Organisational Structure and Design
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Organisational Structure and Design

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Questions and Answers

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.

    False

    List one variable that sets boundaries to planning.

    Purpose of the business

    The __________ of the business serves as a guiding principle for planning activities.

    <p>mission statement</p> Signup and view all the answers

    Match the management levels with their respective goals:

    <p>Top Management = Strategic goals Middle-Level Management = Tactical goals Lower-Level Management = Operational goals All Levels = Develop plans based on goals</p> Signup and view all the answers

    Which of the following is a characteristic of standing plans?

    <p>Remain unchanged over a longer period</p> Signup and view all the answers

    Operational plans are designed for long-term objectives.

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

    What is the primary focus of organizing within a business?

    <p>Division of tasks</p> Signup and view all the answers

    Which factor is most likely to create a need for a more complex organizational structure?

    <p>Company Size</p> Signup and view all the answers

    Startups usually have a more hierarchical structure to foster innovation.

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

    What stage in a company's life cycle might necessitate a more rigid organizational structure?

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

    A company that emphasizes __________ might implement a decentralized organizational structure.

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

    Which of the following external factors influences organizational structure by requiring compliance with specific laws?

    <p>Regulatory Environment</p> Signup and view all the answers

    Economic instability can lead a company to adopt a more aggressive organizational structure.

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

    What organizational structure might be adopted by a company that values teamwork and collaboration?

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

    Match the following organizational factors with their descriptions:

    <p>Company Size = Influences complexity of the structure Life Cycle Stage = Determines structure based on development phase Market Environment = Requires flexibility in competitive settings Culture and Mission = Shapes structure based on core values</p> Signup and view all the answers

    What does organising primarily promote in a company?

    <p>Productive deployment of resources</p> Signup and view all the answers

    Job enhancement decreases the number of tasks that an employee has to perform.

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

    Define the term 'specialization' in the context of organizational structure.

    <p>Specialization refers to dividing a task into smaller units to utilize specialized expertise or skills for higher productivity.</p> Signup and view all the answers

    The grouping of employees based on their roles or functions is known as _________.

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

    Match the following job design approaches with their descriptions:

    <p>Job Rotation = Shifting of workers from one task to another Job Enhancement = Increase in the number of tasks for an employee Job Enrichment = Enlargement of tasks with increased control Specialization = Dividing tasks into smaller units for higher productivity</p> Signup and view all the answers

    Which of the following is NOT a type of departmentalisation?

    <p>Skill-based</p> Signup and view all the answers

    Authority is the right to command and enforce compliance with duties.

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

    What is the primary responsibility of a subordinate in an organizational hierarchy?

    <p>To execute tasks according to instructions and give account of their actions.</p> Signup and view all the answers

    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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    Related Documents

    BSTE222 Notes SU1-5 2024 PDF

    Description

    Explore the various internal and external factors influencing organisational structure. This quiz will cover organizing principles, job design approaches, and the fundamentals of organisation necessary for effective management. Test your knowledge on how to coordinate activities and utilize resources efficiently.

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