Chapter 13 (Week 12)

Question 1

Organizational Structure

Answer 1

How job tasks are formally divided, grouped, and coordinated

Question 2

Seven Key Elements of Organizational Structure

Answer 2

Work specialization - to what degree are tasks subdivided into separate jobs?

Departmentalization - on what basis will jobs be grouped together? Functional, product, geographical, process, or customer?

Chain of command - to whom do individuals and groups reports? This is the unbroken line of authority that extends from upper organizational levels to the lowest level and clarifies who reports to whom

Span of control - how many individuals can a manager efficiently and effectively direct?

Centralization and decentralization - where does decision-making authority lie?

Formalization - to what degree will there be rules and regulations to direct employees and managers? (e.g. McDonald’s is very formalized)

Boundary spanning - do individuals from different areas need to regularly interact?

Question 3

Common Organizational Designs

Answer 3

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

Bureaucracy
highly routine operating tasks achieved through specialization, formalized rules and regulations, tasks that are grouped into units, centralized authority, narrow spans of control, and decision making that follows the chain of command

Matrix
combines functional and product departmentalization; it has a dual chain of command

Question 4

Two Kinds of Bureacracy

Answer 4

Functional Structure
groups employees by their similar specialties, roles or tasks

Divisional Structure
groups employees into units by product, service, customer, or geographical market area

Question 5

Alternative Structures

Answer 5

Virtual - small core organization that outsources its major business functions

Team - organizational structure that replaces departments with empowered teams and eliminates horizontal boundaries & external barriers between customers and suppliers

Circular - executives are at the centre, spreading their vision outward in rings grouped by function (managers then specialists then workers)

Question 6

Why Organizations Differ

Answer 6

• Structure (mechanistic vs organic)
• Strategy (innovation, cost-minimization, imitation)
• Technology (degree of routineness)
• Environment (outside institutions or forces that potentially affect the organization’s performance)