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Question 1

ORGANIZATIONAL
STRUCTURE

SEVEN KEY
ELEMENTS

Answer 1

• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization/decentralization
• Formalization
• Boundary spanning

Question 2

Define WORK SPECIALIZATION

Answer 2

Work Specialization refers to the degree to which tasks in the organization are subdivided into separate jobs

Unique Strength. Repetition of work

Question 3

SOLUTIONS TO FIX JOB BOREDOM

Answer 3

Purpose, people, & feedback = High motivation
High performance
High satisfaction

Question 4

Define Job
Enlargement

Answer 4

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

Question 5

Define Job
Enrichment

Answer 5

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

Question 6

Define DEPARTMENTALIZATION

Answer 6

Departmentalization refers to the grouping of jobs so common
tasks can be coordinated

Question 7

Define SPAN OF CONTROL

Answer 7

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

Question 8

Define CENTRALIZATION

Answer 8

Centralization refers to the degree to which decision-making is concentrated
at a single point/person in the organization

Question 9

Define FORMALIZATION

Answer 9

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

Question 10

Define BOUNDARY SPANNING

Answer 10

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

Question 11

To what degree are activities subdivided into
separate jobs?

Answer 11

Work specialization

Question 12

On what basis will jobs be grouped together?

Answer 12

Departmentalization

Question 13

To whom do individuals report?

Answer 13

Chain of command

Question 14

How many individuals can a manager
supervise directly?

Answer 14

Span of control

Question 15

Where does decision-making authority lie?

Answer 15

Centralization

Question 16

To what degree will there be rules and
regulations to direct employees?

Answer 16

Formalization

Question 17

Do individuals from different areas/functions
regularly interact?

Answer 17

Boundary spanning

Question 18

Define SIMPLE STRUCTURE

Answer 18

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

Question 19

Define BUREAUCRACY STRUCTURE

Answer 19

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

Question 20

Define DIVISIONAL STRUCTURE

Answer 20

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

Question 21

Define MATRIX STRUCTURE

Answer 21

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

Question 22

Define VIRTUAL STRUCTURE

Answer 22

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

Question 23

Define CIRCULAR STRUCTURE

Answer 23

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

Question 24

What Structure is Auburn University?

Answer 24

Divisional Structure

Question 25

FUNCTIONS OF
ORGANIZATIONAL CULTURE

Answer 25

• Facilitates the generation of commitment to something
larger than self-interests

Question 26

6 MAJOR TYPES OF
ORGANIZATIONAL CULTURE

Answer 26

• Innovative and visionary
• Entrepreneurial
• People oriented
• Service excellence
• Trust and citizenship
• Stability oriented

Question 27

Idea in Brief

Answer 27

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.