Organisation Structure and Employee – Chapter 23

QUESTIONS

Case study: The Zeta Hotel pg. 192-193

1: The general manager – Anil Karmi is in charge of running the Zeta Hotel because the case
study states that he “Submits a weekly report to head office.”

2: The Zeta hotel is organised in a very flat and centralised structure. It has a general
manager on top of the hierarchy, in charge of running the hotel. Then below the general
manager, there are 5 department called Front Office, Reservations and marketing,
Housekeeping, Restaurant, Kitchen, and each of these departments are run by an individual.
Then these individuals oversee the staff of each departments and order them to do their
jobs.

3: Kajal role in the organisation is to oversee the Reservation and marketing departments.
She also has 9 other subordinates in that department. The aim of department she is in sell
all the room each night, at the best price possible and it supposed to maintain the hotel
website.

4a: Basanta, the head chef is accountable to Aarif Vesawkar the executive chef and the
person in charge of the Kitchen department.

4b: Pradeep who is in charge of the Housekeeping department is accountable towards Anil
Karmi, who is the general manager of the workplace because he is at the top of the
hierarchy.

Activity 1: Case Study: Yu Xiaoting Motors pg. 195

1: Operative are skilled workers, usually involved in the production process, 2 example of
them in this case study are Machinist who I’m guessing operates machines and Technicians.

2a: The term Formal organisation is the Internal structure of a business as a shown by an
organisation chart.

2b: The term hierarchy means order of responsibility in an organisation from the lowest to the
highest.

3a: The role of the production director at Yu Xiaoting Motors is to run the business. The production
director reports work with the chairman as the board of directors and is in charge of the production
manager, who also has authorities to the layers below them.

3b: The role of the line supervisor at Yu Xiaoting Motors is to monitor the operatives and general
workers to see if their doing their jobs properly. These supervisor report directly to the manager
above them.
 Organisation Structure and Employee – Chapter 23

Multiple Choice Questions pg. 198-199

1: C

2: C

3: B

4: D

Chapter Review: Tauker medical Supplies. pg. 199

1: Chairman

Finance Director

Financial accountant The cost accountant Purchasing manager Credit Controller

Assistant Financial Assistant cost

Purchasing supervisor
accountant (2) accountant

Account Clerks Purchasing Clerks Credit Controller

(6) (2) Clerks (2)

2a: Span of control is basically the number of people a person is directly responsible for in a
business. So basically, the credit controller span of control is 2 because they have 2 clerks
working for them.

2b: The cost accountant span of control is 1, because they only have one subordinate
working for him/her.

3: The chain of command means the route through which orders are passed down in a
hierarchy. For example, in this case study, the financial director could ask to examine some
financial records so the financial accountant will order his assistant to do them and then
maybe the assistant financial accountants might delegate some of the work to the clerks or
do them.
Organisation Structure and Employee – Chapter 23

4: Delegation means to send authority to pass down work from superior to subordinate. For
example in this case study the financial accountant can pass some of his work to the
assistant financial accountant.

5: I do know that by making the company hierarchy at Tauker Medical Supplies flatter the
company will benefit.

Tauker Medical Supplies could try to flatten their organisation structure by reducing or
eliminating the assistant to each of the department manager, this will make the chain of
command shorter which will then be able to improve communication because each of the
department manager will be able to delegate work faster and they will be able to talk
directly to the clerks. This talking will make the layer more friendlier with each other so the
employee at the bottom of the hierarchy, may feel that they contribute to the company so
motivation for the employee will increase as a result.

Another benefit for Tauker medical supplies to flatten their organisation structure is that
management costs will be lower. This is because if they try to flatten their organisation,
there will be less layer of management so a lot of money will be saved. Additionally, if they
flatten the organisation, each department manager will have lowered amount of span of
control, this lowered amount will make it easier for the department manager to control and
monitor each person.

However, The drawbacks to flattening the organisation structure are that some of the clerks
or employee may not like the increase in workload without the pay increase so these
employee will be dissatisfied with their work, which will then create negativity in the
workplace so motivation will decrease, this might make the employee not care about their
job so they might start to come late or even decide to quit.

In conclusion, even though flattening the organisation structure will have its drawback but
in my opinion the benefits definitely outweigh the drawbacks and if they implement a flatter
organisation structure, Tauker medical supplies will be sure to have a lot of positive effect
such as a motivation increase for most of their employee and it will save down costs, which
could be used in other investment or RnD for the company.
Organisation Structure and Employee – Chapter 23

Hierarchy of Tesla

The hierarchy of Tesla has a simple but rather tall structure. This structure advantages would be that
there is a clear route promote but the disadvantages to the structure would be that communication
could be really poor since there is many different layers so the chain of command will be very long
and another disadvantage to this structure would be that since there is a lot of layer there is a
massive different managerial roles in Tesla so the management cost would be high.