Unit 8 Flashcards
Describe the organization as an open system
The organization is a living and open system consisting of interrelated groups, individuals, processes, technology and other components
The system has a social (individuals, groups and relationships)and a technical component (tools, processes and techniques)
Change in one system causes a ripple effect that lead to changes in other systems
Types of systems
-macro (organisation)
- meso (group)
-micro (individual)-system
Organograms indicate
-Different tasks
-Responsibilities
-Workflow
-Authority
two types of organisational designs
-Traditional (Mechanistic)
-Contemporary/ Modern (Organic)
The end product of organisational design
Organogram/Organisational chart
Traditional(Mechanist) organisational designs
-Bureaucracy
-Matrix structure
-Relies heavily on function and division
Contemporary/ Modern (Organic) designs
-Virtual organisations
-Team based organisations
-Future organisations and networks
fundamental characteristics of organisational structure
-Work specialisation/division of labour
-Standardisation
-Departmentalisation
-Chain of command
-Span of control
-Centralisation and decentralization
Work specialization / division of labour
=The extent to which tasks are divided into jobs
-High degree (many jobs with a specific task assigned to them)
- low degree (modern organisations encourage multi-skilling and teamwork)
Standardisation
=Written procedures, job descriptions, rules and regulations that ensure that routine jobs are performed uniformly and consistently
Departmentalisation
= the grouping of jobs into logical groups, or departments.
Chain of command
Indicates the lines of authority in the organisation, who reports to whom.
Span of control
Indicates how many employees report to a supervisor
-Narrow span of control (only a few employees report to a supervisor)
-wide span of control (many employees report to a supervisor)
Narrow span of control
-More levels of authority
-Less employeers per supervisor
-Specialisation/More rigid roles
=Results in tall organisational structure
Wide span of control
-Less levels of authority
-More employees per supervisor
-Team orientation
-Flexible roles
=Results in flatter organisational structure
Centralisation and decentralization
= where in the organisational hierarchy decisions are made
Centralisation
when decisions are made high up in the organisational hierarchy (by senior
managers)
Decentralisation
when decision-making is pushed down to the lowest possible level (by committees or employees)
Bureaucracy
=The standardisation of work processes through policies,
rules and uniform procedures
-adopts functional departments, centralised decision-making, a clear chain of command and a narrow span of control
- associated with red tape, slow
decision-making, control, inflexibility and a lack of innovation
Matrix structure
-Combines functional and product departmentalisation
-Contains dual lines of authority
The virtual organisation
=Small, core organisation that outsources major business functions to outside individuals or groups.
-The different networking groups are connected via technology
Team-based organisation (self-directed and cross-functional teams)
Self-directed – Teams are made up of employees with diverse skills relevant to the task or project. Ongoing training. Minimal supervision.
Cross-functional – members across various levels and departments are brought together to address mutual problems
Future organisations and networks
-Focus on creating value networks (external) rather than value chains (internal)
-Strategic partnerships with other organisations or individuals to create efficiency and competitiveness
-Network organisations where people take an ecosystemic perspective of the organisation viewing the total value system
Advantages of Bureaucracy
Efficient execution of standardised activities,
economies of scale
minimum duplication of personnel and equipment
efficient control
