Structure Answer (pg 261)

a. It is a structure which typically involves a chain of command where decision-making

authority flows from the top down, with each level of management responsible for
overseeing those below them.

b. Operational Director: 10 supermarket managers, 50 supermarket supervisors and 1000

assisstants.

Finance Director: 3 departmental managers and 10 assisstants.

c. The managing director (MD) has a vital role in an organization. Two key functions of a
managing director include:
Strategic Leadership: The managing director is responsible for setting the overall
strategic direction of PPB Ltd in alignment with its mission and vision. The MD plays a
crucial role in developing and implementing strategies to achieve sustainable growth.
Executive Management and Decision-Making: As on the top level at PPB Ltd, the
managing director oversees all aspects of the organization's operations, including
finance, operations, human resources, marketing etc. They make high-level decisions
regarding resource allocation, budgeting, investments, and organizational structure.

d. Communication Problems: With multiple layers of management, communication

channels can be distorted at PPB Ltd. Information may be delayed or distorted as it
moves through various levels of hierarchy, leading to misunderstandings,
misinterpretations, and inefficiencies. Decision-Making Delays: Tall organizational
structures often result in decision-making delays. Decisions must pass through several
layers of management for approval, which can slow down response times. For example,
the operation director may experience delays in decision making as so many people
involved from 10 supermarket managers to 1000 assistants. Assistants may feel upset as
they won’t be able to connect with operations director directly. This can affect
motivation.

e. More delegation can be beneficial for tall structure businesses such as PPB Ltd, provided
it is implemented effectively. Delegation involves entrusting authority and responsibility
to lower levels of management or employees, empowering them to make decisions and
take ownership of their work.
In PPB Ltd with multiple layers of management, delegation can help address some of the
challenges, including communication barriers and decision-making delays. For example,
Delegating to managers, can make timely decisions based on their expertise and
understanding of the situation. This enhances their morale and enables the organization
to respond more effectively to market changes and customer needs timely.
This can provide supervisors and assistants to learn skills and increase their capabilities for their
future growth.
Through delegation operation director and other directors could be free to focus more on
strategic issues.
However, effective delegation requires clear communication and ongoing support from
directors. Directors must ensure that managers, supervisors have the necessary
resources, training, and guidance to succeed in their delegated roles.
At PPB Ltd, Directors even after delegation should be able to monitor the performance
of all the managers and supervisors at regular intervals in order to avoid any setback.