W&O ch13 Organizational structure Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

Organizational structure

A

The division of labour as well as the patterns of coordination, communication, workflow, and formal power, that direct the organizational activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Division of labour

A

Dividing work into separate jobs and activities assigned to different people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How can labour be divided?

A

Horizontally: more narrow tasks (job specialization)
Vertically: more layers (supervisor of employees, supervisor of that supervisor…)
Sometimes both, but not necessarily

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Benefits of division of labour (job specialization)?

A
  1. Finish tasks more quickly
  2. Less waste of time when switching between tasks
  3. Training costs lower
  4. Easier to match people with the job they are best suited for
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the condition for effectiveness of division of labour?

A

Only effective if activities are coordinated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Processes through which coordination of work activities can be achieved

A
  1. Informal communication
  2. Formal hierarchy
  3. Standardization
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Informal communication

A
  • sharing info on mutual tasks
  • forming common mental models to synchronize work activities
  • vital in non-routine, ambiguous situations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is informal communication aided by?

A
  1. Direct communication
  2. Liaison roles (bridging two parties that don’t normally communicate)
  3. Integrator roles (similar to liaison but centralized around specific product or goal )
  4. Temporary teams (concurrent engeneering) - two-way feedback at all times of the product’s development
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Formal hierarchy

A
  • direct supervision, ‘‘chain of command’’ (manager)
  • formal (legitimate) power over others to direct work processes and allocate resources
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Problems with formal hierarchy

A
  1. Slow flow of information
  2. One manager can supervise only a limited number of people - growing company results in costly bureaucracy
  3. Limit employee autonomy and involvement - complaints of being micromanaged
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Standardization and its three forms

A

Creating routine patterns of behaviour or output through 3 forms:
1. Standardized processes
2. Standardized outputs (inform employees what they are accountable for, e.g. number of products)
3. Standardized skills (train people)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Standardized processes

A

Works best for simple/routine tasks
- product or service can be improved through providing employees with job descriptions, procedures and safety rules

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Elements of organizational structure

A
  1. Span of control
  2. Centralization
  3. Formalization
  4. Departmentalization
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Span of control

A

Number of people reporting directly to the next hierarchical level, also called ‘direct reports’

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Different levels of span of control

A

Wide - flat (fewer layers) vs Narrow - tall structure (few people report directly to a manager)

  • Number of hierarchical levels in relation to number of employees
  • For best performance, average of 38 employees per supervisor
  • In times of growth often more layers are required which can result in problems
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Problems with taller structure (narrow span of control)

A
  1. Lower quality + timely upward info
  2. Cost - more managers per employee
  3. Less empowerment and engagement of employees - focus power around managers not employees
17
Q

Problems with wider span of control (flat structure)

A
  1. Managers less time to effectively coach employees, resolve conflicts…
  2. Promotions riskier - bigger jump in responsibility and not enough time to develop management talent
  3. Managers have less time to perform coherent daily operations
18
Q

What does optimal span of control depend on?

A
  • Coordination mechanism(s) that are used (e.g. standardization - the more standardized, the less need to report to a supervisor)
  • Types of tasks (routine tasks: wider span of control - require less direction)
  • Interdependence of employees (more interdependent, more narrow because experience more conflitct)
19
Q

Centralization

A

Degree to which formal decision authority is held by a small group of people
- Formal decision making by a few people, mostly at the top

20
Q

Decentralization

A

Decision-making authority dispersed throughout the organization
The larger the org, the more decentralized the decision-making authority gets

21
Q

Formalization

A

The degree to which organizations standardize behaviour through rules, procedures, training + related mechanisms
The more org grows, the more standardization it needs

22
Q

Advantages of formalization

A

Increase in efficiency, compliance, consistency

23
Q

Disadvantages of formalization

A

Decrease flexibility, learning, creativity, autonomy, job satisfaction, work stress goes up

24
Q

Organic structure

A
  • Wide span of control
  • Low degree of formalization
  • Decentralized (complex environment)
25
Q

When should an organization choose organic structure?

A

in dynamic environments (more flexible and responsive to changes)
in hostile environments
when tasks are high on variability and low on analyzability
for innovation strategies (easier for employees to share knowledge and be creative)

26
Q

Mechanistic structure

A
  • narrow span of control (vertical communication flow)
  • high degree of formalization
  • high centralization (simpler environments)
27
Q

When should an organization choose mechanistic structure?

A

in stable environments (rely on efficiency and routine behaviours)
in munificent environments
when tasks are low on variability and high on analyzability (routine tasks)
for low-cost strategies (maximizes production and service efficiency

28
Q

Departmentalization

A

How are employees and their activities grouped

29
Q

Three functions of departmentalization

A
  1. Establishes a chain of command and thus interdependence
  2. Creates common mental models and focus
  3. Encourages coordination by informal communication
30
Q

Functional structure

A

Organizes employees around specific knowledge or other resources
Usually centralized to coordinate their activities effectively

31
Q

Benefits of functional structure

A
  1. Create specialized pools of talent - improves economies of scale
  2. Increases employees’ identity with the job
  3. Direct supervision easier - common issues and expertise
32
Q

Limitations of functional structure

A
  1. Attention focused on related professional needs rather than on the company’s products,s ervices or client needs
  2. Limited understanding of the bussiness
  3. Employees need to work with other departments, but they have different subgoals and mental models = dysfunctional conflict and poorer coordination serving clients or developing products
33
Q

Divisional structure

A

Organizes employees around
1. end products or services
2. client groups
3. geographical areas (fewer orgs adopt this - freer and worldwide trade)
* Which one an org chooses depends on its primary source of environmental diversity or uncertainty

34
Q

Benefits of divisional structure

A
  1. Building-block structure - when new products/services developed = easy to build a new division
  2. Outcome-focused
35
Q

Limitations of divisional structure

A
  1. Duplicate resources
  2. Resources not used as efficiently
  3. Expertise spread across several autonomous units - less motivation and ability to share knowledge
  4. If org experiences diversity and uncertainty across all three environmental sources, they try to create complex structures and revise them - creates confusion and complications