Final Exam Flashcards
organizational structure
formally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company
organizational chart
a drawing that represents every job in the organization and the formal reporting relationships between those jobs
an organizational chart…
helps organizational members and outsiders understand and comprehend how work is structured within the company
the five key elements of an organization’s structure
- work specialization
- chain of command
- span of control
- centralization
- formalization
work specialization
-The degree to which tasks in an organization are divided into separate jobs
-“division of labor”
-never-ending trade-off among productivity, flexibility, and worker motivation
chain of command
-Answers the question of “who reports to whom?” and signifies formal authority relationships.
-the specific flow of authority down through the levels of an organization’s structure
-wide span of control vs. narrow span of control (leading more employees vs. less)
span of control
Represents how many employees each manager in the organization has responsibility for
centralization
-Refers to where decisions are formally made in organizations
-if only senior managers have control, the org is “highly centralized”
-if junior employees make decisions the org is “decentralized”
formalization
-The degree to which rules and procedures are used to standardize behaviors and decisions in an organization
- formalization is necessary!
organizations can struggles with __________________ when they make jobs highly specialized
employee job satisfaction
variety
the degree to which the job requires a number of different activities involving a number of different skills and talents
when is narrow span or wide span of control better?
narrows span: when the manager has more skill/knowledge, he can be more hands-on with the employees (negatives: expensive, can be seen as micromanaging)
moderate span of control is best
span of control affects how ___________ or _______________ the organizational chart is
tall or flat
what happens when an organization becomes “taller”?
- more management layers = more salaries
- communication is more complicated
- the decision making process becomes slower
decentralization is necessary when…
a company gets bigger
wide spans of control correlate with…
decentralized decision making
high level of work specialization correlates with…
high formalization
Mechanistic organizations
-efficient, rigid, predictable, and standardized organizations that thrive in stable environments
-a structure that relies on high levels of formalization, a rigid and hierarchical chain of command, high degrees of work specialization, centralization of decision making, and narrow spans of control
organic organizations
-flexible, adaptive, outward-focused organizations that thrive in dynamic environments
-a structure that relies on low levels of formalization, weak or multiple chains of command, low levels of work specialization, and wide spans of control
mechanistic or organic culture can have a significant effect on…
the types of employee practices a company adopts, such as selection, training, recruitment, compensation, and performance systems
organic structures are more likely to allow…
transformational leadership to have a positive effect on employees
Organizational design
the process of creating, selecting, or changing the structure of an organization
factors that influence the process of organizational design
- the environment in which the organization does business
- corporate strategy and tech
- size of the firm
An organization’s business environment consists of…
its customers, competitors, suppliers, distributors, and other factors external to the firm, all of which have an impact on organizational design
One of the biggest factors in an environment’s effect on structure is…
whether the outside environment is stable or dynamic
-stable - slow change and change doesn’t happen often, can focus on efficiency
-dynamic - change on a frequent basis and require organizations to have structures that are more adaptive
company strategy
an organization’s objectives and goals and how it tries to capitalize on its assets to make money
2 common company strategies
- low-cost producer - mechanistic approach to org structure, focus on low cost and efficiency
- differentiator - often an organic org structure, focuses on unique, high quality products and adapting quickly
organization’s technology
method by which it transforms inputs into outputs
- long long time ago it was believed tech determined an org’s structure
the more routine a technology is…
the more mechanistic a structure should be
there is a BIG relationship between company size and…
company structure!
