organisational structure and design

Question 1

what are the types of departmentalisation

Answer 1

• functional
• product
• customer
• geographic
• process

Question 2

what is the functional type of departmentalisation?

Answer 2

groups employees based on work performed(e.g engineering, accounting, information systems, human resources)

Question 3

what is the product type of departmentalisation?

Answer 3

groups employees based on product areas in the corporation (e.g. women’s footwear, men’s footwear, apparel and accessories)

Question 4

what is the customer type of departmentalisation?

Answer 4

groups employees based on customer’s problems and needs (e.g. wholesale, retail, government)

Question 5

What is the geographic type of departmentalisation?

Answer 5

groups employees based on location served (e.g. Victoria, new south wales, western Australia)

Question 6

what is the process type of departmentalisation

Answer 6

groups employees based on the basis of work or customer flow (e.g. testing, payment)

Question 7

what does the term unity of command mean and why did it arise?

Answer 7

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.

Question 8

what is span of control?

Answer 8

span of control refers to the number of employees reporting to a manager. it determines how closely a manager can monitor employees.

Question 9

how do authority and power differ?

Answer 9

Authority: a right whose legitimacy is based on an authority figure’s position in the organisation.
Power: an individuals capacity to influence decisions

Question 10

what are the five types of power?

Answer 10

• coercive power
• reward power
• legitimate power
  expert power
  referent power

Question 11

coercive power

Answer 11

power based on fear

Question 12

reward power

Answer 12

power based on the ability to distribute something that others value

Question 13

legitimate power

Answer 13

power based on one’s position in the formal hierarchy

Question 14

expert power

Answer 14

power based on ones expertise special skill or knowledge

Question 15

referent power

Answer 15

power based on identification with a person who has desirable resources or personal traits

Question 16

what is centralisation?

Answer 16

the degree to which decision making takes place at upper levels of the organisation

Question 17

what is decentralisation?

Answer 17

the degree to which lower-level managers provide input or actually make decisions

Question 18

what is formalisation?

Answer 18

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.

Question 19

what are the two models of organisational design?

Answer 19

• mechanistic

- organic

Question 20

what components make up mechanistic organisational design?

Answer 20

• rigid hierarchical relationships
• fixed duties
• many rules
• formalised communication channels
• centralised decision authority
• taller structures

Question 21

What components make up organic organisational design?

Answer 21

• collaboration
• adaptable duties
• few rules
• informal communication
• decentralised decision authority
• flatter structures

Question 22

how does strategy affect structure?

Answer 22

strategies determine structure because changes in corporate strategy lead to changes in an organisation’s structure that support the new strategy.

Question 23

how does size affect structure?

Answer 23

large organisations defined as having more that 200 employees- tend to have more specialisation, departmentalisation, centralisation and rules and regulations than do small organisations.

Question 24

how does technology affect structure?

Answer 24

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

Question 25

how does environment affect structure?

Answer 25

mechanistic organisations are most effective in stable environments. organisations are best matched with dynamic and uncertain environments.

Question 26

what is team structure?

Answer 26

a team structure is one in which the entire organisation is made up of work teams that do the organisation’s work.

Question 27

what is a project structure?

Answer 27

a project structure organises employees to work continuously on projects.

• no formal departments
• employees take their specific skills to other projects

Question 28

what is a boundary less organisation?

Answer 28

an organisation whose design is not defined by, or limited to, the horizontal, vertical or external boundaries imposed by a predefined structure.

Question 29

what is a virtual organisation?

Answer 29

people are essentially free agents who move from project to project applying their skills

Question 30

what is a network organisation?

Answer 30

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.

Question 31

what are todays organisational design challenges?

Answer 31

• keeping employees connected
• managing global structural issues
• building a learning organisation
• designing flexible work arrangements

Question 32

what is delegating authority?

Answer 32

delegation is the assignment of authority to another person to carry out specific activities.
- allows an employee to make decisions

Question 33

what is the learning organisation

Answer 33

• information sharing
• leadership
• organisational culture
• organisational design