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POM > Chapter 6: Fundamentals of Organising > Flashcards

Chapter 6: Fundamentals of Organising Flashcards

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0
Q

When do you organize?

A

After strategic planning is done

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1
Q

What is organising?

A

Deployment of organisational resources

To achieve strategic goals

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2
Q

What is departmentalization

A

Basis for grouping positions
Positions into departments
Departments into total organization

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3
Q

How many traditional approaches are there?

A

3

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4
Q

What are the traditional approaches?

A

Functional
Divisional
Matrix

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5
Q

What are the innovative departmentalization approaches?

A

Team

Network

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6
Q

How to assess advantages or disadvantages?

A

Use of resources: efficient (economies of scale) or not

Technical Depth: specialization and development

Communication across divisions: barriers

Environment response: flexible and fast

Customer service

Decision concentration: delay, response time

Decision making: direction and control/unplanned decentralization

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7
Q

What does departmentalization create?

A

Chain of command
Reporting relationships
Organizational structure

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8
Q

How does different departmentalization approaches affect?

A

Employee goals

Employee motivation

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9
Q

How are activities grouped in a functional structure?

A

By common function

Or type of organizational resources

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10
Q

What are the advantages of a functional approach?

A

Efficient use of resources : economies of scale
In depth skill specialization and development
Top manager direction and control

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11
Q

What are the disadvantages of functional approach?

A

Poor communication across functional department
Slow response to external changes (lagging innovation)
Decisions concentrated at top hierarchy: delay

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12
Q

What are activities grouped based on in the divisional approach

A

Based on similar organizational outputs

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13
Q

What is the divisional structure also called?

A

M form
Multi divisional
Decentralized form

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14
Q

What are the types of divisional structure?

A

Product/services
Geographical region
Customer

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15
Q

What are the advantages of a divisional structure?

A

Fast response and flexibility to unstable environment
Fosters concern for customer need
Excellent coordination across functional departments

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16
Q

What are the disadvantages of a divisional structure?

A

Duplication of resources across divisions
Less technical depth and specialization
Poor coordination across divisions

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17
Q

How are activities divided in divisional approach, product and services?

A

By the type of product/services

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18
Q

When is division by geographical region used?

A

When operations/markets are
Physically dispersed
Non-interdependent

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19
Q

When is division by customer used?

A

company provides

Different services to different types of customers

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20
Q

What does the matrix approach involve?

A

Both functional and divisional structure

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21
Q

What is the matrix structure called?

A

Dual

Hence it has dual lines of authority

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22
Q

How do horizontal and vertical units work together?

A

The functional department operate as vertical units

Supporting the horizontal divisions

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23
Q

What are the advantages of a matrix approach

A

More efficient use of resources
Flexibility, adaptability or changing environment
Expertise available to all divisions: interdisciplinary cooperation

