SECTION 3 Flashcards
What are the dimensions of organizational structure?
SPECIALIZATION
labor devision regulations, determination of subtasks
COORDINATION
labor devision regulations, orientation to overall goal
CONFIGURATION
regulation for hierarchical order
Superordiniation, Subordination and parataxis of tasks and enforcing persons
DELEGATION
regulation for distributing decision authority, permitting individual to make mandatory decisions
FORMALIZATION
regulation of communication among themselves, written specifications of relations
What is the concept of specialization?
particular forms of labor devision in which subtasks of different manner emerge
- distribution of activities to other employees or units
- protection of rational target achievement
- increasing profitability in fulfilment of tasks
How is the devision of labor distinguished (specialization concept)
MANNER (disparate tasks)
- vertical labor devision (specialization) - manner / scope
SCOPE (similar task) - horizontal labor division
Advantages and disadvantages of specialization?
ADVANTAGES
decreasing requirements for employees: short training periods, employment comfortable to aptitude
low employee qualification (inexpensive workforce)
low endeavour and tiredness
(high quality)
learning effect (increasing quantities and quality of outcome)
clear allocation of responsabilities (adjustment of reasons for inadequate outcome)
DISADVANTE
high level of specialization leads to psychic stress, high sickness absence rate, additional employees and costs, low attractiveness, higher wages in times of full employment
labor monotony leads to decreasing concentration and quality
coordination costs depressing production profit
What is reengineering?
includes a reduction of specialization and prerequisite the empowerment of workforce and delegation of responsibilities.
Formation of process teams as interdependently operating units.
Autonomously (process teams largely align themselves)
Describe the reengineering cycle of effects
Reduction of interfaces and lower labor devision Simplified coordination Quality improvement Acceleration of processes Trimming of hierarchy (cost saving)
What are the guidelines of designing labor tasks to emerge intrinsic motivation?
Variety of challenges (prevention of one-sided stress)
Possibilities for social interaction (reduction of stress due to social support)
Autonomy (reduction, but not sacrifice of formal requirements)
Learning development potentialities (possibility to continuously expand knowledge)
Feedback (response about performance of an employee)
Holistic (horizontal & vertical expansion)
Types of departmentalization
PERFORMANCE/FUNCTION
situations of equal relate performance or function to b consolidated, departmentalisation based on training and qualification
OBJECTS/PRODUCTS
situation of equal objects, products or services to be consolidated, departmentalisation based on performance
CUSTOMER GROUPS/ REGIONS
situations of equal customer characteristics or customer groups to be consolidated, based on country of origin, region
What is the recommended design of departmentalisation?
most widely autonomous, interdependent (solidar), low level of department overlapping coordination
What are the forms of organizational structure? (specialization)
Functional organization:
focus on optimal resource application evaluation of managers due to level of target achievement of functional department)
Divisional organization:
focus on coordination of products and services, simplified coordination of department and sub-department, accountable oney for one product line)
Difference between functional and divisional structure in specialization?
FUNCTIONAL
devision based on performance/function on second level, largest organizational units be named as areas of activity
Example: departmentalisation based on procurement, production, marketing & sales and administration
Third level: product lines
DEVIISIONAL
devision based on objects, regions, or customer groups at 2nd level, largest orga. units named as sectors and devisions, example: departmentalisation based on product lines
3rd level functions
Types of coordination
Forward coordination
in terms of stepwise process -increasing substantiation
pooling of coordination activities (temporary storage)
— anticipatory coordination
Feedback coordination
incurrence in times of discrepancies, coordination of adjustments of workplaces/machines —- reaction to disruption
Types of coordination principles
Departmentalization
loose linkage of individual units and pooling of coordination activities
Buffer
creation of buffer (temporary storage)
Slack resources (employment of flexible resources & provision of excess resources)
Management by Exception
(restriction of coordination to limited number of sizes to define standards and ranges)
Name the 7 instruments of coordination inside organization
- Personal instruction
- Self-coordiniation
- Programs
- Plans
- Organizational internal markets
- Organizational culture
- Standardization of roles
How does coordination of personal instruction work?
