Organisational And Business Structures

Question 1

Mintzberg’s 6 building blocks?

Answer 1

Ideology
Strategic apex
Middle line
Operating core
Technostructure
Support structure

Question 2

Mintzberg’s 5 coordinating mechanisms?

Answer 2

Direct supervision

Standardisation of work
Standardisation of skills
Standardisation of outputs

Mutual adjustment

Question 3

7 Basic principles of organisational structure?

Answer 3

{structure is SCCUUED}

Scalar chain
Correspondence of authority and responsibility
Centralisation
Unity of command
Unity of direction
Equity
Division of work

Question 4

3 ways organisational structure can be communicated

Answer 4

Organisational charts
Organisational manuals
Job descriptions

Question 5

Mintzberg: Simple/Entrepreneurial structure (e.g. newsagent) environment?

Answer 5

Simple
Dynamic

Question 6

Mintzberg: Simple/Entrepreneurial structure (e.g. newsagent) internal factors?

Answer 6

Small simple tasks

Question 7

Mintzberg: Simple/Entrepreneurial structure (e.g. newsagent) key building block?

Answer 7

Strategic apex

Question 8

Mintzberg: Simple/Entrepreneurial structure (e.g. newsagent) key coordinating mechanism?

Answer 8

Direct supervision

Question 9

Mintzberg: Machine bureaucracy/Functional structure (e.g. heavily unionised company) Environment

Answer 9

Simple
Static

Question 10

Mintzberg: Machine bureaucracy/Functional structure (e.g. heavily unionised company) internal factors?

Answer 10

Tasks are
Regulated
Old
Large

Question 11

Mintzberg: Machine bureaucracy/Functional structure (e.g. heavily unionised company) key building block?

Answer 11

Technostructure

Question 12

Mintzberg: Machine bureaucracy/Functional structure (e.g. heavily unionised company) key coordinating mechanism?

Answer 12

Standardisation of work.

Question 13

Mintzberg: Professional bureaucracy (e.g. hospital) environment?

Answer 13

Complex
Static

Question 14

Mintzberg: Professional bureaucracy (e.g. hospital) internal factors?

Answer 14

Professional, simple systems.

Question 15

Mintzberg: Professional bureaucracy (e.g. hospital) key building block?

Answer 15

Operating core.

Question 16

Mintzberg: Professional bureaucracy (e.g. hospital) key coordinating mechanism?

Answer 16

Standardisation of skills.

Question 17

Mintzberg: Divisional structure (e.g. conglomerate) environment?

Answer 17

Simple
Static
Diverse

Question 18

Mintzberg: Divisional structure (e.g. conglomerate) internal factors?

Answer 18

Very large, old, divisible tasks.

Question 19

Mintzberg: Divisional structure (e.g. conglomerate) key building block?

Answer 19

Middle line.

Question 20

Mintzberg: Divisional structure (e.g. conglomerate) key coordinating mechanism?

Answer 20

Standardisation of outputs.

Question 21

Mintzberg adhocracy/innovative/matrix structure (e.g. adversing agency) environment?

Answer 21

Complex
Dynamic

Question 22

Mintzberg adhocracy/innovative/matrix structure (e.g. adversing agency) internal factors?

Answer 22

Young, complex tasks.

Question 23

Mintzberg adhocracy/innovative/matrix structure (e.g. adversing agency) key building block?

Answer 23

Operating core/Support staff.

Question 24

Mintzberg adhocracy/innovative/matrix structure (e.g. adversing agency) key coordinating mechanism?

Answer 24

Mutual adjustment.

Question 25

What does a functional structure have?

Answer 25

Board of directors (based on function)

Question 26

Burns and Stalker’s 2 extremes of organisational structure?

Answer 26

Mechanistic and organic.

Question 27

What is the percentage of small businesses that fail?

Answer 27

75% in first 4y.

Question 28

4 types of alliance?

Answer 28

Joint venture (Sony Ericsson)
Licensing/Franchising (Guiness)
Strategic alliance (Virgin + Malaysia air)
Agency agreement (Books)

Question 29

Groups of companies definition

Answer 29

Parent company owns so many shares in subsidiary companies that they have control.

Question 30

3 advantages of operating as a group?

Answer 30

1. Specialisation: Different companies can be responsible for different products
2. Economies of scale: Through vertical integration (e.g. acquire part manufacturer)
3. Selling: Easy to sell part of business

Question 31

2 disadvantages to groups of companies?

Answer 31

1. Must prepare consolidated accounts
2. Many acquisitions add negative shareholder value