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MGMT 201 Ch 13
| Question | Answer |
|---|---|
| Define Organizational Structure | Defines how job tasks are formally divided, grouped, and coordinated. |
| What are the four types of Organizational Structure? | Work Specialization, Departmentalization, Chain of Command, Span of Control, Centralization and Decentralization, Formalization |
| Define Work Specialization. | Describes the degree to which activities in the organization are subdivided into separate jobs. (Divides work into a number of steps, each completed by a separate individual.) |
| What are the benefit(s) of Work Specialization? | Greater efficiency; Lower Costs |
| What are the cost(s) of Work Specialization? | Human costs when carried too far; Job enlargement |
| Define Departmentalization. | Basis by which jobs are grouped together so that common tasks can be coordinated. |
| List the 5 common bases of Departmentalization. | Function, Product, Geography, Process, Customer |
| Define Chain of Command. | Describes the unbroken line of authority that extends from the top of the organization down to the lowest echelon and clarifies who reports to whom. |
| What are the two types of Chains of Commands? | Authority - positional rights; Unity of Command - one boss |
| Define Span of Control. | Refers to the number of employees a manager is expected to effectively and efficiently direct; also determines the number of levels and managers an organization has. |
| What's the current Span of Control trend? | Wider spans of control |
| What two things are greatly affected by Span of Control? | Speed of communication; Decision making |
| Define Centralization. | The degree to which decision making is concentrated at a single point in the org. |
| Define Decentralization. | The degree with which decision making is concentrated at the front line employees and supervisors in the org. |
| Is the current trend towards Centralization or Decentralization? | Decentralization |
| Define Formalization. | The degree to which jobs within an organization are standardized. |
| Name the two types of formalization and describe them. | Formal - minimum discretion over what is to be done, when it is to be done, and how; Informal - freedom to act is necessary. |
| Simple Structure | Low Departmentalization; Wide Span of Control; Centralized Authority (one person); Little Formalization |
| What are the advantage(s) of the Simple Structure? | Simple - fast, flexible, and inexpensive to operate; Clear accountability |
| What are the disadvantage(s) of the Simple Structure? | Only useful in small organizations; Risky - All on one person |
| Bureaucracy | Highly routine operating tasks are achieved through specialization; Formal rules and regulations; Centralized authority; Narrow Spans of Control; Functional Departmentalization; Decision making follows the Chain of Command |
| What are the advantage(s) of Bureaucracy? | Ability to perform standardized activities in a highly efficient manner |
| What are the disadvantage(s) of Bureaucracy? | Obsessive rule-following; Rules and regulations substitute for managerial direction |
| Matrix Structure | Uses both Functional and Product Departmentalization; Dual Chain of Command (functional managers and product managers) |
| What are the advantage(s) of the Matrix Structure? | Facilitates coordination; Creates an efficient allocation of specialists |
| What are the disadvantage(s) of the Matrix Structure? | Possible Confusion (no unity-of command so ambiguity about who reports to whom); Power Struggles (between functional and product managers possibly over who gets the best specialists); Stress (due to too much ambiguity) |
| Define Virtual as a New Design Option. | Small, core organization that outsources its major business functions. High Centralization Little-No Departmentalization Maximum Flexibility |
| What are the advantage(s) of Virtual as a New Design Option? | Its FLEXIBILITY allows organizations to focus on what they do best. |
| What are the disadvantage(s) of Virtual as a New Design Option? | Unclear roles, goals, and responsibilities; Can result in limited innovation and slow response time Reduces control over important parts of the business. |
| Define The Boundryless Organization as a New Design Option. | Seeks to eliminate vertical and horizontal internal boundaries (the Chain of Command), break down external barriers between the company & its customers & suppliers, have limitless Spans of Control, and replace departments with empowered teams. |
| Define The Leaner Organization: Downsizing as a New Design Option. | Downsizing is a systematic effort to make an organization leaner by selling off business units, closing locations, or reducing staff. |
| What 2 things have been controversial about The Leaner Organization: Downsizing as a New Design Option? | Negative impact on employees; Impact on organizational performance |
Created by:
mcarmody1
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