quizlet chapter 7 Flashcards
Departmentalization:
Grouping jobs into units
What is Functional Departmentalization?
an organization is organized into departments based upon the respective functions each performs for the organization (Ex. Marketing, IT, HR)
Benefits and Drawbacks to Functional Departmentalization:
Benefits: specialization, efficiency, skill development and career paths
Drawbacks : may lack customer focus, slower response times
What is Divisional Organization? What are the different types of divisions?
a system in which a company segments its employees based on products or markets, as opposed to their job roles (Ex. Geographical, Market, Product, and Service Groups)
Benefits and Drawbacks to Divisional Departmentalization:
Benefits : More customer oriented, faster response times, better coordination between divisions
Drawbacks : Duplication of resources, increased costs, disconnect between divisions
What is Matrix Departmentalization?
attempts to combine functional and divisional departmentalization designs to improve the synchronization of multiple components for a single activity
set up reporting relationships as a grid rather than in hierarchy (some individuals report to more than one supervisor or leader)
Benefits and Drawbacks to Matrix Departmentalization:
Benefits: More customer-oriented, flexible
Drawbacks: Resource allocation confusion, lack of clarity reporting, overall more complicated
What is meant by the chain of command unity of command?
How many individuals can a manager efficiently and effectively direct
What is meant by span of control?
To whom do individuals and work groups report? How many subordinates does supervisor control?
A wider span is possible when routine tasks and other coordinating mechanisms are present
Compare and contrast Centralization and Decentralization.
The difference lies in the question of where decision making authority lies. In centralized organizations, strategic planning, goal setting, budgeting, and talent deployment are typically conducted by a single, senior leader or leadership team. In contrast, in decentralized organizations, formal decision-making power is distributed across multiple individuals or teams.
Changing organizational structure…
Is not an instant problem solver, and
is time consuming, causes employee resistance, etc.