Chapter 9 - Organisational Configuration Flashcards
Organisation configuration is a termed used by JSW to refer to
Organisation structure, Processes and Relationships
Explain simple/entrepreneurial structure
All business decisions are taken centrally by one person. ADVANTAGES- Decision making is quick and flexible, control and goal congruence. DISADVANTAGES- not possible or effective when company grows + over reliance on leader
Explain functional structure
People are organised according to the type of work they do. Departments. Finance, HR, Sales, Editors. ADVANTAGES- efficient, clear progression. DISADVANTAGES- coordination and communication problems, only understand what they do, less integration
Explain Divisional/Holding company
Parent and SBUs. ADVANTAGES gives authority to manages, splits control and processes. DISADVANTAGES duplicate functions, complexity of reporting and management, expensive
Explain Matrix Structure - VERY IMPORTANT AND MOST IMPORTANT. Relate to PCP department managers and business unit managers.
Projected based organisations. Productions, Sales Dept, Finance Dept, Distribution, R+D, Marketing Dept and then different managers like PCP RBS ICAEW UNUM. ADVANTAGES- flexible deployment of staff, improved communications, integration. DISADVANTAGES- complex to run, slow decisions, potential conflict between art manager and RBS manager. (relate it to PCP)
Three variants on Matrix Structure
Transnational Structure, Team based structure, Project based structure
What types of control processes are there
INPUT and OUTPUT. Input (direct supervision planning)(indirect culture) Output (direct performance targets)(indirect internal markets)
Describe 5 elements of Mintzbergs Organisational Configurations
STRATEGIC APEX - Direction. MIDDLE LINE MANAGERS - Convert directions into processes. SUPPORT STAFF - Admin HR Finance. TECHNOSTRUCTURE- standardising procedures. OPERATING CORE - output day to day
What is simple structure
Strategic Apex dominant
What is Machine Bureaucracy
Technostructure dominant
What is adhocracy
Support staff dominant
What is professional Bueracay
Operating core dominant
Divisionalised
Middle line dominant
What are the 5 potential configurations of Mintzbergs theory (dominant ones)
Simple structure, machine bueracacy, Adhocracy, professional bueracacy, divisionalised
What is the aim of Mintzbergs configuration theory
To combine structure relationship and processes
