Ch. 14 Organizational Structure

Question 1

What is Organizational Structure

Answer 1

How job tasks are formally divided, grouped and coordinated

Question 2

What are the key elements of Organizational Structure?

Answer 2

Work specialization
departmentalization
Chain of Command
Span of control
Centralization and Decentralization
Formalization

Question 3

Work Specialization

Answer 3

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

Question 4

Departmentalization

Answer 4

The basis by which jobs are grouped together so that common tasks can be coordinated

Question 5

Departmentalization Grouping

Answer 5

function
Product or service
geography
process
Customer
Hybrid of 2 or more

Question 6

Chain of Command

Answer 6

Unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom

Question 7

Span of Control

Answer 7

the number of subordinates a manager can efficiently and effectively direct
tend toward wider or larger spans of control

Question 8

Wider or Larger span of control (7+)

Answer 8

-Increase organizational efficiency
-If it is too wide, supervisors may not have time to provide the necessary leadership and support

Question 9

Narrower or Smaller spans of control (2-6)

Answer 9

Managers maintain close control
May encourage overly tight supervision and discourage employee autonomy
Increases complexity of vertical communication

Question 10

Centralization

Answer 10

The degree to which decision-making is concentrated at a single point in the organization (i.e top managers)

Question 11

Decentralization

Answer 11

The degree to which decision-making is spread throughout the organization (i.e lower level personnel make more decisions)

Question 12

Formalization

Answer 12

The degree to which jobs within the organization are standardized

Question 13

High Formalization

Answer 13

Characterized by explicit job descriptions, organizational rules, clearly defined procedures

Question 14

Mechanic Model

Answer 14

High Specialization
Rigid Departmentalization
Clear Chian of Command
Narrow Spans of Control
Centrilization
High Formalization

Question 15

Organic Model

Answer 15

Cross-Functional teams
Cross-hierarchal teams
free flow of information
wide spans of control
Decentralization
Low formalization

Question 16

Five Organizational Designs

Answer 16

Simple Structure
Bureaucracy
Matrix Structure
Virtual Organization
Boundaryless Organization

Question 17

What is Simple Structure

Answer 17

A Structure characterized by a low degree of compartmentalization, wide spans of control, authority centralized in a single person, and little formalization

Question 18

Simple Structure is Characterized by:

Answer 18

Low degree of departmentalization
Wide spans of control
little formalization

Question 19

Simple Structure Strengths

Answer 19

Flexible
Inexpensive to maintain
accountability is clear

Question 20

Simple Structure Weaknesses

Answer 20

-difficult to maintain in anything other than small organizations
-Decision-making can be delayed
-information overload if the span of control is too high

Question 21

Bureaucracy is Characterized by;

Answer 21

-Tasks that are grouped into functional departments
-centralized authority
-Narrow Spans of Control
-Decision-making that follows the chain of command
-Formalized rules and regulations

Question 22

What is Bureaucracy?

Answer 22

-Enables standardized activities to be performed in a highly efficient manner
-usually used for highly routine operating tasks achieved through specialization
-Closest mechanistic structure

Question 23

Bureaucracy Potential Strengths:

Answer 23

-Functional Economies of Scale
-Minimum Duplication of equipment
-Standardized operations allow for centralized decision-making

Question 24

Bureaucracy Potential Weaknesses:

Answer 24

-Subunit conflicts with organizational goals
-Obsessive concern with the rule
-Lack of employee discretion to deal with unfamiliar problems

Question 25

Matrix Structure

Answer 25

A structure that creates dual lines of authority and combines functional and product compartmentalization

Question 26

Matrix Structure Key Elements

Answer 26

+Gains the advantages of functional and product compartmentalization while avoiding their weaknesses
+Facilitate coordination of complex and independent activities
–Dual chain of command can cause stress, confusion, and power struggles

Question 27

Virtual Organization

Answer 27

Small core organization that outsources major business functions
-Highly centralized with little/no departmentalization

Question 28

Advantages of Virtual Organization

Answer 28

Provides maximum flexibility while concentrating on what the organization does best.

Question 29

Disadvantages of Virtual Organization

Answer 29

Reduced control over the business

Question 30

Boundaryless Organization

Answer 30

an organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams

Question 31

Why do structures differ?

Answer 31

Strategy
Size
Technology
Environmental Uncertainty

Question 32

Innovation Strategy

Answer 32

A strategy that emphasizes the introduction of major new products and services

Question 33

Cost-minimization Strategy

Answer 33

A strategy that emphasizes tight cost controls, avoiding unnecessary expenses, and price cutting.