Organisational and Business Structures Flashcards
What does an organisational structure intend to do?
Link individuals
Allocate tasks
Give authority
Co-ordinate objectives
What are the 6 building blocks of Mintzburg’s structure?
Strategic Apex
Technostructure
Middle line
Support staff
Operating core
Ideology
What is an operating core?
People directly involved in process of obtaining inputs and converting to outputs - operational staff
What is a middle line?
Conveys goals set by strategic apex, controls work of operating core - middle and first line managers
What is a strategic apex?
Follows mission and manages environmental relationship - top managers
What is support staff?
PR, legal team etc, act independently
What is a technostructure?
Analysts determine/standardise work processes and techniques
Planners do outputs
Standardise skills
What is ideology structure?
Values, beliefs - business culture
What are the basic principles of organisational structure?
Division of work
Scalar chain
Correspondence of authority and responsibility
Appropriate centralisation
Unity of command
Unity of direction
Equity
What are the types of organisational structure?
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
What are the advantages and disadvantages of a simple structure?
Quick decisions, goal congruence, flexible
Cannot expand, cannot diversify, lack of career structure, centralised
What are the advantages and disadvantages of a functional structure?
Good career opportunities, efficient
Rigid structure, authoritative, poor decisions
What are the advantages and disadvantages of a divisional structure?
Flexible, development, less management level, better decisions
Squabbles, interdivisional trading problems
What are the advantages and disadvantages of a matrix structure and what is it?
Set of managers of departments and managers for projects - hitech industries, education, R&D
Reflects of importance, co-ordination
Conflicting demands
What are the factors affecting the amount of decentralisation?
Leadership style
Size of organisation
Activity diversification
Effectiveness of communication
Ability of management
Technological advancements
Geography of locations
Local knowledge needed
Which is better, centralisation or decentralisation?
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
What are the spans of control?
Wide (flat business)
Narrow (tall business)
What are mechanistic and organic structures?
Mechanistic - stable, efficient, slow-changing environment
Organic - flexible, adaptive, fast-changing environment
What are the characteristics of bureaucracy?
Hierarchy of roles
Specialisation and training
Professional nature of employment
Impersonal nature
Rationality
Uniformity in performance of tasks
Technical competence
Stabillity
What are the advantages and disadvantages of bureaucracies?
Standardised tasks, efficient
Slow decision making, uniformity, suppress innovation, slow to change
What are the advantages and disadvantages of a joint venture?
Less capital, reduces competition, restricted markets
Disputes
What is a strategic alliance?
Informal, weak contractual agreement between companies - no new company formed.
Easy to break, contravene competition laws
What are the advantages and disadvantages of a group?
Allows for transfer of funds, new structures to be developed, risk of failure spread
Financial reporting complex, administration
