

What are economies of scale?

Cost advantages that cause average unit costs to fall as a business increases in size.

What is Corporate Social Responsibility (CSR)?

A business’s commitment to behave ethically, contribute to economic development, and improve the quality of life of employees, the community and the environment.

Give one example of CSR in practice.

Producing products that are good for people, using resources economically, reducing environmental harm, supporting employees’ welfare or contributing to the community (any one).

State one reason why businesses choose to practise CSR.

To improve public image, generate positive press, satisfy customer preferences, or because it is the right thing to do.

State one drawback of adopting CSR policies.

They can be expensive to implement, time-consuming, or subject the business to greater investor and supplier scrutiny.