1. Analyse appropriateness of org structure

Question 1

Define org structure

Answer 1

o An organisational structure it the way in which the organisations various functions are arranged. People and decision making should be structured so that the strategies are successful

Question 2

How should q be answered?

Answer 2

• Define org structure
• What kind of org is it? Entre, functional, div, matrix, flexible. Adv/disadv
  Which of Mintzberg’s building blocks are most prominent?
• It is tall/ flat structure? Adv/disadv
• Are decisions centralised/decentralised? Adv/disadv
• Are operations mechanistic or organic? Adv/disadv
• Conclude on suitability

Question 3

Describe entrepreneurial model

Answer 3

o	Entrepreneurial
	Built around owner manager – typical for small companies (early development stages)
	Centralised structure- all key decisions made by strategic leader (often owner-manager) 
	Advantages 
•	Fast decision making 
•	More responsive to the market 
•	Good control 
•	Close bond to workforce 
	Disadvantages 
•	Lack of career structure 
•	Could be too centralised 
•	Can’t cope with diversification/growth

Question 4

Define functional structure

Answer 4

 Often those that outgrow entrepreneurial so need either economies of scale or specialisation (functionalisation)
 Best for small comps, few products and locations, stable environment
 Will have a marketing dept, production dept, finance dept, HR dept etc
 Advantages
• Economies of scale
• Standardisation/efficiency
• Specialists are more comfortable
 Disadvantages
• Can lead to empire building
• Slower to adapt to market changes
• Conflicts between functions can arise
• May lack communication & innovation between departments
• Can’t cope with diversification

Question 5

Describe divisional - by product/brand

Answer 5

 Split in accordance of product lines/divisions – each often seen as profit centres & business units for planning and control purposes
 Each headed by a manager who is responsible for their own resources
 Advantages
• Enables product growth
• Clear responsibility/accountability for each
• Training of general managers
 Disadvantages
• Potential loss of control
• Lack of goal congruence
• Duplication of effort (e.g. multiple finance sectors, HR etc)
• Specialists may feel isolated

Question 6

Describe divisional structure - geog

Answer 6

	Split in accordance of location
	Common when wide geographic area (global?)
	Advantages 
•	Enables geog growth 
•	Clear responsibility for areas
•	Training for general managers 
	Disadvantages 
•	Potential loss of control
•	Lack of goal congruence 
•	Duplication of effort (e.g. multiple finance sectors, HR etc)
•	Specialists may feel isolated

Question 7

Describe matrix structure

Answer 7

 Combines benefit of divisional and functional
 Used in multi-product, multi-functional organisations
 Required when there are signif interrelationships/interdependencies
 i.e. have a production, sales, finance & R&D dept for Product A, B, C and D
 Advantages
• Improves communication between functions
• Often useful for projects and temporary teams
• Flexible- allows staff to adapt quickly in new situations
 Disadvantages
• Creates dual command- conflict between managers over e’ees time/commitments. Can be v stressful!
• Dilution of functional authority
• Time-consuming meetings required

Question 8

Describe flexible structure

Answer 8

 Allow firms to adapt to changing circumstances
 Network structures can be applied within/between organisations
 Different network structures
• Virtual organisations – operating predominately through electronic communication from e’ees and third parties
• Hollow organisations – Non-essential activities are outsourced
• Modular organisations – production processes become separate modules and are outsourced to 3rd parties/subsidiaries
 Advantages
• Increased flexibility
• Reduced premises costs
• Access to specialist skills (without having to invest in developing own)
 Disadvantages
• Lack of control
• Difficult to create a consistent culture within the org

Question 9

What is Handy’s shamrock?

Answer 9

analyses how comp can improve efficiency/cut costs by considering staffing issues more flexibly
• Idea that should use core vital permanent staff who are supported by part-time/ outsourced staff
• Components
o Professional core – key permanent staff
o Flexible labour force- temp/ part time staff to cover peak demand
o Contractual fringe- outsourced staff to provide non-core services. Cheaper than doing themselves
o Customers- may perform tasks themselves, book online, put together own furniture etc