Organizations and their structures - Lecture notes

10 important questions on Organizations and their structures - Lecture notes

Organizations contribute to society through quality of work and quality of organization. We distinguish external and internal requirements. What is the difference between these two?

External requirements refer to the relationship between the environment and the organization. These are the requirements set by the environment.

Internal requirements refer to the internal organization. These requirements should be okay in order to contribute to the external requirements.

Why are turnover and abseteeism external requirements for the quality of work?

These are external requirements because they say something about the attractiveness of the organization.

HVP structures are problematic because of the probability of disturbances and lack of regulatory potential. Regarding the probability of disturbances: how is this determined?

The amount of variety and the number of relations of a task determine the probability of disturbances.

The amount of variety is caused by functional concentration.

The number of relations is caused by the parameters separation and specialization.
- If you do not have specialization you make the product from beginning to end.
- If you do not have separation you are responsible for dealing with disturbances.
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What is the major reason why lead time is long when having high functional concentration?

The major reason is that if there is high functional concentration, one person needs to do complex and simple tasks. This results that the simple tasks have to wait, because the complex tasks take so much time.

This causes problems for societal contribution and for developing the structure.

What are the two basic assumptions that underly HVP?

1. Machine metaphor; to solve problems, division of labour is needed.

2. Agency theory; giving people too much authority / autonomy will go wrong

What are problematic structures?

Problematic structures are structures with high parameter values which are unable to:
1. Realize their societal contribution
2. Can't adapt goals and infrastructure
3. Are based on reinforce problematic basic assumptions

They're self-inhibiting

Elaborate on what the effects are of low values on the parameters separation and specialization

Low value separation: no distance operations. You have autonomy to deal with disturbances yourself.

Low in specialization: you have overview of the entire process and are in touch with the goals and output.

If all parameters are low, then you have more time for design regulation.

What are parallel working structures?

Parallel working structures are structures that contains parallel production units dedicated to a subset of orders (from beginning to end).

What are the three drawbacks of parallel working structures?

- Personnel is expensive
-  Requires degree of capacity usage
- Less economies of scale
Although the personnel costs are higher, in the end it is cheaper because you have way less overhead costs.

What are typical problems of functional structures?

1. Adjustment machines/set up time
2. No specialization
3. Transportation time (batch - stocks)
4. Waiting time
5. No overview of the process; things can get lost
6. All leads to; many mistakes, much rework and long waiting time.

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