Mainstream Fundamentals of Organizing

Question 1

Standardization

Answer 1

Types: Formal (written) and Informal

Purpose: Design performance standards maximizing productivity; give guidelines for decision making, direction and motivation, and legitimacy to the organization

Question 1

Four Mainstream Fundamentals of Organizing

Answer 1

• Standardization: developing uniform practices for organizational members to follow in work practice
• Specialization: Grouping standardized organizational tasks into separate jobs to be filled by specific members
• Centralization: decision-making authority rests in managers at the top of the organizational hierarchy
• Departmentalization: grouping specific members and resources together (into departments) to achieve organizational goals;

Question 2

Knowledge, Skills, Abilities and Other Attributes

Answer 2

• Knowledge: information possessed by the employee
• Skills: technical or manual proficiencies that are learned
• Abilities: innate attributes or application of knowledge and skills to perform tasks
• Other Attributes: attributes that do not fall under KSAs

Question 3

Centralization

Answer 3

• Delegation: giving authority to a person or group to make decisions
• Span of Control: Wide (many subordinates) and Narrow (few subordinates)
• Should result in timely, coordinated decisions, connectedness in CIC, motivated employees, and symbolic leaders to report to

Question 4

Departmentalization

Answer 4

• Horizontal Dimension: focus on the departments and how they are distinct and integrated
• Internal efficiency: optimize processes, reduce waste, and increase productivity per department
• External adaptiveness: Outward-facing departments (marketing, sales, customer relations, etc) must adapt to external changes in the
• Vertical Dimension: membership status of employees in a department, permanent or temporary, inside or outside of the organization

Question 5

Functional Type Departmentalization

Answer 5

• groups employees based on shared expertise, skills, and organizational functions
• Benefits: Specialization, Efficiency, Clear Hierarchy
• Downsides: Communication Challenges, Lack of Customer Focus

Example Structure:

CEO
↓
Purchasing Department → Marketing Department → Production Department

Question 6

Divisional Type Departmentalization

Answer 6

• groups employees based on the products, services, geographic regions, or customers they serve
• Benefits: Market Focus, Accountability, Flexibility
• Downsides: Duplication of Resources, Coordination Challenges

Example Structure:

CEO
↓
Western Division → Central Division → Eastern Division

Question 7

Hybrid Type Departmentalization

Answer 7

• a combination of functional and divisional-type departmentalization
• Benefits: Balance, Flexibility, Improved Communication
• Downsides: Complexity, Confusion

Example Structure:

CEO
↓
Purchasing Department
↓
Western Division → Central Division → Eastern Division

Question 8

Matrix Type Departmentalization

Answer 8

• dual reporting structure, employees report to both functional and divisional managers

Benefits: Expertise Utilization, Flexibility, Collaboration
Downsides: Conflicts, Complexity

CEO
↓
Purchasing Manager and Central Manager
↓
Employee

Question 9

Specialization

Answer 9

• Division of Labor: breaking down larger tasks into smaller ones
• Job Specialization: job assignment should be based on employee KSAOs and should enhance the productivity of the whole group (Knowledge, Skills, Abilities and Other Attributes) and should increase the productivity of the whole group