M2 Chapter 4.5 Organizing and Structuring

Question 1

Organizing

Answer 1

the deployment of organizational resources to achieve strategic goals in an effective and efficient manner (money, people)

Question 2

The Structure of organizing

Answer 2

1) The set of formal tasks assigned to departments and individuals
2) Formal reporting relationships, including lines of authority, decision responsibility, number of levels and span of management
3) The design of systems to ensure effective coordination of employees across departments

Question 3

Work Specialization

Answer 3

the division of tasks into individual jobs called division of labor

Question 4

Chain of Command

Answer 4

a line of authority that links individuals and direct reports

Question 5

Scalar Chain

Answer 5

each person has only one boss

Question 6

Authority

Answer 6

the formal right to make decisions and issues orders

• vested in organizational positions, not people
• accepted by subordinates
• flows down the vertical hierarchy

Question 7

Responsibility

Answer 7

the duty to perform the task or activity assigned

Question 8

Delegation

Answer 8

what managers use to transfer authority and responsibility to others

Question 9

Steps of proper delegation

Answer 9

1) Select the right person
2) Train that person
3) Give authority that is equivalent to the responsibility
4) Assign the whole task
5) Regular follow up

Question 10

Line departments

Answer 10

perform the tasks that reflect the organization’s primary goals

• work directly with customers/products
• Value Added (Value Stream)

Question 11

Staff departments

Answer 11

those departments that provide specialized skills in support of line departments
- ie: Legal, Human Resources, Marketing

Question 12

Span of management

Answer 12

The number of employees reporting to a supervisor is

Question 13

Centralization

Answer 13

When decision authority is located near the top of the organization

Question 14

Decentralization

Answer 14

When decision authority is pushed downward to lower organizational levels

• Change and uncertainty are usually associated with decentralization
• The amount of centralization or decentralization should fit the firm’s strategy
• During crisis, such as risk of company failure, authority may be centralized

Question 15

Why has span of management increased?

Answer 15

• Work is stable and routine
• Subordinates perform similar work
• Subordinates in single location
• Highly trained and need little direction
• Rules and procedures are defined
• Support systems and personnel are available to manager
• Little supervision is required
• Managers’ personal preference favor a large span

Question 16

Departmentalization

Answer 16

• Basis for grouping positions and functions into departments
• Choices regarding chain of command
  Three traditional approaches:
  1) Vertical Functional
  2) Divisional
  3) Matrix
  Recent more Innovative approaches:
  4) Teams
  5) Virtual Networks

Question 17

Vertical Functional Approach

Answer 17

• Grouping into departments based on skills, expertise, work activities and resource use
• Departmentalized by organizational resources
  • Accounting
  • Human resources-
  • Engineering
  • Manufacturing

Question 18

Divisional Approach

Answer 18

• Departments are grouped based on outputs (products)

- Organizations may assign division responsibility by geographic region, customer group, or product group.

Question 19

Matrix Approach

Answer 19

• Combines aspects of both functional and divisional structures simultaneously
• Improves coordination and information sharing
• Employees report to two supervisors (key challenge)
• Violates Scalar Chain

Question 20

Team Approach

Answer 20

• growing trend
• Teams allow organizations to delegate authority
• Become flexible and competitive in global environment

Question 21

Virtual Network Approach

Answer 21

• Extending the boundaries of collaboration beyond the organization
• Subcontracting functions to other companies
• Coordinate activities
• Interconnected groups of companies
  
  • partnerships and collaborations

Question 22

Coordination

Answer 22

the quality of collaboration across departments

- required regardless of the structure!

Question 23

Task Force

Answer 23

A temporary team or committee formed to solve a specific short-term problem

Question 24

Project Managers

Answer 24

responsible for coordinating the activities of several departments on a full-time basis for the completion of a specific project

Question 25

Reengineering/Restructuring

Answer 25

• Radical redesign of business processes to achieve dramatic improvements - Value
• Reengineering or business process reengineering – 70% fail

Question 26

Why does restructuring fail?

Answer 26

• They wait too long to make a change.
• Most companies can’t financially withstand a radical restructuring.
• Some companies are too large

Question 27

What should be done with restructuring?

Answer 27

• Commitment to constant, small incremental changes.
• Structure designed for change.
• Constant observance for internal and external forces for change.
• Careful analysis of change options.
• Implement with employee involvement.
• Reinforce the change.