Organisation design (Chapter 3)

Question 1

1

Answer 1

Work specialisation
- dividing work activities into separate job tasks
- employee specialises in doing specific job tasks

Question 2

2a

Answer 2

Functional departmentalisation
-grouping of jobs based on functions that employees perform

Question 3

2b

Answer 3

Geographical departmentalisation
-grouping of jobs based on geographic regions

Question 4

2c

Answer 4

Product departmentalisation
-grouping of jobs according to the products and services that the company produces

must carry or sell or manufacture more than one product

Question 5

2d

Answer 5

Process departmentalisation
-grouping of jobs based on the product or the customer flow

Question 6

2e

Answer 6

Customer departmentalisation
-groups jobs according to type of customer

Question 7

3

Answer 7

Chain of command
-who employees should report to and who to take orders from

Unity of command
-each person should report to only one manager

Question 8

4

Answer 8

Span of control
-refers to the number of employees a manager can efficiently and effectively manage

managers more than 8 (wide span of control)
4-8 (narrow span of control)

Question 9

5

Answer 9

Centralisation
-degree to which decision making is concentrated at upper levels of the organisation

Decentralisation
-degree to which lower level employees provide input or actually make decisions

Question 10

6

Answer 10

High formalisation
- Little flexibility and lots of standardisation
- Little say in what needs to be done

Low formalisation
- Employees are given flexibility to decide what work should be done, how work should be done

Question 11

What is organisational structure?

Answer 11

The formal arrangement of jobs within an organisation

Question 12

What is organisational design?

Answer 12

The process of creating or changing an organisation’s structure