Page 140 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management

Notes Organisation Chart: A diagram that shows the structure of an organisation and the relationships
and relative ranks of its parts and positions/jobs.
Organisation Structure: The plan for the systematic arrangement of work is the organisation
structure.
Vertical integration: Under this type of integration, companies are united through a hierarchy
with a common owner.

7.9 Self Assessment

Fill in the blanks:
1. The staff managers are not accountable for the .................. .
2. Different groups wish to achieve .................. outcomes.

3. Committees are an expensive both in terms of .................. and .................. .
4. Unless the duties and responsibilities of the staff members are clearly indicated by ..................
and .................., there may be considerable confusion as regards the same.

5. In the circular chart, top positions are located in the .................. of the concentric circle.
6. .................. committee has the power to administer the affairs of the business.
7. .................. organisation has greater flexibility as compared to that of the others.
8. Committees offer scope for group .................. and group .................. .

9. Organisation structure is primarily concerned with the .................. and .................. .
10. Organisation design begins with the creation of a .................. .
11. .................. and retail partnerships exhibit similarly wide ranges of complexity and ...................
12. Differentiation strategy is more likely to generate .................. profits than is a low cost
strategy.
13. .................. is a viable strategy for earning above average returns in a specific business.

7.10 Review Questions

1. "Good committee management is through adherence to the basic precepts of the human
relations approach to organisation". Do you agree with this? Give suggestions to make
committees more effective.

2. "Organisation is the backbone of management". Comment.
3. Compare line, functional and line-staff organisations through examples. Which of these
will be appropriate for a large manufacturing enterprise?

4. " A committee is made up of the unfit selected by the unwilling to do the unnecessary".
Comment.
5. Why is Organisational structure important? What sort of organisational structure best
suited to custom made product produced in a stable environment a mass product produced
in unstable environment?

6. How might the organisational design of a research and development firm in the
pharmaceutical industry differ from the organisational design of a consumer food products
manufacturer?

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