Management zh2

What is organising?

The process of assigning duties to personnel and coordinating employee efforts in order to ensure maximum efficiency.

What are the four subfunctions of organising?

Job design; resource allocation; coordination; departmentalization and organisational structure.

What does job design include?

Specialization, rotating jobs, job enrichment, and job description.

What is resource allocation?

Aligning tasks and people and other necessary resources.

What is coordination as an organising subfunction?

Using tools to make people work together, including laid-down rules and teamwork.

What is organisational structure?

The anatomy (overall pattern of structural components and arrangements) of the organization, providing a foundation within which the organisation functions.

What does organisational structure focus on as a framework?

The differentiation of positions, formulation of rules and procedures, and prescriptions of authority.

What is organisational structure as a means of managing activities?

The formal division of human resources and tasks as a means of managing and coordinating activities in an organisation.

What are the three primary structural characteristics?

Division of labour, authority, and coordination.

What are the additional structural characteristics named in the lecture?

Configuration and secondary structural characteristics.

What is division of labour?

Dividing work into small components so that the workers become specialists in their tasks.

What is quantitative division of labour?

Dividing work so that people perform the same overall task in parallel, without necessarily specialising in different activities.

What is qualitative division of labour?

Activity specialisation: different workers perform different steps or activities in the work process.

On what bases can division of labour be organised?

Functions, products, regions (geographical areas), or clients.

What is one-dimensional division of labour?

The primary division of labour occurs exclusively along one single principle.

What is multi-dimensional division of labour?

At least two principles of division of labour are applied simultaneously and equally at the primary level.

What is authority?

The right to command.

What does authority allow an individual to do?

Make decisions without approval by higher management and expect obedience from others.

What is unity of command?

Each person should have one boss.

What is the size of hierarchy?

The number of levels in the organisational hierarchy.

What is span of control?

The number of subordinates a manager supervises.

What does centralization show?

The process of systematically retaining power and authority in the hands of higher-level managers.

What are the features of centralization?

Unified decision-making and rationalization of resources.

What is decentralization?

The process of systematically delegating power and authority to lower managerial levels of the organization.

Where are decisions made in a decentralized organisation?

Where the information necessary for problem-solving is available.

What are advantages of decentralization?

It increases job satisfaction and adapts well to the environment.

What are disadvantages of decentralization?

The risk of short-sightedness and potential conflicts.

What is line authority?

The common and basic form of command structure that clearly demarcates superiors from subordinates; the formal power to direct and control immediate subordinates.

What activities are examples of line authority?

Production, distribution, and sales.

What is staff authority?

The right to support, advise, and assist those with line authority.

Where is staff authority normally found?

In larger organisations with a wide range of diversified functions and a significant number of personnel to manage.

What are examples of staff authority departments?

Legal departments and training and development departments.

What is functional authority?

The power to initiate actions, or stop actions taking place, in a designated area of expertise.

What is coordination?

The synchronization of the human efforts of individuals and groups for the purpose of attaining organizational efficiency.

What are the three coordination tools?

Technocratic, structural, and employee-oriented (personalized) tools.

What are technocratic coordination tools?

Planning systems and budgeting.

What are structural coordination tools?

Reporting systems, teams, and projects.

What are employee-oriented coordination tools?

Individual and group motivation.

What characterises a linear structure?

One-dimensional division of labour; one-line authority; coordination through technocratic and structural tools based on position and power.

What are the advantages of a linear structure?

It is simple and transparent, and can be enlarged horizontally and vertically.

What are the disadvantages of a linear structure?

Inflexibility, surfeit at the top, and information distortion (communication breakdown).

When is a linear structure suitable?

In a static environment, with simple and homogeneous tasks, and in smaller organizations.

How is division of labour organised in a functional structure?

According to functions, task regulations, and job descriptions; it is one-dimensional.

How does authority work in a functional structure?

Decision-making according to functions is centralized; decisions are highly regulated and authority is multi-line.

How does coordination work in a functional structure?

Vertically through official channels and horizontally at the same hierarchical level, using strong regulations and technocratic tools.

What are the advantages of a functional structure?

High efficiency, clear regulations, and the ability to accomplish complicated tasks.

What are the disadvantages of a functional structure?

Slow decision-making, decisions concentrated at the top of the hierarchy, reduced adaptability, and difficulty handling a wide range of products.

When is a functional structure suitable?

In a stable environment with a narrow range of products.

How is division of labour organised in a divisional structure?

According to products, customers, or regions; it can be one- or multi-dimensional.

How does authority work in a divisional structure?

Decisions are decentralized between the central unit and divisions, but centralized within the divisions; authority can be one- or multi-line.

How does coordination work in a divisional structure?

There is little horizontal coordination among divisions; technocratic tools are used.

What are the advantages of a divisional structure?

High independence and motivation; strategic and operational tasks are separated.

What are the disadvantages of a divisional structure?

Parallel functional organisations exist, the number of staff increases, and divisions may become selfish.

When is a divisional structure suitable?

In a dynamic environment with a wide range of products.

How is division of labour organised in a matrix structure?

Horizontally by functions (e.g. technical, sales) and vertically by products or projects; it is multi-dimensional.

How does authority work in a matrix structure?

