ch4

Question 1

What constitutes complexity

Answer 1

The degree of horizontal, vertical and spacial differentiation in an organisation.

Question 2

Horizontal differentiation:

Answer 2

The degree of differentiation of units based on the orientation of members, the nature of the tasks they perform and their educational training.
i.e. considers the number of different occupational, task and administrative grouping within an organisation.

Question 3

Issues arising from increased horizontal differentiation

Answer 3

Having more diverse skills/ orientation make communication more difficult and makes it more difficult for managers to coordinate their activities.

Question 4

what is Vertical differentiation

Answer 4

Number of hierarchical levels between top management and operatives; sometimes referred to as layers of management.

Question 5

What is the determining factor of how many levels of vertical differentiation in an organisation

Answer 5

span of control

Question 6

What effects number of managers required/ span of control of managers

Answer 6

Technological advances

Question 7

what is Spatial dispersion

Answer 7

describes the extent at which the organisations facilities and personnel are spread over a wide geographical area.

Question 8

how does spatial dispersion effect complexity in org

Answer 8

Spatial dispersion increases the complexity of an organisation when it is wide.
Narrower spatial dispersion allows an organisation to become less complex as they don’t have to consider time zone differences, staff find it easier to make decisions as they most likely know one another which makes problem solving easier.

Question 9

what is Formalisation

Answer 9

Refers to the degree to which jobs and procedures within the organisation are standardised.
Highly formalised means workers have minimum amount of discretion.
Low formalisation means employees behaviour is relatively non programmed.

Question 10

some benefits of formalisation

Answer 10

Organisations use formalisation because of the benefits that accrue from regulated employee behaviour.
example assembly lines run smoothly.
It allows other members of the organisation to anticipate how others will act in certain situations.
Formalisation is used to manage risk.

Question 11

list some techniques of formalisation

Answer 11

Selecting correct staff(this is called external formalisation.)
Role requirements:
Rules procedures and policies: .
Socialisation: an adaptation process by which individuals absorb the values, norms, and expected behaviour patterns for the job and the organisation of which they will be a part.
Training:
Rituals:e.g churches Staff Christmas party.

Question 12

What is Centralisation

Answer 12

The degree in which decision making is concentrated in a single point.

Question 13

Why is centralisation important

Answer 13

manager limits:managers have a limit to the amount of information they can process effectively.
Quicker decisions: Decentralisation facilitates speedy action because it avoids the need for information to pass through the hierarchy.
More Detailed decisions: Decentralisation can provide more detailed input into the decision. Some decisions require the input of a specialist.
Motivates employees: Decentralised decision making acts as a motivation to employees.
Facilitates training: Decentralised offer training opportunity for lower level managers to learn by doing.

Question 14

what are the techniques of Programmed coordination

Answer 14

techniques such as planning, goal setting, scheduling, timetabling, sequencing and developing various types of standard operating procedures.

Question 15

why use individual coordination

Answer 15

Where situations can not be fully anticipated or where unusual circumstances demand a unique solution to a problem.

Question 16

informal coordination

Answer 16

the voluntary action of those who need to cooperate with others, sometimes referred to as mutual adjustment.

Question 17

what is mutual adjustment also known as

Answer 17

informal coordination

Question 18

Organisation design options, what is each group called

Answer 18

Each grouping is called a configuration.

Question 19

what is a configuration

Answer 19

Configuration is a complex clustering of element that are internally cohesive and where the presence of some elements suggests the reliable occurrence of others

Question 20

Mintzbergs five basic parts to an organisation

Answer 20

Working base/operating core- Employees who perform basic tasks.
Strategic apex- Top level managers
Middle Line- managers who connect the operating core to the strategic apex
Techno structure- analysts who have the responsibility of developing the programs, procedures and rules.
Support staff- people who give indirect support service

Question 21

organisation design When apex dominant what happens structure + centralisation

Answer 21

= highly centralised control = simple structure

Question 22

organisation design When middle management dominant what happens structure + centralisation

Answer 22

= autonomous units = divisional structure.

Question 23

organisation design what happens when technostructure is dominant

Answer 23

technostructure= machine bureaucracy

Question 24

organisation design what happens when operating core is dominant

Answer 24

operating core= professional bureaucracy

Question 25

organisation design what happens when support staff is dominant

Answer 25

support staff = adhoracy

Question 26

Feature of simple structure

Answer 26

Low in complexity, little formalisation, and has authority centralised in a single person.

Question 27

when is simple structure effective

Answer 27

The simple structure is effective when the number of employees is small, informal communication is generally effective and the cost of administration is low.

