Foundations of Organization Structure

Question 1

To what degree are activities subdivided into separate jobs?

Answer 1

Work specialization

Question 2

On what basis will jobs be grouped together?

Answer 2

Departmentalization

Question 3

To whom do individuals and groups report?

Answer 3

Chain of command

Question 4

What is the ability to efficiently and effectively direct employees by managers called?

Answer 4

Span of control

Question 5

Where does decision-making authority lie?

Answer 5

Centralization and decentralization

Question 6

What is formalization?

Answer 6

the degree to which jobs within the organization are standardized.

Question 7

What is boundary spanning?

Answer 7

When individuals form relationships with people outside their formally assigned group

Question 8

Define work specialization.

Answer 8

the division of labor into separate activities.

• Repetition of work.
• Training for specialization.
• Increasing efficiency through invention.
• Henry Ford.

Question 9

Define departmentalization and tell by how many types it can be.

Answer 9

Grouping jobs together so common tasks can be coordinated

• By functions performed.
• By type of product or service the organization produces.
• By geography or territory.
• By process differences.
• By type of customer.

Question 10

Define the chain of commands and its complementary concepts

Answer 10

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

Two complementary concepts:

• Unity of command
• Authority

Question 11

What is centralization?

Answer 11

It refers to the degree to which decision making is concentrated at a single point in the organization.

Question 12

Present the advantages of a decentralized organization

Answer 12

• Can act more quickly to solve problems.
• More people provide input into decisions.
• Employees are less likely to feel alienated from those who make -decisions that affect their work lives.

Question 13

What is formalization?

Answer 13

the degree to which jobs within the organization are standardized.

Question 14

Define boundary spanning

Answer 14

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

Question 15

Give examples of some organizational frameworks and structures

Answer 15

1. Simple structure
2. Bureaucracy structure
3. Matrix structure
4. Virtual Organization
5. Team structure
6. circular structure

Question 16

Define the simple structure and present its strengths and weaknesses.

Answer 16

the manager and the owner are one and the same.

Strengths:

• Simple, fast, and flexible.
• Inexpensive to maintain.
• Accountability is clear.

Weaknesses:

• Difficult to maintain in anything other than small organizations.
• Risky—everything depends on one person.

Question 17

What characterizes a bureaucracy and what defines it?

Answer 17

A bureaucracy is characterized by standardization.

• Highly routine operating tasks.
• Very formalized rules and regulations.
• Tasks grouped into functional departments.
• Centralized authority.
• Narrow spans of control.
• Decision making that follows the chain of command.

Question 18

What are the two aspects of bureaucracy?

Answer 18

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 19

Define the matrix structure

Answer 19

combines two forms of departmentalization—functional and product:

• The strength of functional is putting specialists together.
• Product departmentalization facilitates coordination.

Question 20

Define the virtual organization

Answer 20

it is typically a small, core organization that outsources major business functions.

Question 21

Define the team structure

Answer 21

eliminates the chain of command and replaces departments with empowered teams.

Question 22

Define the circular structure

Answer 22

in the center are the executives, and radiating outward in rings grouped by function are the managers, then the specialists, then the workers.

Question 23

Define downsizing

Answer 23

Downsizing is a systematic effort to make an organization leaner by selling off business units, closing locations, or reducing staff.

Question 24

What are some strategies for downsizing?

Answer 24

• Investment
• Communication
• Participation
• Assistance

Question 25

What are some characteristics of a mechanistic model?

Answer 25

• High specialization
• Rigid departmentalization
• Clear chain of command
• Narrow spans of control
• Centralization
• High formalization

Question 26

What are some characteristics of an Organic Model?

Answer 26

• Cross-functional teams
• Coss-hierarchical teams
• Free flow of information
• Wide spans of control
• Decentralization
• Low formalization

Question 27

On what dimensions do most framework strategies focus?

Answer 27

• Innovation strategy
• Cost Minimization strategy
• Imitation strategy

Question 28

What is the strategy-structure relationship like?

Answer 28

Innovation - organic
cost minimization - mechanistic
imitation - mechanistic and organic