Chapter 14: Org Structure and Design Flashcards
Elements of Organisational Structure:
Define Organisational design
The process of selecting and managing aspects of organisational structure and culture to enable the organisation to achieve its goals.
Elements of Organisational Structure:
Define Organisational Structure
The formal system of task, power and reporting relationships.
Elements of Organisational Structure:
Define Organisational chart
A diagram of the chain of command and reporting relationships in a company.
List the five characteristics of Organisational Structure:
- Division of Labour
- Span of control
- Hierarchy
- Formalisation
- Centralisation
Define and explain the characteristic of organisational structure: Division of Labour
The degree to which employees specialize or perform a variety of tasks as generalists (specialization: degree to which tasks in an organisation are subdivided into seperate jobs).
Characteristic of Organisational Structure: Division of Labour
Define Highly specialized and Low specialization:
Highly specialized: each step is carried out by a separate individual
Low specialization: one individual can do the entire job and all its steps.
Characteristic of Organisational Structure
Define Span of Control:
The number of people reporting directly to an individual.
Span of Control:
Define the two types of span of control:
- Narrow span of control – having fewer employees reporting to one supervisor. Can be costly, allow for close supervision and better coaching. Complex or novel tasks
- Wide span of control – having many employees report to one supervisor. Provides employees with more autonomy, responsibility and allow for self-management. Tasks are routine work, employees need little to no direction, or when technology can substitute for supervision.
Characteristic of Org Structure:
Define Hierarchy
The degree to which some employees have formal authority over others.
Characteristic of Org Structure:
Define Formalisation:
The extent to which organisational rules, procedures and communications are written down.
Characteristic of Org Structure: Formalisation
Describe Highly formalisation:
Little discretion over tasks
Required to follow the rules+procedures
Very little flexibility
Characteristic of Org Structure: Formalisation
Describe Low formalisation
Less rules (not written down formally)
General idea of how things work
Less transparent
Characteristic of Org Structure: Centralisation
Define Centalised organisations:
Power and decision-making authority are concentrated at the higher levels of the organization. Clear lines of communication and responsibility
Characteristics of Org Structure: Centralisation
Define Decentralised organisation:
Authority to make decisions is distributed throughout the organisation. Employees have more authority and autonomy
Define Mechanistic Structures:
Rigid, traditional bureaucracies, centralised power, hierarchical communications.
Define Organic structures:
Flexible, decentralised structures with less clear lines of authority, open communication channels, focus on adaptability in helping employees accomplish goals.
List the seven determinants of Organisational Structure
- Business strategy
- External environment
- Organisational talent
- Organisational size
- Behavioural expectations
- Production technology
- Organisational change
Determinants of Organisational Structure
Explain 1. Business Strategy
Simple strategies require simple designs; more complex strategies require complex designs. An innovation strategy would need low formalisation, centralisation and high specialisation. Being a low-cost producer would require a more hierarchical, rigid structure than pursuing an innovation strategy.
Determinants of Organisational Structure:
Explain 2. External environment
A rapid changing environment requires a more flexible structure than a more stable environment.
Determinants of Organisational Structure
Explain 3. Organisational talent
If workers have professional skills (lawyers, scientists, etc.) and they need to work together then a flatter structure would be more appropriate.
Determinants of Organisational Structure
Explain 4. Organisational size
Larger organisations tend to have greater specialisation, greater hierarchy and more rules than smaller organisations.
Determinants of Organisational Structure
Explain 5. Behavioural expectations
If employees are expected to follow explicit rules and procedures a hierarchical, centralised structure would be called for.
Determinants of Organisational Structure
Explain 6. Production technology
If the organisation uses unit production and makes custom products, a flat structure with a low managerial span of control is most appropriate.
**Mass production: ** large volumes of identical products.
Continuous production: machines constantly makes machines.
Determinants of Organisational Structure
Explain 7. Organisational change
As the environment and business strategies change, organisational structures change too.
