Podcast
Questions and Answers
What type of goals do lower-level managers develop?
What type of goals do lower-level managers develop?
- Reactive goals
- Operational goals (correct)
- Strategic goals
- Tactical goals
Middle-level management is responsible for developing strategic goals.
Middle-level management is responsible for developing strategic goals.
False (B)
List one variable that sets boundaries to planning.
List one variable that sets boundaries to planning.
Purpose of the business
The __________ of the business serves as a guiding principle for planning activities.
The __________ of the business serves as a guiding principle for planning activities.
Match the management levels with their respective goals:
Match the management levels with their respective goals:
Which of the following is a characteristic of standing plans?
Which of the following is a characteristic of standing plans?
Operational plans are designed for long-term objectives.
Operational plans are designed for long-term objectives.
What is the primary focus of organizing within a business?
What is the primary focus of organizing within a business?
Which factor is most likely to create a need for a more complex organizational structure?
Which factor is most likely to create a need for a more complex organizational structure?
Startups usually have a more hierarchical structure to foster innovation.
Startups usually have a more hierarchical structure to foster innovation.
What stage in a company's life cycle might necessitate a more rigid organizational structure?
What stage in a company's life cycle might necessitate a more rigid organizational structure?
A company that emphasizes __________ might implement a decentralized organizational structure.
A company that emphasizes __________ might implement a decentralized organizational structure.
Which of the following external factors influences organizational structure by requiring compliance with specific laws?
Which of the following external factors influences organizational structure by requiring compliance with specific laws?
Economic instability can lead a company to adopt a more aggressive organizational structure.
Economic instability can lead a company to adopt a more aggressive organizational structure.
What organizational structure might be adopted by a company that values teamwork and collaboration?
What organizational structure might be adopted by a company that values teamwork and collaboration?
Match the following organizational factors with their descriptions:
Match the following organizational factors with their descriptions:
What does organising primarily promote in a company?
What does organising primarily promote in a company?
Job enhancement decreases the number of tasks that an employee has to perform.
Job enhancement decreases the number of tasks that an employee has to perform.
Define the term 'specialization' in the context of organizational structure.
Define the term 'specialization' in the context of organizational structure.
The grouping of employees based on their roles or functions is known as _________.
The grouping of employees based on their roles or functions is known as _________.
Match the following job design approaches with their descriptions:
Match the following job design approaches with their descriptions:
Which of the following is NOT a type of departmentalisation?
Which of the following is NOT a type of departmentalisation?
Authority is the right to command and enforce compliance with duties.
Authority is the right to command and enforce compliance with duties.
What is the primary responsibility of a subordinate in an organizational hierarchy?
What is the primary responsibility of a subordinate in an organizational hierarchy?
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Study Notes
Factors Influencing Organisational Structure
- Internal Factors: Company size, life cycle stage, strategy, technology, culture and mission.
- External Factors: Market environment, regulatory environment, economic conditions.
The Importance of Organising
- Organising involves detailed analysis of work done and resources needed to achieve company goals.
- Divides workload into manageable activities for individuals or groups.
- Promotes productive deployment and utilization of resources.
- Groups related activities and tasks into specialized sections.
- Creates a mechanism to coordinate operations into complete, uniform, and harmonious units.
Fundamentals of Organisation
- Design of posts for employees: Determining responsibilities and setting expectations.
- Grouping employees in teams or sections.
- Granting authority.
- Creating a command structure.
- Creating coordination mechanisms.
Job Design Approaches
- Job Rotation: Shifting workers between different tasks.
- Job Enhancement: Increasing the number of tasks for an employee.
- Job Enrichment: Expanding the number of tasks and control an employee has over them.
Specialization
- Dividing tasks into smaller units.
- Utilizing specialized expertise or skills.
- Aiming for higher productivity.
Departmentalization
- Types: Function, Product, Area, Clients, Matrix-organisation structure.
Authority vs. Responsibility
- Authority: The right to command, give assignments, enforce compliance, and penalize negligence. Power legalized by the company.
- Responsibility: An obligation or commitment to execute tasks according to instructions. Subordinates must account for their actions.
- The employee and manager jointly decide how progress will be measured.
- Evaluation takes place at the end of a specified time period.
The Planning Process
- Steps: Determine goals, develop alternative plans, evaluate alternative plans, choose a plan, implement the plan, and do reactive planning (if necessary).
Variables Influencing Planning
- Purpose of the business.
- Mission statement of the business.
- Business environment.
- Values of managers.
- Experience of managers.
Management Involvement in Planning
- Top Management: Develop strategic goals (long-term, applicable to the entire organization).
- Middle-Level Management: Develop tactical goals (medium-term, applicable to functional departments) using strategic goals as a framework.
- Lower-Level Managers: Develop operational goals (short-term, applicable to specific departments) following tactical goals.
Operational Plans
- Single-use plans: Plans developed to achieve a single aim (program, project, budget).
- Standing plans: Plans that remain the same over a longer time period (Policy, Rule, Standard procedures).
Organising - Definition
- Organising: Division of tasks, allocation of resources, and granting authority to ensure tasks are performed.
Organisational Structure - Definition
- Collection of formal tasks allocated to individuals and sections.
- Formal reporting relationships (lines of authority, responsibility, hierarchy levels, team width of directors).
- Systems designed for efficient coordination of workers across sections.
Organisational Structure Mechanisms - New Business
- Setting up a structure ensuring the execution of task division.
- Deciding upon responsibilities, authority, and communication types.
Organisational Structure Mechanisms - Existing Business
- Continuously revising and adapting organizing.
- Provisions for new products or services.
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