topic 8: organisational design & structure

Question 1

contingency theory

Answer 1

holds that organisational structures should be designed to match the set of contingencies (factors or conditions) that cause an organisation the most uncertainty.

Question 2

functional structure

Answer 2

is an organizational structure that groups together people who hold similar positions, perform a similar set of tasks, or use the same kinds of skills.

Question 3

functional structure advantages

Answer 3

easy communication, easy decision making, easy monitor functioning.

Question 4

functional structure disadvantages

Answer 4

possible coordination problem as the organisation grows, and limitations on the number of products.

Question 5

divisional structure

Answer 5

a structure that groups employees into functions but who then focus their activities on making ia particular product or serving a specific type of customer.

Question 6

divisional structure advantages

Answer 6

narrow focus it had, improvement of communication between functions it has, high autonomy division managers have, identification with the division

Question 7

divisional structure disadvantages

Answer 7

higher operating costs, duplication of functions, more difficult communication between divisions, divisions may compete for resources.

Question 8

matrix structure

Answer 8

simultaneously groups people by function and product team. employees report to more than one manager or supervisor, effectively having dual reporting relationships allows more flexibility and adaptability in handling complex tasks and projects.

Question 9

matrix structure advantages

Answer 9

high level of flexibility, maximised communication and cooperation between team members, high autonomy and freedom for employees

Question 10

matrix structure disadvantages

Answer 10

role conflict, role ambiguity, and complexity.

Question 11

authority

Answer 11

is the power that enables one person to hold another person accountable for his or her actions

Question 12

span of control

Answer 12

the number of employees who report to a specific manager. a wide span of control may be problematic because one person will carry a lot of responsibilities.

Question 13

span of control advantage

Answer 13

may be that messages will travel from person to person relatively quickly.

Question 14

span of control disadvantages

Answer 14

of a narrow span of control may be that it results in a lot of layers of control in the organization, which can result in getting messages from A to B very slowely.

Question 15

hierarchy of authority

Answer 15

an organization’s chain of command that defines the relative authority of each level of management.