Organising

Question 0

What is Organisational Design?

Answer 0

When managers develop or change the organisation’s structure

Question 1

What are the Six Key Elements in Organisational Design?

Answer 1

Work specialisation
Departmentalisation
Authority and responsibility
Span of control
Centralisation versus decentralisation
Formalisation

Question 2

What is Work Specialisation?

Answer 2

Dividing work activities into separate job

Employees specialise in doing of an activity rather than the entire activity in order to increase work output

Question 3

What is departmentalisation?

Answer 3

How jobs are grouped together

Functional Departmentalisation - Grouping activities by functions performed
Product Departmentalisation - Grouping activities by major product areas
Customer Departmentalisation - Grouping activities by customer
Geographic Departmentalisation - Grouping activities by location served
Process Departmentalisation - Grouping activities on the basis of work flow

Question 4

What is line authority?

Answer 4

Authority that entitles a manager to direct the work of an employee

Question 5

What is staff authority?

Answer 5

Positions with some authority that have been created to support, assist, and advise those holding line authority

Question 6

What are the types of power?

Answer 6

Coercive - based on fear
Reward - based on the ability to distribute something that others value
Legitimate - based on ones position in the formal hierarchy
Expert - based on expertise, special skill or knowledge
Referent - based on identification with a person that has desirable traits or resources

Question 7

What is span of control?

Answer 7

The number of employees a manager can efficiently and effectively supervise

Question 8

What is centralisation?

Answer 8

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

Question 9

What is decentralisation?

Answer 9

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

Question 10

What is formalisation?

Answer 10

How standardised an organisation’s jobs are and the extent to which employee behaviour is guided by rules and procedures

Question 11

What Contingency Variables Affect Structural Choice?

Answer 11

Mechanistic Organisation - A bureaucratic organisation; a structure that’s high in specialisation, formalisation, and centralisation

Organic Organisation - A structure that’s low in specialisation, formalisation, and centralisation

Question 12

What is the Simple Structure?

Answer 12

An organisational design with low departmentalisation, wide spans of control, authority centralised in a single person, and little formalisation

Question 13

What is functional structure?

Answer 13

An organisational design that groups similar or related occupational specialties together

Question 14

What is Divisional Structure?

Answer 14

An organisational structure made up of separate business units or divisions

Question 15

What is a matrix structure?

Answer 15

A structure in which specialists from different functional departments are assigned to work on projects led by a project manager

Question 16

What are the strengths and weaknesses of a simple structure?

Answer 16

Strengths - fast, flexible, inexpensive, clear accountability
Weaknesses - not appropriate as organisation grows, reliance on one person is risky

Question 17

What are the strengths and weaknesses of a functional structure?

Answer 17

Strengths - cost saving, employees are grouped with others with similar tasks
Weaknesses - lose sight of what is best for the organisation, little understanding of other units

Question 18

What are the strengths and weaknesses of a divisional structure?

Answer 18

Strengths - focuses on results, division managers are responsible
Weaknesses - duplication of activities, increased costs, reduced efficiency

Question 19

What are the strengths and weaknesses of a matrix structure?

Answer 19

Strengths - provides excellent coordination

Weaknesses - dual lines of reporting can create conflict and confusion

Question 20

What are the 4 traditional organisational designs?

Answer 20

Simple
Functional
Decisional
Matrix

Question 21

What are the 3 Contemporary Organisational Structures?

Answer 21

Team
Project
Boundaryless

Question 22

What is a team structure?

Answer 22

A structure in which the entire organisation is made up of work teams

Question 23

What is a project structure?

Answer 23

A structure in which employees continuously work on projects

Question 24

What is a boundaryless structure?

Answer 24

No rigid, bounded and predefined structure.

Question 25

What is a virtual organisation?

Answer 25

A small core of full-time employees and outside specialists temporarily hired as needed to work on projects.

Question 26

What is a network organisation?

Answer 26

Uses its own employees to do some work activities

Uses networks of outside suppliers to provide other needed product components or work processes

Question 27

What are the strengths and weaknesses of a team structure?

Answer 27

Strengths - employees more involved and empowered, reduced barriers among functional areas
Weaknesses - no clear chain of command, pressure on teams to perform

Question 28

What are the strengths and weaknesses of a project structure?

Answer 28

Strengths - fluid and flexible design that can respond to environmental change, faster decision making
Weaknesses - complexity of assigning people to projects, task and personality conflicts

Question 29

What are the strengths and weaknesses of a boundaryless structure?

Answer 29

Strengths - Highly flexible and responsive, utilises talent wherever it’s found
Weaknesses - lack of control, communication difficulties