Chapter 5 Flashcards
What is an entrepreneural structure?
A structure which the entrepreneur has maximum authority, directly controls employees and extrenal stakeholder and direct stategically the business.
Characteristics of entrepreneuarl structure
1.No intermediate hierarchical levels
2.Limited autonomy, mainly based on direct supervisions
3.Faster decision making
4.Organisation is flat
5.Flexibility-low specialisation
What is functional structure?
A structure that groups people together on the basis of their common expertise and experience or because they use the same resources. It is a foundation of a horizontal diferentation.
What are economies of specialisation?
People with skills in common can learn the most efficient techniques for performing a task or the best way to solve a problem from one another.
Describe dividional structure
A structure in which functions are grouped together according to the specific demands of products, markets or customers. Tha main goal is to create smaller, more managable subunits within an organisation. Focus is on customer, product, region.
Characteristics of divisions
1.Relative autonomous
2.They can make decisions on their own, meet the needs of marketplace in creative ways
3.Each division is relatively independent of the other
Describe product structure
A divisional structure in which products are grouped into separate divisions, according their similiraities or differences.
Describe product division structure
An organisation whose products are boradly similar and aimed at the same market will choose to centralise support services and use product division structure.
A divisional structure in which a centralised set of support functions services the needs of a number of differenet product lines.
What is multidivisional structure?
A structure in which support functions are placed in self-contained divisions. A result is horizontal differentation increases.
Describe self-contained division
A division that has its own set of support functions and controls its own value-creation activities.(each division is independent)
What is transfer price?
The price at which one division sells a product or information about inovations to another division.
Characteristics of product team structure
-An organisation whose products are very complex technologically or whose characteristics change rapidly to suit changing customer needs will choose a product team structure.
-It is a divisional structure in which specalists from the support functions are combined into product development items that specialise in the needs of particular kind of product.
-Each team is a self-contained division headed by a product team manager who supervises the operational activities associated with developing and manufacturing the product.
-Product team structure is more decentralised than a functional structure or a product division structure.
-It increases horizontal and vertical differentation(which separates managers into corporate-level, division-level and function-level managers).
Describe Geographic divisional structure
When the control problem that company experiences are function of geography, the firm should use a geographic divisional strructure.
It is a structure in which divisions are organised according to the requirements of the different locations in which an organisation operates.
Characteristics of matrix structure
1.A structure in which people and resources are grouped in two ways simultaneously: by function and by project or product
2.Vertical flow of functional responsibility
3.Horizontal flow of product responsibility
4.Very flat
5.Decentralised authority
6.Product team manager
7.Functional manager
8.More flexible than the product team structure
9.Use of cross functional teams
Describe market structure
Each customer dividion has a different marketing focus and the job of each division is to develop products to suit the needs of its specific customers
What is multidivisional matrix structure?
A structure of a large organisation that has many divisions and simultaneously uses many diffrenet types of organisational structure. It sends corporate-level specialists to each division. Divisional managers meet with corporate managers to exchange information.
Describe meta-organisation
An organisation whose agents are themselves legally autonomous and not linked thorugh employment relationship.
What is network structure?
1.It is a group of diffrent organisations whose actions are coordinated by contracts and agreements rather than by formal hierarchy of authority.
2.More flat and decentralised
3.Managers coordinate and control relationships that are b oth internal and external to the firm
4.The main coordination tool is the contract
