Organisation Structure and Design

Flashcards covering organizational design principles, structures, and strategic elements based on Principles of Management by Borges et al. (2023).

According to the P-O-L-C Framework, which phase serves as the focus for creating a structural foundation?

Organizing

What is the formal definition of organizational structure provided in the lecture?

The formal arrangement of roles, responsibilities, and communication channels acting as a blueprint for dividing and coordinating tasks.

Which strategic purpose of design focuses on minimizing redundancy and eliminating duplicate functions to streamline workflows?

Operational Excellence

What are the five key foundational elements of organizational architecture?

Departmentalization, Span of Control, Centralization, Chain of Command, and Formalization

What is a primary challenge of the Functional Structure model?

Functional silos may develop, leading to slower cross-department response and communication barriers.

In a Product-Based Structure, what is the 'Key Challenge' regarding operational costs?

Resource Duplication, as each product division may require separate HR, IT, and support functions.

Which structure organizes units by territory or region to enable local market adaptation?

Geographic Structure

How is a Process Structure defined?

A structure that groups activities by workflow stages following an operational sequence, such as Manufacturing to Distribution to Sales.

What is Customer-Centric Departmentalization?

An organizational structure that places specific customer segments at the center to provide tailored solutions and faster responses to market changes.

In which environments is Centralization most effective?

Stable environments, highly regulated industries, and large standardized operations.

What are the key advantages of Decentralization?

Enhanced agility, speed in decision-making through reduced approval layers, employee empowerment, and leveraging local knowledge.

What characterizes a Narrow Span of Control?

Close supervision and mentorship, enhanced quality control, clear accountability chains, and detailed performance monitoring.

What three critical factors influence the selection of an optimal Span of Control?

Subordinate Skill Level, Task Complexity, and Management Support Systems.

What is the strategic difference between High and Low Formalization?

High Formalization ensures quality and compliance through standardized procedures, while Low Formalization fosters innovation and agility through flexible guidelines.

Which organizational chart type is characterized by dual reporting relationships combining functional expertise with project focus?

Matrix Structure

What defines Agile Structures in organizational design?

Flexible, cross-functional teams organized around projects that enable rapid decision-making and continuous iteration.

As a modern example, how many employees and countries does GitLab operate in without a physical headquarters?

$1,300+$ employees across $65+$ countries.

According to the transcript, how much faster is decision-making in organizations that adopt integrated digital platforms and flatter reporting structures?

Up to $40\%$ faster.

In Remote Work and Data-Driven Design, what replaces time-based metrics?

Results-driven KPIs (Key Performance Indicators).

What is the specific Structure Match for an 'Innovation Culture'?

Flat, decentralized, cross-functional teams.

What is the Structure Match for a 'Stability Culture'?

Hierarchical, centralized, formalized processes.

What are the structural pitfalls of 'Over-Structuring'?

Excessive hierarchy and bureaucracy, slow decision-making, and stifled innovation/agility.

What are the three core principles of Design Excellence?

Start with Strategy, Involve Employees, and Keep It Simple.