Chapter 15: Foundations of Organization Structure

Question 1

organizational structure

Answer 1

defines how job tasks are formally divided, grouped, and coordinated.

Question 2

key element of org. structure: work specialization

Answer 2

also called the division of labor, describes the degree to which activities in the organization are divided into separate jobs

the essence is to divide a job into several steps, each completed by a separate individual

Question 3

key element of org. structure: departmentalization

Answer 3

once jobs have been divided through work specialization, they must be grouped so common tasks can be coordinated. the basis by which jobs are grouped is called departmentalization

functions performed - product or service - geography - process: all ways you can departmentalize a job

Question 4

key element of org. structure: chain of command

Answer 4

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

Question 5

authority

Answer 5

refers to the rights inherent in a managerial position to give orders and expect them to be obeyed

Question 6

unity command

Answer 6

the idea that subordinates should have only one superior to whom he or she is directly responsible

Question 7

span of control

Answer 7

describes the number of levels and managers in an organization. the span of control is determined by how many managers and levels there are to an organization. with fewer levels and managers, each level will contain more employees and the employee-manager ratio increases

Question 8

key element of org. structure: centralization and decentralization

Answer 8

refers to the degree to which decision making is concentrated at a single point in the organization. in centralized organizations, top managers make all the decisions, and lower-level managers merely carry out their directives. in decentralized orgs, decision making is pushed down to the managers closest to the action or to workgroups

Question 9

key element of org. structure: formalization

Answer 9

the degree to which jobs within an organization are standardized

the degree of formalization can vary widely between industries and organizations

Question 10

key element of org. structure: boundary spanning

Answer 10

occurs when individuals form relationships with people outside their formally assigned groups

Question 11

common organizational frameworks and structures: the simply structure

Answer 11

an organizational structure characterized by a low degree of departmentlaization, wide spans of control, authority centralized in a single person, and little formalization

Question 12

common organizational frameworks and structures: beuracracy

Answer 12

is characterized by highly routine operating tasks achieved through specialization, strictly formalized rules and regulations, tasks grouped into units, centrolized authority, narrow spans of control, and decision making that follows the chain of command

weaknesses include obssessive following of rules

Question 13

functional structure

Answer 13

an organizational structure that groups employees by their similar specialties, roles, or tasks

Question 14

divisional structure

Answer 14

an organizational structure that groups employees into units by product, service, customer, or geographical market area

Question 15

the matrix structure

Answer 15

an organizational structure that creates dual lines of authority and combines functional and product departmentalization

Question 16

virtual structure

Answer 16

a small, core organization that outsources major business functions

Question 17

team structure

Answer 17

seeks to eliminate the chain of command and replace departments with empowered teams. this structure removes vertical and horizontal boundaries in addition to breaking down external barriers between the company and its customers and suppliers

Question 18

cicular structure

Answer 18

an organizational structure in which executives are at the center, spreading their vision outward in rings grouped by definition (managers, then speialists, then workers)

Question 19

mechanistic model

Answer 19

a stucture characterized by extensive departmentalization, high formalization, a limited information network, and centralization

Question 20

organic model

Answer 20

a structure that is flat, uses cross-hiearchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making

Question 21

innovation strategy

Answer 21

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

Question 22

cost-minimzation strategy

Answer 22

a strategy that emphasizes tight costs controls, avoidance of unecessary innovation or marketing expenses, and price cutting

Question 23

imitation strategy

Answer 23

a strategy that seeks to move into new products or new markets only after their viability has already been proven

Question 24

what are the factors that determine an organization’s size?

Answer 24

it size, technology, environment, and institutions

Question 25

technology

Answer 25

the way in which an organization transfers its inputs into outputs

Question 26

environment

Answer 26

forces outside an organization that potentially affect the organization’s structure

Question 27

institutions

Answer 27

cultural factos, especially those factors that might not lead to adaptiv ve consequences, that lead many organizations to have similar structures

Question 28

major takeaways

Answer 28

you cannot generalize with stuctures - one size does not fit all

people dont select employers randomly, they are attracted to, are selcted by, and stay with organizations that suit their personal characteristics