Business Structures Flashcards
What is an organisational structure?
Grouping people in to departments and allocating responsibility and authority accordingly.
What is the division of work?
Dividing work in a way that improves practice and familiarity - allowing for specialisation by trade.
What is the unity of command?
Each subordinate is answerable to only one superior.
What is the unity of direction?
Only one single individual sets plans
What is the scalar chain?
The lines of authority that exist from the top to the bottom of an organisation
What are organisational structures used for?
Defining relationships - establishing the flow of responsibility. Co-ordinating groups of individuals. Allows for a disciplinary system. Ensures those with responsibility have the relevant authority to do so.
What is multi-skilling?
Having teams of individuals trained in a number of tasks and skill. Labour and other resources can be used more efficiently.
What is flexibility?
Everything is flexible - structure/working hours/ teams. This allows any changes to be made quickly and easily when society demands it.
What is an operating core?
The basic work of the organisation - what is it they do in basic terms.
What is the strategic apex?
Higher management - those in charge with the power to make strategic decisions.
What is the middle line?
The managers who link the top with the bottom. The ones that communicate with both sides.
What is the technostructure?
Those who have the role of designing procedures and standards e.g IT, Accountants
What is the support structure?
Those who provide supportive services
What is the ideology?
What does the organisation value and believe in - this impacts what emphasis they place on the other building blocks.
How can the building blocks link?
Co-ordinating through a hierarchy in a way that create standardised procedures. This allows for any areas that require training to be identified.
What is a simple structure?
One with a simple environment, and tasks. It focuses on the strategic apex and there is a lot of direct supervision.
What is machine bureaucracy?
A complex environment, lots of regulated tasks. Focuses on the techno structure and there is a lot of standardisation of the work.
What is professional bureaucracy?
A complex environment with professional but simple systems. It has an operating core and there is a standardisation of skills across the board.
What is a divisional structure?
Simple with very large but divisible tasks. The middle line is most important and it focuses on standardising outputs.
What is adhocracy/ a matrix structure?
Complex and dynamic with lots of complex tasks. It focuses on the operating core and support staff with a focus on mutual adjustment (communicating adjustments that have to be made)
What is an entrepreneurial structure?
One that is built around the owner and manager - common for small businesses. It flows straight from manager to subordinates. Allows for quick decisions and good control BUT it can be too centralised and doesn’t work well on expansion.
What is a functional structure?
The business is structured in a way that best suits its function. Works best for small companies in a stable environment - not many different departments but is separated out nonetheless. Good for standardisation and increasing efficiency but not good for when there is a need to adapt quickly and diversify.
What is a divisionalised structure?
The organisation is structured to suit how the business itself is divided e.g geography, brands, products. Managers have responsibility for their area and resources. Good for growth, especially geographically and for having clear lines of accountability. Bad as there is a risk of losing control and duplication across teams.
What is the matrix structure?
Combines a divisional and functional structure. Used by organisations with many products and functions. Is a very flexible way of running a business - people work where they are needed - even across areas. Can dilute authority and become time consuming due to crossovers.
