Managing structure and design of organization

Question 1

Vertical dimension of organisation structure

Answer 1

• who supervises who, who takes decisions?
• unity of command
• authority, responsibility, accountability
• span of control (narrow -> less subordinates -> more hierarchical ; wider-> more subordinates -> flatter hierarchy)
• centralisation & decentralization
• formalization

Question 2

Horizontal dimension of organisation structure

Answer 2

dividing work
- functional -> department based functions; centralised; specialised expertise -> efficient, communication barriers, difficult to coordinate

• divisional - organised by products, key functions in each division, decentralised -> quicker, accountability, competition among divisions

matrix - combination, dual lines of authority -> efficient, flexible, cross-functional, frustration, conflict potential

Question 3

organization design

Answer 3

1. mechanistic organisation - classical perspective, strong hierarchy, top-down chain of command, centralised, formalised
2. Organic organization - focus on change and flexibility, horizontal relationships, decentralised
3. Boundaryless organization - eliminates structural boundaries that inhibit employees from working together