Chapter 6: Fundamentals of Organising Flashcards

0
Q

When do you organize?

A

After strategic planning is done

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1
Q

What is organising?

A

Deployment of organisational resources

To achieve strategic goals

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2
Q

What is departmentalization

A

Basis for grouping positions
Positions into departments
Departments into total organization

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3
Q

How many traditional approaches are there?

A

3

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4
Q

What are the traditional approaches?

A

Functional
Divisional
Matrix

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5
Q

What are the innovative departmentalization approaches?

A

Team

Network

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6
Q

How to assess advantages or disadvantages?

A

Use of resources: efficient (economies of scale) or not

Technical Depth: specialization and development

Communication across divisions: barriers

Environment response: flexible and fast

Customer service

Decision concentration: delay, response time

Decision making: direction and control/unplanned decentralization

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7
Q

What does departmentalization create?

A

Chain of command
Reporting relationships
Organizational structure

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8
Q

How does different departmentalization approaches affect?

A

Employee goals

Employee motivation

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9
Q

How are activities grouped in a functional structure?

A

By common function

Or type of organizational resources

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10
Q

What are the advantages of a functional approach?

A

Efficient use of resources : economies of scale
In depth skill specialization and development
Top manager direction and control

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11
Q

What are the disadvantages of functional approach?

A

Poor communication across functional department
Slow response to external changes (lagging innovation)
Decisions concentrated at top hierarchy: delay

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12
Q

What are activities grouped based on in the divisional approach

A

Based on similar organizational outputs

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13
Q

What is the divisional structure also called?

A

M form
Multi divisional
Decentralized form

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14
Q

What are the types of divisional structure?

A

Product/services
Geographical region
Customer

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15
Q

What are the advantages of a divisional structure?

A

Fast response and flexibility to unstable environment
Fosters concern for customer need
Excellent coordination across functional departments

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16
Q

What are the disadvantages of a divisional structure?

A

Duplication of resources across divisions
Less technical depth and specialization
Poor coordination across divisions

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17
Q

How are activities divided in divisional approach, product and services?

A

By the type of product/services

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18
Q

When is division by geographical region used?

A

When operations/markets are
Physically dispersed
Non-interdependent

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19
Q

When is division by customer used?

A

company provides

Different services to different types of customers

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20
Q

What does the matrix approach involve?

A

Both functional and divisional structure

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21
Q

What is the matrix structure called?

A

Dual

Hence it has dual lines of authority

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22
Q

How do horizontal and vertical units work together?

A

The functional department operate as vertical units

Supporting the horizontal divisions

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23
Q

What are the advantages of a matrix approach

A

More efficient use of resources
Flexibility, adaptability or changing environment
Expertise available to all divisions: interdisciplinary cooperation

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24
Q

What are the disadvantages of a matrix approach?

A

Frustration and confusion from dual chain of command
High conflict between two sides of the matrix
Many meetings more discussion than action

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25
Q

When is team approach used?

A

Delegate authority quickly to lower levels

More flexible and responsive in a complex and competitive environment

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26
Q

How to use team approach?

A

Through cross functional teams

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27
Q

What are cross functional teams?

A

Employees from various functional departments meeting as a team to resolve problems

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28
Q

Advantages of a team approach?

A

Reduced barriers among departments: increased compromise
Shorter response time, quicker decisions
Better morale, enthusiasm from employee involvement

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29
Q

What are the disadvantages of a team approach?

A

Dual loyalties and conflict
Time and resources spent on meetings
Unplanned decentralization

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30
Q

What is the network approach?

A

Collaboration beyond the organization

Outsourcing/farming to loosely connected groups of companies

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31
Q

Advantages of a network approach?

A

Can draw on expertise worldwide
Highly flexible and responsive
Reduced overhead costs

32
Q

Disadvantages of a network approach?

A

Lack of control, weak boundaries
Greater demands on managers
Weaker employee loyalty

33
Q

What are the steps in organising?

A
  1. Consider org. Objectives
  2. Determine type work activities
  3. Departmentalization
  4. Design hierarchy of relationship
  5. Set up Mechanism for coordination
34
Q

What is organisational resource is deployed?

A

Labour

35
Q

How is the organisational resource deployed?

A

In 5 steps

36
Q

Why do you consider org. objectives?

