Chp 14 - Organizational Structure Flashcards
What is Organizational structure?
Formally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company
What is an organizational chart
Is a drawing that represents every job in the organization and the formal reporting relationships between those jobs.
What are the 5 elements of organizational structure that describes how work task, authority relationships, and the decision making responsibilities are organized within the company.
- Work specialization
- Chain of command
- Span of control
- Centralization
- Formalization
Define Work specialization.
Is the way tasks in an organization are divided into separate jobs.
- companys division labour
Define Chain of command
Answers the question of who reports to whom and signifies formal authority relationships.
Define span of control
Represents how many employees they are responsible for.
Define centralization
Aspect of structure that dictates where decisions are formally made in organizations
Define Formalization
When there are many specific rules and procedures used to standardize behaviours and decisions.
When is high specialization of task acceptable? and when is it problematic?
Larger firm –> high sepc
Small firm –> problematic
Is it true that when jobs are highly specialized job satisfaction increases? As they are getting better right?
FALSE. It decreases doing the same task is borrrrrringgggg
What is the benefit of narrow span of control and determent?
Benefit
- more hands on with employee
- directive leadership with close mentoring relationship
Determent
- requires more manager = inc cost
- employee resentful at being too closely supervised
Small span of control tend to create ______ structure
Bigger span of control tend to create _____ structure
Taller : Flat
Organizational performance increases as _______?
span of control increases. Low performance = narrow span of control
Why cant organizational performance continue to increase forever when span of control increases?
Because only up to a peak it works then managers no longer have the ability to coordinate and supervise the large numbers.
What 3 things happen when an organization becomes taller?
- More layers of management = pay more
- Communication becomes more complex
- decision making is slower
If only the top managers within a company have the authority to make final decisions, we would say the organization has a highly _____________ structure.
Centralized
If lower-level employees are given authority to make decisions, an organization has a _____________ structure.
Decentralized
When does decentralization become necessary?
When company gets larger, because they can not make every single decision
Why is formalization important?
Because it helps to standardized product or deliver a standardized service.