ORGANISATIONS & SYSTEMS Flashcards
Define ‘Organisation Structure’.
Elizabeth McMillan:
‘The architecture, both visible and invisible, that connects and weaves together all aspects of an organisations activities’.
Define a ‘Centralized’ structure.
Centralised structures =
Main support functions located in centralised head office not scattered among several sites.
Define a ‘De - Centralized’ structure.
De - Centralized structures =
Main support functions located within physical locations where the operations operate.
List the 5 types of organisational structures.
1 - Functional Structure
2 - Structure by product / service
3 - Geographical Structure
4 - Virtual Structure
5 - Matrix Structure
List 4 main factors determining organisational structure.
1 - Centralisation /De-centralisation
2 - Age
3 - Size
4 - Product / Services & Diversity
What is the difference between a formal and informal structure ?
Formal =
Refer to issues through levels / hierarchy
Informal =
Acceptable to approach those deemed appropriate, regardless of status
A newer, smaller business is likely to have a ‘Formal Structure’.
TRUE OR FALSE ?
FALSE
Newer businesses are more likely to have a informal structure / no hierarchy…
An older organisation is more likely to have a ‘Formal Structure’.
TRUE/FALSE ?
TRUE
Hierarchy would become established over time.
Give 1 example of a de-centralised organisation…
NHS
Several sites spread across the nation in which each site has their own budget and decisions to make.
How does size influence business/organisational stucture?
- Small = Informal
- Med - Large = Formal
Define Conglomerate.
Conglomerate
A company that owns several smaller businesses whose products / services can usually be very different.
(Cambridge Dictionary Online)
How are conglomerate businesses likely to differ from businesses with only 1 or 2 products/services in terms of organisational structure?
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.
Name 1 business that you know that is an example of a conglomerate business…
- Virgin Media
( Telecom services, Travel services,
Entertainment services / packages)
Describe a Functional structure.
1 person manages the business with each functions most senior person reporting to the MD (Managing Director).
Describe a businesses structure by Product / Service.
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…
Give one 2 advantages & 2 disadvantages of a Functional structure.
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.
Give 2 advantages & 2 disadvantages of a structure by Product / Service.
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.
Describe what a Geographical organisational structure looks like.
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
Support functions can remain centralised or within each division in structures alike Geographical structures or structures by product or service…
TRUE OR FALSE
True
Support functions can remain centralised or DE-centralised.
Give 1 advantage & 1 disadvantage of a Geographical structure.
A - Local knowledge of market & type of prod / service required.
D - Alike structure by prod / service, employees can become hyper-focused on own division.
Describe a Virtual structure.
Uses technology to link organisations in terms of divisions, teams ect without traditional boundaries.
Give 1 advantage & 1 disadvantage of a Virtual structure.
A - Cost savings, flexibility & innovation.
D - Cost of technology, social isolation and or conflicts.
Describe a Matrix Structure.
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.
Give 1 advantage & 1 disadvantage of a Matrix structure.
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.
