Week 4 Flashcards
Complexity
Degree of differentiation (vertical, horizontal, spatial)
Centralisation
Degree at which decision making is concentrated at a single point
Formalisation
Degree to which jobs are standardised
Horizontal differentiation
Separation btw units based on the nature of the task, education and training.
Most organisations are differentiated horizontally.
Vertical differentiation (tall/flat)
Number of hierarchical levels
Tall : many levels
Flat : few levels
When the degree of differentiation increases what happens to complexity
When the degree of differentiation increases, complexity ALSO INCREASES
What is a function (also list five examples)
Subunit with people who have similar skills and use the same tools and knowledge
5 types of function:
- support
- production
- maintenance
- adaptive
- managerial
What is a division
Subunit with a collection of functions/departments that share responsibility for producing a particular good or service
What is an organisational chart
How are roles divided (vertical and horizontal differentiation)
Drawing that shows the end result of organisational differentiation
–> roles are v.d. based on the authority they have
–> roles are h.d. based on their man task responsibilities
Integration
Coordinating various tasks, functions and divisions so that they work together and not with different purposes
How do vertical integration mechanisms coordinate activities
They coordinate activities btw the top and the bottom of the organisation
1. Hierarchical referral
2. Rules and plans
3. Vertical information system
How do horizontal integration mechanisms coordinate activities
They coordinate activities across organisational units
1. Direct contract
2. Liaison role
3. Task force
4. Full time integration
5. Teams
Decentralised teams (make a drawing on paper)
Tightly coupled –> change in any part of the system requires system-wide adaptation
Centralised managerial hierarchy (make a drawing on paper)
Loosely coupled –> change in any part of the system allows decentralised adaptation
Differences btw tall and flat structure
Tall structure: longer chain of command = narrower span of control
Flat structure: shorter chain of command = wider span of control
What is the ideal number of hierarchical levels determined by?
- Principle of minimum chain of command
- Span of control (n° people under the control of someone)
Why do we say that organisations are forced to have tall hierarchies
Because more complex tasks don’t allow for a very wide span of control so organisations are forced to have tall hierarchies
DECENTRALISATION vs CENTRALISATION
Decentralisation: decision-making authority is in the hands of more people at one
Centralisation: formal authority is concentrated in the hands of few people
What does Bureaucracy do
It lays out the ground rules for designing an organisational hierarchy that efficiently controls interactions btw organisational members
What are 2 problems of Bureaucracy?
- Slows down decision making in case of ambiguity or uncertainty in rules application
- Over reliance makes them unresponsive to the needs of customers and other stakeholders
