Strategy and Structure

Question 1

Organisational forms

Answer 1

-individual labour - when tasks do not require coordination
-self managed teams
- hierarchy of authority - when coordination is essential and individual performance is difficult to measure

Question 2

Hierarchy

Answer 2

Number of interactions: n(n-1)/2
As n increases, hierarchies are created to keep the number of interactions manageable

Question 3

Complex Hierarchy

Answer 3

Designed to address:
- departmentalisation: formal groups based on functional areas, geography, products, types of customers
- coordination(flow of info) and control (distribution of decision-making rights)

Question 4

U-form

Answer 4

Corporate headquarters
Departments, responsible for different functional areas
Suitable for stable conditions where OE is the prime consideration

Question 5

M-form

Answer 5

corporate headquarters: Top management (strategic decisions)
Divisions, based on product line, geography, type of customers (operating decisions)

Question 6

Matrix structure

Answer 6

Organised along two or more dimensions; an employee belongs to two hierarchies and has two bosses
allows a firm to economise on Human Resources

Question 7

Network structure

Answer 7

• workers contribute to multiple tasks
• workers are recognised when task is finished
  -coordination costs are concerning
• facilitates info flow