(larger = more mechanistic)
(1) Simple structures
- most common org form
- for small business
-one owner/manager/CEO then employees under them
(2) bureaucratic structure
- similar to mechanistic
-designed for efficiency and rely on high levels of work specialization, formalization, centralization of authority, rigid and well-defined chains of command, and relatively narrow spans of control
functional structure (a type of bureaucratic structure)
groups employees by the functions they perform for the organization (finance grouped together, marketing grouped together)
- VERY efficient when the company has a narrow focus, few product lines, and a stable focus
The success of the functional structure is based on…
the efficiency advantages that comes with having a high degree of work specialization that’s centrally coordinated (Managers have expertise in an area and interact with others with the same type of expertise to create the most efficient solutions for the company)
multi-divisional structures (a type of bureaucratic structure)
- bureaucratic organizational forms in which employees are grouped into divisions around products, geographic regions, or clients
- then are separated into functional groups
- for companies that are very diverse
Product structures (a type of multidivisional structure)
-group business units around different products that the company produces
-when firms diversify to the point that the products they sell are so different that managing them becomes overwhelming
-downsides arises when the divisions don’t communicate and they don’t have the ability to learn from one another
Geographic structures (a type of multidivisional structure)
-based around the different locations where the company does business
-different tastes of customers in different regions, the size of the locations that need to be covered by different salespeople, or the fact that the manufacturing and distribution of a product are better served by a geographic breakdown
client structure (a type of multidivisional structure)
organize their businesses around serving those customers when they have LOTS of customers
(3) Matrix structures
-represents a combination of a functional structure and a product structure
Two important part of Matrix Structures
- the matrix allows an organization to put together very flexible teams based on the experiences and skills of their employees, enables the organization to adjust much more quickly to the environment than a traditional bureaucratic structure would
- the matrix gives each employee two chains of command, two groups with which to interact, and two sources of information to consider (can be very high stress because of clashing power)
restructuring
The process of changing an organization’s structure
- can have a negative affect on employees (org commitment and performance)
organizational culture
the shared social knowledge within an organization regarding the rules, norms, and values that shape the attitudes and behaviors of its employees
important parts of org culture
1.culture is social knowledge and shared knowledge among members of the organization
2.culture tells employees what the rules, norms, and values are within the organization
3. organizational culture shapes and reinforces certain employee attitudes and behaviors by creating a system of control over employees
3 major components in an orgs culture
- observable artifacts
- espoused values
- basic underlying assumptions
Observable artifacts
the manifestations of an organization’s culture that employees can easily see or talk about
-primary means of transmitting an organization’s culture to its workforce
6 types of artifacts
- symbols (i.e. logos)
- physical structure (how the building looks, design, setup, etc.)
- language (jargon, slang, and slogans)
- stories
- rituals (daily or weekly planned routines)
- ceremonies
Espoused values
the beliefs, philosophies, and norms that a company explicitly states
espoused vs. enacted values
what a company says will be done, vs. what actually happens within a company
Basic underlying assumptions
taken-for-granted beliefs and philosophies that are so ingrained that employees simply act on them rather than questioning the validity of their behavior in a given situation
-the deepest and least observable part of a culture and may not be consciously apparent, even to organizational veterans
-hidden beliefs are those that are the most likely to dictate employee behavior and affect employee attitudes
-most long-lasting and difficult to change
Solidarity and Sociability
Solidarity is the degree to which group members think and act alike, and sociability represents how friendly employees are to one another
companies with low solidarity and sociability have a __________ culture
fragmented, employees are disconnected
companies where employees think alike but aren’t friendly with each other are…
mercenary cultures, very political, “what’s in it for me”
cultures where employees are friendly but everyone thinks differently are…
networked culture, common in highly creative companies
cultures with friendly employees who all think alike…
communal, ( small companies usually start off as communal and then move to networked as they get bigger)
5 culture examples in chapter 16
- customer service - service quality, improves employees attitudes which improves customer experience and sales
- safety
- diversity
- sustainability
- creativity
culture strength
when employees definitively agree about the way things are supposed to happen within the organization (high consensus) and when their subsequent behaviors are consistent with those expectations (high intensity)
-strong cultures unite and direct employees
countercultures
subcultures with values that don’t match the larger organizations
- can be useful by challenging the values of the overall organization or signifying the need for change
-countercultures can split the organization’s culture right down the middle, resulting in the differentiated culture
2 Processes to make culture strong
- attraction - selection - attrition (ASA) - potential employees will be attracted to organizations whose cultures match their own personality, meaning that some potential job applicants won’t apply due to a perceived lack of fit
people with the same values are attracted to the company, people with the same values are selected by the company, people who don’t fit the value will leave the company - socialization - primary process by which employees learn the social knowledge that enables them to understand and adapt to the organization’s culture
6 Dimensions in socialization
- people
- politics
3.history - language
- performance proficiency
- goals and values
3 Stages of Socialization
- Anticipatory Stage - before the employee ever works for the job, what they think its like based on outside factors
- encounter Stage - employee starts the job and compares what they thought it would be like v. what it’s actually like (if these 2 aren’t similar they will experience reality shock)
- understanding and adaptation -employee starts to mold and fit in with the company
no bigger potential driver of culture than…
the leaders and senior executives of organizations
the importance of person–organization fit to employees
experience higher levels of job satisfaction and feel less stress about their day-to-day tasks. They also feel higher levels of trust toward their managers
3 ways to help organizations speed up socialization
realistic job previews, orientation programs, and mentoring
