Organisational and business structures Flashcards
Mintzberg’s building blocks
Analyses how any organisation can be analysed into 6 building blocks
- Strategic apex (higher management)
- Middle line (managers linking strategic apex and operating core)
- Operating core (the day to day workers)
- Technostructure (co-ordinate the work by standardising the work e.g HR)
- Support staff (supporting what the company are doing)
- Ideology (company’s values and beliefs)
Mintzberg’s co-ordinating mechanisms
- Direct supervision
- Standardisation of work
- Standardisation of skills
- Standardisation of outputs
- Mutual adjustment
Entrepreneurial structure
Typical of small companies
Manager
- subordinates
Functional structure
Common for businesses who have outgrown the entrepreneurial structure
Board of directors
- Marketing dept.
- Production dept.
- Finance dept.
- HR dept.
Divisional structure
Structured in accordance to product lines/brands
Board of directors
- Chemicals division
- Plastics division
- Electricals division
- Paper division
Matrix structure
Combines functional and divisional structure
E.g marketing dept within paper division
Decentralisation
Degree of decision making spread through the organisation
Tall vs flat organisations
Tall - Many managerial levels - more supervision, small spans of control
Flat - Fewer managerial levels - Wide span of control, better communication between top and bottom
Mechanistic vs organic structure
Mechanistic - task specialised and sub-divided
Organic - Specialists knowledge contributes to organisation common tasks
Sole trader
Single person owns the business
- unlimited liability
- little or no regulation
Partnership
Two or more people who own a business
- general partnerships - no separate legal identity (unlimited liability)
- limited liability partnership
Limited companies
A company is a separate legal entity from its owners
- Private limited company (Ltd)
- Public limited company (plc)
Groups
A number of companies under common control
Parent company
- Subsidiaries
Alliances
- Joint ventures - Businesses become shareholders in other companies
- Franchising/ licencing - using another companies brand
- Strategic alliance - ‘loose’ collaboration
- Agency agreements - one party distributes another’s products