Authority is multi-line; functional and project leaders make decisions together, with decentralized and not highly regulated decisions.

How does coordination work in a matrix structure?

Horizontally and vertically through the structure, using employee-oriented tools.

What are the advantages of a matrix structure?

It is dynamic and flexible, supports problem-solving and learning, combines structures, and adapts to challenges.

What are the disadvantages of a matrix structure?

Two-line management, competition among managers, and uncertainty about who takes responsibility for decisions.

When is a matrix structure suitable?

In a dynamic environment, where conflict-management skills exist and complex innovation is required.

Which structures are classified as mechanistic (static) in the lecture?

Linear and functional structures, and partly divisional structures.

Which structures are classified as organic (dynamic) in the lecture?

Partly divisional structures, matrix designs, project-based organisations, network structures, and virtual organisations.

What characterises a mechanistic structure?

It accommodates to a stable environment; coordination occurs mainly at top levels through official channels and regulations; it emphasizes loyalty and obedience and has concentrated authority.

What characterises an organic structure?

It accommodates to a dynamic environment; it is flexible, communication and interaction occur throughout the organisation, authority is decentralized, and functions are based on commitment.

What was Joan Woodward's finding about technology and structure?

Organisational structure is contingent on the types of production technologies employed by the firm.

Which structure is associated with unique, unit, or small-batch production in Woodward's model?

An organic organisational structure (decentralized).

Which structure is associated with large-batch or mass production in Woodward's model?

A mechanistic organisational structure (bureaucracy).

Which structure is associated with automation or standardized continuous-process production in Woodward's model?

An organic organisational structure (decentralized).

What is Chandler's relationship between strategy and structure?

Strategy determines the structure; structure has weak influence on strategy. Structure follows strategy.

Which environmental dimensions are identified by Thompson and Duncan?

Simple versus complex; static versus dynamic; and perceived uncertainty.

What is a simple environment?

An environment with only a few elements that have weak influence.

What is a complex environment?

An environment with many elements that have strong influence.

What is a static environment?

An environment without too many changes.

What is a dynamic environment?

An environment with several changes.

What is perceived uncertainty?

A situation in which there is not enough information about the environment.

What is a hybrid organisation?

An organisation in which two or more typical organizational forms are alloyed.

What are boundaryless organisations trying to minimize?

Hierarchy, pre-defined structural boundaries, specific roles, and distance.

What characterises boundaryless organisations?

Only a few fixed, permanent connections; the organisation is in constant change; hierarchy is flattened and interactions among functional areas are improved.

What is a virtual organisation?

A type of boundaryless organisation consisting of geographically dispersed, functionally and/or culturally diverse individuals who keep in touch through electronic communication.

Which organisations may be capable of functioning completely virtually?

Financial service companies, knowledge-industry organisations, advertising agencies, and e-commerce organisations that have completed outsourcing of activities.

What characterises the structure and activities of virtual organisations?

They have no formal structure and activities happen mainly electronically.

How do virtual organisations staff their work?

They combine some permanent workers with labour hire, temporary employment, outsourcing, and service contracts.

How does headcount change in virtual organisations?

It constantly changes according to demand.

What is typical of work in virtual organisations?

Projects are common; lean management is decisive; core competencies are the focus; adaptivity and novel combinations and uses of resources are typical.

What are the main features of virtual organisations?

A network of independent organisations; project orientation; active use of IT; lack of hierarchical structure; building on core competencies; and a uniform appearance towards a third person.

What are the two ways leadership is defined in the lecture?

As a process and as a property.

What is leadership as a process?

The use of non-coercive influence to shape group or organizational goals, motivate behaviour toward achieving those goals, and help define group or organizational culture.

What is leadership as a property?

The set of characteristics attributed to individuals who are perceived to be leaders.

How does Kotter describe managers?

Managers focus on things, look inward, execute plans, improve the present, see the trees, control subordinates, direct and coordinate, do things right, manage change, serve superordinates, use authority, avoid conflict, act responsibly, cope with complexity, work with the status quo, ask what, plan short term, organise people, administrate and control, focus on systems and structures, follow the vision, and work in the present.

How does Kotter describe leaders?

Leaders focus on people, look outward, articulate a vision, create the future, see the forest, empower colleagues, trust and develop, do the right things, create change, serve subordinates, use influence, use conflict, act decisively, cope with change, challenge the status quo, ask why, plan long term, align people, motivate and inspire, communicate and deliver the vision, and look into the future.

What is power?

The ability to affect other people's behaviour.

What are the five types of power?

Legitimate, reward, coercive, expert, and referent power.

What is legitimate power?

Power based on a person's formal position or authority.

What is reward power?

Power based on the ability to provide rewards.

What is coercive power?

Power based on the ability to punish or impose negative consequences.

What is expert power?

Power based on knowledge, skills, or expertise.

What is referent power?

Power based on personal identification, admiration, or respect.

What are the three main approaches to leadership theories?

Leadership Traits Approach, Leadership Behaviours Approach, and Contingency/Situational Approach.

What is the basic assumption of the Leadership Traits Approach?

There is a basic set of traits that differentiates leaders from non-leaders.

What was the main finding of hundreds of studies in the Leadership Traits Approach?

Results were disappointing; a valuable observation was that traits vary with the situation.