Organizational Structure and Design

Question 1

What is organizing?

Answer 1

arranging and structuring work to accomplish an organizations goals.

(Putting the right people in the right place)

Question 2

What is an Organizational Structure?

Answer 2

The formal arrangement of jobs within an organization

e.g. In HR department there’s someone that posts job vacancies and someone that does the interviews.

Question 3

What is an Organizational Chart?

Answer 3

The visual representation of an organization’s structure.

Question 4

What is an Organizational Design?

Answer 4

Creating or Changing an organizations structure

Question 5

Purposes of Organizing

Answer 5

1) Divides work to be done into specific jobs and

departments

2) Assigns tasks and responsibilities associated

with individual jobs

3) Coordinates diverse organizational tasks

4) Clusters jobs into units

5) Establishes relationships among individuals,

groups, and departments

6) Establishes formal lines of authority

7) Allocates and deploys organizational resources

Question 6

Designing Organizational Structure:

Answer 6

Organizational Design:

• A process involving decisions about 6 key elements.

Question 7

6 key elements of organizational design

Answer 7

1. work specialization
2. departmentalization
3. chain of command
4. span of control
5. centralization and decentralization
6. formalization

Question 8

Work Specialization

Answer 8

the degree to which tasks in an organization are subdivided into separate jobs with each step completed by a different person.

(narrowing the job/ each person has a specific job)

Question 9

Overspecialization

Answer 9

the productive inefficiency that results when the division of labor is carried past the point of maximum efficiency.

• Can result in human diseconomies (economic disadvantage) from boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover.

(Absenteeism: regularly staying away from work with no good reason)

Question 10

How to prevent overspecialization?

Answer 10

Rotating employees and cross training will keep employees interested and energetic.

Question 11

Departmentalization

Answer 11

The basis by which jobs are grouped together.

Question 12

Types of Departmentalization

Answer 12

functional, product, customer, geographic, process

Question 13

Functional:

Answer 13

• Grouping jobs by functions performed
• The different functions will work together and be related to each other

-e.g. hotels have F&B function, HR function etc..

Question 14

Geographical:

Answer 14

-Grouping jobs on the basis of territory or geography

-e.g. there’s a hotel in France and a hotel in Lebanon; there needs to be a marketing manager in France and one in Lebanon.

Question 15

Product:

Answer 15

• grouping jobs by product line
• e.g. Pepsi has many SBU’S

Lays has many departments for each SBU

Question 16

Process:

Answer 16

• grouping jobs on the basis of product or customer flow.
• from the start till the end, they divide tasks based on the process.

Question 17

Customer:

Answer 17

• grouping jobs by type of customer and needs
• e.g. the needs during covid-19 were masks and sanitation, thus those were provided.
• e.g. if customers are allergic to something or are vegan..
• being specific for the customers needs.

Question 18

cross-functional team

Answer 18

• a work team composed of individuals from various functional specialties
• is a trend in every organization

Question 19

Chain of Command

Answer 19

• the line of authority that moves from the top of a hierarchy to the lowest level
• it clarifies who reports to whom
• giving commands

Question 20

Responsibility:

Answer 20

• the obligation or expectation to perform any assigned duties.

Question 21

Unity of Command:

Answer 21

• 1 boss
• the concept that a person should have one boss and should report only to that person.

Question 22

Span of Control:

Answer 22

• the optimal number of subordinates a manager supervises or should supervise
• the number of employees that a manager can efficiently and effectively manage.
• (What are my capabilities? how many employees can I manage?)
• Depends on the managers capabilities and experience to make sure it’s effective, otherwise they won’t be able to manage a large group of subordinates or departments.

Question 23

Centralization:

Answer 23

• the degree to which decision making is concentrated at upper levels of the organization.
• organizations in which top managers make all the decisions and lower-level employees simply carry out those orders.
• (the concentration of the decision making is on the upper level in the organization, while lower level employees focus on achieving the orders)

Question 24

Decentralization:

Answer 24

• degree to which decision-making authority is given to lower levels in an organization’s hierarchy.
• the degree to which lower-level employees provide input or actually make decisions.
• (the level of which lower level employees provide input.)

Question 25

Employee Empowerment:

Answer 25

• giving employees responsibility and authority to make decisions.
• employees will feel more motivated, trusted, and valued since they have more power in decision making.

Question 26

Factors that influence more centralization:

Answer 26

• environment is stable
• lower-level managers are not as capable or experienced at making decisions as upper-level managers.
• lower-level managers do not want a say in decisions.
• Decisions are relatively minor.
• Organization is facing a crisis or the risk of company failure.
• Company is large.
• Effective implementation of company strategies depends on managers retaining say over what happens.

Question 27

Factors that influence more decentralization:

Answer 27

• environment is complex, uncertain.
• lower-level managers are capable and experienced at making decisions.
• decisions are significant.
• corporate culture is open to allowing managers a say in what happens.
• company is geographically dispersed.
• effective implementation of company strategies depends on managers having involvement and flexibility to make decisions.

Question 28

Formalization:

Answer 28

• the degree to which jobs within an organization are standardized.
• the extent to which employee behavior is guided by rules and procedures.
• Highly formalized jobs offer little discretion over what is to be done.
• Low formalization means fewer constraints on how employees do their work.

-(rules and guidance/ it has certain procedures)

Question 29

Mechanistic Model of Organizational Design:

Answer 29

-rigid hierarchical relationships

-fixed duties

-many rules

-formalized communication channels (formal way of communication)

-centralized decision authority

-taller structures

Question 30

Organic Model of Organizational Design:

Answer 30

• collaboration (getting other employees involved)
• adaptable duties
• few rules
• informal communication
• decentralized decision authority
• flatter structures