Organisational theory - final exam

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Samenvatting - Organisational theory - final exam

  • 1.1 Summary & interpretation

  • The material covered in this chapter contains several important ideas about organisations. Organisations can be seen to evolve through distinct life cycle stages as they grow and mature. Organisational structure, internal systems, and management issues are different for each stage of development. Growth creates crises and revolutions along the way. A major task of managers is to guide the organisation through the entrepreneurial, collectivity, formalisation, and elaboration stages of development. As organisations progress through the life cycle and grow larger and more complex, they generally take on bureaucratic characteristics, such as rules, division of labour, written records, hierarchy of authority and impersonal procedures. Bureaucracy is a logical form of organising that enables firms to deploy resources in a more rational manner. However, in many large corporate and governmental organisations, bureaucracy has come under attack with attempts to decentralise authority, flatten organisational structure, replace rules and written records and create small-company mindset. These companies are willing to trade economies of scale for responsive, adaptive organisations. Many companies are subdividing to gain small company advantages. Another approach to overcoming the problem of bureaucracy is to use a structural concept called the indecent command system, which promises t enable the organisation to glide smoothly between a highly formalised, hierarchical style that is effective during times of stability and a more flexible, loosely structured one that is needed to respond to unexpected or volatile environmental conditions.

    In large organisations, greater support is required from administrative and professional staff specialists. This is a logical outcome of employee specialisation and the division of labour. By dividing an organisation’s tasks and having specialists perform each part, the organisation can become more efficient.

    All organisations, large and small, rely upon systems of control Bureaucratic control relies upon standard rules and the rational-legal authority of managers. Market control is used where the product or service outputs can be priced and competition exists. Clan control and more recently self-control are associated with uncertain and rapidly changing organisational processes. They rely on commitment, tradition, and shared values for control. In practice, these control approaches are combined in more or less coherent ways.

    Many organisations have stopped growing and some are declining. One of the most difficult decisions pertains to downsizing the workforce. Not only does it threaten the livelihood of those who are cast aside and unsettles those who remain, downsizing has been shown not to result in improved performance in many cases. To smooth the downsizing process, managers can communicate with employees and provide as much reliable information as possible, offer assistance to displaced workers and address the emotional concerns of those who remain with the organisation.

     

  • Bureaucracy

    Bureaucracy

     

    An organisation framework marked by rues and procedures, specialisation and division of labour, hierarchy of authority, technically qualified personnel, separate positions and incumbent and written communications and records.

  • Bureaucratic control

     

    Bureaucratic control

     

    The use of rules, policies, hierarchy of authority, written documentation, standardisation and other bureaucratic mechanisms to standardise behaviour and asses performance.

  • Centralisation

     

    Centralisation

     

    Refers to the level of hierarchy with authority to make decisions.

  • Charismatic authority

    Charismatic authority

    Based in devotion to the exemplary character or heroism of an individual and the order define by him or her.

  • Clan control

    Clan control

    The use of social characteristics, such as corporate culture, shared values, commitments, traditions, and beliefs, to control behaviour.

  • Collectivity stage

    Collectivity stage

    The life cycle stage in which an organisation has strong leadership and begins to develop clear goals and direction.

  • Downsizing

    Downsizing

    Intentionally reducing the size of a company’s workforce by laying off employees.

  • Elaboration stage

    Elaboration stage

    The organisational life cycle phase in which the red tape crisis is resolved through the development of a new sense of teamwork and collaboration.

  • Entrepreneurial stage

    Entrepreneurial stage

    The life cycle phase in which an organisation is born and its emphasis is on creating a product and surviving in the market place.

  • Formalisation

     

    Formalisation

    The degree to which an organisation has rules, procedures, and written documentation.

     

  • Incident command system

     

    Incident command system

    Developed to maintain the efficiency and control beliefs of bureaucracy yet prevent the problems of slow response to crises.

  • Life cycle

    Life cycle

    A perspective on organisational growth and change that suggests that organisations are born, grow older and eventually die.

  • Market control

    Market control

    A situation that occurs when price competition is used to evaluate the output and productivity of an organisation.

     

  • Organisational decline

    Organisational decline

    A condition in which a substantial, absolute decrease in an organisation’s resource base occurs over a period of time.

  • Personnel rations

    Personnel rations

    The proportions of administrative, clerical, and professional support staff.

