Chapter 1 - Organisation Types And Structures Flashcards
What is an organisation (Richard Daft)?
- A Social Entity
- Has Clear Goals
- Deliberately Structured
- Linked to External Environment (demand & competitors)
What are the types of organisations (5)?
- Commercial (profit generating)
- Not-for-profit (service provision)(charity)
- Public Sector (owned by government)
- NGO (indenpendant voluntary assoc.)
- Co-operative (owned by it’s workers & all share profits)
What is a Mission Statement?
A published statement of the companies core objectives.
What should be in a Mission Statement according to Campbell?
- Purpose (why we exist)
- Strategy (how & where we compete)
- Policies & Behaviour Std (to help staff)
- Values (what we stand for)
What should Core Objectives be (3)?
- Consistent
- SMART
- SAF
How can Core Objectives be consistent (3)?
- Vertically (at all levels of staff)
- Horizontally (across all divisions of business)
- Overtime (updated & withstand changes)
What are SMART objectives?
- Specific
- Measurable
- Agreed/Attainable
- Realistic/Relevant
- Time Bound
What are SAF objectives?
- Suitable (for the companies mission)
- Acceptable to stakeholders
- Feasible, given the resources available
How many directors must a Ltd and Plc have?
- Ltd. - 1+
- Plc. - 2+
What are the directors responsibilities?
- Health and Safety
- Tax and Employment Law
- Equitable Fiduciary Duty (good faith) (look after interests of company)
What are the two types of company structure?
- Formal - Clear segregation of duties, set out on paper.
Everyone knows their duties. - Informal - Ran day-to-day, may be different to what is set out on paper, people find work arounds.
What are the 7 types of organisational structures?
- Entrepreneurial (spider web)
- Functional
- Matrix
- Divisional
- Geographical
- Product
- Virtual
No single ‘correct’ structure.
What is an Entrepreneurial structure?
- New/small business
- One person controls everything
- Informal
- Founder has the power
- Reacts quickly to changes
- Not an expert at everything
- If founder is unavailable, no decisions are made
What is a Functional structure?
- Organised around different functions
- Functions are catergorised into depts. or divisions
- Emphasis on roles rather than individuals
- Slow flow of information
Directors
Dept Heads
Low Lvl Managers
What is a Matrix structure?
- A Net
- Communication increased (horizontal between individuals)
- Dual authority
- Individual Manager for Sales and Prod 1, reporting to a Sales Manager and a Production Manager.
- Increase in specific knwledge
- Conflicting goals
- Too many managers
What is a Divisional structure?
- Similar to Functional, but instead of dept. heads it uses Divisions
- Each division doesnt interact with each other
- Central HQ for finance, HR, Legals, but may have other offices for each division
- Mars: Divisions for Chocolate, Pet food, Cleaning goods.
What is a Geographical structure?
- Similar to Functional structure, but instead of dept. heads it uses locations.
What is this theory called?
Mintsberg’s Organisational From
What is Mendelow’s Matrix?
It is a mapping to help ascertain key stakeholders.
What is this diagram called?
Porter’s Value Chain
It shows the importance of a ‘Value Chain’. This describes that no activity works in isolation and should all be aligned to the same goal (ie. being a budget product) to reach the targeted margin.
What is the Scalar Chain?
It refers to the number of direct reports a manager has. Tall business have more managers, less reports and vice versa for short businesses.
What is the Boundary of Control?
- Is the limit of the businesses jurisdiction
- Can control those within boundary
- Insde out view
What is the Boundary of Identity?
- Those that affect the businesses identity
- But are not in the control of the business
- Seen as the business from those looking in
