Structure And Shape Of The Finance Function Flashcards
What is Mintzbergs organigram made up of?
Strategic apex
Middle line
Operating core
Technostructure
Support staff
What is centralisation?
Senior management make decisions, little authority is passed down the organisation.
What is decentralisation?
Decisions are made by junior management as authority is passed down the organisation.
What is a span of control?
The number of direct reports or subordinates controlled by a manager.
What is a tall organisation?
- Long scalar chain
- Narrow span of control
- Too many managers
- Expensive
- Good opportunities for promotion
What is a flat organisation?
- Short scalar chain
- Wide span of control
- Quick decisions
- More susceptible to fraud and error
What is an entrepreneurial structure?
- New or small organisation
- One person controls everything
- Founder has the power and creates the culture
- Informal work environment
What is a functional structure?
- Organised around different business functions
- Departments and divisions
- Emphasis on roles rather than individuals
- Slow at communicating
What is a matrix structure?
- Organised around projects
- Communication is horizontal rather than upwards and downwards
- Built upon flexibility and dual authority
What is a divisional structure?
- Largely autonomous
- Head office will be limited but retains some functions
What are the four levels of the diamond shape finance function?
- Senior finance team
- Strategic business partnering
- Digital centres of excellence
- Smart finance factories
What is business process re-engineering?
The fundamental rethinking and radical design of business processes to achieve dramatic improvements.
What is a Shared Service Centre?
A separate business unit created within a company to deliver a specific service or suite of services across the company.
What are the 5 stages in the project management process?
- Initiation
- Planning
- Executing
- Controlling
- Review and close
