10.1c Flexible Organisations

Question 1

Flexible organisation definition

Answer 1

One that can quickly adapt to changes in the external environment in order to remain competitive

Question 2

Businesses need to have structures in place that enable them to respond quickly to changes. This includes what?

Answer 2

• Employment contracts
• Flexible working options
• Effective knowledge and information management systems

Question 3

Problems of being a flexible organisation:

Answer 3

• Operational pressures and meeting customer requirements
• Negative attitudes
• Culture change

Question 4

Restructuring definition

Answer 4

Designing an appropriate organisational structure to meet the needs of a more flexible approach to the employment of staff

Question 5

Delayering definition

Answer 5

Removing one or more levels of hierarchy

Question 6

What does delayering involve?

Answer 6

• Increasing the average span of control of senior managers

- Reducing operating costs

Question 7

Advantages of delayering:

Answer 7

• Opportunities for better delegation, empowerment and motivation
• Improve communication
• Reduce costs as fewer managers required

Question 8

Disadvantages of delayering:

Answer 8

• Not all organisations suited to flatter organisational structures
• Negative impact on motivation and people can become insecure about their jobs
• Create skills shortages - loses managers with valuable experience

Question 9

What are flexible employment contracts?

Answer 9

Working arrangements that give some degree of flexibility about how long, where, when and at what time employees work

Question 10

Examples of flexible employment contracts:

Answer 10

• Part-time
• Full-time
• Job sharing
• Zero hour contracts

Question 11

Organic structure features:

Answer 11

• Informality
• Flexible and fluid
• Decentralised and employee empowerment
• Find change easier to handle
• Flat structure
• Employees work in teams
• E.g. Facebook

Question 12

Mechanistic structure features:

Answer 12

• More formality and bureaucratic
• Centralised
• Greater resistance to change
• Tall structure
• Employees are specialised

Question 13

Reasons for a business to be flexible:

Answer 13

• Adapt to changes in the market
• Reduce lead time
• Reduce costs
• More efficient use of resources

Question 14

Issues with flexibility:

Answer 14

• Business can’t plan effectively if it is not sure when employees are working
• Business can’t judge the progress of someone working from home