Organisation Structure

Question 1

Formal Organisational Structures (Define)

Answer 1

The framework within which tasks are divided, work is coordinated, and authority is distributed.

Question 2

Formal Organisation Structures key dimensions (List + define)

Answer 2

Division of Labour:
- Differentiation of Tasks and Specialisation
Co-ordination of mechanisms:
- Integration of tasks and activities
Distribution of Decision Rights:
- Centralisation v Decentralisation of Authority
Degree of Formalisation:
- Standardisation of workflows, documentation and procedures

Question 3

Formal Organisation: Basic Structures and Design Trade-offs (List + Define)

Answer 3

Flat/ Simple structure:
- Clear goals, wide spans of control, flexibility, but often unfeasible for larger org.
Functional Structure:
- specialisation within functions, efficient co-ordination, but poor communication across functions
Divisional Structure
- Specialisation by product, service, or geography, closer to customers, but potential duplication of Functions
Matrix Structures:
Combines functional and divisional structures, allows flexibility, but can create complexity and conflict

Question 4

Contingency Factors Influencing Structures (List + define how they influence structure)

Answer 4

Strategy: Organisational Structure should align with the strategy
Size: Larger org’s tend to move from organic to mechanistic structures
Technology: Structure adapts to the technology used.
Environmental uncertainty: Dynamic environments require flexible, organic structures; stable environments favour mechanistic structures