Business Organisation Structure Flashcards
CHAPTER 6 (11 cards)
1
Q
Examples of informal organisation
A
Social relationships, informal communication networks, behavioural norms, power/influence structures
2
Q
Advantages of functional structure
A
- Pool expertise
- Avoids duplication
- Facilitates recruiment, management & development of functional specialist
- Suits centralised business
3
Q
Disadvantages of functional structure
A
- Focuses on internal processe & inputs, rather than customer & outputs
- Communication problems between different functions
- Poor coordination
- Vertical barriers to information
4
Q
Advantages of matrix organisation
A
- Greater flexibility of people, workflow, DM, tasks & structure
- Inter-disciplinary co-operation
- Motivation & employee development : greater participation in planning & control decision
- Market awareness
5
Q
Disadvantages of matrix organisation
A
- Dual authority conflict
- Increase cost
- Slower decision making
6
Q
Advantages of divisionalisation
A
- Focus attention of management below ‘top level’ on performance
- Reduce likelihood of unprofitable product/activity being continued
- Greater attention to efficiency, lower cost & higher profit
- Planned managerial succession
- Reduce no. of level of management
7
Q
Disadvantages of divisionalisation
A
- Impossible to identify completely independent products/markets to separate
- Only possible at a fairly senior management level (limit to how much discretion can be used to divide)
- Resource problem
8
Q
Modular organisation
A
- Outsource inefficient module
- Retained people assemble/combine these elements to produce final product
9
Q
Hollow organisation
A
Non-core processes & activities are outsourced
10
Q
Factors influencing span of control
A
- Manager’s capabilities (physical & mental limitation)
- Nature of manager’s workload
11
Q
The more non-supervisory work of a manager, ………..
A
- narrower SOC
- greater delegation of authority to subordinates
