Page 221 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 11: Structural Implementation

Formalization: extent to which written documentation is used to direct and control employees Notes
Hierarchy: defines who reports to whom and the span of control
Infrastructure: concerned with issues like delegation of authority, specialization, communication,
information systems and procedures
Modular Organisation: An organisation in which different functional components are separated
from one another.

Outsourcing: subcontracting a service with another company or person to do a particular function.
Span of Control: The number of employees that each manager/supervisor is responsible for.
Superstructure: depicts how people are grouped into different divisions, departments and sections
and how they are related to each other
Virtual Organisations: consist of a network of independent companies - suppliers, customers or
even competitors linked together to share skills, costs, markets and rewards

11.10Self Assessment

Fill in the blanks:
1. The ..................... indicates the principal ways in which the organisational operations are
integrated and coordinated.
2. The ..................... enables the organisation to engage in a number of disparate activities.
3. ..................... means that each employee is held accountable to only one supervisor.
4. ..................... means that decision-making is done at the top levels of the organisation.
5. The ..................... principle means a clearly defined line of authority in the organisation.

6. ..................... is the process managers use to transfer authority and responsibility to positions
below them in the hierarchy.
7. The process of designing an organisation's structure to match with its situation is called
.....................
8. Divisional structures are used by ..................... organisations.
9. The ..................... structure is, in effect, a combination of functional and divisional structures.

10. A ..................... organisation outsources or subcontracts many of its major functions to
separate companies.
11. The complex environment will usually benefit from a ..................... structure.

12. As markets become more hostile, the organisation usually needs to be .....................
centralized.
13. A ..................... organisation is an organisation that is not defined by, or limited to, the
horizontal, vertical, or external boundaries imposed by a predefined structure.
14. The biggest advantage of an agile virtual organisation is it can draw on .....................
worldwide.
15. A modular organisation is in contrast to a ..................... organisation.

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