Organizational Structure

Question 1

Organizations that have many levels

Answer 1

Tall

Question 2

Organizations with few levels

Answer 2

Flat

Question 3

Number of subordinates that can be efficiently and effectively managed

Answer 3

Span of control

Question 4

Small span of control features

Answer 4

Expensive
Vertical communication more difficult
Encourages tight supervision and discourages autonomy

Question 5

Large span of control features

Answer 5

Empowers workers

Speeds up decisions

Question 6

Formal decision making authority is held by a few people, usually at the top

Answer 6

Centralization

Question 7

Decision making authority is dispersed throughout the organization

Answer 7

Decentralization

Question 8

The way in which an organization is broken up into coherent units

Answer 8

Departmentalization

Question 9

Types of departmentalization

Answer 9

Functional
Product
Geographic
Process
Customer

Question 10

Departmentalizes individuals according to functions they perform

Ex.
Sales department
Accounting department

Answer 10

Functional Organization

Question 11

Departmentalizes individuals by creating self-contained divisions, each of which is responsible for everything to do with certain product or group of products

Answer 11

Product organizations

Question 12

Employees have 2 bosses

Answer 12

Matrix organization

Question 13

Advantages to matrix organization

Answer 13

Facilitates coordination when there are many activities
More communication
Efficient allocation of specialists

Question 14

Disadvantages to matrix organization

Answer 14

Power struggles
Confusion
Stress

Question 15

A continually evolving network of independent companies—suppliers, customers, even competitors—linked together to share skills, costs, and access to one another’s markets.

Answer 15

Virtual organization

Question 16

Advantages to virtual organization

Answer 16

Organizations can share costs and skills.

Provides access to global markets.

Increases market responsiveness.

Question 17

Disadvantages to virtual organization

Answer 17

Companies give up operational and strategic control to work together.

Managers need to be more flexible, acquire new skills.

Question 18

Mechanistic structure

Answer 18

Narrow span of control
High formalization
High centralization

Question 19

Organic structure

Answer 19

Wide span of control
Little formalization
Decentralized decisions

Question 20

Contextual variables of structure

Answer 20

Size
Technology
Strategy
Environmental uncertainty