U3 Organizational Studies

Question 1

organizing

Answer 1

Deciding how best to group organizational activities and resources

Question 2

formal structure

Answer 2

the way that organization if configured

Question 3

informal structure

Answer 3

the unofficial working relationships within the organization

Question 4

functional division

Answer 4

• most common
• jobs are grouped together that involve the same type of activity

Question 5

functional divisions pros

Answer 5

Managers need only be familiar with one set of skills, coordinating departmental activities easy

Question 6

functional divisions cons

Answer 6

Decision making can become slow/bureaucratic in larger organizations, employees may focus too narrowly on their department

Question 7

functional structure

Answer 7

• the bedrock of horizontal differentiation
• it is the first “structure” that organizations adapt as they grow.

Question 8

Product Divisions

Answer 8

Grouping activities around product groups

Question 9

Product Divisions Pros

Answer 9

easy to coordinate all activities associated with a product, quicker decision making easy to assess performance

Question 10

Product Divisions Cons

Answer 10

too much focus on own product, higher admin costs

Question 11

Geographic Divisions

Answer 11

Grouped based on the area served

Question 12

Geographic Divisions Pros

Answer 12

Can tailor operations to unique demands of each market

Question 13

Geographic Divisions Cons

Answer 13

Expensive

Question 14

Customer Divisions

Answer 14

Grouped based on customer served or distribution channel

Question 15

Customer Divisions Pros

Answer 15

can create groups oriented to serving unique needs of specific customers

Question 16

Customer Divisions Cons

Answer 16

Expensive

Question 17

The Silo Effect

Answer 17

• grouping people together means you are isolating them from the other groups
• interdivisional communication is hard, and people tend to only focus on their own group

Question 18

Matrix Structure

Answer 18

inserting horizontal lines of communication into the structure

Question 19

Matrix Structure Pros

Answer 19

better interdepartmental communication and coordination

Question 20

Matrix Structure Cons

Answer 20

more bosses to report to, requires well organized information systems

Question 21

types of ownership

Answer 21

Sole Proprietorship
Partnership
Corporation

Question 22

Organization Structures of a Corporation

Answer 22

• Ownership of a corporation is controlled by the company’s shares or stocks
• Usually for each share, the owner get one vote
• A proxy (substitute or stand-in) contract can be used
• Proxy contracts allows the votes of one shareholder to be cast by another shareholder (given them more power)

Question 23

public corporation

Answer 23

their shares can be purchased by anyone on one of the major stock exchanges

Question 24

private corporation

Answer 24

• their shares are limited and can not be purchased by the public
• they are only available to owner’s family members or employees of the corporation