Organizational Structure and Change

Question 1

When designing organizational structure: To what degree are tasks subdivided into separate jobs?

Answer 1

Work specialization

Question 2

When designing organizational structure: On what basis will jobs be grouped together?

Answer 2

Departmentalization

Question 3

When designing organizational structure: To whom do individuals and group report?

Answer 3

Chain of Command

Question 4

When designing organizational structure: How many individuals can a manager efficiently and effectively direct?

Answer 4

Span of control

Question 5

When designing organizational structure: Where does decision-making authority lie?

Answer 5

Centralization and decentralization

Question 6

When designing organizational structure: To what degree will there be rules and regulations to direct employees and managers?

Answer 6

Formalization

Question 7

What is Span of control?

Answer 7

of subordinates that can be efficiently and effectively managed

2 Types:

Small (narrow) span
Larger (wide) span

Question 8

Departmentalization

Answer 8

The basis on which jobs are grouped together

Main types of
departmentalization:
– Functional
– Product or Customer
– Geographical
– Matrix

Question 9

What is matrix departmentalization

Answer 9

• Hybrid structure where 2(+) firns if compartmentalization are used together

Ex. Product and Functional departments

Question 10

Pros/Cons to Matrix departmentalization

Answer 10

Pros: Collab, Communication, Coordination, Sharing of resources

Cons: 2 Leaders (power struggle), Confusion

Question 11

Characteristics of the mechanistic Model?

Answer 11

• High specialization
• Rigid Departmentalization
• Clear chain of command
• Narrow spans of control
• Centralization
• High formulation

Question 12

Characteristics of the organic model

Answer 12

• Cross-functional teams
• Cross-hierarchical teams
• Free flow of info
• Wide spans of control
• Decentralization
• Low formalization

Question 13

Strategy-Structure Relationship with Innovation, Cost minimization, Imitation

Answer 13

Innovation - Organic: A loose structure, low specialization, low formalization, decentralized

Cost Minimization - Mechanistic: Tight control, extensive work specialization, high formalization, high centralization

Imitation - Mechanistic & Organic: Mix of loose with tight properties, tight controls over current activities and looser controls for new undertakings

Question 14

What are organizational forces and targets for change?

Answer 14

Forces: Reasons for the change

Ex. Workforce, tech, competition, trends, politics, economic shocks

Targets: Who you are changing

Ex. People, structure & culture, purpose, strat, obj, tasks, tech

Question 15

Why do Individual and Org’s resist change? (sometimes)

Answer 15

Individual:

• Habit & fear of unknown
• Job security & economic loss
• Threat to self-concept (loss of power, status, identity)

Organization:

• Group & Structural inertia
• Norms & built-in mechanics to produce stability & predictability in processes and behaviour

Question 16

How can we overcome resistance to change?

Answer 16

Education & Communication: (Rational persuasion) - Increases trust and understanding of change

Participation & Involvement: (consultation) - Meaningful contribution from employees

Building Support: (Reward) - Expensive but can reduce fear

Fairness: Ensures fairness in implementation process

Coercion: Last resort for getting employees to cooperate