2. Organisational structure Flashcards
Mitzberg
Strategic Apex Technostructure Support Staff Middle Line Operating Core
Strategic apex
Top management
drives the direction of the business through control over decision making
Technostructure
Analysts
drives efficiency through rules and proceedures
Operating core
Operations, operation processes
daily activities
Support staff
expertise, finance, HR, admin, IT
Middle line
middle management
Mintzberg organisational structures
Simple structure Machine Bureaucracy Professional Bureaucracy Divisionalised form Adhocracy Missionary organisations
Simple structure
strategic apex is dominant
effective in small entrepreneurial organisations
Machine bureaucracy
technostructure is dominant
control by rules
work is standardised
improving performance
Professional bureaucracy
operating core is dominant
control excercised via training i.e. accountants, hospitals
Divisionalised form
Middleline is dominant
Organisation is too large to be standardized
Controlled via KPIs
Adhocracy
Support staff are dominant
Mix of skills
Work project based i.e. TV production companies
Missionary
little structure or formal control i.e. start up companies
Types of structure
entrepreneurial
functional
divisional
matrix
Entrepreneurial
built around owner managers small businesses in early start up
Functional
group employees that undertake similar tasks into departments i.e. finance, marketing
found in organisations who have outgrown the entrepreneurial stage
Divisional
organisation split into divisions overseeing a product i.e. cars, motorbikes, a geographic section, a customer
Geographical structure
similar to divisional, each division covers a specific location
Head office maintains authority
Matrix structure
combines functional and divisional structures
used for project management
boundary less organisations
Virtual
Modular
Hollow
Virtual
geographically dispersed
exists electronically
Modular
manufacturing broken down in to modules either made in house or outsourced
Hollow
split activities into core and non core core are kept in house non core are not strategically important and are outsourced
Outsourcing
contracting out work to specialist providers
Business process outsourcing
contracting out specific business functions i.e. IT, HR
Core competences
something that you do that drives competitive advantage and is difficult for your competitors to copy
not to be outsourced
Service Level Agreement SLA
negotiated agreement between supplier and customer regarding the level of service to be provided
Transaction cost
indirect costs expenses incurred through outsourcing
Transfer costs
Outsourcing costs
Offshoring
relocating corporate activities to a foreign country
Scalar chain
no of levels in the organisation
Span of control
number of employees managed by manager
Tall organisations
Long scalar chain
Hierarchy, many managers
Narrow span of control
i.e. british armed forces
Flat organisations
Short scalar chain
Wide span of control
Shared services
moving localised functions to a centralised one
joint venture
new or shared organisation set up by two or more firms
Strategic Alliance
sharing of resources and activities. Contractual agreements, no separate company formed
Franchisee
franchisee manufactures a product and franchiser maintains control
Licensing
another company manufactures or sells a patented product
Consortia
short term legal entity to deliver a particular project i.e. London olympic park
Characteristics of a strategic alliance
Synergy Risk reduction Cooperation Clarity Positioning opportunity Complementary attributes Win Win situation
