Fundamentals Of Organising Flashcards
Define organising
Deployment of organisational resources to achieve strategic goals
Define organsation structure
A framework where the organisation defines how tasks are divided and designing systems to ensure effective coordination across departments
Define organisation chart
Represents the organisation’s struture. The characteristics include:
1. Work specialisation
2. Chain of command
Define authority
The right of a manager to make decisions, orders and allocate resources to achieve desired outcomes
What are the characteristics of a tall structure management
- Narrow span of control
- More hierarchal levels
- Slower decision making
What are the characteristics of a flat structure management?
- Broader span of control
- Relatively fewer hierarchal levels
Define centralisation
The location of decision authority near top organisational levels
Define decentralisation
The location of decision authority near lower organisational levels
Define formalisation
The written documentation used to direct and control employees
What re the 5 departmentalisation approaches
- Vertical function approach
- Divisional approach
- Horizontal martix approach
- Team-based approach
- Network approach
Define vertical functional approach
Positions are grouped into departments based on skulls, expertise and resource use
Name an advantage of the vertical functional approach
- Enhances the development of in-depth skills
- Progress in career
Name disadvantages of a vertical functional approach
- Slower response to environmental changes
- Poor communication and coordination
Define divisional approach
Grouping based on similar organisational outputs
What are the 3 segments of the divisional approach
- Product structure
- Program structure
- Self-contained unit structure
Name advantages of divisional structure
- Fast response and flexibility in an unstable environment
- Fosters concern for customers’ needs
Name disadvantages of a divisional structure
- Duplication of resources across divisions
- Poor coordinatino across divisions
Define matrix approach
Utilises functional and divisional chains of command simulatenously and is often used by global organisations
Define team based approach
Employees from various departments come together to resolve mutual problems. Used in creating new products or service innovation
Advantages of team structure
- Reduced barriers among departments
- Less response time, quicker decisions
Disadvantages of team structure
- Dual loyalties and conflicts
- Unplanned decentralisation
Network approach
Utilises outsourcing companies or employees internationally
Advantages network structure
- Reduced administrative overhead
- Global competitiveness
Disadvantage of network structure
- Employee loyaly weakened
- No hands-on control
What are the contingency factors that influence organisation struture
Strategy, environment and technology