Business functions and organizational structures

Question 1

What are some business functions?

Answer 1

-human resources
-sales and marketing
-research and development
-production
-customer service
finance and accounts
-Admin / IT

Question 2

Organization by type

Answer 2

Global - complex organization structures

National- org possibly stretches throughout the country

regional- could be through a county or wider area

Local- small orgs serving local area or community

Question 3

Organisation charts

Answer 3

hierarchical structure

Pyramidal structure

centralised / entrepreneurial

Question 4

Purpose served by organizational structure

Answer 4

is the hierarchical arrangement in which

the essential tasks of an enterprise are subdivided and

• grouped to create the systems
• decision centers and
• behavioral network

that carries out enterprise strategies

Question 5

Organisational design

Answer 5

the process managers go through to create meaningful

• structures
• decision and information networks
• governance systems

Question 6

Authority

Answer 6

the right to make decisions out tasks

Question 7

Span of control

Answer 7

the number of people a superior is responsible for

Question 8

Chain of command

Answer 8

the relationship between different levels of authority in the business

Question 9

Hierarchy

Answer 9

shows the line of mangement in the business and who has specific responsibilities

Question 10

Delegation

Answer 10

giving/passing tasks from superior to subordinate

Question 11

Empowerment

Answer 11

giving responsibilities / power to people at all levels of the business to make decisions

Question 12

Tall VS flat organizations

Answer 12

Tall (army, catholic church) ….. relatively narrow span of control

Flat - Relatively wide span of control

Question 13

Ways to structure a business

Answer 13

By function
By product or activity
By area
by customer

Question 14

Matrix organization

Answer 14

incorporates dual responsibilities and reporting relationships

connecting selected functions with specific products or projects

with the project manager typically given overall responsibility and the budget to draw people from functional areas

Question 15

Some fundamental trade-offs for balancing organizational design

Answer 15

Centralisation and decentralization

bureaucratic versus organic structures

wide versus narrow span of control

flat versus tall hierarchy

Question 16

Centralisation

Answer 16

an organisation structure that concentrates authority and decision making toward the top of the organisation

more appropriate for large companies in slow changing industries

Question 17

Decentralisation

Answer 17

A structure that disperses authority and decision making to operating units throughout the organisation

appropriate for organisations in complex, fast changing environments requiring flexibility

Question 18

Autonomy

Answer 18

means granting power and responsibilities to followers in initiate innovation action that improves processes and performance, with results assessed against general goals

Question 19

Control

Answer 19

control limits the authority given managers to shape decisions and resource allocations by specifying parameters and providing for higher level reviews, often with approvals prior to proceeding

Question 20

Mechanistic structure

Answer 20

has a traditional look and feel, highly structured and formalized, typically with lots of “silos” bewteen work units

designed for conformance behaviors to handle routine functions appropriate to stable environments

Question 21

Organic structure

Answer 21

has a looser look and feel that relies on the adaptive capacities and motivation of individuals

embodies postmodern structures

Question 22

Bureaucracy

Answer 22

an efficiency orientated system of organisation that emphasis formalisation of roles and rules to promote control

Question 23

Functional structure

Answer 23

Advantages

• specialisation, each department focuses on its own work
• accountability
• clarity- know yours and others roles

disadvantages

• could communication, lead to lack of focus
• departments can become resistant to change
• coordination may take too long
• gap between top and bottom

Question 24

Organisation by product/activity

Answer 24

advantages

• clear focus on market segments helps meet customer needs
• positive competition between divisions
• better control as each division can act as a a seperate profit centre

disadvantages

• duplication of functions
• negative effects of competition
• lack of central control over each seperate division

Question 25

Organisation by Area

Answer 25

Advantages

• serve local needs better
• positive competition
• more effective communication between firm and local customers

disadvantages

• conflict between local and central management
• duplication of resources and functions