Organisational Structure & Business Integraton

Question 1

Business Structures

Answer 1

1. Functional Structure
2. Divisional Structure
3. Matrix

Question 2

What is a functional Structure?

Answer 2

• Divides org into functons
• Decision making mainly restricted to senior management resulting in centralisation.
• Data and info in this structre is passed from functions to upper level and passed back down with plans and decisions.

Question 3

What is divisional structure?

Answer 3

• Separate BU’s w/ autonomy and decentralisation.
• Bu’s either structured by product &/or geographical location.
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Question 4

Network Structure (Virtual)

Answer 4

• Outsources most or all bizz functions, have very little physical presence and uses info. (Cuts cost and scalable)
• Democratic decision making
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Question 5

Network Structure Impact on Perf Mgmt

Answer 5

• Direct Control Over
• Measring employees output
• Ensuring employee motivation and commitment
• Service Level Agreement is fulfilled by Strategic Partners
• Ensuring confidentiality is maintaned as the partners.

Question 6

Network Structure Impact on Perf Measurement

Answer 6

• Collect and monitor data about their performance
• Measuring staff outputs in order to ensure their productivity.
• Requires databse that can be automatically updated from the activities of the remote staff and suppliers.
• Be compatible.

Question 7

Business Process Re-engineering

Answer 7

• Fundamental re-thinking and radical redesigning of business process to achieve dramatic improvements in critical variables such as cost, quality, service and speed.

Question 8

Examples of Business process re-engineering.

Answer 8

• Combining several jobs into one
• Establishing cross functional teams
• Workers make real decisions
• Extensive use of automation and greater use of IS/IT such as shared database, extensive use on internet, wireless communication and tracking tech for warehouses and delivery system.

Question 9

Advantages of BPR

Answer 9

• Focuses on customer satisfaction
• Eliminates non valuue adding activities resulting in cost saving
• Improve efficiency.

Question 10

Advantages of BPR

Answer 10

• Underestimates resistance to change in orgs
• May not be the existing processes that are the problem with company’s performance.
• Serious long term commitment from staff.