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8 *Delete as appropriate A tall organisation has a large number of levels of management. This implies a narrow*/wide* span of control. 9 Delayering would: A Make an organisation taller B Make an organisation flatter Part A Business organisational structure, governance and management ~ 1a: Business organisation and structure – structure and strategy 25 Answers to Quick Quiz 1 A. This is the definition of an organisation. Not all organisations exist to make a profit 2 False. A public sector organisation is owned or run by central or local government.
3 Functional/operational strategies Functional/operational strategies deal with specialised areas of activity. Functional area Comment Marketing Devising products and services, pricing, promoting and distributing them, in order to satisfy customer needs at a profit. Marketing and corporate strategies are interrelated. Production Factory location, manufacturing techniques, outsourcing and so on. Finance Ensuring that the firm has enough financial resources to fund its other strategies by identifying sources of finance and using them effectively.
In other words, if a manager has five subordinates, the span of control is five. A number of factors influence the span of control. (a) A manager's capabilities limit the span of control: there are physical and mental limitations to any single manager's ability to control people and activities. (b) The nature of the manager's workload The more non-supervisory work in a manager's workload: (i) (ii) (c) The narrower the span of control The greater the delegation of authority to subordinates The geographical dispersion of subordinates: dispersed teams require more effort to supervise.
ACCA - F1 Accountant in Business: Study Text by BPP Publishing