4. Decisions And Criteria

Question 1

Types of organisational decisions

Answer 1

• specialisation (departmentalisation) (how should division of labour be done?)
• configuration (distribution of authority)
• centralisation or decentralisation (delegation) (where decision making position are)
• coordination (coordinate activities an decisions of company)
• processes (definition of task sequence)

Question 2

Advantages and disadvantages of departmentalisation

Answer 2

A

• brings clarity in company activities
• helps select right people in right position and group them properly
• helps in functional planning
• helps in control of activities of institution
• if specialise, reduce costs = give lower price in market

D

• every unit will only focus on their goal and not in company’s general goal
• we would need a HQ to try to harmonise the different departments

Question 3

Types of specialisation

Answer 3

• Functional structure (by functions such as HR,MK, sales…)
• divisional structure (by product, region…)
• matrix organisation

Question 4

What’s configuration (when it comes to organisational decisions)?

Answer 4

Who gives directions to whom. Who decides the number of hierarchy levels, the span control (how many people being managed by one single person)

Question 5

What is a highly centralised organisation?

Answer 5

Decision making at top

Question 6

What is decentralised organisation?

Answer 6

Decision making delegated down in the line of hierarchy

Question 7

What’s delegation?

Answer 7

Handing over limited authority of decision making to subordinates

Question 8

Name formal organisational measures for COORDINATION:

Answer 8

• instructions: coordination based on vertical communication
• self-determination: coordination based on horizontal communication
• program: coordination based on guidelines
• planning: coordination based on objectives and restrictions

Question 9

Name informal measures for COORDINATION

Answer 9

• lateral relations and informal communication

- organisation culture (shared values)

Question 10

What are some important aspects for process analysis?

Answer 10

Importance of the process itself or the steps (competitive advantage, by strengths and weaknesses)

Question 11

What are some organisational factors regarding process?

Answer 11

• introducing process owners/managers to overcome interface problems
• team-based coordination instead of hierarchy-based coordination
• increased market orientation as strategic target of company

Question 12

4 criterias to evaluate organisational measures

Answer 12

• coordination ability
• market orientation
• economic use of resources
• motivation

Question 13

What is the evaluation of the organisational measures useful for?

Answer 13

• market/customer orientation:
• ability to coordinate (god or bad conditions for coordination, how difficult is coordinate activities of members?)
• use of resources(does the romanisation always arrangement support the economic use of resources?)
• motivational effects (are people satisfied with job conditions?)