organisational structure and design Flashcards
what are the types of departmentalisation
- functional
- product
- customer
- geographic
- process
what is the functional type of departmentalisation?
groups employees based on work performed(e.g engineering, accounting, information systems, human resources)
what is the product type of departmentalisation?
groups employees based on product areas in the corporation (e.g. women’s footwear, men’s footwear, apparel and accessories)
what is the customer type of departmentalisation?
groups employees based on customer’s problems and needs (e.g. wholesale, retail, government)
What is the geographic type of departmentalisation?
groups employees based on location served (e.g. Victoria, new south wales, western Australia)
what is the process type of departmentalisation
groups employees based on the basis of work or customer flow (e.g. testing, payment)
what does the term unity of command mean and why did it arise?
the early writers believed that each employee should report only to one manager this is called unity of command. this arose because an employee who has to report to two or more bosses might have to cope with conflicting demands or priorities.
what is span of control?
span of control refers to the number of employees reporting to a manager. it determines how closely a manager can monitor employees.
how do authority and power differ?
Authority: a right whose legitimacy is based on an authority figure’s position in the organisation.
Power: an individuals capacity to influence decisions
what are the five types of power?
- coercive power
- reward power
- legitimate power
expert power
referent power
coercive power
power based on fear
reward power
power based on the ability to distribute something that others value
legitimate power
power based on one’s position in the formal hierarchy
expert power
power based on ones expertise special skill or knowledge
referent power
power based on identification with a person who has desirable resources or personal traits
what is centralisation?
the degree to which decision making takes place at upper levels of the organisation
what is decentralisation?
the degree to which lower-level managers provide input or actually make decisions
what is formalisation?
formalisation refers to how standardised an organisation’s jobs are and the extent to which employee behaviour is guided buy ruled and procedures. Highly formalised organisations have explicit job descriptions, numerous organisational rules and clearly defined procedures covering work processes.
what are the two models of organisational design?
- mechanistic
- organic
what components make up mechanistic organisational design?
- rigid hierarchical relationships
- fixed duties
- many rules
- formalised communication channels
- centralised decision authority
- taller structures
What components make up organic organisational design?
- collaboration
- adaptable duties
- few rules
- informal communication
- decentralised decision authority
- flatter structures
how does strategy affect structure?
strategies determine structure because changes in corporate strategy lead to changes in an organisation’s structure that support the new strategy.
how does size affect structure?
large organisations defined as having more that 200 employees- tend to have more specialisation, departmentalisation, centralisation and rules and regulations than do small organisations.
how does technology affect structure?
a consistent pattern was found when firms divided into three distinct technologies that had increasing levels of complexity and sophistication:
- least complex and sophisticated
- mass production
- most complex and sophisticated
how does environment affect structure?
mechanistic organisations are most effective in stable environments. organisations are best matched with dynamic and uncertain environments.
what is team structure?
a team structure is one in which the entire organisation is made up of work teams that do the organisation’s work.
what is a project structure?
a project structure organises employees to work continuously on projects.
- no formal departments
- employees take their specific skills to other projects
what is a boundary less organisation?
an organisation whose design is not defined by, or limited to, the horizontal, vertical or external boundaries imposed by a predefined structure.
what is a virtual organisation?
people are essentially free agents who move from project to project applying their skills
what is a network organisation?
one that uses its own employees to do some work activities and networks of outside suppliers to provide other needed product components or work processes.
what are todays organisational design challenges?
- keeping employees connected
- managing global structural issues
- building a learning organisation
- designing flexible work arrangements
what is delegating authority?
delegation is the assignment of authority to another person to carry out specific activities.
- allows an employee to make decisions
what is the learning organisation
- information sharing
- leadership
- organisational culture
- organisational design
