Structural Framework

Question 1

The 6 Basic Assumptions of the Structural Framework

Answer 1

1. Organizations exist because they are efficient tools to achieve established goals.
2. Well-advanced division of labour/ specialization leads to efficiency.
3. Coordination is best achieved through vertical hierarchical control (‘top down’) and formalized processes/structures.
4. People are motivated to work through material rewards (pay), clear, formalized work descriptions (information/rules) and control.
5. Optimal processes and structures are rationally designed based on objective/material conditions –by studying and analysing facts, efficient organizations can be designed.
6. Inefficiency arises due to incorrectly or ambiguously designed processes and structures and are addressed by means of restructuring.

Question 2

4 Concepts of Efficiency

Answer 2

1. Internal efficiency (the productions efficiency of resource use)
2. External Efficiency (Efficiency of resource use to meet a demand from customers)
3. System efficiency (How flexible the system is in adjusting to meet demand in time)
4. Flow efficiency ( Ratio between value-adding time and lead time. Meaning how much of the time spent to produce a product is actually spent adding value to it, i.e not stocked in a warehouse or in transport)

Question 3

Division of labor, 7 different ways

Answer 3

Division based on:

1. Function
2. Product produced
3. Market segment
4. Location
5. Time (night/day shift)
6. Process (function similar, but the process is gradual sorta)
7. Project

Question 4

Coordination

Answer 4

Vertical & Horisontal

Question 5

6 Dimensions & Situational dependencies

Answer 5

The dependencies is used as a tool for seeing how a company should be organized.
Size & age
Central processes and core technology
Enviroment
Strategy
Info tech
Labor force

Question 6

Lean Production 4 core …things

Answer 6

(1) Toyotism, flödeseffektivitet, dynamisk optimering
(2) Mer värde för mindre arbete
(3) Identifiera oflöde och skapa flöde
(4) Effektiv ocean, det perfekta tillståndet, öken, effektiva öar

Question 7

Three in-depth models for analysis of situational dependencies

Answer 7

Size & age–Greiner’s evolution & revolution of organizational growth

Central processes complexity–Thompson’s three types of dependencies
*Pooled (not tied departments), sequential (one depends on the first to finish) & mutual (Collab on production)

Environmental uncertainties–PESTEL (sometimes PESTLE)

Question 8

Williamson’s transaction cost approach

Answer 8

Markets or hiearchies for transactions depend on actors that supply similar goods and the distribution of info on the product sold.

Question 9

The industrial network approach

Answer 9

Adjusting to one another for lower transaction costs. Amazon fulfillment centers for example (regarding 3rd party sellers)