1. The Nature and Structure of Organisations Flashcards by Tom Evans

What is an organisation?

A social arrangement pursuing collective goals.

It controls its own performance and has a boundary separating it from its environment.

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What are the five main types of organisation?

Commercial
Not-for-profit
Public Sector
Non-governmental organisations
Cooperatives

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What are some examples of a commercial organisation?

Sole traders
Partnerships
Limited liability companies
Limited liability partnerships

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What is a public sector organisation?

An organisation owned by the government or local government.

Eg NHS or military

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What are the five main organisation structures?

Entrepreneurial
Functional
Matrix
Boundaryless
Divisional

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What is an entrepreneurial structure?

Usually a younger business with a simple structure.

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What is a functional structure?

Usually comprised of a CEO, superseding a board, where each director is managing a certain aspect of the company.

Eg Financial, manufacturing, marketing, IT.

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What is matrix organisation?

Divides types of specialism like with a functional structure, but adds a second dimension where people are also divided by which project they are contributing to.

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What are the three types of boundaryless organisation?

Virtual
Hollow
Modular

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What is a divisional structure?

When the organisation is divided between different regions to be more specialised in that area.

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What are the five parts of a Mintzberg structure?

Strategic apex
Middle line
Operating core
Technostructure
Support staff

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What is the strategic apex in Mintzberg’s structures?

The board

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What is the middle line in Mintzberg’s structures?

Middle management.

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What is the operating core in Mintzberg’s structures?

Workers.

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What is the support staff in Mintzberg’s structures?

Basic administrators.

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What is the Technostructure in Mintzberg’s structures?

People from multiple departments that create standards, procedures, manuals etc.

What are levels of an organisation?

Strategic (long term view - the board)
Tactical (1 year view - managers)
Operational (day-to-day - workers)

What are the advantages/disadvantages of decentralisation?

Advantages
- Work-load/time
- Speed of internal communication
- Expertise
- Motivation
- Training and assessment
Disadvantages
- Worse coordination

What are five recent trends?

Downsizing
De-layering
Outsourcing
Off-shoring
Shared services

What is downsizing?

Getting smaller

What is De-layering?

Going from tall-narrow to wide-flat structures.

What is outsourcing?

Getting other people to do certain aspects the organisation needs.

What is Off-shoring?

Going abroad

What is shared services?

Parts of the business (eg separate offices) share access to a certain department (eg the accounting department)

What is the **formal** part of organisations?

Anything written down eg staff appraisals, organisation charts, mission statement etc.

What is the **informal** part of organisations?

Things the managers may not be aware of eg: - Personal ambitions - Mutual cover-up - Personal preference - Alliances - Gossip/rumour - Group norms - Shortcuts

What is a **business organisation**?

Organisations that either focus on **making profits** (commercial companies) or **improving society** (charities).

What is a **closed system**?

A system that takes **no input** from it's environment, and has **no output**. They are **theoretical** and do not last long.

What is an **open system**?

A **system**/organisation that receives **input** from the environment and gives an **output**.

What are the **three** (sometimes **four**) commercial sectors?

-**Primary sector**: The extraction and production of raw materials. -**Secondary sector**: Manufacturing. -**Tertiary sector**: Provision of sales and services. *-**Quaternary sector**: Research and development.*

What is a **co-operative**?

An organisation **owned by the workers** Eg farmers may set up co-operatives to market their products more effectively.

What are the **main functions** within an organisation?

- Ordering and purchasing - Manufacturing/production - Direct service provision - Sales and marketing - Distribution - Administration - Research and development - Human resources - Accounting and finance - Cash and working capital management - Treasury management

What is a **non-governmental** organisation?

Usually not-for-profit with an international brief.

What are the main functions within an organisation?

- Ordering and Purchasing - Manufacturing/production - Direct service provision - Sales and marketing - Distribution - Administration - Research and development - Human resources - Accounting and finance - Cash and working capital management - Treasury management

What is a **virtual** organisation?

When a company is created outside the organisation to respond to exceptional, often temporary market opportunities.

What is a **hollow** organisation?

When all non-core operations are outsourced. E.g. accounting, human resources, legal services and manufacturing.

What is a **modular** organisation?

What parts are ordered from different internal and external providers to be assembled into a product.

What does the term **scalar chain** mean?

The chain of command from the top to the bottom of a company.