Organisational Structure and Change
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Questions and Answers

What is a disadvantage of mechanistic structures?

  • Enhanced employee autonomy
  • High levels of flexibility
  • Encourages innovation
  • Rigidity and resistance to change (correct)
  • What is one consequence of an ageing workforce for organisations?

  • Decentralization of operations
  • Reduction in work arrangements
  • Requirement to adapt benefit packages (correct)
  • Increased hiring of younger employees
  • Organic structures have higher levels of formalization compared to mechanistic structures.

    False

    Globalisation presents only opportunities for organisations.

    <p>False</p> Signup and view all the answers

    Name a company that successfully utilizes a decentralized organic structure.

    <p>3M</p> Signup and view all the answers

    Name one industry that struggled with rapid technological advancements.

    <p>music industry</p> Signup and view all the answers

    In a matrix organization, employees report to both a functional manager and a __________ manager.

    <p>project</p> Signup and view all the answers

    Match the organizational structure with its characteristic:

    <p>Mechanistic Structure = Rigidity and resistance to change Organic Structure = Flexible and decentralized Matrix Structure = Dual reporting lines Traditional Structure = Clear hierarchy and roles</p> Signup and view all the answers

    Organisations must adapt to changes in ______ to remain competitive.

    <p>technology</p> Signup and view all the answers

    Match the following organisational changes with their drivers:

    <p>Shifting Workplace Demographics = Adjusting work arrangements for an ageing workforce Globalisation = Managing a diverse workforce across cultures Poor Performance = Catalyst for organisational transformation Fluctuations in Market Conditions = Adjusting strategies due to economic changes</p> Signup and view all the answers

    Which of the following describes the advantages of organic structures?

    <p>Conducive to innovation and entrepreneurship</p> Signup and view all the answers

    What strategy might help organisations manage a global workforce?

    <p>Adapting to different cultural contexts</p> Signup and view all the answers

    Matrix structures simplify communication within an organization.

    <p>True</p> Signup and view all the answers

    Rapid growth of an organisation typically requires maintaining the same organisational structure.

    <p>False</p> Signup and view all the answers

    What is a potential conflict within a matrix organization?

    <p>Power struggles between functional managers and project managers</p> Signup and view all the answers

    What are some of the challenges the airline industry has faced?

    <p>Increased competition, fluctuating fuel prices, reduced demand.</p> Signup and view all the answers

    What does organisational structure primarily help achieve?

    <p>Coordination of work</p> Signup and view all the answers

    Decentralized companies make decisions primarily at higher levels of the hierarchy.

    <p>False</p> Signup and view all the answers

    What is the main task of organisational design?

    <p>Creating or enhancing the structure of an organisation</p> Signup and view all the answers

    A ______ structure has several layers of management between frontline employees and the top level.

    <p>tall</p> Signup and view all the answers

    Which structure is characterized by grouping jobs based on similarity in functions?

    <p>Functional structure</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Centralization = Decision-making at higher levels Decentralization = Decision-making at lower levels Formalization = Extent of written policies and procedures Mechanistic structure = Highly formalised and centralised structure</p> Signup and view all the answers

    In a ______ structure, there are fewer layers of management and greater self-actualization opportunities.

    <p>flat</p> Signup and view all the answers

    Mechanistic structures promote greater employee empowerment.

    <p>False</p> Signup and view all the answers

    What is the first step in the change management process?

    <p>Unfreezing</p> Signup and view all the answers

    Providing emotional support is not an important aspect of managing change.

    <p>False</p> Signup and view all the answers

    What role do opinion leaders play in the change process?

    <p>They influence the behaviors and attitudes of others towards accepting change.</p> Signup and view all the answers

    Employees who participate in planning change efforts tend to have more positive opinions because they feel a sense of ______.

    <p>ownership</p> Signup and view all the answers

    Match the following elements of change management with their purpose:

    <p>Building a coalition = Convincing influential individuals about the need for change Publicising success = Sharing results of change to encourage acceptance Creating small wins = Establishing a history of achievable successes Reward change adoption = Encouraging permanent change by recognizing supporters</p> Signup and view all the answers

    What can management do to help alleviate resistance to change?

    <p>Listen to those who disagree</p> Signup and view all the answers

    Creating a sense of urgency is irrelevant in the change management process.

    <p>False</p> Signup and view all the answers

    Why is it important for leaders to communicate a vision for change?

    <p>It helps employees understand the purpose of the change and reduces discomfort.</p> Signup and view all the answers

    What is a recommended approach when implementing changes to reduce resistance?

    <p>Make incremental changes gradually</p> Signup and view all the answers

    Building your credibility has no impact on how likely people are to accept your ideas.

    <p>False</p> Signup and view all the answers

    What should you identify to frame your proposal effectively?

    <p>Long-term goals</p> Signup and view all the answers

    People may resist change if it disrupts their daily ______.

    <p>habits</p> Signup and view all the answers

    Match the reasons for resisting change with their descriptions:

    <p>Disrupted Habits = Change interferes with established routines Personality = Some individuals are naturally less open to change Fear of Change = Change often brings uncertainty and fear of the unknown Increased Workload = People may resist if they perceive the change as adding more work</p> Signup and view all the answers

    What is one way to understand why people resist change?

    <p>Ask if they fear change</p> Signup and view all the answers

    Involving others in the planning stage can lead to more resistance when implementing changes.

