2. Business organisation and structure Flashcards
what is organisational structure concerned with?
how work is divided and allocated. outlines roles and responsibilities.
outline the entrepreneurial structure.
in which type of business is this most common?
3 +
1 -
built around the owner/manager. typical in small or young businesses. \+ fast decisions \+ responsive to market \+ good control - cannot cope with growth
outline the functional structure.
in which type of business is this most common?
2 +
3 -
groups together employees based upon similar tasks: these become departments.
typical in businesses that have outgrown the entrepreneurial structure.
+ career path for employees
+ economies of scale, standardisation, specialism etc.
- empire building
- slow decisions
- cannot cope with growth
outline the divisional structure. why is it complex? what could each division be called?
in which type of business if this most common?
3 +
2 -
split into divisions, either by product, geography or customer. divisions include functional structure. divisions AKA strategic business units (SBUs) as separately identifiable (especially financially). \+ copes with growth \+ clear management \+ focus on profitability - potential loss of control - shared cost issues
what is the matrix structure?
2 +
2 -
a combination of functional and divisional structures.
+ complex so can meet market demands and growth
+ customer attentive
- loss of control
- dual command and conflict
what is a boundaryless structure? what are the three main boundaryless structures? explain them.
unstructured and flexible business: ultimately, a business with a lack of structure.
- hollow: functions split into core and non-core. non-core outsourced.
- virtual: mostly outsourced functions, exists as a network of contracts
- modular: manufacturing process broke down into components. each component then internally or externally fulfilled.
Mintzberg argued that there are 5 key building blocks in an organisation, these are:
operating core: workers middle line: middle management strategic apex: senior levels of management techno structure: non-core IT support staff: non-core services
name the structures for when each of Mintzbergs 5 building blocks dominates.
strategic apex domination: entrepreneurial structure/simple structure.
middle line domination: divisional structure
operating core dominates: professional bureaucracy
technostructure dominates: machine bureaucracy
supporting staff dominates: adhocracy
what is a scalar chain?
what is a managers span of control? what is it dependent on? (3)
number of levels of management
how many people they are responsible for. dependent on
- nature of work
- type of staff
- location of staff
what is a tall organisation?
what is a flat organisation?
tall: long scalar chain, narrow span of control.
flat: short scalar chain, wide span of control.
what is a shared service approach? the advantages of it are (3)
restructuring particular services to be central to all parts i.e. IT.
- improved service
- improved consistency
- cost savings
what is the difference between a centralised and decentralised structure?
in a centralised structure, upper levels of an organisation’s hierarchy make decisions.
in a decentralised structure, the authority to make decisions is passed down to lower levels.
what factors affect the amount of decentralisation? (4)
- management style
- staff ability (employees and managers)
- geography
- organisation size
what are the advantages and disadvantages of decentralisation? 3 of each
\+ motivation \+ flexibility \+ managers have more time - loss of control - costs - potential for poor decisions due to lack of expertise
what is the anthony triangle?
what are the stages within it?
a model that illustrates planning.
strategic planning: senior management and planning long-term decisions
tactical planning: middle management planning departmental resources
operational planning: supervisors: detailed and short-term
