Organizational Structure Flashcards
What is specialization
The degree to which tasks in the organization are subdivided into separate jobs ( division of labour)
Benefits are efficiency and easy to train but downsides are boredom, stress, low productivity, high turnover, increased absenteeism
Organizational structure
How job tasks are formally divided, grouped, and coordinated
Six key elements: work specialization, departmentalizations, chain of command, span of control, centralization and decentralization, formalization
What is departmentalization
The basis on which jobs are grouped together
Types:
Functional, product, geographic, process, customer
Chain of command
Continuous line of authority
Span of control
Number of subordinates that can be efficiently and effectively managed.
Small span is expensive with more managers
Larger span is empowering and speed
Formalization
Degree to which jobs within the org are standardized
Standardized = high means employees have little discretion and low means employees have more freedom
Simple structure
Look It up
Functional and divisional
The area is divided into numerous functions
Acquires a number of firms and turns them into divisions
Bureaucracy **
Strengths: standardizes activities in an efficient manner
Weaknesses: creates subunit conflicts and concern with following rules
Matrix organization
Breaks the unity of command principle and employees have two bosses
A: facilitates coordination, more communication, efficient allocation of specialists
D: power struggles, confusion, stress
Team structure
Breaks down departmental barriers and decentralizes decision making to the level of the work team
Team structures also require employees to be generalists as well as specialists
Two extreme models of organizational design
Mechanistic model ( highly standardized and formalized) and organic model ( flat, fewer formal procedures, multiple decision makers)
Major causes of an org structure
- Strategy (innovation, cost minimization, and imitation)
- size
- technology
- environment
Key dimensions of an org environment
Capacity (environment can support growth)
Volatility ( instability)
Complexity ( heterogeneity and concentration)
