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