Forward coordination (increasing disaggregation of targets and instructions while increasing concretisation each time) Feedback coordination (escalation of targets and information to superior. instance and seek instructions) Evaluation (disadvantage): Overload of instances, conscious decision-making essential: mostly difficult to overlook consequences, impossible in times of. wide margins of administration, institutionalised hierarchy
How does coordination through self-coordination work?
- case by case interaction by someones own discretion
- no specified regulation of self-determination, adherence of hierarchical official channel, prerequisite is shared interest in achieving the organizational targets, require considerable information of each individual - Topic specified interaction
- Determination of who has to coordinate himself and when, self-determination becomes a duty & risk reduction of absent coordination - Institutionalized interaction
- colleges, committees, task force, meeting, conference etc., regularly or case-by-case meetings, comprehensive panel or open discussions, fixed or varying members/participants
What is the advantage/disadvantage of coordination through self-coordination?
+ motivation of orga. members, reduction of communication, increased flexibility
- high demand of time, demands training and high level of self-motivation
How to coordinate through programs?
Programs are activites based on standardized process guidelines specified through manuals
components: schema of classification and category, procedure to solve particular problems
What is the advantage/disadvantage of coordination through problems?
+ variety of perspectives because of development if new programs, high level of reliability in problematic situations: scripts for employees cause optimum workflows
- inappropriatee in times of sophisticated or innovative problems to solve, increase critique of problem solutions over time, human convenience - virtuosic circulation of bureaucracy
How to coordinate through plans?
Through planning an programming,
PLANNING
content varies from period to period, plans contain targets and perhaps proceeding to achieve these targets, plans can be developed based on prgrams
PROGRAMMING
procedure of activities are permanently determined, problem solving only through fixed procedures, no specification of targets, determines which information to be processed through plans
How to coordinate through organizational internal markets?
Market (system of coordination -adjusting supply and demand, autonomous adaption to change environmental conditions, causing low costs due to coordination of transaction)
Organization (expensive organizational internal coordination programs, expensiveness of coordination of transaction)
Real internal markets
Fictional internal markets
Profit center
Transfer price
Name the characteristics of real internal and fictional internal markets
REAL
supplying & demanding units can not freely decide about transaction partner, few options regarding internal partners, existence of discretionary competence regarding employment of resources, cost-benefit calculation to secure responsible dealings with resources
FICTIONAL
heavy constraint if negotiable capability characteristics and conditions/terms, centralised planning substitutes negotiation of transaction partners, no leeways in decision-making regarding employment of resources, simulation of supplier-customer relations, fiction enforces internal supplier to employ resources efficiently
What are the characteristics of a profit centre?
Organizational subarea of a company, incentive for entrepreneurial acting, no limitations for decision-making, immediate access to external markets, market elements to be integrated into organization
—- heavy motivation: provide incentives to behave entrepreneurial, high level of autonomy while consistently executed, strategic tasks become focus of attention
What are the characteristics of a transfer price?
result of monetary evaluation of accounts payable, target deepends on context of real/fictional markets, fulfilment of coordination tasks in real internal markets, solution through plan-oriented instruments of coordination in fictional internal markets, difficulties of right determination, incentive for entrepreneurial employment of resources
Possibilites of determination:
Transaction autonomy,
compulsory internal references and charging, charging based on market prices
How to coordinate through orga. culture?
common convictions effect a coordination of activities
development of certain consensus, targets or values due to common coordination among themselves
the more conformity inside an. organization, the more easily the coordination of various orga. members
Organizational cultures are mechanisms which effect desired values and convictions
What are the two essential basic forms of Organisation through Configuration and its characteristic?
