Organizational Structure

Question 1

Functional organization

Answer 1

Departmentalization around specialized activities such as production, marketing, and human resources.

Question 2

Divisional organization

Answer 2

Structure based on division, product, customer or geographic area, within the larger organization

Question 3

Organization chart

Answer 3

The reporting structure and division of labor in an organization- each box
represents different work performed

Question 4

Vertical Structure

Answer 4

Deals with issues of authority, reporting relationships and responsibility.

Question 5

Horizontal Structure

Answer 5

Deals with actual structure of an
organization and departmentalization

Question 6

Differentiation

Answer 6

• The idea that an organization is composed of various units that work on varying tasks using different skills and methods
• Concept of dividing work into smaller tasks and assigning it to different groups is the Division of Labor; closely related is specialization, or the concept of dividing up tasks among individuals or groups/units

Question 7

Integration

Answer 7

*The extent that these different work units work together in their efforts

• The concept of coordination is closely related, and refers to how the various parts of an organization link together to achieve it’s mission and goals

Question 8

Delegation

Answer 8

• The assignment of new or additional responsibilities to a subordinate.

Question 9

Authority

Answer 9

• The legitimate right to make decisions and to tell other people what to do.

Question 10

Hierarchy

Answer 10

• Different authority levels in an organization.

Question 11

Centralized

Answer 11

• Decision are made at higher levels and passed down the organization.

Question 12

Decentralized

Answer 12

• Decision are made at the lower management levels of the organization.

Question 13

The Network Organization

Answer 13

• A very dynamic “structure” that
  provides the most flexibility in
  that it centers around more of a
  network of usually independent
  entities that collaborate on a
  contracted project or product
  basis rather than in a traditional
  organization. Also called a
  modular or virtual corporation.

Question 14

Strategic alliance

Answer 14

A formal relationship created among independent organizations with the
purpose of joint pursuit of mutual goals.

Question 15

Learning organization

Answer 15

An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.

Question 16

High-involvement organization

Answer 16

A type of organization in which top management ensures that there is
consensus about the direction in which the business is heading

Question 17

Standardization

Answer 17

Establishing common routines and procedures that apply uniformly to everyone.

Question 18

Formalization

Answer 18

The presence of rules and regulations governing how people in the organization interact.

Question 19

Mechanistic organization

Answer 19

A form of organization that seeks to maximize internal efficiency.

Question 20

Organic structure

Answer 20

An organizational form that emphasizes flexibility

Question 21

“Boundaryless” Organization

Answer 21

One in which there are no barriers to information flow

Question 22

Control

Answer 22

Any process that directs the activities of individuals toward the achievement of organizational goals.

Question 23

Bureaucratic control

Answer 23

Uses formal rules, standards, hierarchy, and legitimate authority. Works best where tasks are certain and workers are independent.

Question 24

Market control

Answer 24

Uses prices, competition, profit centers, and exchange relationships. Works best where tangible output can be identified and market can be established between parties.

Question 25

Clan control

Answer 25

Involves culture, shared values, beliefs, expectations, and trust. Works best where there is “no one best way” to do a job and employees are empowered to make decisions.

Question 26

The Managerial Control Process (Just steps)

Answer 26

The Bureaucratic Control Cycle

• Setting performance standards (quantity, quality, time, and cost).
• Measuring performance (oral or written; personal observation).
• Comparing performance against the standards and determining deviations (Principle of Exception).
• Taking action to correct problems and reinforce successes (can take many different forms).

Question 27

feedforward control (forward)

Answer 27

The control process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly.

Question 28

concurrent control (currently)

Answer 28

The control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed.

Question 29

feedback control (afterwards)

Answer 29

Control that focuses on the use of information about previous results to correct deviations from the acceptable standard.

Question 30

Designing Effective Control Systems

Answer 30

Establish valid performance standards
* Must be based on accurate, objective standards, usually in quantitative form.

Provide adequate information to employees
* The importance and nature of the system, along with feedback, must be communicated to employees by management (self-correction is goal).

Ensure acceptability to employees
* They must believe in and feel that they are possible to achieve.

Maintain open communication
* Employees should feel that they can report bad news without fear.

Use multiple approaches
* Example is the Balanced Scorecard that combines financial, customer, process and learning/growth measures.