Org Structure Flashcards
(25 cards)
What is Organisational Structure?
Defines how tasks are formally divided, grouped and coordinated
Purpose is to maintain control in an unstable world and to regulate human behaviour.
What are the two types of organisational structure?
Formal and informal structure
Informal structure consists of unofficial processes that may develop around individuals or groups.
What are the six key elements in the design of organisational structure?
- Work specialisation
- Departmentalisation
- Chain of command
- Span of control
- Centralisation
- Formalisation
What is work specialisation?
Efficient, cost effective but can lead to boredom and stress
What is departmentalisation?
Grouping by function, product, geography, process, or customers
What does chain of command refer to?
Authority and unity of command, meaning only reporting to one superior
What is span of control?
The number of employees under each manager
What is centralisation in organisational structure?
Control from the top
What is formalisation?
Extent to which jobs are standardised
What should structure facilitate?
Communication, decision making, define authority and responsibility, and integrate departments and divisions
What are the advantages of a simple structure?
Fast, flexible, and inexpensive
What are the disadvantages of a simple structure?
Risk associated with dependence on one person and more difficulty as size and functions increase
What characterizes a bureaucracy?
- Standardisation
- Formalised rules
- Centralised authority
- Unity of command
- Narrow spans of control
What are the advantages of bureaucracy?
Effective at routine tasks in stable environments with less well-trained individuals
What are the disadvantages of bureaucracy?
- Red tape encourages conformity
- Ignores informal structure
- Dysfunctional issues like Parkinson’s law and Peter Principle
What is a matrix organisational design?
Combines two forms of departmentalisation, e.g., functional and product
What are the problems associated with matrix structures?
- Confusion and power struggles
- Ambiguity concerning job roles
- Stress for those preferring security
What is a team-based organisational structure?
Breaks down departmental barriers and decentralises decisions
What is a virtual organisation?
Management core that outsources major functions
What is a boundaryless organisation?
Reduces or eliminates chain of command and replaces departments with empowered teams
What are the characteristics of mechanistic organisations?
- Narrow control
- Centralised decision making
- Tall structure
What are the characteristics of organic organisations?
- Wide control span
- Decentralised decisions
- Flat structure
What are the main forces shaping organisational structure?
- Strategy
- Organisation size
- Technology
- Environment
What is the effect of structure on employee behaviour?
Employees differ in preference for organic vs mechanistic structures
