Week 4 Flashcards
What does high formalisation mean?
Individuals have little choice about how to work
Hierarchy of managers deciding other’s work
Examples: bank call centres, supermarkets etc
List three elements of organisational structure:
Complexity (horizontal, vertical and spatial differentiation)
Formalisation (degree of discretion)
Centralisation (concentration of authority)
What is centralisation?
The extent of centralisation of power and decision making
Inversely related to complexity because increases in complexity must lead to decreases in centralisation
Centralisation is ________ related to Complexity
Inversely
Centralisation is ________ correlated with formalisation because high formalisation associates with increased complexity.
Weak
Who do classic studies of size/structure?
Blau and Aston
What were the Aston studies?
Conducted at Aston University. Study of 46 organisations - concluded that increased size is associated with increase in probability of repeated events (establishment of structures and processes to repeat how events are dealt with)
Who studied the relationship between technology and structure?
Woodward
What are the three different technology types according to Woodward?
1) Unit - the manufacture of custom made products (tailored suit)
2) Mass - the manufacture of standardised products (cars)
3) process - the manufacture of automated continuous products (oil refineries)
Summarise the Woodward findings:
Unit - low complexity, low formalisation, high centralisation
Mass - high complexity, high formalisation, high centralisation
Process - low low low
What are the Chandler Findings?
Chandler suggests over time organizations become multidivisional but he only looked at large, dominant industrial organisations