Chapter 13 - Designing organisational structure Flashcards Preview

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Flashcards in Chapter 13 - Designing organisational structure Deck (16)
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1
Q

Define Organisational Structure.

A

The division of labour and patterns of coordination, communication, workflow and formal power that direct organisational activities.

2
Q

What are the 2 fundamental requirements for all Organisational Structures?

A
  1. Division of Labour - distinct tasks

2. Coordination of that labour - employees are able to accomplish common goals.

3
Q

What is the Division of Labour so important?

A

Job Specialisation = work efficiency.

  • time: work cycles are shorter
  • cost: training costs are reduced
  • matches people with specific aptitudes or skills to the job for which they are best suited.
4
Q

Why does an organisation’s ability to divide work among people depend on coordination?

A

If there was a lack of coordination, individual effort is wasted due to misalignment, duplication and mistiming of tasks.

5
Q

List the coordinating mechanisms in organisations.

A
  1. Informal communication - sharing info on mutual tasks; forming common mental models to synchronise work activities.
  2. Formal hierarchy - assigning legitimate power to individuals, who then use this power to direct work processes and allocate resources.
  3. Standardisation - creating routine patterns of behaviour or output.
6
Q

Explain informal communication.

A
  • Direct Communication
  • Liaison roles - Employees who are expected to communicate and share info with co-workers in other work units.
  • Integrator roles - no authority; persuasion and commitment.
  • Temporary teams - give employees more authority and opportunity to coordinate through informal communication.
7
Q

Explain formal hierarchy.

A
  • Direct Supervision
  • Formal communication channels.
  • Not as agile in coordination in complex and novel situations.
  • Not fast or accurate as direct communication between employees.
  • Managers are only able to closely supervise a limited number of employees.
  • More managers = costly bureaucracy.
  • Today’s workforce demands more autonomy over work and more involvement in company decisions.
8
Q

Explain Standardisation.

A
  1. Standardised Process - Job descriptions and Procedures.
  2. Standardised Outputs - To ensure individuals and work units have clearly defined goals and output measures.
  3. Standardised Skills - Training.
9
Q

What are the 4 elements that apply to every organisation?

A
  1. Span of Control
  2. Centralisation
  3. Formalisation
  4. Departmentalisation~
10
Q

Explain Span of Control.

A

The number of people directly reporting to the next level in the hierarchy.

  1. Standardised skills.
  2. Routine tasks.
  3. Degree of interdependence.
11
Q

Explain the difference between Tall versus Flat Structures.

A
  1. Big org - Taller hierarchy - Wider span of control.
    * lower-quality and less timely info.
    * higher overhead costs (Administrative)
    * Employees usually feel less empowered and engaged in their work.
  2. Small org- Flat hierarchy - Narrower span of control.
12
Q

Define Centralisation.

A

Formal decision-making authority is held by a small group of people, typically those at the top of the organisational hierarchy.

13
Q

Define Formalisation.

A

The degree to which organisations standardise behaviour through rules, procedures, formal training and related mechanisms.

  • increase efficiency and compliance.
  • undermine org learning and creativity.
  • source of job dissatisfaction and work stress.
14
Q

Define Mechanistic structure.

A
  • Narrow span of control
  • High centralisation
  • High formalisation
15
Q

Define Organic Structure.

A
  • Wide span of control
  • High decentralisation
  • Low formalisation
16
Q

Mechanistic vs Organic structure.s

A
  1. Mechanistic - operate better in stable environments because they rely on efficiency and routine behaviours.
  2. Organic - work better in rapidly changing (dynamic) environments because they are more flexible and responsive to changes.
    - more compatible with organisational learning and high-performance workplaces bc they emphasise info sharing and an empowered workforce rather than hierarchy and status.
    - Depends on how well employees have developed their roles and expertise.