Organizational Structure & Processess Flashcards
Basic approaches to organizational design:
1) Traditional approach
2) Behavioral approach
3) Contingency approach
Emphasizes such factors as authority, responsibility, unity of command, tasks, hierarchy, and a narrow span of control.
Traditional approach
Developed more recently. It emphasizes the limits, strengths, availability, and interests of the people available.
Behavioral approach
Designs the organization for its unique situation.
Contingency approach
Is a basic principle of structural design. It is the number of subordinates who report directly to the manager.
Span of control
Span of control can be:
1) Flat structures
2) Tall structures
Has relatively few levels from top to bottom. They have wide spans of control.
Flat structures
Have many levels between top and bottom. They have relatively narrow spans of control.
Tall structures
Principle is emphasized in traditional organizations. The authority and responsibility of the parties should be clearly defined, and every subordinate should report only to one superior.
Unity of command
The traditional approach views line activities as those directly responsible for the:
1) Primary function,
2) Product, or
3) Service of the organization
The traditional approach staff members provide:
Supporting technical expertise
Potential line and staff conflicts include the following:
1) A staff member with vaguely defined authority from a chief executive may effectively undermine line managers.
2) Line managers may have no authority to influence staff behavior when it is inconsistent with the achievement of objectives.
3) Setting staff members apart from line responsibilities can lead to thinking in a vacuum and suggestions by staff that are inappropriate or not feasible.
4) Excessive staff activity may violate the principle of unity of command.
Line-staff conflicts may be minimized by
1) Clearly defining areas of activity and authority and
2) Sharply defining the nature and place of line and staff.
The reporting relationships of an entity are in a grid or matrix. This structure allows authority to flow both vertically and horizontally. Thus, employees have dual reporting relationships, generally to a functional manager and a product manager.
Matrix structure
Benefits of matrix structure include the following:
1) Resources can be used more efficiently,
2) Information flows better,
3) Employees’ motivation and commitment are enhanced, and
4) Management can respond to changing market and technical requirements rapidly.
Disadvantages of matrix structure include:
1) Confusion,
2) Power struggles, and
3) Excessive overheard
Is most likely to succeed in stable and certain environments.
Mechanistic organization (structure)
This structure has the following attributes:
1) Tight controls,
2) Extensive division of labor,
3) High formalization, and
4) Centralization
The information network is limited, and employees rarely participate in decision making.
Mechanistic structure
Is decentralized and how low complexity and formalization. It has an extensive information system, and employees participate in decision making. It tends to be flexible and adaptive.
Organic structure
Common types of departmentation by:
1) Function,
2) Territory,
3) Product or service,
4) Customer,
5) Project, and
6) Work flow process
