Explain the term management structure.  

Management structure refers to organizational structure. There are two common structures for any given organization, these include; formal and informal.

Formal structure means all relationships with people and there allocated roles is documented, specified and known by the other members of the company. Formal structure is frequently represented as an organizational chart. 

Informal Structure is the undocumented relationship with people and roles within the company.

How can a business display its management structure?  

A business can display its mangement structure through an organizational chart. 

An organisational chart is a visual representation of the formal structure that coordinates work activities and sets out the roles and responsibilities of the members of the organisation. 

What is vertical and horizontal specialisation?

An organizational chart can be represented two ways; by vertical specialisation and horizontal specialization. 

Vertical specialisation refers to the hierachy of formal authority and desicion making power within the organization

Horizontal specialisation refers to the division of people and resources within the organization. (Generally groups in departments) 

Explain the term 'departmentation'

Departmentation refers to the division or grouping of people and resources within the the organization. 

On what basis (foundation) can departments be organised?

Departments can be organised on three basis'; function, division and matrix.

In the functional model staff are organized  based on function e.g. production, human resources, finance and marketing

In the divisional model staff are organized basedon division e.g. product, service, customers, type of legal business entity. 

The matrix model combines specialisation by function and division due to neither form of specialisation being appropriate. 

What does it mean when an organisation seeks the optimum structure? 

An organisation will seek the optimum structure, that is, the structure that best assists the organisation in its strategy to achieve its objectives. 

Name the organisational structure appropriate for a business that considers innovation to be very important? 

Horizontal matrix specialisation 

Name the organisational structure appropriate for a business that considers cost minimisation to be very important? 

Vertical Specialistion

Any changes to the structure of a large organisation must take what elements into consideration? 

- Clearly setting out roles and lines of authority to avoid duplication of effort and conflict over authority

- providing the appropriate amount of control over staff

- maintaining effective communication and information flows particularly with customer satisfaction, market conditions, tech developments, production methods and staff satisfaction

- assessing the advantage of the proposed change

What makes up a large part of a manager’s daily tasks? 

Decision making

Name the stages in the 6-step decision-making approach

1. define the objective

2. outline the facts

3. decide on the causes

4. develop several solutions

5. select the preferred alternative and implement it

6. evaluate the effectiveness of the solution

List the three (3) conditions under which decision-making can occur

Certainty - where the outcome of each alternative course is known in advance

Risk - where the outcome of each alternative course is not completely certain

Uncertainty - where the outcome of each alternative course is not known at all

Timing and flexibility are keys to effective decision-making. Why shouldn’t management make more decisions than really needed? 

- minor problems do not require managements attention

- some matters for decision will already be covered by company policy and practices 

- management need to distinguish between 'urgent' and 'important'; decisions should not be made in a hurry or under pressure

What two (2) sections of the environment must be considered by a business to maximise effectiveness? 

Internal and external

Large organisations must make use of what, to remain competitive?

Technology

What are the key roles of management? 

Planning

Organising

Leading

Controlling

What does planning produce in an organisation? 

Planning by management produces strategies to acheive objectives

What types of planning are identified for each level of management

Lower Management - day to day practices usually of technical and practical nature (front-line planning)

Middle Management - medium term planning in regards to implementing the organisations overall coperate plan

Top Management - long term planning ultimately responsible for business opportunities and management of the companies resources

Name the five (5) stages of planning

Stage 1 - setting objectives

Stage 2 - using a swot analysis

Stage 3 - developing and evalutation alternatives 

Stage 4 - implementing the plan

Stage 5 - monitoring and reviewing results

What areas of management does organising cover

- establishing the structure of the organisation

- determining what is needed

- establishing staff in productive working environments

- assigning responsibilities to staff

- delegating authority

- establishing communication among different levels and departments

- the accumulation and arranging of plant, machinery and equipment 

What characteristics are typical of the autocratic style? 

The top management is in control and all orders must be carried out without question

What characteristics are typical of the persuasive style? 

Persuasive style is a style of management in which management takes the troule to communicate decisions thoroughly and effectively to staff, however total power still remains with top management. 

What characteristics are typical of the consultative style? 

Management consults staff before making significant decisions

What characteristics are typical of the participative style

Management joins with staff to make a joint decision on any ideas proposed.