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