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IND300 > Shermerhorn Chapter 8 - Organization Structure and Design > Flashcards

Shermerhorn Chapter 8 - Organization Structure and Design Flashcards

1
Q

Definition of organization structure

A

system of tasks, workflows, reporting relationships and communication channels that link together diverse individuals and groups

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2
Q

Definition of organizing

A

process of arranging people and other resources to work together to accomplish a goal

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3
Q

Aspects of formal structure (5)

A
  • Division of work
  • supervisory relationships
  • communication channels
  • major subunits
  • levels of management
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4
Q

Definition of informal structures

A

unofficial but often critical working relationships between organization members

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5
Q

Advantages of informal structure

A
  • helping people accomplish their work
  • Overcoming limits of formal structure
  • gaining access to interpersonal networks
  • informal learning
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6
Q

Disadvantages of Informal Structure

A
  • may work against best interests of organization
  • Susceptibility to rumour
  • may carry inaccurate information
  • may breed resistance to change
  • diversion of work efforts from important objectives
  • feeling of alienation by outsiders
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7
Q

Definition of Functional Structure

A

people with similar skills and similar tasks are grouped together into formal work units

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8
Q

Advantages of functional structure

A
  • economies of scale
  • task assignments consistent with expertise and training
  • high quality technical problem solving
  • in-depth training and skill development
  • clear career paths within functions
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9
Q

Disadvantages of functional structure

A
  • difficulties in pinpointing responsibilities
  • functional chimney problem
  • lack of cross-functional collaboration
  • lack of common purpose
  • narrow view of performance objectives
  • excessive upward referral of decisions
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10
Q

Definition of Divisional Structures

A

group together people who work on the same product or process, serve similar customers and are located in same region

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11
Q

Types of divisional structures

A

product
geographical
customer
process

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12
Q

Advantages of divisional structures

A
  • more flexibility in responding to environmental changes
  • improved coordination
  • Clear points of responsibility
  • expertise focused on specific customers, products and regions
  • greater ease in restructuring
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13
Q

Disadvantages of divisional structures

A
  • duplication of resources and efforts across divisions
  • competition and poor coordination across divisions
  • Emphasis on divisional goals at expense of organizational goals
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14
Q

Definition of Matrix structure

A

Combines functional and divisional structures

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15
Q

uses of matrix structures

A 
manufacturing
service industries
professional fields
non-profit
multi-national corporations
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16
Q

Advantages of Matrix Structure

A
  • Better coordination
  • improved decision making
  • Increased flexibility
  • better customer service
  • better performance accountability
  • improved strategic management
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17
Q

Disadvantages of Matrix structure

A
  • two boss system
  • power struggles
  • task confusion and conflict
  • time consuming meetings
  • groupitis
  • increase cost due to adding team leads to structure
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18
Q

Types of Horizontal Structures

A

Team
Network
Boundary-less

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19
Q

Definition of Team structure

A

permanent and temporary teams for special projects , sometimes cross-functional

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20
Q

Advantages of Team structure

A
  • no communication and decision making difficulties
  • eliminated barriers
  • improved morale
  • sense of involvement and identification
  • enthusiasm
  • improved quality and speed of decision making
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21
Q

Disadvantages of Team structure

A
  • Conflicting loyalties Among members
  • time consuming meetings
  • quality depends on interpersonal relationships, group dynamics, team management
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22
Q

Definition of network structures

A

central core that is linked through networks of relationships with outside contractors/suppliers

23
Q

Advantages of network structures

A
  • fewer full-time employees
  • less complex internal structure
  • reduce overhead costs
  • increased operating efficiency
  • operations can be across great distances
24
Q

Disadvantages of Network structures

A
  • control and coordination problems
  • potential loss of control over outsourced activities
  • lack of loyalty
25
Q

Definition of Boudaryless organizations

A

no internal boundaries among subsystem and external boundaries with the external environment, combination of team and network

26
Q

requirements of boundary-less organizations

A
  • absence of hierarchy
  • empowerment of team members
  • technology utilization
  • acceptance of impermanence
27
Q

Types of organizational Designs

A
  • Bureaucracy

- Subsystem

28
Q

Definition of bureaucracy design

A

based on logic, order and legitimate use of formal authority

29
Q

Features of Bureaucracy

A
  • clear-cut division of labour
  • strict hierarchy
  • formal rules and procedures
  • promotion based on competency
30
Q

When does mechanistic design work?

A

in stable environment

31
Q

When does organic design work?

A

in rapidly changing and uncertain environment

32
Q

Is there always a need for some bureaucracy?

A

Yes

33
Q

Definition of subsystem

A

department/work unit that operates as a smaller part of the larger organization

34
Q

What are Lawrence’s and Lorsch’s findings? (3)

A
  • totally system structures of successful firms match the challenges of their environments
  • subsystem structures match the challenges of their respective sub-environments
  • subsystems in successful firms worked well with each other
35
Q

Definition of differentiation

A

the degree of difference that exists among the internal components of an organization

36
Q

4 sources of differentiation

A
  • time orientation
  • objectives
  • interpersonal orientation
  • formal structure
37
Q

definition of integration

A

level of coordination achieved among an organization’s internal components

38
Q

what is the organization design paradox?

A
  • the more differentiation -> the greater need for integration
  • integration is more difficult as differentiation increases
39
Q

How do you achieve integration

A
  • rules and procedures
  • hierarchical referral
  • planning
  • direct contact
  • liaison role
  • task forces
  • teams
  • matrix organizations
40
Q

Name 6 contemporary organizing trends

A
  • shorter chains of command
  • less unity of command
  • wider spans of control
  • more delegation and empowerment
  • decentralization with centralization
  • reducing staff
41
Q

Definition of chain of command

A

line of authority that vertically links all persons with successively higher levels of management

42
Q

What does less unity of command mean?

A

each person in an organization should report to only one supervisor

43
Q

What are trends from shorter chains of command

A

cutting of unnecessary levels of management, flatter structures

44
Q

Trends of less unity of command?

A

more cross-functional teams, horizontal structures, more customer focused, more than one boss

45
Q

Definition of span of control?

A

number of people directly reporting to a manager

46
Q

trend of span of control

A

levels of management are eliminated, responsibilities for larger numbers of employees

47
Q

definition of delegation

A

process of entrusting work to others by giving them the right to make decisions and take actions

48
Q

Steps of delegating

A
  • assign responsibility
  • grant authority
  • create accountability
49
Q

Definition of centralization

A

concentration of authority for making most decisions at the top levels of the organization

50
Q

definition of decentralization

A

dispersion of authority to make decisions throughout all levels of organization

51
Q

decentralization trend?

A

delegation, empowerment, horizontal structures

52
Q

centralization trend?

A

advances in technology -> more retention of centralized control

53
Q

definition of specialized staff?

A

people who perform a technical service or provide special problem solving expertise to other parts of organization

IND300 (4 decks)

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