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Internal Audit Environment > 5. Organisational Structures > Flashcards

5. Organisational Structures Flashcards

0
Q

What is the chief advantage of bureaucracies with respect to leadership, according to Weber?

A

They are base on merit rather than charisma and nepotism

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1
Q

In ‘The Theory of Social and Economic Organisation’, Weber develops a theory of organisations as —

A

Bureaucracies

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2
Q

What three dimensions of organisations does Weber identify?

A

Division of labour
Levels of hierarchy
A system of rules

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3
Q

What eight dimensions of organisations are identified by Hatch?

A

Size
Management and administration
Differentiation (horizontal and vertical)
Integration

Centralisation and decentralisation
Standardisation of procedures
Formalisation of documentation (bureaucracy)
Specialisation of individuals and teams

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4
Q

— structures are those that are tall with many layers.

A

Hierarchical

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5
Q

— structures have few organisational layers.

A

Flat

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6
Q

The — — — is the number of people managed directly by an individual.

A

Span of control

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7
Q

The span of control tends to be great in organisations with a — structure.

A

Flat

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8
Q

A — structure is built up of cross-functional teams where there is a lot of horizontal integration.

A

Matrix

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9
Q

Henry Mintzberg developed a scheme for describing types of organisational structure comprising what five categories?

A 
Simple structure
Machine bureaucracy
Professional bureaucracy
Divisionalised form
Adhocracy
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10
Q

According to Mintzberg’s classification, a simple structure is characterised by…

A

Centralised control suitable for small organisations

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11
Q

According to Mintzberg’s classification, a machine bureaucracy is…

A

Highly formalised,
With high degrees of specialisation
Suitable for mass production

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12
Q

According to Mintzberg’s classification, a professional bureaucracy is characterised by…

A

Reliance on standardised skills of highly trained professionals, such as hospitals and universities

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13
Q

According to Mintzberg’s classification, the divisionalised form is characterised by…

A

Large organisations of autonomous specialist divisions

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14
Q

According to Mintzberg’s classification, an advocacy is characterised by…

A

A decentralised matrix
Of autonomous teams
Involved in non-standardised products or services

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15
Q

A benefit of tall structures is that closer — is possible by managers of a team

A

Monitoring

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16
Q

A benefit of tall structures is that they are easily —

A

Understood

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17
Q

A benefit of tall structures is that there is a clear — of roles and responsibilities by teams and individuals

A

Demarcation

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18
Q

A benefit of tall structures is that there are clear routes for…

A

Career development and promotion

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19
Q

A risk of tall structures is that employees may feel more — and less likely to develop independent skills

A

Restricted

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20
Q

A risk of tall structures is that — and — — can be slow due to long chains of command

A

Communication and decision making

21
Q

A risk of tall structures is that the greater number of managers leads to higher — —

A

Salary costs

22
Q

A risk of tall structures is that they are not responsive to changes in the — —

A

External environment

23
Q

A benefit of flat structures is that they encourage greater individual —

A

Responsibility

24
Q

A benefit of flat structures is that they encourage more staff —

A

Cooperation

25
Q

A benefit of flat structures is that they have shorter…

A

Lines of communication and decision making

26
Q

A benefit of flat structures is that they are more — to changes in the external environment

A

Responsive

27
Q

A risk of flat structures is that they have fewer opportunities for —

A

Promotion

28
Q

A risk of flat structures is that the lighter management and monitoring leads to — —

A

Performance issues

29
Q

A benefit of matrix structures is that they are very — with respect to changes in the external environment

A

Responsive

30
Q

A benefit of matrix structures is that they can be very — for individuals and teams, leading to greater productivity

A

Motivating

31
Q

A risk of matrix structures is that they can be — for individuals familiar with more traditional structures

A

Disorienting

32
Q

A risk of matrix structures is that the require careful — to ensure operations are effective

A

Management

33
Q

A — responsibility carries with it the authority and responsibility but not the ultimate accountability

A

Delegated

34
Q

What are the five basic approaches to subdividing the broad categories of organisational structure?

A 
Functional
Divisional
Matrix
Team
Network
35
Q

A functional approach to subdivision arranges individuals and resources according to what?

A

The function they perform

36
Q

Divisional subdivisions may be made on what bases?

A

Geographical
Product type
Customer
Other

37
Q

When there is more instability in the environment, there is a greater need for differentiation/integration?

A

Differentiation

38
Q

Departments in more stable environments tend to be more —

A

Formalised

39
Q

Greater — is needed where organisations are more complex

A

Integration

40
Q

— is often achieved through written procedures, rules and other bureaucratic devices

A

Integration

41
Q

Mechanistic/organic organisations fare better in stable environments?

A

Mechanistic

42
Q

Mechanistic/organic organisations fare better in unstable environments?

A

Organic

43
Q

List seven characteristics of ‘organic’ organisations

A 
Network structure
Close vertical and horizontal integration
Low formalisation
Decentralised
Low standardisation
High individual autonomy
High innovation
44
Q

List seven characteristics of ‘mechanistic’ organisations

A 
Hierarchical structure
High vertical and horizontal differentiation
High formalisation
Centralised
High standardisation
Low individual autonomy
Low innovation
45
Q

What are the five stages of Greiner’s life cycle of organisational structures in response to their environment?

A 
Entrepreneurial phase
Collectivity phase
Delegation phase
Formalisation phase
Collaboration phase
46
Q

Describe the entrepreneurial phase in Greiner’s life cycle.

A

Owner takes control
Leadership crisis
Professional management takes over

47
Q

Describe the collectivity phase of Greiner’s life cycle

A

Professionally managed and centralised with growing differentiation
Autonomy crisis decentralises power, control and decision making

48
Q

Describe the delegation phase of Greiner’s life cycle

A

Decentralise power structure
Control crisis
Need for rules, procedures and bureaucracy

49
Q

Describe the formalisation phase of Greiner’s life cycle

A

Formalised approach to control
Red tape crisis
Need for team working

50
Q

Describe the collaboration phase of Greiner’s life cycle

A

Team working approach with shared responsibilities

Need to keep motivated or fall prone to crisis of renewal and organisational failure

Internal Audit Environment (14 decks)

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