Chapter 12 - Organisational structure and design Flashcards
The nature of organisational structure
Why is a clear organisational structure important?
It ensures clarity in lines of communication and accountability, facilitating effective operations and goal alignment.
The nature of organisational structure
What two things become clear about organisational structure?
1) No single structure guarantees achievement of strategic objectives for all organisations.
2) Organisations need an optimal structure for their current operations but should remain flexible for change.
The nature of organisational structure
According to Johnson et al. (2017), what is the role of organisational structure?
It acts as the ‘skeleton’ of the organisation, providing the framework on which all other functions are built.
The nature of organisational structure
What was Chandler’s (1962) view on the relationship between strategy and structure?
Strategy should precede structure, as “structure follows strategy,” or inefficiency may result.
The nature of organisational structure
How did Quinn (1980) view the relationship between strategy and structure?
He argued that structure and strategy are intertwined, adapting to each other as organisational needs evolve.
The nature of organisational structure
What did Mintzberg (1994) conclude about the order of strategy and structure?
There is no single correct order; instead, “structure follows strategy as left follows right.”
The nature of organisational structure
What are the six key elements of organisational structure according to Robbins and Judge (2016)?
Specialisation, Departmentalisation, Chain of Command, Span of Control, Centralisation, and Formalisation.
The nature of organisational structure
What does ‘specialisation’ refer to in organisational structure?
Dividing tasks into specific jobs to leverage expertise in certain skills or knowledge areas.
The nature of organisational structure
What is ‘departmentalisation’ in organisational structure?
Grouping related specialised functions together within the organisation.
The nature of organisational structure
What is the ‘chain of command’?
The hierarchical line of authority in an organisation from top to bottom.
The nature of organisational structure
What does ‘span of control’ refer to?
The extent to which authority and decision-making are concentrated at the top of the hierarchy.
The nature of organisational structure
What does ‘formalisation’ mean in organisational structure?
The degree of discretion given to employees, reflecting how strictly tasks and roles are defined.
Traditional structural forms
What is a simple structure, and what are its key characteristics?
A structure common in small businesses, usually flat, with a single owner-manager making key decisions.
Traditional structural forms
What are the advantages of a simple structure?
Clear accountability, wide spans of control, and centralised authority
Traditional structural forms
What are the disadvantages of a simple structure?
The manager must handle all aspects, limited career progression, and focus on day-to-day over strategy.
Traditional structural forms
What is a functional structure?
A structure where specialised heads lead different functions as an organisation expands and diversifies.
Traditional structural forms
What are the advantages of a functional structure?
Senior skills breadth, focused decision-making, opportunities for career progression, and task specialisation.
Traditional structural forms
What are the disadvantages of a functional structure?
Task duplication, overburdened senior managers, differing function values, and short-term focus on individual functions.
