MGMT WEEK 5

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Marciaho
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240455
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MGMT WEEK 5
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2013-10-14 01:10:21
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Week 5
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  1. What is Formal Organisational Structure?
    • The way in which the various parts of an organisation are formally arranged
    • It represents the way an organisation intends to function
    • Structure’s main aim is to improve the effectiveness of an organisation achieving its goals
    • • Note: The way we put people and jobs together, and define their roles and relationships is an important determinant in whether an organisation is successful in achieving its goals
  2. Formal Structure
    reporting relationships and formal arrangements of work positions

    created by the organisation.
  3. Nature of Organisational Structure
    • Job Design  
    • Organisational Form - Departmentalisation
    • Differentiation 
    • Integration
  4. Informal Organisational Structure
    • ‘Shadow’ organisation
    • Unofficial* but often critical working relationships between organisational staff
    • created by the staff, NOT the organisation
    • It cuts across all levels of the organisation – people meeting for coffee, exercise groups etc
    • Very personal and network oriented
  5. What you learn from an organisational chart
    • 1. Division of work
    • 2. Supervisionary relationships
    • 3. Communication channels
    • 4. Major submits
    • 5. Level of management
  6. Advantages of informal structure
    • emotional support and social needs
    • informal learning
  7. Disadvantages of informal strucuture
    • Activities go against best interests of org
    • susceptible to rumour, carry inaccruate info
    • breed resistance to change
    • diver work efforts
    • exclusion e.g migrants
  8. Organisational Design
    The process of creating structures that best serve a company's mission and objectives
  9. 1.Job Simplification Advantage
    Production efficiency
  10. Job Simplification Disadvantage
    No job satisfaction because of boring narrow jobs
  11. Job Rotation (attempts to)
    • Cross- train and develop employees
    • Combat freedom
  12. What does job enrichment and what does it significantly increase the potential for?
    • The practice of building more opportunity for job satisfaction by expanding its content
    • It increases potential for
    • growth,
    • achievement,
    • responsibility and
    • recognition
  13. Functional Structure- definition and advantages/disadvantages
    • Positions grouped according to what they do
    • Advantages: 
    • In depth expertise
    • Clear career paths
    • Economies of scale possible b/c of specialised people and environment

    • Disadvantages
    • Conflict between departments
    • Managers trained too narrowly
  14. Divisional Structure- definition and advantages/disadvantages
    • grouped according to product, service, customer type or geography
    • Advantages:
    • focus on client groups and react quickly
    • performance more easily measured
    • managers have broader base of training
    • Disadvantages:
    • Duplication of resources
    • In depth expertise sacrificed
    • Divisions compete rather than work together
  15. Matrix Structure- definition and advantages/disadvantages
    • superimposes horizontal set of divisional reporting relationships into hierarchical functional structure. 
    • both functional and divisional
    • employees report to 2 bosses e.g functional or project team leader
    • Advantages:
    • Decision making decentralised
    • response to environment decreased
    • functional specialist can be added or reassigned to projects as needed

    • Disadvantages:
    • Confusion over chain of command
    • Increased admin costs
    • increased politicisation
  16. Team structures
    mobilising both permanent and temporary teams to accomplish special projects and day-to-day tasks
  17. Network structures
    central core linked to networks of outside contactors and service suppliers
  18. Horizontal Differentiation
    • degree to which the organisation is separated into different units on the basis of tasks performed by members 
    • Organisational silos have different 
    • goal emphasis
    • Time emphasis
    • Work Vocabulary
  19. Vertical Differentiation
    refers to the number of layers of management in an organisation
  20. Vertical Differentiation- 
    The greater the number of layers the greater the complexity. Implications?
    Potential for communication breakdown

    More difficult to coordinate the decisions of managerial personnel

    more liked that political and power plays will create admin bottlenecks
  21. Span of Control
    refers to the number of subordinates a supervisor can effectively control.
  22. Spatial Dispersion
    • degree to which location of an organisations offices, plants and personnel is dispersed 
    • The greater the dispersion the greater the complexity
  23. Integration- Formalsiation
    degree to which jobs and procedures within the organisation is standardised
  24. High formalisation
    • Minimum discretion over when and what is done
    • clear job descriptions
    • many rules to follow
  25. Low Formalisation
    • Employee behaviour relatively non programmed
    • Greater job discretion
  26. Formalisation Techniques
    • Selection= people will fit in
    • Role requirements= High or low formalisation
    • Rules, Procedures and policies= specific standards and statements that govern or guide employees and often result in uniform behaviour or outputs
    • Socialisation= adaptation process by which individuals learn the values, norms and expected behaviour patterns
    • Product/ operations scheduling= coordinating
  27. Centralisation
    • Degree to which decision making is made at a single point.
    • Occurs when decision are made by top management 
    • Decentralisation is when decision making is widely dispersed
  28. What is organisational design?
    • A tool used by people to coordinate their actions to obtain something the desire or value
    • Process by which an organisations structure is determined 
  29. Three types of design
    • Bureaucratic
    • Adaptive
    • Virtual
  30. Bureaucratic Design (4points)
    Based on logic, order and legitimate use of formal authority

    • Clear cute division of labour
    • Strict hierarchy or authority
    • High level of formal rules and procedures
    • Promotion base of competency
  31. Adaptive Designs
    Adaptive Organisation
    Organic Design
    • Emphasis on flexibility, speed and performance
    • Adaptive Organisation- operate with minimum bureaucratic features and with culture that encourage worker empowerment and participation
    • Organic designs- relatively loose systems in which a lot of work gets done through informal structures and interpersonal contacts.
  32. Virtual Design
    • Designed to create value in global economy
    • Lack of physical structure- less tangible assets
    • Use of Electronic communication technologies rather than buildings for workplace
  33. Contingencies of Organisation Design
    Good design should result in supportive structure that satisfy situational demand that allow all resources to be used to best advantage. (5points)
    • Environment 
    • Strategy
    • Technology
    • Size and life cycle
    • Human Resources

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