Unit 3: Traditional Organization Structure

Question 1

Organizing

Answer 1

Arranges people and resources to work toward a goal.

• Creating labour division then coordinating results to achieve common purpose

Question 2

Organization structure

Answer 2

Is a system of tasks, reporting relationships, and communication linkages

• Any structure that both allocated tasks through a labour division and provides for the coordination of performance results

Question 3

Organization chart

Answer 3

Describes the arrangement of work positions within an organization

Question 4

Formal Structure

Answer 4

Is the official structure of the organization

Question 5

Informal structure

Answer 5

The set of unofficial relationships among an organization’s members

• “Shadow” organization made up of unofficial, often critical working relationships btwn organizational members. Informal structure shows interactions regardless of formal titles/relationships

Question 6

Departmentalization

Answer 6

Is the process of grouping people and jobs into work units

Question 6

Social network analysis

Answer 6

Identifies the informal structures and their embedded social relationships that are active in an organization

Question 7

Functional structure

Answer 7

Groups together people with similar skills who perform similar tasks

Question 8

Functional chimneys problem

Answer 8

A lack of communication/coordination across functions

Question 9

Divisional structure (2nd organizational alternative)

Answer 9

Groups together people working on the same product, in the same area, with similar customers, or on the same processes

Question 10

Product structure

Answer 10

Groups together people and jobs focused on a single product or service

• Identify costs, profits, problems/successes in a market area with a central point of accountability. This prompts managers to be responsive to changing market demands/customer tastes.
• Common in large organizations, product structures may even extend into global operations.

Question 11

Geographical structure (Area structures)

Answer 11

Groups together people/jobs performed in the same location

• Typically used when there’s a need to differentiate products or services in various locations, such as in different country parts.

Question 12

Customer structure

Answer 12

Groups together people/jobs that serve the same customers or clients

Question 13

Work process

Answer 13

A group of related tasks that collectively create a valuable work product

Question 14

Process structure

Answer 14

Groups jobs/activities that are part of the same processes

Question 15

Matrix structure

Answer 15

Combines functional/divisional approaches to emphasize project or program teams

Question 16

Organizing

Answer 16

• Divide up the worl
• Arrange resources
• Coordinate activities

Question 17

Planning

Answer 17

To set the direction

Question 18

Controlling

Answer 18

To ensure results

Question 19

DIsadvantages of functional structures

Answer 19

• Difficulties in pinpointing responsibilities for things like cost containment, product or service quality, and innovation
• Functional CHIMNEYS PROBLEMS; A lack of communication, coordination, and problem-solving across functions.
• Sense of purpose gets lost to self-centred and narrow viewpoints
• When problems occur btwn functions, they’re too often referred up to higher levels for resolution.

Question 19

Advantages of functional structures

Answer 19

• Economies of scale with efficient resource use
• Task assignments consistent with expertise/training
• High-quality technical problem-solving
• In-depth training and skill development within functions
• Clear career paths within functions

Question 20

Leading

Answer 20

To inspire effort