Organization Structure & Behvaiours

Question 1

What is the organizational structure?

Answer 1

It refers to the way jobs are grouped and coordinated.

Question 2

What are the 2 types of organizational structure?

Answer 2

Flat or Hierarchical. Flat - more democratic, more communication, employees encouraged to give feedback. Hierarchical - tight chain of authority, orders come from the top, employees complete tasks without questions. This demonstrates how organizational structure affects employee behaviour. Various elements of organizational structure affect employee behaviour. There are 6 elements.

Question 3

Efficient organizations promote…

Answer 3

Ensure consistency in operations and employee relationships. Promote positive and productive behaviour. Motivates employees and boost performance by clarifying the purpose of every task.

Question 4

Specialization

Answer 4

The ways that tasks are split into multiple jobs and allocated to employees. In factory doing one task (highly specialized) versus consultant. Need a balance between specialization and variety.

Question 5

Staff Division

Answer 5

How employees grouped, usually by relativity (those that do similar tasks), e.g., newspaper writers, promoters, reporters, etc.

Question 6

Centralization

Answer 6

Concentrating decision-making power to a small group of individuals.

Question 7

Standardization

Answer 7

Process of achieving consistency in the treatment of employees and in business practices, e.g., policies, procedures, job descriptions, etc.

Question 8

Chain of Authority

Answer 8

Chain of hierarchy that determines which individuals have authority over others.

Question 9

Extent of Control

Answer 9

A manager who supervises 20 people has a wider extent of control. Wider control = reduce #s of levels and thereby employees and save money.

Question 10

What is the difference between horizontal and vertical specialization?

Answer 10

Vertical - divide jobs into tasks based on the level of authority required, common in hierarchical organizations with jobs requiring more authority concentrated at the top. Horizontal - dividing jobs based on other criteria than authority; employees given more decision-making power at lower levels.

Question 11

Staff Division: What are other ways staff can be divided?

Answer 11

Products, markets or locations

Question 12

Centralization: What is the trend nowadays for organizations?

Answer 12

Modern trend is toward decentralization, internally-driven teams authorized to make their own decisions. Extreme decentralization can hamper productivity unless good communication between departments - otherwise duplicated effort and jobs unfinished.

Question 13

Chains of authority…

Answer 13

…have become less formal, e,g., employees communicate with higher levels of management than their own bosses and help them work more efficiently.

Question 14

Wider chains of authority are only effective if…

Answer 14

…employees are comforable with their jobs and co-workers.

Question 15

Standardization

Answer 15

Some employees need rigid structure and some don’t..

Question 16

What are the 3 types of organizational structure?

Answer 16

Functional, Divisional and Matrix

Question 17

Functional

Answer 17

Group employees by task. Works well in smaller organizations, e.g., community newspaper - high specialization, low staff division, centralized authority, low standardization, wide extent of control. Simplest and most common. Can work in a large organization with simple requirements that are located in one place.

Question 18

Divisional

Answer 18

Group employees into strictly defined divisions by product, location or service. Low specialization, narrow extent of control. Often used by larger organizations that face diverse competition and opportunities. Often combined with functional structure at lower levels.

Question 19

Matrix

Answer 19

Combine aspects of functional & divisional. Used in highly technical organizations that depend on high levels of expertise. Groups employees by tasks performed, product and/or hierarchical rank. High staff division within departments but low staff division over an organization or division. High specialization may be common within departments. The extent of control may vary from wide to narrow.

Question 20

What are the advantages of a functional organizational structure that groups employees according to similar tasks?

Answer 20

Good communication, teamwork and quick decision-making.

Question 21

What are the disadvantages of functional organizations?

Answer 21

Poor communication between functional groups and commitment to own group rather than higher organizational goals.

Question 22

Advantages of divisional structures

Answer 22

Provides clear accountability, hands-on problem-solving, develops focused expertise (as each department focuses on a specific product or service), supports delegation of responsibility (as employees not highly specialized), encourages teamwork.

Question 23

Disadvantages of divisional structures

Answer 23

Lack of specialized employees to train others, duplication of tasks across dvisions, focus on divisional goals rather than organizational goals, conflict between divisions over resources.

Question 24

Advantages of matrix organizations

Answer 24

Better access to resources, e.g., product from another country, improved technology findings (shared insight from projects), better access to shared expertise, democractic decision-making (boosts morale), hands-on management (as managers usually specialize in same area as their employees).

Question 25

Disadvantages of matrix organizations

Answer 25

May have to report to more than 1 manager.