  • Rational-legal authority

    Rational-legal authority

    Based on employees belief in the legality of rules, and the right of those in authority to issue commands.

  • Traditional authority

    Traditional authority

    Based in the belief in traditions and the legitimacy of the status of people exercising authority through those traditions.

  • According to Daft et. al. three big things are different for each stage of development.

    Organisational structure, internal systems, and management issues are different for each stage of development.

  • According to Daft et al. growth creates two bi-products.
    Growth creates crises and revolutions along the way.
  • A major task of managers is to guide the organisation through four stages of development...
    A major task of managers is to guide the organisation through the entrepreneurial, collectivity, formalisation, and elaboration stages of development.
  • As organisations progress through the life cycle and grow larger and more complex, they generally...
    As organisations progress through the life cycle and grow larger and more complex, they generally take on bureaucratic characteristics, such as rules, division of labour, written records, hierarchy of authority and impersonal procedures.
  • Give some examples of bureaucratic characteristics...
    As organisations progress through the life cycle and grow larger and more complex, they generally take on bureaucratic characteristics, such as
    1. rules
    2. division of labour
    3. written records
    4. hierarchy of authority
    5. impersonal procedures
  • According to the book, what are the advantages of bureaucracy?
    Bureaucracy is a logical form of organising that enables firms to deploy resources in a more rational manner.
  • In many large corporate and governmental organisations, bureaucracy has come under attack with...
    However, in many large corporate and governmental organisations, bureaucracy has come under attack with

    1. attempts to decentralise authority
    2. flatten organisational structure
    3. replace rules and written records
    4. create small-company mindset.
  • In many large corporate and governmental organisations, bureaucracy has come under attack with attempts create small-company mindset. What do companies gain and lose in making this decision?
    These companies are willing to trade economies of scale for responsive, adaptive organisations.
  • What tactic to many large companies use in order to gain the advantages of being a small company?
    Many companies are subdividing to gain small company advantages.
  • What are two strategies large companies use to gain small company advantages?

    What are two strategies large companies use to gain small company advantages?
    • subdividing
    • indecent command system
  • What is the indecent command system.

    Many companies are subdividing to gain small company advantages. Another approach to overcoming the problem of bureaucracy is to use a structural concept called the indecent command system, which promises tp enable the organisation to glide smoothly between a highly formalised, hierarchical style that is effective during times of stability and a more flexible, loosely structured one that is needed to respond to unexpected or volatile environmental conditions.

  • In large organisations, greater support is required from administrative and professional staff specialists.... why is this and what is the benefit?
    In large organisations, greater support is required from administrative and professional staff specialists. This is a logical outcome of employee specialisation and the division of labour. By dividing an organisation’s tasks and having specialists perform each part, the organisation can become more efficient.
  • All organisations, large and small, rely upon systems of...

    All organisations, large and small, rely upon systems of control.

  • All organisations, large and small, rely upon systems of control. What are the two types and how do they differ?
    All organisations, large and small, rely upon systems of control Bureaucratic control
    Market control
    Clan control
    self-control

    In practice, these control approaches are combined in more or less coherent ways.
  • Bureaucratic control
    Bureaucratic control relies upon standard rules and the rational-legal authority of managers.
  • Market control
    Market control is used where the product or service outputs can be priced and competition exists
  • self-control Clan control and more recently self-control are associated with uncertain and rapidly changing organisational processes. They rely on commitment, tradition, and shared values for control. Clan control Clan control and more recently self-control are associated with uncertain and rapidly changing organisational processes. They rely on commitment, tradition, and shared values for control. In practice, these control approaches are combined in more or less coherent ways.

  • What do Daft & al think about downsizing?

    Many organisations have stopped growing and some are declining. One of the most difficult decisions pertains to downsizing the workforce.

    Cons:

    1. threaten the livelihood of those who are cast aside
    2. unsettles those who remain
    3. has been shown not to result in improved performance in many cases.


    To smooth the downsizing process, managers can:

    1. communicate with employees
    2. provide as much reliable information as possible,
    3. offer assistance to displaced workers
    4. address the emotional concerns of those who remain with the organisation.

     

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Voorbeelden van vragen in deze samenvatting

Bureaucracy
1
Bureaucratic control  
1
Centralisation  
1
Charismatic authority
1
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