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HRPA Study Program > Organization Effectiveness Module 4 - Organization Structure > Flashcards

Organization Effectiveness Module 4 - Organization Structure Flashcards

1
Q

What are the different organizational structures?

A 
Functional Departmentalization
Product Departmentalization
Customer Departmentalization
Geographic Departmentalization
Matrix Departmentalization
Boundaryless
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2
Q

What is functional departmentalization?

A

Organizes work along specific functions. This is the most common and traditional organizational structure.

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3
Q

What are the advantages of functional departmentalization?

A
  • Specialty focus increases expertise
  • Centralized control is more efficient
  • Internal communication is easy
  • Mentoring is available
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4
Q

What are the disadvantages of functional departmentalization?

A
  • Cross-functional communication may be challenging
  • Common understanding is less strong
  • Collaboration requires compromise
  • Decisions may take longer
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5
Q

What is product departmentalization?

A

Managers are responsible for an entire product line and its facets instead of specific functions.

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6
Q

What are the advantages of product departmentalization?

A
  • Responsible for whole process
  • Easy to implement cross-functional process improvements
  • Easy access to resources
  • Decision making is faster
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7
Q

What are the disadvantages of product departmentalization?

A
  • Duplication of effort
  • More expensive
  • Less cross-departmental collaboration
  • More focus on one product line vs the whole organization
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8
Q

What is customer departmentalization?

A

Divided by customers/clients, focus on gaining customer intimacy and know the customer inside and out.

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9
Q

What are the advantages of customer departmentalization?

A
  • Focus on customer satisfaction
  • Products can be customized to meet customer needs
  • Easy access to resources
  • Decision making is faster
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10
Q

What are the disadvantages of customer departmentalization?

A
  • Duplication of effort
  • More expensive
  • Less cross-departmental collaboration
  • Customer needs may be met at the expense of the whole company
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11
Q

What is geographic departmentalization?

A

Organization is divided based on geographical areas or markets.

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12
Q

What are the advantages of geographic departmentalization?

A
  • Physically close to the customer
  • More in tune with unique customer needs based on location
  • Decreased need for business travel
  • Decision making is faster
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13
Q

What are the disadvantages of geographic departmentalization?

A
  • Duplication of effort
  • More expensive
  • Less cross-geographic collaboration
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14
Q

What is matrix departmentalization?

A

Combination of functional departmentalization and another structure resulting in people reporting to two bosses one functional and one from the other structure.

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15
Q

What are the advantages of matrix departmentalization?

A
  • Efficient management of large organizations
  • Greater collaboration across areas
  • Centralized control
  • Avoids duplication
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16
Q

What are the disadvantages of matrix departmentalization?

A
  • Conflict
  • Confusion
  • Higher level of management skill required
17
Q

What is a boundaryless organization?

A

An organization that recognizes their need to be flexible and reduces boundaries internally and externally.

18
Q

What are the advantages of a boundaryless organization?

A
  • Emphasizes shared interests across boundaries
  • Greater use of teams
  • Encourages innovation
  • Communication flows freely
19
Q

What are the disadvantages of a boundaryless organization?

A
  • Confusion and duplication
  • Difficult to overcome political boundaries
  • Higher level of management skill required
20
Q

What are the type of organizational boundaries?

A
  • Vertical between levels
  • Horizontal between departments
  • External between organization and customers/suppliers/others
  • Geographic between locations/cultures/markets
21
Q

What are some symptoms of organization design problems?

A 
Bad job design
Bad structural design
Ineffective spans of control
Insufficient sharing of information
Duplication of effort
Conflict between departments
Too many committees

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