1-2-3 Flashcards
ORGANIZATIONAL
STRUCTURE
SEVEN KEY
ELEMENTS
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization/decentralization
• Formalization
• Boundary spanning
Define WORK SPECIALIZATION
Work Specialization refers to the degree to which tasks in the organization are subdivided into separate jobs
Unique Strength. Repetition of work
SOLUTIONS TO FIX JOB BOREDOM
Purpose, people, & feedback = High motivation
High performance
High satisfaction
Define Job
Enlargement
Increase the width of the job
Increasing the number of tasks for a
given job
• AKA “HORIZONTAL job expansion”
• Intended to reduce boredom and
fatigue by increasing the variety of tasks
performed
• Example: a financial analyst is asked to
assist in campus hiring so s/he can take
the time out of office for a nice field trip
Define Job
Enrichment
Increase the depth of the job
Increasing the degree of responsibility
an employee has over a job
• AKA “VERTICAL job expansion”
• Intended to increase work autonomy by
allowing greater decision-making power
• Requires a flexible organizational
structure to allow employees to act
flexibly and creatively
• Example: a first-year junior recruiter is
given the authority/power to make final
decision on intern hiring
Define DEPARTMENTALIZATION
Departmentalization refers to the grouping of jobs so common
tasks can be coordinated
Define SPAN OF CONTROL
Span of control refers to the number of subordinates a manager
supervises
• Typical size of span of control: 5-14 (most commonly seen 8-9)
• Wider span of control usually increases organizational efficiency
• Narrow span of control may lead to:
(a) expense of additional layer of management;
(b) increased complexity of vertical communication;
(c) overly tight supervision and less autonomy
Define CENTRALIZATION
Centralization refers to the degree to which decision-making is concentrated
at a single point/person in the organization
Define FORMALIZATION
Formalization refers to the degree to which jobs (or ways of doing
things) within the organization are standardized
• High formalization means minimum amount of discretion
• High formalization can increase operational efficiency if standards are great
• Low formalization means that job behaviors are relatively non-
programmed so employees have a great deal of freedom to exercise
discretion at work
Define BOUNDARY SPANNING
Boundary spanning occurs when individuals form relationships with
people outside their formally assigned groups
• Encourage extensive internal communication
• Assign formal liaison roles or develop committees of individuals from
different areas of the organization
To what degree are activities subdivided into
separate jobs?
Work specialization
On what basis will jobs be grouped together?
Departmentalization
To whom do individuals report?
Chain of command
How many individuals can a manager
supervise directly?
Span of control
Where does decision-making authority lie?
Centralization
To what degree will there be rules and
regulations to direct employees?
Formalization
Do individuals from different areas/functions
regularly interact?
Boundary spanning
Define SIMPLE STRUCTURE
A structure characterized by a low degree of departmentalization,
wide spans of control, authority centralized in a single person, and
little formalization
KEY features:
• Clearly defined line of authority/power and responsibilities
• Minimum level of duplicate personnel
• Most commonly seen structure in small businesses
Define BUREAUCRACY STRUCTURE
A structure characterized primarily by standardization and hierarchy.
It can be seen as an extension to simple structure but with many
more layers/hierarchies.
KEY features:
• Centralized authority
• Decisions flow via chain of command
• Narrow span of control
• Highly routine operating tasks
• Very formalized rules and regulations
• Little flexibility for change
Define DIVISIONAL STRUCTURE
A collection of functions working together to make products and offer
services.
KEY features:
• Divisions create smaller, manageable parts of a firm
• Divisions are created based on the nature and the needs of the firm
• Functional managers (e.g., HR, accounting, marketing) report to divisional
managers who then report to corporate management
Define MATRIX STRUCTURE
structure that creates dual lines of authority and combines
functional and product departmentalization
KEY features:
• Gains the advantages of functional and product departmentalization while
avoiding their weaknesses
• Facilitates coordination of complex and interdependent activities
• Breaks down the unity-of-command concept
Define VIRTUAL STRUCTURE
Typically a small, core organization that outsources major business
functions
• Builds on a small network of “collaborators”, not necessarily employees
• Highly centralized with little or no departmentalization
• Extremely flexible – can quickly adapt to task environment with re-assembly of
a new network of “collaborators” depending on what needs to be done
• Major weakness: Reduces management’s control over key parts of its business
• Typical example: social-media based small business
Define CIRCULAR STRUCTURE
A structure with less formal reporting structures where employees are
able to regularly interact with core executives/managers and work
together on different projects
• Leader-follower communication channel is very open and flexible
• Characterized with very high level of mutual trust, respect, and confidence in
each other’s professional capabilities
• Very popular structure among technology-based start-ups
• Other examples: small law firms or consulting companies
What Structure is Auburn University?
Divisional Structure
FUNCTIONS OF
ORGANIZATIONAL CULTURE
• Facilitates the generation of commitment to something
larger than self-interests
6 MAJOR TYPES OF
ORGANIZATIONAL CULTURE
• Innovative and visionary
• Entrepreneurial
• People oriented
• Service excellence
• Trust and citizenship
• Stability oriented
Idea in Brief
Idea in Brief
THE PROBLEM
Most reorganizations fail to deliver on
their initial promise, for several reasons:
They run into employee resistance, they’re
not given sufficient resources, and they
distract people from day-to-day work.
WHAT’S MISSING
The biggest reason for disappointing
results, though, is that few organizations
follow a rigorous, disciplined process—
even though reorgs are a common
occurrence in large companies.
THE SOLUTION
The authors propose a five-step process:
Begin with a profit and loss estimate,
inventory your strengths and weaknesses,
consider multiple options for the new
organization, focus special attention on
execution, and assume you’ll need to
make course corrections.
