Chapter 3 - organisational and business structures Flashcards
what is defined
formed by the grouping of people into departments or sections and the allocations of responsibility and authority.
organisational structure
what is unity of command
subordinate should receive orders from only one manager
what is described
there should only be one manager for each activity
unity of direction
what is described
authority should flow down a single chain of command
scalar chain
What is described
work should be specialised into single tasks
division of work
three methods of communicating organisational strcuture
organisational charg
organisational manual
job descritpion
what is defined
business broken down into autonomous regions or product business, each with its own revenues, expenditures and capital asset purchase programmes, each with own profit responsibility
divisionalisation
what is described
organisation in which decision making authority is concentrated in one place at the strategic apex
centralised organisation
what is defined
the number of people reporting to one person
span of control
What is the scalar chain
the chain of command from the most senior to most junior role
What is described
business which in relation to size has large number of levels in management hierarchy normally because there are narrow spans of control
Tall business
What is described
business which in relation to size has small number of levels in management hierarchy normally because there are wide spans of control
Flat business
what kind of business is described
stable efficient suitable for slow changing operating environments
mechanistic
What type of business is described
flexible adaptive and suitable for fast changing or dynamic operating environments
organic businesses
What is defined
a continuous organisation of official functions bound by rules
Bureaucracy
Characteristics of bureaucracy SHIP RUST
Specialisation and training
hierarchy of roles
Impersonal nature
Professional nature of employment
Rationality
Uniformity in performance of task
Stability
Technical competence
Organic organisation - status control mechanism
differences of status determined by people’s greater expertise and experience
Organic organisation - commitment control mechanism
Degree of commitment employees have to the goals of the business and the team is more extensive
Organic organisation - shared values and culture control mechanism
hierarchal control replaced by development of shared belief and values
a bureaucracy is suited to a situation where the business environment is
static and simple
in divisional structure which is the key building block
middle line