    <p>False</p> Signup and view all the answers

    What should you prepare to provide when proposing a change?

    <p>Evidence supporting your proposal</p> Signup and view all the answers

    What is a consequence of Polaroid's failure to adapt to digital photography?

    <p>Loss of relevance in the market</p> Signup and view all the answers

    Change often leads people to become more receptive to new practices.

    <p>False</p> Signup and view all the answers

    Which personality trait affects how individuals perceive change?

    <p>Openness to Experience</p> Signup and view all the answers

    Frequent or poorly managed changes can lead to ________ among employees.

    <p>Change Fatigue</p> Signup and view all the answers

    Match the concepts related to change with their descriptions:

    <p>Disrupted Habits = Discomfort caused by change Fear of Failure = Worry about losing skills Change Fatigue = Exhaustion from frequent change Perceived Loss of Power = Fear of decreased influence</p> Signup and view all the answers

    Which of the following statements relates to understanding resistance to change?

    <p>Listening to naysayers can improve the change process.</p> Signup and view all the answers

    Involving employees in planning change initiatives can lead to increased resistance.

    <p>False</p> Signup and view all the answers

    What was developed by Kurt Lewin in the 1950s to understand change?

    <p>Lewin's Three-Stage Model of Planned Change</p> Signup and view all the answers

    Study Notes

    Organisational Structure and Change

    • Organisational structure defines how individual and team work are coordinated within an organisation.
    • Structure specifies reporting relationships, formal communication channels, and how individual actions relate.
    • Organisational design is a key management function involved in creating or enhancing organisational structure.

    Centralization

    • Centralization describes the degree to which decision-making authority is concentrated at higher levels.
    • Centralised companies make decisions at higher levels of the hierarchy.
    • Decentralised companies make decisions at lower levels, closer to the issue.
    • Centralisation can improve efficiency in stable environments.
    • Decentralisation improves employee empowerment and speeds up decision-making.

    Formalization

    • Formalization describes the extent to which an organisation's policies, procedures, job descriptions, and rules are written and explicitly articulated.
    • Formalised structures use written rules and regulations to control employee behaviour.

    Hierarchical Levels

    • Tall structures have many layers of management between frontline employees and top-level management.
    • Greater supervision and monitoring of employees limit opportunities for advancement.
    • Flat structures have few layers of management.
    • Greater need satisfaction and self-actualisation but may lead to role ambiguity.

    Departmentalization

    • Functional structures group jobs based on similarity in functions, effective for organisations with a limited number of products and services.
    • Divisional structures group departments based on unique products, services, customers, or geographic locations.
    • More agile and better suited for organisations with diverse product lines operating in turbulent environments.

    Mechanistic Structures

    • Mechanistic structures are highly formalised and centralised.
    • Characterised by many written rules and regulations, formal communication channels.
    • Employees have clearly defined roles.
    • Advantages: efficiency, suitable for new businesses
    • Disadvantages: rigidity, resistance to change, inhibits entrepreneurial action.

    Organic Structures

    • Organic structures are characterised by flexibility, decentralisation, and low levels of formalisation.
    • Communication is fluid and flexible; broader job descriptions.
    • Employees are encouraged to perform duties based on organisational needs.
    • Advantages: conducive to innovation, entrepreneurship, and higher job satisfaction.

    Matrix Organisations

    • Combine aspects of traditional functional structures with product structures.
    • Employees report to both a functional manager (e.g., marketing, finance) and a project/product manager.
    • Aims to balance functional specialisation and product focus.
    • Advantages: enhanced information flow and collaboration, faster response times.
    • Disadvantages: potential for conflict, role ambiguity.

    Boundaryless Organisations

    • Organisations that eliminate traditional barriers between departments and the external environment.
    • Modular organisations: outsource non-essential functions, focus on core functions.
    • Strategic alliances: collaboration between companies.
    • Breaking down internal barriers: creating a more collaborative work environment.

    Drivers of Organisational Change

    • Changing demographics: Shifting age, composition, and expectations of the workforce.
    • Rapid technological advancements: Adapting to evolving technology.
    • Globalisation: Managing diverse institutional environments and managing international workforces.
    • Fluctuations in market conditions: Adapting to economic changes and competition.
    • Organisational growth: Accommodating expansion.

    Resistance to Change

    • Disrupted habits: change disrupts routines and creates discomfort
    • Personality differences: some individuals resist change more than others.
    • Uncertainty and fear of the unknown: change brings feelings of uncertainty, anxiety.
    • Fear of failure: resistance from employees fearing negative impact.
    • Personal impact: resistance when the change perceived as negatively affecting people.
    • Change fatigue: excessive change leads to cynicism and burnout.
    • Perceived loss of power: resistance from those whose power may diminish in the new systems.

    Executing Change

    • Continuing support: Management should provide continuing support to employees during and following a change.
    • Creating small wins: creating small successes during the change effort to increase the likelihood of acceptance
    • Eliminating obstacles: management should identify and remove obstacles to ensure a smooth transition
    • Publicizing success: showcasing the positive outcomes.
    • Rewarding adoption: rewarding people who embrace the change
    • Embracing continuous change: establishing feedback loops for continuous learning and improvement.
    • Listening to those who disagree.

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    Description

    Explore the concepts of organisational structure, centralization, and formalization through this quiz. Understand how these elements impact decision-making and employee empowerment within different levels of management. Test your knowledge on how these factors contribute to the effectiveness of organisational design.

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