MN202S Quiz & Flashcards: Organisational Life Cycle

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Questions and Answers

What is the primary focus of an operational goal in an organisation?

To promote open communication channels

To establish a learning organisation

To capture the key tasks of the organisation (correct)

To develop a hierarchical decision-making structure

Which organisational design perspective is characterised by standardisation of rules and procedures?

Closed

Open

Formalised (correct)

Learning

What is the primary advantage of a matrix grouping approach?

It works best when 2 or more critical outputs are required (correct)

It enables specialisation of tasks

It facilitates open communication channels

It promotes a hierarchical decision-making structure

What is the characteristic of a learning organisation that is NOT a characteristic of a hierarchical decision-making structure?

Emphasis on experimentation and risk-taking Signup and view all the answers

Which type of system requires the least resources and horizontal coordination in the ladder of horizontal linkage systems?

Information systems Signup and view all the answers

What is the primary focus of the entrepreneurial stage in the organisational life cycle?

Creating a product or service and surviving in the marketplace Signup and view all the answers

What is the primary characteristic of the formalisation stage in the organisational life cycle?

Installing rules, procedures, and control systems Signup and view all the answers

What type of isomorphism is caused by external pressure to adopt structures, techniques, or behaviours similar to other organisations?

Coercive isomorphism Signup and view all the answers

What is the term for the intentional reduction of a company's workforce?

Downsizing Signup and view all the answers

What is the primary characteristic of Weber's concept of bureaucracy?

Defined hierarchical structure and authority Signup and view all the answers

What is the term for the formation of groups or teams with specific objectives or tasks in mind for a short period?

Temporary organising Signup and view all the answers

What is the term for the external sectors with which an organisation will interact to accomplish its goals?

Domain Signup and view all the answers

What is the term for the enduring resource transactions, flows, and links between two or more organisations?

Inter-organisational relationships Signup and view all the answers

What is the term for the structure and arrangement of different elements within an organisation?

Organisational configuration Signup and view all the answers

What is the term for the allocation of an appropriate portion of overhead costs to cost units?

Overhead absorption Signup and view all the answers

Study Notes

Organizational Design

Key tasks of an organization are captured in operational goals.
Two major perspectives: Open (flexible, responsive) and Closed (structured, stable).
Formalization refers to the extent of standardized rules and procedures within the organization.
Specialization denotes the division of tasks into specific job types.

Organizational Structure

Organizational configuration is the arrangement of elements within an organization.
Information systems utilize fewer resources and facilitate horizontal coordination in ladder of horizontal linkage systems.
Hierarchical decision-making is not a feature of learning organizations.

Characteristics of Learning Organizations

Prioritizes experimentation and risk-taking.
Encourages open communication channels.

Matrix Grouping

Most effective when there are multiple critical outputs, such as product and technical knowledge.

Organizational Life Cycle Stages

Entrepreneurial Stage: Focuses on product/service creation and market survival; characterized by informal structures.
Collectivity Stage: Development of clear goals and hierarchy; establishes departments and job assignments.
Formalization Stage: Implementation of rules and control systems; communication becomes formalized.
Elaboration Stage: Promotes collaboration and teamwork; involves managerial teams and task forces.

External Influences on Organizations

Legitimacy: Achieved when actions are seen as appropriate or desirable.
Mimetic Forces: Result from uncertainty in goals or technology, leading to imitative behavior.
Coercive Forces: External pressures to adapt behaviors or structures.
Normative Forces: Push for professional standards and up-to-date techniques.

Bureaucracy and Downsizing

Bureaucracy requires a defined hierarchical structure and clear regulations.
Downsizing refers to the intentional reduction of a workforce.

Organizational Domain and Environment

The environmental field of action, known as the domain, includes external sectors for interaction to meet goals.
The task environment directly affects organizational goal achievement.

Inter-organizational Relationships

Represent enduring transactions and links between organizations, addressing resource weaknesses.
Ecosystem perspective includes both conflict and cooperation in relationships.
Not all temporary organizations have a parent organization.

Strategic Approaches

Generalist Strategy: Broad focus catering to diverse segments (e.g., Toyota).
Specialist Strategy: Niche markets with emphasis on differentiation.

Institutional Theory

Organizations are substantially influenced by societal norms and expectations.
Institutions represent socially constructed templates for action shaped by interactions.

Population Ecology

Examines organizational diversity and adaptation within a population of similar organizations.
Population refers to organizations with similar activities and resource patterns.

Structural Considerations

For companies with limited product lines, a functional structure is optimal.
Information systems have the lowest coordination costs among linkage mechanisms.
Project-based organizations differ from temporary organizations.

Organizational Efficiency

Efficiency reflects resource utilization to achieve goals.
Official goals convey the core values of the organization.

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Description

Test your knowledge on the stages of an organisational life cycle, from the entrepreneurial stage to formalisation. Learn about the key characteristics of each stage and how they contribute to the growth and development of an organisation.

MN202: Organisational Life Cycle Stages

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