A

Everything directed to accomplish obj

Allocating resources
Managing people

Best way to support org. objectives

37
Q

How do you determine type of activities?

A

Distinguishing activities one from another

38
Q

Why do you departmentalise?

A

Efficient, effective

Use of org. resources

39
Q

How do you departmentalise?

A

Grouping

40
Q

How to design a hierarchy of relationship?

A

Determine

Operating relationship of organisation
Horizontal: departmentalisation
vertical: chain of command

=organisation structure

41
Q

How do we set up mechanisms for coordination?

A

Integrate departmental activities into a coherent whole

Monitor the effectiveness of integration

42
Q

What is an organisation structure?

A

Set of formal tasks assigned to individual and department

Formal reporting relationship

Design of systems to ensure effective coordination

43
Q

The vertical structure of an organisation structure is portrayed in ?

A

Organisation chart

44
Q

An organisation chart shows

A
Major positions and departments 
Chain of command (managers, subord)
Span of control
Official channels of communication 
Departmentalisation: the way work is grouped
Type of work performed
45
Q

What is work specialization

A

Division of labour = efficiency

Degree to which org. tasks are subdivided into separate jobs

46
Q

In work specialization how do employees work?

A

They perform tasks relevant to the specialized function of their department.
They specialize in a single task

47
Q

What are the disadvantages of work specialization

A

Isolated, creates separation
Hinders coordination
Boring

48
Q

What is a chain of command? It is also known as?

A

Unbroken line of authority
Links all employees

Authority structure

49
Q

What does the chain of command show?

A

Reporting relationship

50
Q

What are the 2 principles supporting this chain of command?

A

Unity of command

Scalar principle

51
Q

In unity of command, each employee is _______ to only one supervisor.

A

Held accountable

52
Q

Is the scalar principle the same as the COC?

A

Yes

53
Q

What is authority?

A

Legitimate right of a manager

54
Q

With authority you can

A

Make decisions
Issue orders
Allocate resources to achieve org desirable
outcomes

55
Q

What are the characteristics of authority

A

Vested in position, not individual

Flows down the hierarchy

Accepted by subordinates

56
Q

What is responsibility

A

Duty to perform task assigned

57
Q

With authority comes ______
When responsibility>authority, _______
When authority>responsibility,_____

A

Responsibility

Difficulty

Tyrants, achieve frivolous outcomes

58
Q

What is accountability?

A

Responsibility and authority brought into alignment

59
Q

People who are accountable are ______

A

Subject to reporting
Justifying task outcomes
To those above them in COC

60
Q

What is delegation ?

A

Process to transfer authority and responsibility

Positions below them

61
Q

Why do people delegate?

A

Provide maximum flexibility to meet customer needs
Adapt to shifts in environment
Highly motivating
Improve creativity

62
Q

What are line departments?

A

Perform tasks that reflect org. Primary goal and mission

63
Q

What are staff departments?

A

Advisory relationship with line department

64
Q

What is line authority?

A

Formal authority to direct and control immediate subordinates

65
Q

What is staff authority?

A

Right to advise, recommended, counsel

In staff specialists area of expertise

66
Q

What is the span of management?

A

No. of employees reporting to a supervisor

67
Q

What does the span of control determine?

A

How closely a supervisor can monitor subordinates

68
Q

Factors for larger spans of control

A
Work routine and simple
Sub in one location
Perform similar work takes
Highly train and need little direction
Rules and procedures available
Support systems and personnel
Preference
69
Q

Two types of span

A

Tall

Flat

70
Q

Characteristics of a tall structure

A

Narrow span of control

A lot of hierarchical levels

71
Q

Characteristics of a flat structure

A

Wide span

Fewer hierarchical levels

72
Q

Disadvantage of tall structure

A

Routine decisions made too high up: take away high level executives

73
Q

What is centralization and decentralization?

A

Refers to heretical level at which decisions are made

74
Q

Where are decisions made in centralization

A

Decision authority is high up

75
Q

Where is decision authority in decentralization?

A

It is pushed down to lower levels

76
Q

When decentralization is adopted, there is _______

A

Greater change and uncertainty

77
Q

Centralization and decentralization should fit _______

A

Firms strategy

78
Q

When is authority centralized at the top?

A

In crisis or risk of company failure