Structure: fit for purpose

6 important questions on Structure: fit for purpose

Weber's 3 pure leadership styles

- Charismatic: authority from personality
- Traditional or hereditary: obey because it's how things have always been done
- Legal-rational or bureaucratic: authority gained from occupied place, rules and regulations

Influences of the effectiveness of coordination

- Span of control: number of people whose work the manager is responsible for
- Chain of command: chain of reporting relationships, describes hierarchical structures
- Centralization: more centralization provides control, decentralization -> quicker decisions

Mintzberg's 5 types of structure

1. Simple structure: few layers of management, highly centralized, dynamic, young organization
2. Machine bureaucracy: formalized and standardized, specialized staff, older organization, stable environments
3. Professional bureaucracy: standardized skills, highly trained staff, stable but complex environments
4. Divisionalized: decentralized decision-making, larger and older organizations, multinational
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Multidivisional form structure

Organizations expend to operate across many product or service lines. 4 challenges:
- Attempting to decentralized without allowing one division to dominate
- Providing management focus within a certain division
- Enhancing coordination across organization
- Divisional accountability that doesn't promote inter-division competition

Team project based structure

Project oriented companies, flat structure, dynamic and temporary teams and goals. 4 challenges:
- Competence: which competencies
- Trust: HR provides structures that enables trust
- Change: facilitating change  
- People: responsibility for career development

Networks and virtual organizations

4 characteristics:
- Vertical disaggregation, independent organizations undertake functions
- Brokers: functions integrated by broker
- Market mechanisms: contract and payments hold functions together
- Full disclosure information systems: trust is key

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