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24
What are the disadvantages of a matrix approach?
Frustration and confusion from dual chain of command High conflict between two sides of the matrix Many meetings more discussion than action
25
When is team approach used?
Delegate authority quickly to lower levels | More flexible and responsive in a complex and competitive environment
26
How to use team approach?
Through cross functional teams
27
What are cross functional teams?
Employees from various functional departments meeting as a team to resolve problems
28
Advantages of a team approach?
Reduced barriers among departments: increased compromise Shorter response time, quicker decisions Better morale, enthusiasm from employee involvement
29
What are the disadvantages of a team approach?
Dual loyalties and conflict Time and resources spent on meetings Unplanned decentralization
30
What is the network approach?
Collaboration beyond the organization | Outsourcing/farming to loosely connected groups of companies
31
Advantages of a network approach?
Can draw on expertise worldwide Highly flexible and responsive Reduced overhead costs
32
Disadvantages of a network approach?
Lack of control, weak boundaries Greater demands on managers Weaker employee loyalty
33
What are the steps in organising?
1. Consider org. Objectives 2. Determine type work activities 3. Departmentalization 4. Design hierarchy of relationship 5. Set up Mechanism for coordination
34
What is organisational resource is deployed?
Labour
35
How is the organisational resource deployed?
In 5 steps
36
Why do you consider org. objectives?
Everything directed to accomplish obj Allocating resources Managing people Best way to support org. objectives
37
How do you determine type of activities?
Distinguishing activities one from another
38
Why do you departmentalise?
Efficient, effective | Use of org. resources
39
How do you departmentalise?
Grouping
40
How to design a hierarchy of relationship?
Determine Operating relationship of organisation Horizontal: departmentalisation vertical: chain of command =organisation structure
41
How do we set up mechanisms for coordination?
Integrate departmental activities into a coherent whole | Monitor the effectiveness of integration
42
What is an organisation structure?
Set of formal tasks assigned to individual and department Formal reporting relationship Design of systems to ensure effective coordination
43
The vertical structure of an organisation structure is portrayed in ?
Organisation chart
44
An organisation chart shows
``` Major positions and departments Chain of command (managers, subord) Span of control Official channels of communication Departmentalisation: the way work is grouped Type of work performed ```
45
What is work specialization
Division of labour = efficiency | Degree to which org. tasks are subdivided into separate jobs
46
In work specialization how do employees work?
They perform tasks relevant to the specialized function of their department. They specialize in a single task
47
What are the disadvantages of work specialization
Isolated, creates separation Hinders coordination Boring
48
What is a chain of command? It is also known as?
Unbroken line of authority Links all employees Authority structure
49
What does the chain of command show?
Reporting relationship
50
What are the 2 principles supporting this chain of command?
Unity of command | Scalar principle
51
In unity of command, each employee is _______ to only one supervisor.
Held accountable
52
Is the scalar principle the same as the COC?
Yes
53
What is authority?
Legitimate right of a manager
54
With authority you can
Make decisions Issue orders Allocate resources to achieve org desirable outcomes
55
What are the characteristics of authority
Vested in position, not individual Flows down the hierarchy Accepted by subordinates
56
What is responsibility
Duty to perform task assigned
57
With authority comes ______ When responsibility>authority, _______ When authority>responsibility,_____
Responsibility Difficulty Tyrants, achieve frivolous outcomes
58
What is accountability?
Responsibility and authority brought into alignment
59
People who are accountable are ______
Subject to reporting Justifying task outcomes To those above them in COC
60
What is delegation ?
Process to transfer authority and responsibility | Positions below them
61
Why do people delegate?
Provide maximum flexibility to meet customer needs Adapt to shifts in environment Highly motivating Improve creativity
62
What are line departments?
Perform tasks that reflect org. Primary goal and mission
63
What are staff departments?
Advisory relationship with line department
64
What is line authority?
Formal authority to direct and control immediate subordinates
65
What is staff authority?
Right to advise, recommended, counsel | In staff specialists area of expertise
66
What is the span of management?
No. of employees reporting to a supervisor
67
What does the span of control determine?
How closely a supervisor can monitor subordinates
68
Factors for larger spans of control
``` Work routine and simple Sub in one location Perform similar work takes Highly train and need little direction Rules and procedures available Support systems and personnel Preference ```
69
Two types of span
Tall | Flat
70
Characteristics of a tall structure
Narrow span of control | A lot of hierarchical levels
71
Characteristics of a flat structure
Wide span | Fewer hierarchical levels
72
Disadvantage of tall structure
Routine decisions made too high up: take away high level executives
73
What is centralization and decentralization?
Refers to heretical level at which decisions are made
74
Where are decisions made in centralization
Decision authority is high up
75
Where is decision authority in decentralization?
It is pushed down to lower levels
76
When decentralization is adopted, there is _______
Greater change and uncertainty
77
Centralization and decentralization should fit _______
Firms strategy
78
When is authority centralized at the top?
In crisis or risk of company failure

POM (16 decks)

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