Organizational Structures

Question 1

Bureaucratic

Answer 1

Top-Down Management Approach
Hierarchical communication channels and career paths
Focus on Independent performance
Highly Specialized Jobs with Narrowly Defined Descriptions

Question 2

Flat

Answer 2

Decentralized Management Approach
Few levels
Broadly defined jobs with general descriptions
Emphasis on Teams and Product Development

Question 3

Internal Alignment(Internal Equity)

Answer 3

the relationships among different jobs/skills/competencies within a single organization

Question 4

What does Internal Alignment structure need to do?

Answer 4

Support organization strategy, and workflow
Motivate Behaviour

Question 5

Internal Pay Structure

Answer 5

the array of pay rates for different work or skills within a single organization

Question 6

What is an internal pay structure defined by?

Answer 6

The number of levels of work
The pay differentials between the levels
The criteria used to determine those levels and differentials

Question 7

Differentials

Answer 7

pay differences among levels

Question 8

Higher pay is usually due to work that;

Answer 8

requires more skill/knowledge
has unpleasant working conditions
work that adds more value to the company

Question 9

Content

Answer 9

work performed in a job and how it gets done

Question 10

Value

Answer 10

worth of the work

Question 11

Structure based on Content;

Answer 11

ranks jobs based on skills required
complexity of tasks
problem solving
responsibility

Question 12

Structure based on Value;

Answer 12

focuses on relative contribution of skills, tasks, and responsibilities

Question 13

Job-Based Structure

Answer 13

relies on the work content
(Tasks, behaviours, responsibilities)

Question 14

Person-Based Structure

Answer 14

shifts focus to the employee
(skills, knowledge, the employee possesses and if they are used in the job)

Question 15

Internal Labour Markets

Answer 15

refers to rules and procedures that;
Determine the pay for the different jobs within a single organization
Allocate employees among those different jobs

Question 16

Equity Theory - Fairness

Answer 16

people compare the ratio of their own outcomes to inputs with that of others
Employees judge fairness by comparing;
- To jobs similar to their own
- Their job to others at the same employer
- Their pay against external pay levels

Question 17

Tournament Theory

Answer 17

Relationships between motivation and performance
- Works best in situations where individual performance matters most

Question 18

Institutional Model

Answer 18

copy others and conform
“Best Practices”

Question 19

Consequences of an Internally-Aligned pay structure

Answer 19

Efficiency
Fairness
Compliance

Question 20

What shapes Internal Structures?

Answer 20

External Factors
Organizational Factors
Internal Structure

Question 21

External Factors

Answer 21

Economic Pressures
Government policies, laws, regulations
Stakeholders
Cultures and Customs

Question 22

Organization Factors

Answer 22

Strategy
Technology
Human Capital
HR Policy
Employee Acceptance
Cost Implications

Question 23

Internal Structure

Answer 23

Levels
Differentials
Criteria

Question 24

Strategic Choice: Hierarchical

Answer 24

Values differences in work content, skills, contribution
Many levels with large differentials
Includes detailed description of work done at each level

Question 25

Strategic Choice: Egalitarian

Answer 25

All employees are valued equally
Advantage:
- Fewer levels and smaller differentials
Disadvantage:
- Equal treatment can mean more knowledgeable employees feel underpaid

Question 26

Differences in pay structure influence;

Answer 26

peoples attitudes
work behaviours
AKA - success of organizations