Unit 10

• Why delayer tall structures?


  Because they reduce delegation, takes longer to communicate and more hierarchy layers lead to higher staffing costs.
• What's delayering?


  Removing layers of management from the organisation.
• What are characteristics of flexible organisations?


  Flexible working, flat hierarchies, a culture that embraces change and quick decision making.
• What's a mechanical business structure?


  Formal, bureaucratic, hard to change, formal communication, centralised, favours standard policies and has little perceived need to change.
• Whats an organic business structure?


  Informal, fluid, verbal communication, decentralised and easier change.
• Whats a flexible organisation?


  One that is able to adapt and respond quickly to external change to gain advantage and maintain competitive position
• Why is change resisted? (Kotter and Schles)

  1. self interest
  2. low change tolerance
  3. misunderstanding
  4. different assessment of the situation
• How can Lewin's analysis be explained?


  For change to occur, driving forces must exceed restraining forces. if not, the business can't change.
• Whats Lewins force field analysis?


  A model that provides an overview of the balance between forces driving change and resisting change for a business.
• What are the benefits of change?

  1. sustain competitive advantage
  2. align strategy to changing needs/ wants
  3. take advantage of new technology
  4. increase dividends
  5. improve efficiency
  6. lead change rather than follow it
• Why is change important?


  the external environment is constantly changing so businesses must make internal change as part of their operations.
• Whats disruptive change?


  a form of step change that occurs in the external environment and impacts the whole market.
• Whats step change?


  significant/ rapid change that is likely to be met with resistance. Could be the result of strategic drift.
• What's incremental change?


  small changes that occur over a period of time and are met with little resistance.
• Whats external change?


  a change from outside the business.
• Whats internal change?


  change thats initiated by the business
• What is a strong organisational culture?


  When employees agree with corporate values. This enables them to need less supervision, reduce staff turnover and increase employee motivation.
• What is a weak organisational culture?


  When employees don't agree with corporate values and are forced to comply with them.
• What are the 4 main types of culture?

  1. Power
  2. Role
  3. Person
  4. Task
• Whats power culture?


  A culture with a centralised structure, when decision making is limited to a small number of people in the centre of the business. If the business grows, it's difficult to control from the centre and employees may be more resistant as they have no power. Senior managers are more likely to be out of touch with the businesses day to day activities.
• Whats role culture?


  Authority is defined by a job title which is common in bureaucratic firms. Decisions are made by senior managers and often have low communication. This leads to them responding more slowly to change, so competitors may get ahead of them. They typically therefore avoid risk, making change rare. Therefore, these are likely to have resistance to change.
• Whats person culture?


  Common in loose organisations of individual workers. The business objections are defined by personal ambitions of everyone, therefore there is a common goal. Decisions are made together and more likely to be accepted. However, change is difficult since people will think for themselves and not the organisations benefit.
• Whats task culture?


  Focussed on getting specific tasks done. The organisation is split into small teams, which can cause conflict over budget and resources. Objectives based around products are supported. The teams are regular changed therefore staff are used to it and respond well. Staff respond well to management by objectives and specific targets can be set for each individual employee.
• Whats entrepreneurial culture?


  Employees are encouraged to find new ways to bring revenue into a company. Change is widely accepted and all employees can improve how the business is run. They're inspired to be more creative and innovative and change may be based on their suggestions.
• What does corporate culture affect?


  Staff motivation, customer loyalty, shareholder investment based on risk.
• Why may managers change organisational structure?

  1. since it depends to leaders preference, a manager may change the culture and cause employees to work differently and less effective.
  2. to be more competitive
• How does growth influence organisational structure?

  1. new employees bring different expectations
  2. become more corporate, more task orientated
  3. multinational, new country new culture
  4. values may change
• Why is a change in organisational culture hard?

  1. employee resistance
  2. staff attitudes must be changed
  3. expensive
  4. HR may change recruitment strategies
• What are Hofstedes national cultures?

  Shows how cultural values differ. These differences are scored, so the business can assess cultural differences when dealing with different countries to plan for potential culture clashes.
• What are the 6 dimensions of Hofstedes National Cultures?

  1. Power distance
  2. Uncertainty avoidance
  3. Individualism vs collectivism
  4. Masculinity vs femininity
  5. Long term orientation
  6. Indulgence vs restraint
• Whats power distance?


  the extent to which people accept that power and wealth is distributed unequally. Societies with high power distance, accept this. However those with low power distance, don't. High power difference shows that employees are more likely to follow orders.
• Whats uncertainty avoidance?


  The extent to which people attempt to minimise uncertainty. Sometimes introduced through rules and regulations. People with low uncertainty avoidance are more open to change.
• Whats individualism vs collectivism?


  The extent to which people are expected to look after themselves rather than support one another. Societies with high individualism foucs on personal achievement, rights and the wellbeing of their close family. Whereas in collectivism societies members of the community support one another in return for loyalty.
• Whats masculinity vs femininity?


  Masculine cultures are highly competitive and powerful with contrasting gender roles. Whereas feminine cultures focus on caring and quality of life.
• Whats long term orientation?


  The high the long term orientation, the more they look to the future and accept new ideas rather than follow tradition.
• Whats indulgence vs restraint?


  Indulgent societies allow their people to satisfy their desires and impulses, within reason. Restrained attempt to regulate the desires of their people.
• How can businesses use Hofstedes national cultures to plan ahead?


  Plan for communication problems, foresee potential issues, help multinationals access proposed change and how it will affect all employees. They can use it to match the new culture.
• Whats contingency planning?


  Strategic planning for unexpected scenarios. The business can efficiently respond to crisis'.
• Why it good communication vital in implementing strategy?

  1. clearly pass on information and ideas
  2. senior managers understand whats going on
  3. different departments can co-ordinate activities
  4. employees understand their role and responsibility
  5. issues are effectively responded to
• What are the 4 organisational structures a business can use to implement strategy?


  Functional, Product-based, Regional (geographical) and matrix (combination)