Contingency and structural approach
8 important questions on Contingency and structural approach
What is the organisation's configuration according to Burton?
- the way a big task (TP) is divided into smaller parts
- how these smaller parts are coordinated
Four elements of structure according to Burton?
- organisational complexity: width and height of the hierarchy
- horizontal differentiation: degree of task specialisation across hierarchy
- vertical differentiation: how many layers of management exist?
- span of control: how many subordinates fall under particular hierarchical responsibilities?
What degrees are related to the hierarchy?
- degree of product/service/customer orientation: tasks divided based on output of the firm
- degree of functional specialisation: to what degree is work divided into smaller tasks
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What is the contrast with STSD?
- the more complex an organisation, the better it fits environmental complexity, because information can be shared better.
- Based on mintzberg's work, all organisational forms are integrated
What are the characteristics of simple configuration?
- low on p/s/c orientation
- low on functional specialisation
- low vertical differentiation
- low organisational complexity
- Family company, start-up.
- easily overflown with information
What are the characteristics of functional structure?
- low on p/s/c/ orientation
- high on functional specialisation
- aimed at economies of specialisation, reaching effectiveness through specialisation
- hospitals, lego, many machine bureaucracies
- Burton: information sharing needs increase exponentially with the number of units, not good in dealing with much variation
What are the characteristics of a divisional structure?
- orientation p/s/c high
- low on functional specialisation
- B&O: information sharing problems of connections between division
- good at dealing with changes in environment per division
What are the characteristics of a matrix organisation?
- high on both dimensions
- organisational complexity high
- suitable for dealing with uncertain environment
- information can be shared quickly throughout the organisation
- very common organisational form
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