2.2 Organisational Structure
What is the purpose of an organizational structure in a business?
An organizational structure helps employees work together productively by defining roles, responsibilities, and decision-making processes. It should be flexible to adapt to changing tasks and conditions.
Identify one of the two main approaches (ways of thinking) managers use to make decisions?
scientific thinking, which relies on data and analysis
intuitive thinking, which relies on experience and gut feeling.
Identify one of the three motivational needs identified in McClelland’s acquired needs theory?
Need for Achievement: Desire for challenging goals and feedback.
Need for Authority/Power: Desire for influence and control, especially institutional power.
Need for Affiliation: Desire for harmonious relationships and teamwork.
Identify one of the four types of organizational culture identified by Charles Handy?
Power culture: Centralized decision-making by one or a few individuals.
Role culture: Hierarchical structure with defined roles and procedures.
Task culture: Team-based, focused on expertise and problem-solving.
Person culture: Individual autonomy, common in universities and medical practices.
Identify one reason why conflict may occur in the workplace.
Conflict may arise due to disputes over pay, where employees seek higher wages while employers aim to control labour costs.
Other possible reasons include:
- Disputes over working conditions
- Change (internal or external)
- Poor management
- Poor levels of performance
What are two key features of a flexible organizational structure?
It adapts to meet changing customer and market needs.
It uses flexible teams and may include consultants or temporary workers for specialist skills.
What is the first step in the scientific decision-making process?
The first step is to recognize the problem or opportunity.
Identify one of the three psychological needs in Deci & Ryan’s self-determination theory?
Autonomy: Independence and control over one’s actions.
Relatedness: Connection and relationships with others.
Competence: Feeling capable and effective in tasks.
Identify two of the three levels of organizational culture in Edgar Schein’s model?
Artifacts: Visible elements like office layout, dress code, and behaviour.
Norms and values: Shared attitudes influencing responses to challenges.
Underlying assumptions: Deep, unconscious beliefs shaping norms and values.
Describe two approaches employees may use to express dissatisfaction during industrial conflict.
Work-to-rule: Employees perform only the tasks outlined in their contracts, slowing operations without breaching rules.
Strike action: Employees withdraw their labour entirely, halting production and impacting business operations.
Collective bargaining: Negotiation through trade unions to improve conditions or pay.
What are the three components of Charles Handy’s shamrock organization model?
Core workers: Full-time, essential staff.
Contract workers: Specialists hired for specific tasks.
Peripheral workers: Part-time or temporary staff with less job security.
Why might a manager choose intuition over scientific decision-making?
A manager might use intuition when data is unavailable, unreliable, or time is limited, or when assessing subjective factors like character or predicting marketing success.
What are the components of Victor Vroom’s expectancy theory?
Expectancy: Belief in one’s ability to complete tasks successfully.
Instrumentality: Belief that performance will lead to rewards.
Valence: Value placed on the expected reward or outcome.
Identify the six dimensions of national culture identified by Hofstede?
Individualism vs Collectivism
Power Distance
Short-termism vs Long-termism
Masculinity vs Femininity
Uncertainty Avoidance
Indulgence vs Restraint
Explain two tactics employers may use to manage industrial conflict.
Threats of redundancies: Employers may warn of job losses to pressure employees into accepting terms.
Changes of contract (fire and rehire): Employers may terminate contracts and offer re-employment under new conditions.
Collective bargaining
Closure and lockouts
How can a shamrock organization benefit a business during fluctuating demand periods?
It allows businesses to match workforce capacity with demand, reducing labor costs by avoiding overstaffing during slow periods and increasing staff during peak times.
What are two limitations of scientific management for small businesses?
High costs of data collection, especially for small businesses.
Data reliability issues, particularly in uncertain or unfamiliar situations.
Customer insight limitations, as customers may not know what they want with innovative products.
Identify three of the four main types of employee appraisal methods?
Formative appraisal: Ongoing feedback to improve performance.
Summative appraisal: Evaluation over a period with performance benchmarks.
360-degree feedback: Input from multiple sources including peers and subordinates.
Self-appraisal: Employees assess their own performance.
What are three key reasons why cultural clashes may occur in organizations?
Mergers and takeovers
Business growth
New leadership
Poor business performance
High labour turnover
Identify and explain two methods of conflict resolution used in industrial relations.
Conciliation: A mediator helps both parties reach a compromise; the outcome is not legally binding.
Arbitration: An independent arbitrator makes a legally binding decision after reviewing both sides.
Employee participation and industrial democracy
No-strike agreement
Single-union agreement
What is a major disadvantage of project-based organizational structures in terms of employee development?
Constantly shifting teams can reduce opportunities for personal development and career progression, and employees may experience divided loyalties between project and functional managers.
What are some methods managers use to collect data for scientific decision-making, and what external factors must they consider?
Data collection methods:
Online sources
Surveys
Business records
External factors to consider:
Industry-specific conditions
Market trends
Technological developments
Economic environment
Identify two advantages and two disadvantages of internal and external recruitment?
Internal Recruitment – Advantages:
Lower costs for recruiting and onboarding
Strengthens employee loyalty and employer branding
Faster recruitment
Easier adaptation to market changes
Internal Recruitment – Disadvantages:
Vacancy created by promotion must be filled
Limited talent pool
Potential morale issues due to competition
Training costs may offset savings
Risk of operational blindness
Position may not be optimally filled
Lack of formal internal recruitment planning
External Recruitment – Advantages:
Larger talent pool
Lower training costs due to existing expertise
Workforce diversity
Temporary project hires
Fresh ideas and perspectives
External Recruitment – Disadvantages:
Higher costs (advertising, agency fees)
Longer time to hire
Potential morale issues if manager is external
Risk of poor fit
Longer onboarding process
Identify three possible consequences of cultural clashes within an organization?
A divided workforce
Resistance to change
Poor employee performance
Rising costs
Decline in business performance
Describe two consequences that may arise from unresolved industrial conflict in the workplace.
Resistance to change: Employees may oppose new policies or leadership styles, slowing progress.
Decline in business performance: Poor morale and productivity can lead to reduced output and profitability.
A divided workforce
Poor employee performance
Rising costs