ONE-LINE SYSTEM
higher position, issues instruction to lower positions, every lower position attends introduction only from one higher position, every position only has one superior position with power to dircect
Character: disciplinary chain of command, clear allocation of responsibilities and frictionless coordination
MULTIPLE-LINE SYSTEM
itemized leadership role of organizational instances, every lower position does have various specialized superior instances
Character: functional power to direct, qualified decisions and instructions due to specialization of superiors, reduced qualification requirements for holder of instances
Advantage and Disadvantage of ideal-typiclal one-line & multiple-line system
One-line: + clear allocation of competences and responsibilities. - high load for instances because of coordination tasks (–delay of coordination) Solution: direct coordination of positions and subsequent briefing to instance
Multiple-line: + principle of shortest line, interns of coordination between positions (solution through group leader who in turn occupy competences of coordination)
- aggravated allocation of responsibilities because of multiple assignment specialization
– intersection of sub-functions
—consequence: competence conflict
—cases and responsibilities of particular results not identifiable
What is the destinction between Staff and line function?
Line Function: executing position, instances
Staff function: Advisory and support of instances, line supporting functions, neither power to direct nor authority to decide
What are the three forms of staff functions?
GENERALIZED
support instances regarding all kinds of tasks (f.e. assistant to top management)
SPECIALIZED
support regarding particular subtasks (f. e. legal/tax expert)
ADMINISTRATIVE
supporting tasks too big, consist of several employees (f.e. auditing, orga, HR, PR, Advert.)
Solution to Klimate staff function difficulties (Configuration)
STAFF
involvement in decision preparation, elaboration of alternatives which to be presented to instances (e.g. Strategic Planning, PR)
SERVICE
collect and process information, occupy functional power to direct in practice (e.g. market research, information systems)
Name the three types of project management (configuration)
EFFECT PM
PM receives neither discretionary competence nor power to direct, occupies widespread consulting and information rights only, solely appropriate for small projects
PURE PM
most expensive typee, PM receives necessary personnel at disposal for period of project, PM receives full power to direct and discretionary competences
MATRIX
PM receives no required resources – have to get resources of functional departments, PM receives power to direct and discretionary competences, PM has power to issue instructions to instances and functional departments – multiline system build
Advantages and Disadvantages of project management types
EFFECT
+ execution of projects demands little organizational change
- PM cannot constrain sth alone, high expenditure of time, overloading superior instances, progress of project pauses
PURE
+ priority of achievement of project targets and being on schedule, evaluation of PM based on results
- human & mechanical capacities not fully stretched, PM lacks necessary knowledge in times of occurring problems
MATRIX
+ PM occupies power to direct and discretionary competences, PM pursues target achievement, Monitoring efficiency of rendered performance
- competences and power to direct of single pm’s intersect, high risk of conflicts because several pm’s processing competences and power to direct battle for scarce capacities
What are the three factors of delegation?
authority to decide, power to direct and power to represent
How does the delegation process look like?
Definition of assignment - Determination of room for maneuver - incorporation of commissaries - information of others - control
Forms of responsibilities
Extrinsic: responsibility for employees action
Self-responsibility: Responsibility for own actions / overall result
What is the employees representation within organization by delegation
Information, hearing of application, right to co-determination, power of veto, common consulting
Advantages and Disadvantages of Delegation
+ Relief of superior positions, low communication expenditures, faster reaction, taking advantage of existing capabilities of employees, increased motivation of employees
- higher demand of qualified employees, increased coordination expenditures, larger number of outcome controls necessary, excessive demand, environmental discrepancies
What are the basic elements of MbO (Management by Objective)
CONCEPTION
leadership techniques employing targets as leadership methods based on common elaboration of targets among superiors and employees, determination of targets without regulating how to achieve those, execute leadership function on each level, oriented on sub targets
BASIC ELEMENTS
target system consisting of top and sub targets, organization in which areas of responsibility are clearly fixed, controlling system in which nominal-actual deviations are investigated and analysed
Advantages and Disadvantages of MbO
+ mobilisation of intellectual resources of employees, further relief of superiors, adjustment of all sub targets and set targets to top targets, creation of criterions on performance based remuneration and support
- operational verbalisation of targets regarding every organizational level is difficult, time consuming poliycentric planning and target setting process
