Lucy has joined the finance department of a local business.
Her early impressions of the organisation are that its management belong to the ‘classical school’ because of their adherence to the concept of unity of command.
This means that in general the management believe that….?
Select ONE answer:
A subordinate should receive orders from only one manager
There should be only one manager of each activity
Authority should flow down a single chain of command
Work should be specialised into single tasks
Show your workings to arrive at your answer, and explain and justify your reasons:
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 1
Correct – Unity of command means that any employee should have to report to, or receive orders from, only one manager. ‘Unity of direction’ is the principle that there should be only one manager of each activity (2).
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 1
Correct – Machine bureaucracy depends primarily on the standardisation of its operating work processes for co-ordination. Because of that the technostructure, which houses the analysts (technocrats) who do the standardising, emerges as the key part of the structure. When the operating core exerts a pull towards standardised skills (2), it is generally a professional bureaucracy. In a divisionalised structure, a good deal of power si delegated to market-based units in the middle line (3), whose efforts are coordinated by the standardisation of outputs through the extensive use of performance control systems.
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
Not correct
Not correct
Correct –> The function of the technostructure is to standardise work processes, for example by producing technical specifications and procedures manuals. The strategic apex, which represents the higher management for the company, will ensure the business follows its mission (1). The support staff provide ancillary services (2) to the operating core of the company. The middle line, representing the managers between the operating core and the strategic apex, will control the work of the operating core (4) of the business.
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
Not correct
Not correct
Correct –>The support staff (A) carry out the ancillary activities that are neither part of the core nor the technostructure. Support staff have no role in the direct activities of the organisation: these activities include such things as catering and public relations. The middle line (B) represents that part of the organisation where the middle managers operate. Its role is to turn the instructions of the strategic apex into activities for the operating core. The ideology (E) is what binds the organisation together. It represents the organisational values and beliefs, which provide a common focus for all the other elements.
Lucy works for a training company, Alex plc, as a lecturer.
The company has been established for over 30 years.
She specialises in training bankers.
In terms of organisational structure, Alex plc has a large operating core within which all the well-qualified lecturing staff are employed.
They need to ensure their teaching material is constantly updated so that it reflects the current issues in the complex banking industry and to ensure that the company’s courses remain competitive.
The lecturers are supported by a large administrative team who follow set procedures to ensure the smooth delivery of courses.
From these details, it is clear that Alex plc has which of the following organisational structures?
Select ONE answer:
Entrepreneurial
Machine bureaucracy
Professional bureaucracy
Divisionalised
Show your workings to arrive at your answer, and explain and justify your reasons:
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
Not correct
Not correct
Correct –> A professional bureaucracy (3) will hire trained specialists who are all imbued with the skills and values of the profession. The operating core is the key part because it will have an elaborate support staff to service it and the work is too complex to be standardised by a technostructure. The entrepreneurial structure (1) is characteristic of small, young organisations revolving round a single entrepreneur or small management team. A machine bureaucracy (2)works on a sophisticated and well-tuned set of rules and procedures. The technostructure is the key part of this structure and the management philosophy is often that of scientific management. There is strong emphasis on the division of labour and authority is hierarchical. A divisional structure (4) is where the middle line seeks as much autonomy for itself as possible. It exerts a pull to split into small self-managed units with autonomy given to managers lower down the line.
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