Evaluating organisational structures in the face of uncertainty Flashcards

1
Q

market uncertainty

A

If the external market becomes highly volatile or uncertain, a business may benefit from a more flexible structure

Project-based structures can help a business to respond quickly to changing market conditions than highly-structured hierarchies as they allow for collaboration across functional areas and resources can be shared

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2
Q

rapid technological advancements

A

When technological change significantly impact an industry a business may require a structure that allows for innovation, agility and quick decision-making

Flat structures can be suitable as they encourage information sharing, collaboration and empowerment of employees at all levels

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3
Q

global expansion

A

For businesses expanding into international markets a regional organisational structure may be appropriate
It enables coordination and control of operations across different countries taking into account local market dynamics, laws and cultural differences
It supports centralised decision-making while allowing subsidiaries to adapt to specific regional needs

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4
Q

competitive pressures

A

Intense competition may call for a structure that enables speed, efficiency and customer responsiveness
Decentralised structures empower teams to make faster decisions and respond directly to customer demands
This promotes speed and encourages a customer-focused approach that may provide a much-needed competitive edge

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5
Q

factors that also should be taken into account when selecting and implementing a ew organisational structure

A

Factors such as organisational culture, leadership style and employee capabilities should also be taken into account when selecting and implementing a new organisational structure

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