Chapter 10 - Organizational Structure

Question 1

What is Specialization?

Answer 1

The process of identifying particular tasks and assigning them to individuals or teams who have been train to do them

Question 2

What is Standardization?

Answer 2

Refers to the uniform and consistent procedures that employees are to follow in doing their job

Question 3

What is Co-ordination?

Answer 3

Comprises the formal and informal procedures that integrate the activities that separate individuals, teams and departments in an organization

Question 4

What are the 3 basic principles of Co-ordination? State the entire principle

Answer 4

1. The Unity Command Principles which states that an employee should have only one superior to whom he or she is directly responsible.
2. The Scalar Principle states a clear and unbroken chain of command should link every person in the organization with someone at a higher level right up to the top.
3. The Span of Control Principles states that the number of people reporting directly to any manager should be limited because one manager can not supervise a large number of sub-ordinates effectively.

Question 5

What are the 5 Determinants of The Best Span of Management?

Answer 5

1. The competence of both the manager and the employees
2. The similarity or dissimilarity of the tasks being supervised
3. The incidence of new problems in the managers department
4. The extent of clear operating standards and rules
5. The complexity of subordinates’ jobs.

Question 6

Define “The competence of both the manager and the employees”

Answer 6

If a manager and or employees are new to a task then they require more supervision that knowledgeable veteran managers and employees

Question 7

Define: “The similarity or dissimilarity of tasks being supervised”

Answer 7

A process focus means widely varying produce whereas a product focus means more standardization

Question 8

Define: “The incidence of new problems in the managers department”

Answer 8

A manager should know enough about the operations of the department to understand precisely the problems that subordinates are likely to face.

Question 9

Define: “The extent of clear operating standards and rules”

Answer 9

Clear rules and standard operating procedures leave little to chance and lessen the need for adaptive decisions

Question 10

Define: “The complexity of the subordinates’ job”

Answer 10

The more complex the jobs of a manager’s subordinates, the few subordinates that manager should supervise

Question 11

Define Authority

Answer 11

Power to hold people accountable for their actions and to make decisions concerning the use of the organizational resources.

Question 12

Define Responsibility

Answer 12

The obligations of an employee to perform assigned tasks

Question 13

Define Accountability

Answer 13

Accountability is the expectation that employees will accept credit or blame for the results of their work

Question 14

Define Delegation of Authority

Answer 14

The process by which managers assign to subordinates the right to make decisions and act in certain situations

Question 15

State three points regarding Delegation of Authority

Answer 15

1. Principles for improving delegation
2. Barriers to delegation
3. Guidelines to overcoming the above barriers

Question 16

Define line and staff authority

Answer 16

Line of authority belongs to managers who have the right to direct and control the activities of subordinates who perform tasks essential to achieving organizational goals

Question 17

What are the advantages of decentralization?

Answer 17

1. Allows top managers to develop organizational plans and strategies while lower level managers and operative employees handle routine, day-to-day decisions
2. Develops lower level managers self-management competencies
3. The closeness to issues allows decisions to be made quicker
4. Fosters a healthy, achievement-orientated atmosphere among employees

Question 18

What are the factors affecting centralization and decentralization?

Answer 18

1. Cost attached to the decision: more costly it is to the organization, the more likely it is that top management will make the decision.
2. Uniformity of policy: managers who value consistency favor centralization of authority
3. Organizational culture: if the management style is (a) Autocratic, decision-making will be centralized.
   (b) Participatory, responsibility and authority will be decentralized
4. The availability of managers determines the lever of decentralization - more skilled managers the more decentralized
5. Control mechanisms: effective control process - effective delegation
6. Environmental influences such as unions lead to the centralization or organizations

Question 19

Name the guidelines for improving delegation

Answer 19

Establish goals and standards 
Define authority and responsibility 
Involve subordinates 
Require complete work
Provide training 
Establish adequate controls

Question 20

What are the elements of Organizational Structure?

Answer 20

1. Specialization
2. Standardization
3. Co-ordination
4. Authority
5. Centralization & Decentralization