Business Organisation, Structure & Strategy Flashcards Preview

ACCA: F1: B: Business Organisation Structure, Functions & Governance > Business Organisation, Structure & Strategy > Flashcards

Flashcards in Business Organisation, Structure & Strategy Deck (47)
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1

An informal organisation consists of: (4)

1. Social relationships
2. Informal communication networks
3. Behavioural norms
4. Power / Influence structures

2

Benefits of the informal organisation: (5)

1. Employee commitment
2. Knowledge sharing
3. Speed
4. Responsiveness
5. Co-operation

3

Managerial problems of informal organisations: (4)

1. Groupings act collectively; time and energy away from work
2. Grapevine is inaccurate; morale-damaging
3. Excluded from cliques or networks
4. Cut corners, safety & quality measures violated

4

Managers can minimise problems associated with informal organisations by: (3)

1. Meet needs through the formal organisation
2. Harnessing dynamics - informal leaders to secure commitment
3. Involve managers in the informal organisations

5

Key terms when speaking about groups include:

1. Compliance
2. Internalisation
3. Counter-conformity
4. Identification
5. Sanctions

6

Mintzberg believes all organisations can be analysed into 5 components:

1. Strategic apex
2. Middle line
3. Operating core
4. Technostructure
5. Support staff

7

Functional departmentation: Organisations can be departmentalised on the following basis: (6)

1. Functional (Marketing, finance)
2. Geographical
3. Product
4. Brand basis
5. Matrix basis (Report to product manager and country manager)
6. Hybrid

8

Advantages of Functional Departmentation: (4)

1. Expertise is pooled
2. Avoids duplication
3. Facilitates recruitment, management and development of functional specialists
4. Suits centralised businesses

9

Disadvantages of Functional Departmentation: (4)

1. Focuses on processes and inputs, rather than customers and outputs - less able to adapt to changing demand
2. Communication problems - own jargon
3. Poor co-ordination - Referred upwards, tall structures
4. Vertical barriers to information and work flow

10

Advantages of Geographic Departmentation: (2)

1. Local decision-making
2. Cheaper

11

Disadvantages of Geographic Departmentation: (2)

1. Duplication; loss of economies of scale
2. Inconsistency in methods or standards

12

Product / brand Departmentation groups activities...

based on products or product lines;
A divisional manager is given responsibility for the product or product line, with authority over personnel of different functions

13

Advantages of Product / Brand Departmentation: (3)

1. Accountability
2. Specialisation
3. Co-ordination

14

Disadvantages of Product / Brand Departmentation: (2)

1. Increases overhead costs
2. Divisions may fail to share resources and customers

15

Divisionalisation is

the division of a business into autonomous regions or product businesses, each with its own revenues, expenditures and capital asset purchase programes, and therefore each with its own profit and loss responsibility

16

Successful divisionalisation requires 6 key conditions:

1. Properly delegated authority
2. Large enough to support management
3. Non-reliance on head office management support
4. Potential for growth
5. Scope and challenge for management
6. If dealing with each other - arms's length transaction

17

Advantages of Divisionalisation: (5)

1. Focuses attention on business performance
2. Reduces continuation of unprofitable products and activities
3. Greater attention on efficiency, lower costs and higher profits
4. Succession planning - more authority to junior managers
5. Reduces levels of management - report directly to the CEO

18

Disadvantages of Divisionalisation: (3)

1. Impossible to identify independent products or markets
2. Only possible at fairly senior management level - limit to how much discretion can be used
3. Resource problems - getting them from head office

19

Advantages of Matrix organisation: (5)

1. Greater flexibility (People, workflow & decision making, tasks & structure)
2. Interdisciplinary cooperation - improved communication and coordination
3. Motivation and employee development
4. Market awareness
5. Horizontal workflow

20

Disadvantages of Matrix organisation: (4)

1. Dual authority: conflict between functional and product / project / area managers
2. Conflicting demands, ambiguous roles
3. Cost: more managers, more meetings
4. Slower decision making due to complexity

21

The new organisation focuses on flexibility by focusing on: (6)

1. Flat structures
2. Horizontal structures (multiskilling)
3. Chunked / unglued structures (Team working, decentralisation)
4. Output-focused structures
5. Jobless structures
6. Virtual organisations

22

Shamrock Organisations (Flexible firms) have... (NB)

...a core of essential exectuives and workers supported by outside contractors and part-time help.

23

Shamrock Organisations have 4 'leaves': (NB)

1. Professional core (What the business does / what business it is in, 'essential')
2. Self-employed professionals (contracted project-by-project)
3. Contingent workforce
4. Consumers (Assemble-it-yourself (IKEA), Bag your own groceries)

24

Span of control or span of management refers to...

...the number of subordinates responsible to a superior

25

3 factors influence the span of control:

1. Manager's capabilities
2. Nature of manager's workload (Solitary, Entrepreneurial, Interaction, Supervision)
3. Geographical dispersion

26

The more non-supervisory work, the...

...narrower the span of control
...the greater the delegation of authority to subordinates

27

Arguments FOR tall organisations include: (3)

1. Narrow control
2. Small groups enable team member participation
3. Large number of steps assist in management training and career planning

28

Arguments AGAINST tall organisations include: (3)

1. Inhibits delegation
2. Rigid supervision blocks initiative
3. Increased admin costs, slower decision making

29

Arguments FOR flat organisations include: (3)

1. More delegation opportunities
2. Relatively cheap
3. Speedier communication

30

Arguments AGAINST flat organisations include: (3)

1. Requires that jobs CAN be delegated
2. Sacrifices control
3. Middle managers are needed to convert vision into operation