ORGANISATIONS & SYSTEMS

Question 1

Define ‘Organisation Structure’.

Answer 1

Elizabeth McMillan:

‘The architecture, both visible and invisible, that connects and weaves together all aspects of an organisations activities’.

Question 2

Define a ‘Centralized’ structure.

Answer 2

Centralised structures =

Main support functions located in centralised head office not scattered among several sites.

Question 3

Define a ‘De - Centralized’ structure.

Answer 3

De - Centralized structures =

Main support functions located within physical locations where the operations operate.

Question 4

List the 5 types of organisational structures.

Answer 4

1 - Functional Structure
2 - Structure by product / service
3 - Geographical Structure
4 - Virtual Structure
5 - Matrix Structure

Question 5

List 4 main factors determining organisational structure.

Answer 5

1 - Centralisation /De-centralisation

2 - Age

3 - Size

4 - Product / Services & Diversity

Question 6

What is the difference between a formal and informal structure ?

Answer 6

Formal =

Refer to issues through levels / hierarchy

Informal =

Acceptable to approach those deemed appropriate, regardless of status

Question 7

A newer, smaller business is likely to have a ‘Formal Structure’.

TRUE OR FALSE ?

Answer 7

FALSE

Newer businesses are more likely to have a informal structure / no hierarchy…

Question 8

An older organisation is more likely to have a ‘Formal Structure’.

TRUE/FALSE ?

Answer 8

TRUE

Hierarchy would become established over time.

Question 9

Give 1 example of a de-centralised organisation…

Answer 9

NHS

Several sites spread across the nation in which each site has their own budget and decisions to make.

Question 10

How does size influence business/organisational stucture?

Answer 10

• Small = Informal
• Med - Large = Formal

Question 11

Define Conglomerate.

Answer 11

Conglomerate

A company that owns several smaller businesses whose products / services can usually be very different.

(Cambridge Dictionary Online)

Question 12

How are conglomerate businesses likely to differ from businesses with only 1 or 2 products/services in terms of organisational structure?

Answer 12

Conglomerate businesses:

Multiple prod/service = more complex, may require specialised expertise / several managers or teams.

Others:

Less complex, whole business focused on 1 prod / service, one central specialised expertise.

Question 13

Name 1 business that you know that is an example of a conglomerate business…

Answer 13

• Virgin Media
  ( Telecom services, Travel services,
  Entertainment services / packages)

Question 14

Describe a Functional structure.

Answer 14

1 person manages the business with each functions most senior person reporting to the MD (Managing Director).

Question 14

Describe a businesses structure by Product / Service.

Answer 14

MD @ top of structure / heirarchy

Directors of support functions e..g finance /marketing & Directors of Each division by prod/service e.g sweets / coffees next….

In each division, there are specialised support functions…e..g finance / marketing…

Question 15

Give one 2 advantages & 2 disadvantages of a Functional structure.

Answer 15

A - Employees grouped by skill / specialism creating clear career path.

A - Managed by someone with extensive knowledge of specialism.

D - Employees may become more focused on departmental objectives rather than business objectives.

D - Employees may make decisions without thinking of impact on other functions.

Question 17

Give 2 advantages & 2 disadvantages of a structure by Product / Service.

Answer 17

A- Each prod/service group is concentrated allowing for up-skilling.

A - Financial success of each division is clearer at a divisional level allowing for feeling of ownership / responsibility.

D - Can lead to organisation becoming divided / each division concentrated on their own.

D - Hard to sustain 1 x culture.

Question 18

Describe what a Geographical organisational structure looks like.

Answer 18

Used for org’s that have employees across several regions / operates internationally.

MD @ top level and then regions / areas split into divisions with their own MD

Question 19

Support functions can remain centralised or within each division in structures alike Geographical structures or structures by product or service…

TRUE OR FALSE

Answer 19

True

Support functions can remain centralised or DE-centralised.

Question 20

Give 1 advantage & 1 disadvantage of a Geographical structure.

Answer 20

A - Local knowledge of market & type of prod / service required.

D - Alike structure by prod / service, employees can become hyper-focused on own division.

Question 21

Describe a Virtual structure.

Answer 21

Uses technology to link organisations in terms of divisions, teams ect without traditional boundaries.

Question 22

Give 1 advantage & 1 disadvantage of a Virtual structure.

Answer 22

A - Cost savings, flexibility & innovation.

D - Cost of technology, social isolation and or conflicts.

Question 23

Describe a Matrix Structure.

Answer 23

Relatively new…

Attempts to address different relationships within job.

e.g., Research & Design comp = senior directors overseeing project managers / teams within specific divisions alike production.

Question 24

Give 1 advantage & 1 disadvantage of a Matrix structure.

Answer 24

A - Helps determine who will supply project teams in diff areas.

D - Conflicts may arise due to employees having more than 1 x manager to report to.