2. Organisational structure

Question 1

Mitzberg

Answer 1

Strategic Apex
Technostructure
Support Staff
Middle Line
Operating Core

Question 2

Strategic apex

Answer 2

Top management

drives the direction of the business through control over decision making

Question 3

Technostructure

Answer 3

Analysts

drives efficiency through rules and proceedures

Question 4

Operating core

Answer 4

Operations, operation processes

daily activities

Question 5

Support staff

Answer 5

expertise, finance, HR, admin, IT

Question 6

Middle line

Answer 6

middle management

Question 7

Mintzberg organisational structures

Answer 7

Simple structure
Machine Bureaucracy
Professional Bureaucracy
Divisionalised form
Adhocracy
Missionary organisations

Question 8

Simple structure

Answer 8

strategic apex is dominant

effective in small entrepreneurial organisations

Question 9

Machine bureaucracy

Answer 9

technostructure is dominant
control by rules
work is standardised
improving performance

Question 10

Professional bureaucracy

Answer 10

operating core is dominant

control excercised via training i.e. accountants, hospitals

Question 11

Divisionalised form

Answer 11

Middleline is dominant
Organisation is too large to be standardized
Controlled via KPIs

Question 12

Adhocracy

Answer 12

Support staff are dominant
Mix of skills
Work project based i.e. TV production companies

Question 13

Missionary

Answer 13

little structure or formal control i.e. start up companies

Question 14

Types of structure

Answer 14

entrepreneurial
functional
divisional
matrix

Question 15

Entrepreneurial

Answer 15

built around owner managers small businesses in early start up

Question 16

Functional

Answer 16

group employees that undertake similar tasks into departments i.e. finance, marketing

found in organisations who have outgrown the entrepreneurial stage

Question 17

Divisional

Answer 17

organisation split into divisions overseeing a product i.e. cars, motorbikes, a geographic section, a customer

Question 18

Geographical structure

Answer 18

similar to divisional, each division covers a specific location
Head office maintains authority

Question 19

Matrix structure

Answer 19

combines functional and divisional structures

used for project management

Question 20

boundary less organisations

Answer 20

Virtual
Modular
Hollow

Question 21

Virtual

Answer 21

geographically dispersed

exists electronically

Question 22

Modular

Answer 22

manufacturing broken down in to modules either made in house or outsourced

Question 23

Hollow

Answer 23

split activities into core and non core core are kept in house non core are not strategically important and are outsourced

Question 24

Outsourcing

Answer 24

contracting out work to specialist providers

Question 25

Business process outsourcing

Answer 25

contracting out specific business functions i.e. IT, HR

Question 26

Core competences

Answer 26

something that you do that drives competitive advantage and is difficult for your competitors to copy not to be outsourced

Question 27

Service Level Agreement SLA

Answer 27

negotiated agreement between supplier and customer regarding the level of service to be provided

Question 28

Transaction cost

Answer 28

indirect costs expenses incurred through outsourcing

Question 29

Transfer costs

Answer 29

Outsourcing costs

Question 30

Offshoring

Answer 30

relocating corporate activities to a foreign country

Question 31

Scalar chain

Answer 31

no of levels in the organisation

Question 32

Span of control

Answer 32

number of employees managed by manager

Question 33

Tall organisations

Answer 33

Long scalar chain Hierarchy, many managers Narrow span of control i.e. british armed forces

Question 34

Flat organisations

Answer 34

Short scalar chain | Wide span of control

Question 35

Shared services

Answer 35

moving localised functions to a centralised one

Question 36

joint venture

Answer 36

new or shared organisation set up by two or more firms

Question 37

Strategic Alliance

Answer 37

sharing of resources and activities. Contractual agreements, no separate company formed

Question 38

Franchisee

Answer 38

franchisee manufactures a product and franchiser maintains control

Question 39

Licensing

Answer 39

another company manufactures or sells a patented product

Question 40

Consortia

Answer 40

short term legal entity to deliver a particular project i.e. London olympic park

Question 41

Characteristics of a strategic alliance

Answer 41

``` Synergy Risk reduction Cooperation Clarity Positioning opportunity Complementary attributes Win Win situation ```