CH 3 - Business Structure

Question 1

How is an organisational structure formed?

Answer 1

Question 2

What are Mintzberg’s 6 building blocks that all departmens can be divided into?

Answer 2

• Support structure → provide acillary services
• Technologists → standardise workplace

Question 3

What are the 2 modern principles to organisational structure?

Answer 3

Question 4

What does the rational goal managment model intail?

Answer 4

• Determining the best way to perform tasks
• Deligationg to the most suitible staff member
• Training workers to follow procedures
• Giving financial incentives
• Managers taking responsibility for staff deligation.

Question 5

1. What is the Entrepreneurial structure?
2. Who does it work best for?
3. What are the advanatages and disadvanatages of this structure?

Answer 5

1. A structure build around managment with key decisions made a ta high level. Other staff work as a team with little division.
2. Small / new businesses

Question 6

1. What is the functional structure?
2. Who does it work best for?
3. What are the advanatages and disadvanatages of this structure?

Answer 6

1. A structure built around the main functions of a business.
2. Smaller companies that have outgrown the entrepreneurial structure.
   3.

Question 7

1. What is the divisionalised structure?
2. Who does it work best for?
3. What are the advanatages and disadvanatages of this structure?

Answer 7

1. Organised into product lines/brands or locations with general managers taking responsibility for their own responsibilities.
2. Businesses with diverse products or margins.

Question 8

1. What is the matrix structure?
2. Who does it work best for?
3. What are the advanatages and disadvanatages of this structure?

Answer 8

1. A combination of the fuctional and divisionalised structure devided into departments
2. Larger companies with multi products / organisations.

Question 9

What is a centralised and decentrailsed stucture?

Answer 9

Question 10

What are the pros and cons of decrentralisation? _{<em>(reverse for centralisation)</em>}

Answer 10

Question 11

1. Whose managment theroy is based on the span of control?
2. What is ‘span of contol’
3. What are the advanatages and disavanatges of having too few subordinates (tall organisation)
4. What are the advanatages and disavanatges of having too many subordinates (flat organisation)

Answer 11

1. Urwich
2. How many subordinates a manager has/

Question 12

1. How came up with the mechanistic vs organic stucture?
2. Compare the 2 structures

Answer 12

1. Burns & Stalker

Question 13

What are the 4 ways that business can work together to form an alliance?

Answer 13

1. Joint ventures → multiple companies form a joint owned comapny
2. Strategic alliance → Similar to a joint venture but with less commitment (a fast food chain may agree with Coca-cola to sell their product in stores)
3. Licensing → One company allows another to manafacture/sell its product or service.
4. Agencies → One party distributes anothers product (travel agencies)