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evaluate the role of organisational structures in facilitating the…

- - - - Centralisation and Decentralisation
        
        Decentralised: fewer levels of management, devolves decision-making authority to junior and middle levels, has wide spans of control and a flatter shape (Flexibility & Responsiveness)
        
        Benefits of Decentralisation:
        
        Avoids information overload
        
        Facilitates responsiveness
        
        Allows employees more input into decision-making, and so can be more motivating
        
        With decentralisation, organisation is usually on business lines rather than by function
        
        Also consider outsourcing of non-core activities
        BFIDO
        
        Decentralised decision-making allows other leaders throughout the organisation to have more input and take greater ownership, facilitates greater responsiveness, and motivates and engages employees.
        
        Outsourcing
        
        This process tends to decrease internal bureaucracies and flatten the organisational structure.
        
        Although outsourcing presents opportunity, it also presents potential sources of significant risk that need to be carefully managed,
        
        1 more item...
        
        Types of organisational structures:
        
        Strategy:  If an organisation wants to respond to the local market quickly greater flexibility  Decentralised
        
        Environmentstable environment: Centralised, changing environment: Decentralised
        
        TechnologyMass production: Centralised, IT has removed layers of middle management and made large organisations flatter
        
        SizeCorporate: Decentralised, SME: Centralised
        
        People and culturehighly skilled and independent staff: Decentralised & autonomy, front-line processing: Centralised
        STEPS
        
        Components of organisation structures:
        
        Complexity: greater the complexity, the greater the need for communication, coordination ,controlDecentralised
        
        Formalisation: the more standardising Centralised
        
        Centralisation: whether the authority to make decision is concentrated in one or a few roles or positions
        CFC
        
        In practice, organisations usually adapt a combination of the pure structural types to suit their particular circumstances, as determined by the particular products and services they offer and the characteristics of their industry and environment. Structure is often the outcome of a series of gradual and incremental changes and adaptations that occur in response to the market.
        
        Centralised: manly levels of management, invests decision-making authority at the top, has narrow spans of control and is consequently hierarchical shape (Integration & Control)
        
        Business cycle downturn  more centralised to take control and monitor employee more closely
        
        Trends towards centralisation or decentralisation are cyclical and may change with economic cycles. For example, when the business cycle declines, organisations often centralise control to manage costs and supervise employees more closely.
      - Organisations will not be purely one or the other (i.e. completely centralised and mechanistic or completely decentralised and organic) but in practice will contain elements of both dimensions.
      - From a strategy implementation perspective, it is important to understand which of these design principles is more prevalent, how appropriate the design is for the organisation’s environment, and the implications of the design for the achievement of strategy.
      - mechanistic or organic
        
        In mechanistic systems:
        
        people are viewed as a resource to be managed as parts of a machine;
        
        there are many rules and regulations;
        
        motivation techniques tend to be extrinsic (e.g. related to pay);
        
        management is authoritarian;
        
        there is high centralisation and formalisation; and
        
        power is exercised through formal authority and influence.
        
        RPMFAC
        
        mechanistic diagram!!!!!!!!!!!!!!!!!!!!
        
        In organic systems, on the other hand:
        
        people are viewed as unique and the most important resource;
        
        an organisation’s culture is highly valued, with the use of guidelines and symbols (rather than rules and regulations);
        
        motivation techniques tend to be intrinsic (related to the nature of the work itself);
        
        the management style is more participative;
        
        the structure is decentralised;
        
        there is greater proactivity and tolerance of ambiguity; and
        
        power is exercised through expertise.
        
        ICUPPED
        
        Successful firms in stable environments generally use mechanistic designs. Successful firms in changing environments tend to utilise more organic characteristics.