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14 Cards in this Set
- Front
- Back
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Organisational chart |
A visual representation of the formal structure that coordinates work activities and sets out the products, services or markets. |
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Bureaucracy |
A form of an organisation characterised by a formal hierarchial structure, rules and regulations, and impersonal relationships |
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vertical structure |
A hierarchy of Authority of formal authority authority and decision-making power within an organisation. The structure reflects an organisation's chain of command from top management to front- line operations |
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horizontal structure |
The way staff are grouped into speacialised departments within an organisation |
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functional model |
An organisation structure in which staff are grouped into departments according to their funtctions in the organisations (for example, production, personnel, finance, marketing) |
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Divisional model |
An organisational structure in which staff are grouped into departmentd according to the similarity of the products, services or market |
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Matrix model |
A organisational structure that combines specialisation by function and division. It is also referred to as a grid model |
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Optimum |
The structure that best assists an organisation to achieve its objectives |
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Advantages of Functional model |
-A defined career pathway for employees -The possibility of a high degree of task specialisation -The provision of good opportunities for skill and knowledge development -efficient use of resources |
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Disadvantages of Functional model |
-Lack of flexibility and cooperation due to its bureaucratic development -A narrow department focus, as opposed to a broader organisation-wide focus -'empire building' behaviours among personnel in each department ---That is, gaining and keeping control over resources. Finances and human resources. |
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Advantages of Divisional model |
- The direction of expertise at specific customers, products, regions and processes - The encouragement of cooperation between organisational departments -Greater flexibility in adapting to the environmental changes
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Disadvantages of Divisional model |
- Reduced benefits of economies of scale because work could be duplicated - The potential to promote rivalry between divisions
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Advantages of Matrix model |
- Enhanced Flexibility - Operations can be altered quickly to suit environmental circumstances - Enhanced communication, cooperation and teamwork throughout the organisation - Enhanced decision making - expert project teams become a critical source of information for other managers -Pooled expertise across an organisation, creating the best possible environment for problem solving |
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Disadvantages of Matrix model |
-That the project teams can sometimes undermine the line of authority -Unity of command principle to be challenged as people may be reporting to two managers, such as functional and a project manager. |
