Organizational Structure & Change

Question 1

Organizational Structure

Answer 1

the work of an individual and teams is coordinated

Question 1

Structure

Answer 1

delineates formal communication channels and how actions of individuals are linked togehter

Question 2

Centralization

Answer 2

degree to which decision making authority is concentrated at highest level
- high centralization: higher ups make important decisions
- low centralization: lower level employees make decisions

Question 3

Why Centralize

Answer 3

efficiency: clear chain of demand helps ensure execution

Question 4

centralization cons

Answer 4

• employees lose sense of empowerment and subsequently increases burnout
• diminished creativity

Question 5

Formalization

Answer 5

• The degree to which policies, procedures, and rules are written and explicitly articulated
• high formalization: many written rules and regulations
• low formalization: no playbook, play it by ear

Question 6

why formalize

Answer 6

predictability: reduce ambiguity by taking it out of employee’s hands

Question 7

formalization cons

Answer 7

• high formalization is associated with reduced job satisfaction and motivation
• diminished creativity

Question 8

Functional structure

Answer 8

Grouping of jobs based on similarity in function ( ACT, FIN, ISOM)

Question 9

Divisional structure

Answer 9

Grouping of jobs based on similarities in products or services (BBA, MBA, PhD)

Question 10

Departmentalization Structures

Answer 10

Functional & divisional

Question 11

Functional structure pros

Answer 11

allows for more expertise (employees are specialists)

Question 12

Functional Structures cons

Answer 12

difficulty in responding quickly to environmental changes

Question 13

functional structures best when

Answer 13

organizations are in stable environments or have similar and fewer products and services

Question 14

Divisional Structures pros

Answer 14

allows for mores innovativeness (employees are generalists)

Question 15

Divisional Structures cons

Answer 15

difficulty in allocating organizational resources efficiently due to redundancies

Question 16

Divisional Structures best when

Answer 16

organizations are dynamic environments or have many products and services that are vastly different

Question 17

reality of departmentalization

Answer 17

many organizations employ a matrix or hybrid between a functional and divisional structure

Question 18

matrix pros

Answer 18

allows both increased expertise and flexibility

Question 19

matrix cons

Answer 19

multiple lines of authority create potential for communication conflict

Question 20

Organizational Configurations

Answer 20

The different building blocks combine together to form two broad structures
- mechanistic & organic structures

Question 21

mechanistic structure

Answer 21

structures that resemble a bureaucracy
- centralization: high
- formalization: high
- departmentalization: clear division or labor

Question 22

mechanistic structures pros

Answer 22

• minimizes uncertainty and role ambiguity
• allows for a uniform product around the world at a minimal cost

Question 23

organic structures

Answer 23

structures where communication lines are more fluid and flexible
- centralization: low
- formalization: low
- departmentalization: loosely defined roles

Question 24

organic structures pros

Answer 24

• each divisional manager acts autonomously
• allows for more entrepreneurial behavior and innovativeness

Question 25

organizational change

Answer 25

• the movement of an organization from one state of affairs to another

Question 26

Types of changes

Answer 26

• change can take many forms: structure, culture, strategy, decision making process

Question 27

change is essential

Answer 27

for co. to remain competitive

Question 28

change -disrupts habit

Answer 28

• people generally resist having to learn something new
• requires more cognitive effort

Question 29

change - feels uncertain

Answer 29

• how change will be implemented and what the consequences might be creates stress

Question 30

change - fear of failure

Answer 30

• people who are good at job might fear their performance might worsen under new system

Question 31

change - perceived loss of power

Answer 31

losing power and influence can loom as threatening especially if one worked hard to earn status

Question 32

why resistance to change

Answer 32

fear of failure, perceived loss of power, disrupted habits, feelings of uncertainty

Question 33

Unfreezing

Answer 33

many change efforts fail because people are insufficiently prepared

Question 34

unfreezing remedy - urgency

Answer 34

• make case for why change is needed
• people don’t change unless they absolutely

Question 35

unfreezing remedy - coalition

Answer 35

• don’t try to get everyone on board
• enlist the right people who can become helpful allies

Question 36

unfreezing remedy - create a vision

Answer 36

• paint an exciting picture of a future people would be proud to be a part of
• how does change benefit people

Question 37

unfreezing remedy - communication

Answer 37

• empathy goes a long way
• do people know exactly what change is coming? or when and why it is happening?

Question 38

EXECUTING CHANGE

Answer 38

1. eliminate obstacles to change
2. create small wins
3. capitalize on momentum

Question 39

eliminate obstacles to change

Answer 39

• who are the resistors
• find integrative solutions

Question 40

create small wins

Answer 40

• break up change into smaller targets so people can realize their efforts
• change that is too far out to see results = demotivation

Question 41

capitalize on momentum

Answer 41

• once results start coming, don’t declare victory too early
• try to make continuous improvements while things are still fluid

Question 42

refreezing - reward change adoption

Answer 42

• modify reward system to recognize when employees adopt changes
• reinforce behaviors to make sure these behaviors are more likely to be repeated

Question 43

refreezing- make success public

Answer 43

share results: what is gained? how much money did the co. save?

Question 44

refreeze - goal

Answer 44

make change part of the culture.
- real change is not reflected in superficial elements: website, mission statements, etc.
- real org, change is reflected in the values and assumptions of its members
– is there a shift in employees’ mindset

Question 45

organic structures tend to

Answer 45

be associated with higher levels of employee satisfaction and motivation