Which component is responsible for Rules and Procedures?

Prepare for the CIMA Managing Finance in a Digital World (E1) Exam. Use multiple choice questions and study aids to enhance your knowledge. Get exam-ready with our insights and tips!

Multiple Choice

Which component is responsible for Rules and Procedures?

Explanation:
In Galbraith's Star Model, the rules and procedures are created by the technostructure—the analysts and planners who design methods, standards, and information systems. They develop standard operating procedures, process maps, quality controls, and the systems that govern how work should be done across the organization. This function keeps work consistent and efficient, providing the formal framework that the operating core follows and that strategic direction can rely on. The strategic apex sets direction and governance, the operating core carries out the day-to-day tasks within the defined rules, and support staff offers specialized services. While those parts influence or implement procedures, the actual design and maintenance of rules and procedures sit with the technostructure. For example, they would design a standardized order-entry process, codify it into SOPs, and embed it in the IT system so everyone follows the same steps.

In Galbraith's Star Model, the rules and procedures are created by the technostructure—the analysts and planners who design methods, standards, and information systems. They develop standard operating procedures, process maps, quality controls, and the systems that govern how work should be done across the organization. This function keeps work consistent and efficient, providing the formal framework that the operating core follows and that strategic direction can rely on.

The strategic apex sets direction and governance, the operating core carries out the day-to-day tasks within the defined rules, and support staff offers specialized services. While those parts influence or implement procedures, the actual design and maintenance of rules and procedures sit with the technostructure. For example, they would design a standardized order-entry process, codify it into SOPs, and embed it in the IT system so everyone follows the same steps.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy