Lesson 13 Flashcards
What are 4 elements of the company structure that makes a difference in how we behave and how work is coordinated?
- centralization
- formalization
- hierarchical levels
- deparmentalization
What is centralization?
the degree to which decision making authority is concentrated at higher levels in an organization
What is decentralization?
- decisions are made and problems are solved at lower levels by employees who are closer to the problem
What is a disadvantage to centralization?
more stress/demands at the higher levels on mental and physical capabilities
What is formalization?
extent to which policies, procedures, job descriptions, and rules are written and explicitly articulated
What does formalization do?
makes behaviour more predictable, turn to hand book, people respond simialrly
What happens where there is a high degree of formalization?
lead to reduced innovativeness because employees are used to behaving in a certain manner
In regard to hierarchical levels, what is the concept, span of control mean? (2)
- number of employees reporting to a single manager
- in a tall structure, span is smaller, greater opportunities to manage activities
- in a wide structure, span is wider
What do flat organizations provide? (3)
- greater need satisfaction for employees, self-actualization
- they don’t have opportunities to receive supervision and guidance- role ambiguity
- advancement is limited, fewer layser
What is meant by departmentalizations?
how organizations group jobs and departments together
What are the 2 forms of departmentalization structures?
- functional structures
- divisional structures
Explain what are functional structures?
- they group jobs based on similarity in functions
- departments
- each person serves a specialized role, and handles a large columns of transactions
Explain what are divisional structures? (2)
- each unique product or service the company is producing will have its own department
- within each department, functions such as marketing, manufacturing, and other roles are replicated
What are some disadvantages of the divisional structure model? (2)
- replicating within each department, leads to inefficiency, and not as much information sharing
- instead of performing specialized tasks, employees will be in charge of performing many different tasks in the service of the product (generalists, not specialists)
When is it advantageous to use functional structures?
- when an organization does not have a large number of products and services requiring special attention.
- stable environments that are slower to change
What are the two configurations of organizational structures, depending on how these elements are arranged?
- mechanistic structures
- organic structures
what are mechanistic structures? (3)
- highly formalized and centralized
- communication follows formal channels
- employees are given specific job descriptions of their roles and responsibilities
Mechanistic structures are often rigid and resistant to change, making them…
unsuitable for being innovative and taking quick action
What is the downside of mechanistic structures? (3)
- inhibiting entrepreneurial action
- discouraging the use of individual initiative
- limit individual autonomy and self determination
When the environment is more stable, what are the advantages of mechanistic structures?
- efficiency (min costs)
What are organic structures?
- flexible, decentralized structures with low levels of formalization
What are advantages of organic structures? (3)
- communication is more fluid and flexible
- job descriptions are broader
- high levels of job satisfaction
What are the two contemporary forms of organizational structures?
- Matrix organizations
- Boundaryless organizations
What are matrix organizations?
- cross a traditional functional structure with a product structure
- employees reporting to department managers are pooled together to form team
What are the advantages of matrix structures?
- created in response to uncertainty and the need to give attention to specific products
- provide quick responses to technical demands
What is the benefit for using the matrix structure over the product departments?
increases communication and cooperation b/w departments as PM need to coordinate their actions with depart managers
What are the disadvantages to a matrix structure?
- each employee reports to at least 2 or more managers
- not as predictable communication lines
- managers are more interdependent, need to spend more effort of coordinating
- multiple leaders can mean role conflict
What is a boundaryless organization?
organization that eliminates traditional barriers between departments and external environment
What are the two types of boundaryless organizations?
- modular organization
- strategic alliances
What is the form modular organization mean?
where all the nonessential functions are outsourced, retain only value generating functions in house, while the rest of the operations are outcourced
What is meant by strategic alliances?
2 or more companies find an area of collaboration and combine efforts to create a partnership that is beneficial to both
What would be an advantage to having boundaryless organizations?
involve eliminating the barriers separating employees
What is a learning organization?
one where acquiring knowledge and changing behaviour as a result of new knowledge is a part of an organizations design
What is an advantage to a learning organization?
- facilitate innovativeness
- easier to achieve organizational change
