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The Computer Based Examination
Tackling Multiple Choice Questions
Part A The business organisation,its stakeholders and the external environment
1 Business organisations and their stakeholders
2 The business environment
3 The macro-economic environment
4 Micro-economic factors
Part B Business organisation structure,functions and governance
5 Business organisation,structure and strategy
6 Organisational culture and committees
7 Corporate governance and social responsibility
Part C Accounting and reporting systems,controls and compliance
8 The role of accounting
9 Control,security and audit
10 Identifying and preventing fraud
Part D Leading and managing individuals and teams
11 Leading and managing people
12 Recruitment and selection
13 Diversity and equal opportunities
14 Individuals,groups and teams
15 Motivating individuals and groups
16 Training and development
17 Performance appraisal
Part E Personal effectiveness and communication in business
18 Personal effectiveness and communication
Part F Professional ethics in accounting and business
19 Ethical considerations
Exam question bank
Exam answer bank
1.2 Benefits of the informal organisation
Benefits of the informal organisation for managers include the following.
(a)Employee commitment.The meeting of employees'social needs may contribute to morale andjob satisfaction,with benefits in reduced absenteeism and labour turnover.
(b)Knowledge sharing.The availability of information through informal networks can give employeesa wider perspective on their role in the task and the organisation,potentially stimulating'bigpicture'problem-solving,cross-boundary co-operation and innovation.
(c)Speed.Informal networks and methods may sometimes be more efficient in achievingorganisational goals,where the formal organisation has rigid procedures or lengthycommunication channels,enabling decisions to be taken and implemented more rapidly.
(d)Responsiveness.The directness,information-richness and flexibility of the informal organisationmay be particularly helpful in conditions of rapid environmental change,facilitating both themechanisms and culture of anti-bureaucratic responsiveness.
(e)Co-operation.The formation and strengthening of interpersonal networks can facilitate teamworking and co-ordination across organisational boundaries.It may reduce organisational politicsor utilise it positively by mobilising effective decision-making coalitions and by-passingcommunication blocks.
1.3 Managerial problems of informal organisation
Each of the positive attributes of informal organisation could as easily be detrimental if the power of theinformal organisation is directed towards goals unrelated to,or at odds with,those of the formalorganisation.
(a)Social groupings may act collectively against organisational interests,strengthened by collectivepower and information networks Even if they are aligned with organisational goals,group/network maintenance may take a lot of time and energy away from tasks.
(b)The grapevine is notoriously inaccurate and can carry morale-damaging rumours.
(c)The informal organisation can become too important in fulfilling employees'needs:individualscan suffer acutely when excluded from cliques and networks.
(d)Informal work practices may'cut corners',violating safety or quality assurance measures.Managers can minimise problems by:
(a)Meeting employees'needs as far as possible via the formal organisation:providing information,encouragement,social interaction and so on
(b)Harnessing the dynamics of the informal organisation for example by using informal leaders tosecure employee commitment to goals or changes
(c)Involving managers themselves in the informal structure,so that they support informationsharing,the breaking down of unhelpful rules and so on.