Functional Activities and Organizational Structure: Practice Test 
P3 and 4 Functional Activities and Organisational Structure - Practice
1. Using short sentences, please answer the following questions:
Based on an organisation – e.g. business, club, charity, college etc – of your choice, state what positions would (probably) appear at the top and the bottom of its organisation chart. Top positions would be CEO and directors of each department. Bottom positions would be managers and employees.
Describe at least two main purposes of an organisation chart, using examples to show what you mean. 1) Divide works to be done 2) Establish lines of control and communication Example: Apple Inc., every decision and everything have to go through the CEO first.
What is the main difference between a tall and flat organisation AND in which type is there more freedom for decision making? Tall organisation has multiple layers of authority between CEO and low-level employees. For example, lower employees have to report to high employees and then to CEO which is in process and it take long. Whereas Flat organisation has only one top manager which is the CEO of the company, overseeing a handful of employees, all with equal levels of authority. Flat organisation has more freedom for decision making.
Explaining your answer, give an example of a company that could have an organisation chart based on geographical area. Marks and Spencer is setting up regional divisions make it easier to operate to local conditions. For example, “local knowledge is best gained by hiring local specialists”.
Comparing two different positions in an organisation of your choice, explain what is meant by a person’s “span of control”. I will be comparing CEO and team member. CEO has much more work to do as the CEO has to manage everything and make decisions. Whereas team member only focus in their works. Span of control means the number of subordinates that manager can directly control.
What is meant by the word ‘hierarchy’? Hierarchy is a system in which members of
1. Using short sentences, please answer the following questions:
Based on an organisation – e.g. business, club, charity, college etc – of your choice, state what positions would (probably) appear at the top and the bottom of its organisation chart. Top positions would be CEO and directors of each department. Bottom positions would be managers and employees.
Describe at least two main purposes of an organisation chart, using examples to show what you mean. 1) Divide works to be done 2) Establish lines of control and communication Example: Apple Inc., every decision and everything have to go through the CEO first.
What is the main difference between a tall and flat organisation AND in which type is there more freedom for decision making? Tall organisation has multiple layers of authority between CEO and low-level employees. For example, lower employees have to report to high employees and then to CEO which is in process and it take long. Whereas Flat organisation has only one top manager which is the CEO of the company, overseeing a handful of employees, all with equal levels of authority. Flat organisation has more freedom for decision making.
Explaining your answer, give an example of a company that could have an organisation chart based on geographical area. Marks and Spencer is setting up regional divisions make it easier to operate to local conditions. For example, “local knowledge is best gained by hiring local specialists”.
Comparing two different positions in an organisation of your choice, explain what is meant by a person’s “span of control”. I will be comparing CEO and team member. CEO has much more work to do as the CEO has to manage everything and make decisions. Whereas team member only focus in their works. Span of control means the number of subordinates that manager can directly control.
What is meant by the word ‘hierarchy’? Hierarchy is a system in which members of