Ch 4: Organizational structure

Question 1

Name some consequences of a bad organization structure.

Answer 1

slow decision-making
misunderstanding
work imbalance
role confusion

Question 2

Name the three degrees of complexity.

Answer 2

Horizontal
Vertical
Spatial

Question 3

Describe the horizontal differentiation.

Answer 3

The number of different occupations, task and administrative groupings (refer to the number of departments of the organisation).

Question 4

Describe the vertical differentiation and the span of control.

Answer 4

Number of levels in the management hierarchy. Top, middle and low levels of management.
Span of control: the number of subordinates that a manager can supervise effectively A large number of subordinates -> wide span of control -> flat organisation Only a few subordinates -> narrow span of control -> tall organisation.

Question 5

Describe the spatial dispersion.

Answer 5

The extent to which the organization facilities and personnel are spread over a wide geographical area.

Question 6

Define formalization according to Robbins & Barnwell.

Answer 6

Degree to which an organization relies on rules and procedures to direct behavior.
The organization has a minimum amount of discretion of what is to be done, when it is to be done, and how it should be done.

Question 7

Mention some benefits of high formalization.

Answer 7

• Less variability, more predictability, ability to manage risks, being “in control”
• Smooth processes
• Anticipation
• Less discretion needed
• Lower wages
• Common in unskilled work assignments, e.g. McDonalds. But there is also a high degree of formalization in accounting and for lawyers.

Question 8

How can you promote high formalization?

Answer 8

• Selection
• Role requirements / job descriptions
• Rules, procedures and policies
• Socialization - an adaptation process by which individuals learn the values, norms and expected behavior patterns for the job and the organization of which they will be a part.
• Training
• Rituals - processes by which members prove their trustworthiness and loyalty to the organization by participating in various behaviors in which predetermined responses are expected

Question 9

Define centralization.

Answer 9

The degree of which making is concentrated in a single point in the organization, usually top management.

Question 10

Why centralize decsion-making?

Answer 10

• Comprehensive perspective
• Economies of scale / efficiency
• Need for strategic decisions and avoiding special interests
• In time of crises

Question 11

Why decentralize decision-making?

Answer 11

• Facilitates speedy action
• External responsiveness
• Avoiding information overload
• More detailed input
• Lever for motivation
• Develop decision making skills

Question 12

Define coordination.

Answer 12

The process of integrating the objectives and activities of the separate units of an organization in order to achieve organizational goals efficiently.

Question 13

What´s programmed coordination?

Answer 13

Programmed coordination: rules and regulations characterizing a bureaucracy is most common. but also planning, goal setting, scheduling, timetabling etc.

Question 14

What´s individual coordination?

Answer 14

Where situations can´t be fully predicted or where unusual circumstances demand a unique solution. The project management, brand management etc. is often responsible.

Question 15

What´s informal coordination / mutual adjustments?

Answer 15

When coordination ucures by employees on a day-to-day basis.

Question 16

What´s the 5 common elements in structure design according to Mintzberg?

Answer 16

• Strategic apex - top-level managers who are charged with the overall responsibility for the organization
• Operation core - employees, who perform the basic work related to the production of products and services
• Middle line - managers who connect the operating core to the strategic apex.
• Technostructure - analysts who have the responsibility for developing the programs, procedures and rules which standardize the work of the organization
• Support staff - people who fill the staff units that provide indirect support services for the organization

Question 17

Describe the simple structure and mention which kind of companies that would apply it.

Answer 17

• Dominant: strategic apex
• Low in complexity, low in formalization
• Authority centralized in a single person
• Common in small businesses

Question 18

Describe the machine bureacracy and mention which companies that would apply it.

Answer 18

• Dominant: technostructure
• Standardisations high
• Routine and formalized
• Highly centralized
• Common in big industries, e.g. car developers, air-craft, cheap clothing industries, banks, post-offices etc.

Question 19

Describe the professional bureacracy and mention which companies that would apply it.

Answer 19

• Dominant: operating core
• Highly skilled professionals, high complexity
• Decentralization
• Internalized professional standards in place by external formalization (many rules and regulations)
• Common for e.g. hospitals, schools, universities, public accounting, legal firms, libraries, etc.

Question 20

Describe the divisional structure and mention which companies that would apply it.

Answer 20

• Dominant: middle management
• Set of self-contained, autonomous units
• Coordinated by central HQs
• Common for large business structure with a diversification strategy, big corporations

Question 21

Describe the adhocracy and metion which companies that would apply it.

Answer 21

• Dominant?
• High horizontal differentiation, low vertical differentiation
• Low formalization
• Intensive coordination
• Common for non-routine problems, e.g. promoting an advertising campaign or design a jet engine,