Organisational and Business Structures Flashcards

1
Q

What does an organisational structure intend to do?

A

Link individuals
Allocate tasks
Give authority
Co-ordinate objectives

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2
Q

What are the 6 building blocks of Mintzburg’s structure?

A

Strategic Apex
Technostructure
Middle line
Support staff
Operating core
Ideology

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3
Q

What is an operating core?

A

People directly involved in process of obtaining inputs and converting to outputs - operational staff

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4
Q

What is a middle line?

A

Conveys goals set by strategic apex, controls work of operating core - middle and first line managers

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5
Q

What is a strategic apex?

A

Follows mission and manages environmental relationship - top managers

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6
Q

What is support staff?

A

PR, legal team etc, act independently

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7
Q

What is a technostructure?

A

Analysts determine/standardise work processes and techniques
Planners do outputs
Standardise skills

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8
Q

What is ideology structure?

A

Values, beliefs - business culture

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9
Q

What are the basic principles of organisational structure?

A

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

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10
Q

What are the types of organisational structure?

A

Simple - dictatorship, strategic apex, direct supervision, simple
Machine bureaucracy - regulated, technostructure, standardise work, functional
Professional bureaucracy - operating core, standardise skills
Divisionalised - middle line, standardise outputs, divisional
Adhocracy - operating core, mutual adjustment, matrix

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11
Q

What are the advantages and disadvantages of a simple structure?

A

Quick decisions, goal congruence, flexible
Cannot expand, cannot diversify, lack of career structure, centralised

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12
Q

What are the advantages and disadvantages of a functional structure?

A

Good career opportunities, efficient
Rigid structure, authoritative, poor decisions

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13
Q

What are the advantages and disadvantages of a divisional structure?

A

Flexible, development, less management level, better decisions
Squabbles, interdivisional trading problems

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14
Q

What are the advantages and disadvantages of a matrix structure and what is it?

A

Set of managers of departments and managers for projects - hitech industries, education, R&D
Reflects of importance, co-ordination
Conflicting demands

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15
Q

What are the factors affecting the amount of decentralisation?

A

Leadership style
Size of organisation
Activity diversification
Effectiveness of communication
Ability of management
Technological advancements
Geography of locations
Local knowledge needed

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16
Q

Which is better, centralisation or decentralisation?

A

Central - decisions at 1 point, senior management wider view, quality of decisions better, cheaper, crisis dealt with quicker
Decentral - less overburden on higher ups, improves motivation, local problems, quicker decision making

17
Q

What are the spans of control?

A

Wide (flat business)
Narrow (tall business)

18
Q

What are mechanistic and organic structures?

A

Mechanistic - stable, efficient, slow-changing environment
Organic - flexible, adaptive, fast-changing environment

19
Q

What are the characteristics of bureaucracy?

A

Hierarchy of roles
Specialisation and training
Professional nature of employment
Impersonal nature
Rationality
Uniformity in performance of tasks
Technical competence
Stabillity

20
Q

What are the advantages and disadvantages of bureaucracies?

A

Standardised tasks, efficient
Slow decision making, uniformity, suppress innovation, slow to change

21
Q

What are the advantages and disadvantages of a joint venture?

A

Less capital, reduces competition, restricted markets
Disputes

22
Q

What is a strategic alliance?

A

Informal, weak contractual agreement between companies - no new company formed.
Easy to break, contravene competition laws

23
Q

What are the advantages and disadvantages of a group?

A

Allows for transfer of funds, new structures to be developed, risk of failure spread
Financial reporting complex, administration