Week 4

Question 1

Complexity

Answer 1

Degree of differentiation (vertical, horizontal, spatial)

Question 2

Centralisation

Answer 2

Degree at which decision making is concentrated at a single point

Question 3

Formalisation

Answer 3

Degree to which jobs are standardised

Question 4

Horizontal differentiation

Answer 4

Separation btw units based on the nature of the task, education and training.
Most organisations are differentiated horizontally.

Question 5

Vertical differentiation (tall/flat)

Answer 5

Number of hierarchical levels
Tall : many levels
Flat : few levels

Question 6

When the degree of differentiation increases what happens to complexity

Answer 6

When the degree of differentiation increases, complexity ALSO INCREASES

Question 7

What is a function (also list five examples)

Answer 7

Subunit with people who have similar skills and use the same tools and knowledge
5 types of function:
- support
- production
- maintenance
- adaptive
- managerial

Question 8

What is a division

Answer 8

Subunit with a collection of functions/departments that share responsibility for producing a particular good or service

Question 9

What is an organisational chart
How are roles divided (vertical and horizontal differentiation)

Answer 9

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

Question 10

Integration

Answer 10

Coordinating various tasks, functions and divisions so that they work together and not with different purposes

Question 11

How do vertical integration mechanisms coordinate activities

Answer 11

They coordinate activities btw the top and the bottom of the organisation
1. Hierarchical referral
2. Rules and plans
3. Vertical information system

Question 12

How do horizontal integration mechanisms coordinate activities

Answer 12

They coordinate activities across organisational units
1. Direct contract
2. Liaison role
3. Task force
4. Full time integration
5. Teams

Question 13

Decentralised teams (make a drawing on paper)

Answer 13

Tightly coupled –> change in any part of the system requires system-wide adaptation

Question 14

Centralised managerial hierarchy (make a drawing on paper)

Answer 14

Loosely coupled –> change in any part of the system allows decentralised adaptation

Question 15

Differences btw tall and flat structure

Answer 15

Tall structure: longer chain of command = narrower span of control
Flat structure: shorter chain of command = wider span of control

Question 16

What is the ideal number of hierarchical levels determined by?

Answer 16

1. Principle of minimum chain of command
2. Span of control (n° people under the control of someone)

Question 17

Why do we say that organisations are forced to have tall hierarchies

Answer 17

Because more complex tasks don’t allow for a very wide span of control so organisations are forced to have tall hierarchies

Question 18

DECENTRALISATION vs CENTRALISATION

Answer 18

Decentralisation: decision-making authority is in the hands of more people at one
Centralisation: formal authority is concentrated in the hands of few people

Question 19

What does Bureaucracy do

Answer 19

It lays out the ground rules for designing an organisational hierarchy that efficiently controls interactions btw organisational members

Question 20

What are 2 problems of Bureaucracy?

Answer 20

1. Slows down decision making in case of ambiguity or uncertainty in rules application
2. Over reliance makes them unresponsive to the needs of customers and other stakeholders