Question 28

what are feature/ key concepts of a machine bureaucracy

Answer 28

Standardisation, Routine, Formalised tasks, centralised

Standardisation is the key concept that underlines all machine bureaucracy.
Machine bureaucracy is an organisation with very routine and formalised operating tasks, rules and regulations which is highly centralised.

Question 29

Negative points about machine bureaucracy

Answer 29

Machine bureaucracy is generally poor at adapting to change.
Specialisation creates sub unit conflicts.unit goals and interest can take precedence over the organisations total goals
Machine bureaucracy leads to obsessive concern with rules, little room for modification,

Question 30

when machine bureaucracy works

Answer 30

Machine bureaucracy suits large size stable environment and a technology that permits standardised routine work.

Question 31

what is Divisional structure:

Answer 31

The divisional structure is a set of autonomous self contained units, each typically configured as a machine bureaucracy, coordinated by a central head quarters.

Question 32

what change happens to chief executives in divisional structure

Answer 32

become middle managers as they answer to senior managers in the head office.

Question 33

advantages of Divisional Structure

Answer 33

Clear accountability: This structure provides clear accountability and responsibility for the performance of each division.
Focus on outcomes:The division manager is more focused on outcomes(profit and loss) rather then internal processes.
Frees head office: from day to day operations so they can plan long term.
Autonomous divisions:As each division is autonomous it can be sold or disposed of with minimal effect to the entire organisation.

Question 34

How does head office, strategic apex behave in divisional structure

Answer 34

This form also holds a central head office which provides support services to the divisions.
This head office also acts as an overseer to compare divisions and decide which are running well and then can decide which deserves capital investment.
The organisation may be divided on a number of bases, Product, Geographic area and Customer.

Question 35

disadvantages of divisional structure

Answer 35

Duplication: raises costs and reduces efficiency. This is somewhat tackled by a shared resource unit.
Cooperation:Difficult for cooperation between divisions.
Resentment among divisions:While this structure offers autonomy , it is exercised with restraints, which causes resentment among divisional managers.
coordination problems,Personnel are unable to transfer.
NDH:An innovation developed by one division and then authorised by head office to be instituted in all divisions often fails because it was NDH (Not Developed Here).

Question 36

why use divisional structure

Answer 36

The primary reason for using the divisional structure is product or market diversity.

Question 37

The professional bureaucracy:

Answer 37

a structural form that has highly skilled professionals, high complexity, decentralisation and the use of internalised professional standards in place of external formalisation.

Question 38

why use professional bureaucracy

Answer 38

The employment of professionals has created the need for an organisation design that permits high levels of expertise to be applied to unique problems.
The power of this structure is in the operational core because they have the critical skills that the organisation needs and they have the autonomy, provided through decentralization, to make critical decisions.

Question 39

advantages/disadvantages of professional bureaucracy

Answer 39

perform specialized tasks
sub unit conflicts can develop.
Specialists constrained by the rules of their profession,
Difficult for managers to coordinate the work of various professionals.
Difficult to set strategic priorities as there is no clear strategic apex.

Question 40

When professional bureaucracy works

Answer 40

This structure is best matched with a complex and stable environment.

Question 41

characteristics of The Adhocracy:

Answer 41

high horizontal differentiation and low vertical differentiation,
low formalisation,
intensive coordination,
great flexibility
great responsiveness,
Senior managers can not be expected to posses the expertise needed for every decision.

Question 42

what is an adhocracy

Answer 42

a system of flexible and informal organization and management in place of rigid bureaucracy

Question 43

what staff suits adhocracy

Answer 43

Staffed predominantly by professionals with high levels of expertise.

Question 44

adhocracy in relation to vertical differentiation

Answer 44

Vertical differentiation is low as it would impede the organisations ability to adapt.

Question 45

what is associated with adhocracy relating to conflict and strategy

Answer 45

Conflict is a natural part of this structure.

The adhocracy is associated with strategies of diversity, change, complexity, high risk.

Question 46

when use adhocracy

Answer 46

Mostly used for non routine problems.

Question 47

what is divisional structure

Answer 47

The divisional structure organizes the activities of a business around geographical, market, or product and service groups.

Question 48

example of adhocracy

Answer 48

theater organisations

Question 49

what is individual coordination

Answer 49

individual efforts,
performance of the individual does not affect the functioning of others,
the need for coordination does not arise.
It is a continuous and dynamic process.
Coordination by hierarchy is also a part of individual coordination.