Organisational structures (AQA GCSE Business): Quizzes
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14 questions from this quiz
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Practise the questions
14 questions from this quiz
What is a centralised structure?
What is a centralised structure?
Decision-making at top with senior management
What is a decentralised structure?
What is a decentralised structure?
Authority distributed throughout organisation
How do most large businesses approach centralisation and decentralisation?
How do most large businesses approach centralisation and decentralisation?
Use a combination of both
Why do fast-food businesses use centralised structures?
Why do fast-food businesses use centralised structures?
To guarantee consistency & quality
What economy of scale benefit does centralisation provide?
What economy of scale benefit does centralisation provide?
Cheaper unit costs through bulk buying
What does centralisation help implement across a business?
What does centralisation help implement across a business?
Uniform policies and practices
How does lack of authority in centralised structures affect local managers?
How does lack of authority in centralised structures affect local managers?
Reduces their motivation
What does centralisation create that increases operational costs?
What does centralisation create that increases operational costs?
Additional layers in the organisation
What authority do supermarket store managers have in decentralised structures?
What authority do supermarket store managers have in decentralised structures?
Decisions on staffing & local promotions
How do hotel chains use decentralisation effectively?
How do hotel chains use decentralisation effectively?
Local managers handle customer problems
Why are decisions better in decentralised structures?
Why are decisions better in decentralised structures?
Made closer to customers
How does decentralisation help junior management?
How does decentralisation help junior management?
Provides training & experience
What consistency challenge does decentralisation create?
What consistency challenge does decentralisation create?
Difficult to ensure consistent practices
What cost issue does decentralisation increase risk of?
What cost issue does decentralisation increase risk of?
Overspending by the business