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Organization Design

30 important questions on Organization Design

What is organization design?

Ste-by-step methodology which identifies dysfunctional aspects of workflow, procedures, structures and systems, realigns them to fit current business realities/goals and then develops plans to implement the new changes.

What are the 3 different types of authority?

1. Traditional authority
2. Charismatic authority
3. Legitimate authority

Which of the 3 authority types has predominated?

Legitimate authority.

Which form of organizational structure is associated with legitimate authority?

Bureaucracy.

Why is bureaucracy accepted? (2)

1. The demonstrable relevance of their requests, directions and instructions
2. A shared belief in the norms and rules of the bureaucracy that have been arrived at rationally.

Which are the 6 characteristics of bureaucracy?

1. Job specialization
2. Authority hierarchy
3. Formal selection
4. Rules and procedures
5. Impersonality and impartiality
6. Recording

What are consequences for most companies of the design process of the organization? (3)

1. More effective organization design
2. Significantly improved results such as profitability, customer service and internal operations
3. Employees who are empowered and committed to the business

Explain the 'logic of efficiency' that is based on the application of certain key principles? (5)

1. Functional division of work
2. Hierarchical relationships
3. Bureaucratic forms of control
4. Narrow supervisory span
5. Closely prescribed roles

In 1989, Gareth Morgan presented six forms of organization structures, ranging from a bureaucratic to organic structure. Name 6 types of organization structures?

1. Rigid bureaucratic structure
2. Bureaucratic structure with senior management team
3. Bureaucratic structure with cross-functional teams
4. Matrix structure
5. Project team structure
6. Loosely coupled organic structure

Explain bureaucratic structure with senior management?

A management team of departmental heads who meet regularly to deal with non-routine problems.

Explain bureaucratic structure with cross-functional teams?

Teams consisting of lower-level staff from different departments.

Explain project team structure?

Majority of the core-activities of the organizations are tackled via projects.

Explain loosely couples organic structure?

Small core of staff represents the organizations strategic directions. The firm is an open-ended system of firms, ideas, and activities. It lacks clear organization structure.

Name 7 reasons why bureaucracy continue to exist?

1. Success for more than 100 years
2. Most efficient with larger size organizations
3. Natural selection favours bureaucracy
4. Static social values
5. Environmental turbulence is exaggerated
6. Emergence of professional bureaucracy
7. Bureaycracy maintains control

Name the 3 managerial roles and give 3 examples each?

1. Interpersonal (figurehead, leader, liaison)
2. Informational (monitor, disseminator, spokesperson)
3. Decisional (entrepreneur, disturbance handler, resource allocator, negotiator)

What does the contingency approach to organization structure asserts?

A perspective, which argues that to be effective, an organization must adjust its structure to take into account its technology, its environment, its size, and similar conetextual factors.

What are the 4 aspects of unit production?

1. Production of simple units to customers' orders
2. Production of technically complex units
3. Fabrication of large equipment in stages
4. Production of small batches

What are the 3 aspects of mass production?

1. Production of components in large batches subsequently assembled diversely
2. Production of large batches, asseble line type
3. Mass production

What are the 3 aspects of process production?

1. Process production combined with the preparation of a product for sale by large-batch or mass production methods
2. Process production of chemicals in batches
3. Continuous flow production of liquids, gases, and solid shapes

What is technological imperative?

When the firm's organization structure was related to its performance, through an important variable: technology.

Which 2 things happen when technology becomes more complex?

1. The length of the chain of command increases
2. Chief executives span of control increases

What is technological interdependence?

The extent to which the work tasks performed in an organization by one department or team member affect the task performance of other departments or team members.

What is mediating technology?

Technology that links independent but standardized tasks. The main types of coordination are categorazation, standardization, and rules and procedures.

What is long-linked technology?

Technology that is applied to a series of programmed tasks performed in a predetermined order. The main types of coordination are planning, scheduled meetings, and committies.

What is intensive technology?

Technology that is applied to tasks that are performed in no predetermind order. The main types of coordination are mutual adjustment, unscheduled meetings, face-to-face discussions, physical proximity and interdepartmental teams.

What is task analysability?

The degree to which standardized solutions are available to solve the problems that arise.

What is strategic choice theory?

The view that an organization's environment, market and technology are the result of senior management decisions.

The first of the 2 major strategic choice perspectives was presented by Karl Weick, which 2 concepts?

1. Enacted environment
2. Resource dependence theory

What is enacted environment?

The environment of an organization that exists for members by virtue of the interpretations they make of what is occuring 'outside' the organization and the way their own actions influence or shape those occurences.

What is resource dependence theory?

States that although organizations depend on their environments to survive, they seek to assert control over the resources they require, in order to minimize their dependency.

The question on the page originate from the summary of the following study material:

Strategy and Organization | 9781784471842

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