Week 10: Organisational Design

Question 1

Organisational Structure

Answer 1

Formal system of dividing the tasks to be performed grouping these into positions with clearly defined responsibilities. It involves coordinating these taks under a chain of command to guide the organisation towards the accomplishment of objectives.

Question 2

Organisation structure varies

Answer 2

Influenced by organisational goals, external environment, department functions.

Structure facilitates or hinders ability to achieve organisational goals

Question 3

Organisational Design

Answer 3

The process of creating or modifying the structure and systems in addition to the vision, mission, goals, values and culture of an organisation.

Question 4

When and why did the classical approaches to organisational design emerge

Answer 4

Emerged during industrial revolution when there was a changing nature of work. Increased urbanisation and mechanisation of work

Question 5

Three theories under the classical approach

Answer 5

Scientific Management (Fredrick Taylor)

Fayol’s Administrative Theory (‘General principles of management’)

Ideal Bureaucracy (Max Weber)

Question 6

‘General Principles of Management’

Answer 6

Departmentalisation is the key concept. Functionally similar activities identified and classified (e.g. Marketing department, Strategy team etc.). This leads to more effective and efficient design. Management is considered to be a separate function.

Question 7

14 General Principles of management

I doubt you need to know all of these but it probably helps to know a few

Answer 7

1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to the general interest
7. Remuneration
8. Centralisation
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure
13. Initiative
14. Esprit de corps

Question 8

Ideal Bureaucracy is the ideal structure for:

Answer 8

Organisations (private and public)

Question 9

Features of ideal bureaucracy

Answer 9

• Specialisation and division of labour
• Hierarchical positions
• Recruitment based upon qualifications
• Performance regulated by abstract rules
• Interpersonal relationships

Question 10

Note about approaches:

Answer 10

There were a couple of other approaches on the slides but I didn’t make cards for them because they weren’t on the checklist

You’re the very best best friend I could ever ask for :D

Question 11

Six features on which an organisational design can vary:

Answer 11

• Task specialisation and division of labour
• Departmentalisation
• Chain of command
• Span of control
• Centralisation-decentralisation
• Formalisation-standardisation

Question 12

Specialisation and division of work is needed because it is

Answer 12

Impractical in most cases for one person to complete a job and it makes personnel selection easier

Question 13

Division of labour:

Answer 13

dividing work into different skill units and assigning them to different individuals rather than having each individual do the whole job

Question 14

Specialisation

Answer 14

Identifying clearly definable work modules and focusing on them to develop narrow areas of expertise, leading to division of labour

Question 15

Departmentalisation

Answer 15

There’s a model on the slides

: D

Question 16

Chain of command

Answer 16

principle that organisations should have an authority structure linking the topmost position to the lowest.

Question 17

Unity of command

Answer 17

principle that employee should only have only one superior to report to. Prevents conflict

Question 18

Span of control

Answer 18

Number of subordinates a manager has directly reporting to them

Question 19

Wide Span of Control

Answer 19

Larger number of subordinates which leads to flatter organisational hierarchy, better communication, decreased wage costs and increased employee empowerment but potentially less effective supervisor and support

Question 20

Narrow Span of Control

Answer 20

Lower number of subordinates leads to increased supervision and support but. poorer communication. increased wage costs and decreased employee empowerment

Question 21

Centralisation

Answer 21

Formal decision making rests with senior positions within the formal structure. Leads to increased control
and it facilitates coordination but there is slow decision-making, and employee disempowerment.

Question 22

Decentralisation

Answer 22

Leads to faster decision-making, employee empowerment and availability of information however there is a loss of control and potential misalignment with organisation goals

Question 23

Formalisation

Answer 23

Includes standardisation and implicit formalisation

Question 24

Standardisation

Answer 24

Extent to which an organisation has clearly defined rules, procedures and written documents of events and process

Question 25

Implicit

Answer 25

The unwritten norms and values