Business Organisation Structure Function And Governance Flashcards
What is organisational structure
It is concerned with a way and voice work is divided and allocated
It outlines are rules and responsibilities of individuals and groups within the organisation
Types of organisation structure
Entrepreneur structure
Product or division structure
Functional department and structure
Matrix structure
Geographic structure
Boundary less structure
Explain entrepreneral structure
Restrically by small businesses and the entrepreneur has specialist knowledge about the product
Advantages
Good control
Goal congruence
Fast decision making
Moore responsive to market
Disadvantages
Laco specialisation
Lack of career opportunities
Cannot diversified
Explain Matrix structure
Combination of functional and divisional structure there is dual reporting to different managers the aim of matrix structure is to combined advantages of both functional and divisional department
Advantages
Flexibility
Advantages of both functional and divisional department
Encourageous teamwork
Disadvantages
Timely
Dual command and conflict
Costly
Explain boundaryl structure
It focuses on flexibility and gives less importants to chain as command and formal departments
There are three types of boundary structure hollow virtual modular
Hollow
Activities a divided into core and non core and the non core activities are outsourced
Virtual
Most of the functions are outsourced
Modular
Rather than making the whole product the manufacturing process is breaking down and each component can be made by the company or outsourced
Explain geographic structure
It is just like a devotional structure but is durations consist of a separate location
Advantages
Enables growth
Training of general manager
Top management can focus on strategic matters
Disadvantages
Specialist feel isolated
Lacoof gold congruence
Potential lose of control
Explain functional or department is structure
Group of employees with similar activities a divided into a department it is for small organisation which have relatively few products
Advantages
Specialisation
Standardization
Career opportunities
Disadvantages
Empire building
Slow
Lack of diversification
Explain divisional or product structure
Organisation is split into different divisions each for a product client or a geographic location
They are run a separate profit sandles with its own income expenditure and capital investment they are separately identifiable divisions does they also known as strategic business units
Advantages
Enables growth
Here responsibility of products
Training of general manager
Top management can focus on strategic matters
Disadvantages
Potential loss of control
Flag of gold congruence
Specialist feel isolated
What is centralisation and decentralization
Under centralisation the upper levels in organisation take decisions
Under the centralisation that decision is passed down to all the unit and people at lower levels
Advantages and disadvantages of decentralization
Advantages
Top managers can focus on strategic matters
Better motivation
Fast decision making
Disadvantages
Training cost
Extra cost in obtaining more information
Senior management loses control
Levels of strategy
Strategic planning it is done by senior managers for long term decisions
Tactical planning it is done by middle management for how to allocate a resources for specific divisions are department
Operational planning it is a lowest level with junior managers and supervises it is short term detail and practical
What is meant by marketing
Marketing a refers to identifying anticipating and supplying customers need efficiently and profitability
Marketing mix
Price
Promotion
Place
Product
