12.2 The nature of organisational structure

Question 1

Different academics see the structure of an organisation in different ways:

Jonhson (2017) - it is the s_______ of the organisation, the basic framework on which everything is built.

Drucker (1968) - the structure is indispensable and the means for achieving o______ and g______.

Carter (1999) - the structure is a framework of r_________

Answer 1

skeleton
objectives
goals
relationships

Question 2

Which comes first - strategy or organisational structure?

Answer 2

There are arguments for both. Designing a structure around an existing strategy is theoretically best, but in reality organisations develop organically and incrementally over time.

Question 3

Robbins & Judge (2016) suggest that there are six key elements that ought to be considered when discussing organisational structure:
1) S__________ - the development of specific skills within employees or teams

2) D_____________ - the grouping of different jobs to improve efficiency and effectiveness
3) C______ of command - the hierarchy of authority
4) Span of c______ - the number of people that any one person has accountable to them
5) Levels of c________ - the degree to which decision making is concentrated at a single point in the organisation
6) F_________ - how different jobs are structured and formalised.

Answer 3

1) Specialisation
2) Departmentalisation
3) Chain of command
4) Span of control
5) Levels of centralisation
6) Formalisation

Question 4

There are a number of different forms of “organisational efficiency”.

What is meant by “managerial efficiency”?

Answer 4

The ability of an organisation to meet its strategic goals

Question 5

There are a number of different forms of “organisational efficiency”.

What is meant by “allocational efficiency”?

Answer 5

The deployment of resources to achieve goals and create value.

Question 6

There are a number of different forms of “organisational efficiency”.

What is meant by “productive efficiency”?

Answer 6

The output achieved in a period of time by employees working under managerial oversight.

Question 7

There are a number of different forms of “organisational efficiency”.

What is meant by “resource efficiency”?

Answer 7

The use of organisational resource to achieve objectives and minimise waste.

Question 8

There are a number of different forms of “organisational efficiency”.

What is meant by “process efficiency”?

Answer 8

The consumption of time, labour and cost by a process, relative to the organisational outputs.

Question 9

There are a number of different forms of “organisational efficiency”.

What is meant by “cost efficiency”?

Answer 9

The understanding and alignment of required costs with output.

Question 10

How does the concept of “emergent strategy” relate to the debate between whether structure should come before strategy and vice versa?

Answer 10

Emergent strategy refers to the organic development of strategy over time in response to real world factors. This links neatly with the concept of “structure before strategy”, as a best laid strategic plans will inevitably have to develop over time in response to market and other forces.

Question 11

According to Robbins & Judge (2016) what are the 6 key elements to consider in organisational structure?

S
D
C o C
S o C
L o C
F

Answer 11

Specialisation
Departmentalisation
Chain of Command
Span on Control
Levels of Centralisation
Formalisation

Question 12

List 6 types of managerial efficiency.

Answer 12

Managerial
Allocational
Productive
Resource
Process
Cost