Foundations of Organizational Structure and Design Quiz

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Questions and Answers

What is organizational structure/design?

The process of arranging tasks within an organization (correct)

The management style of an organization

The degree of specialization within an organization

The formal arrangement of furniture within an organization

What does work specialization/division of labour refer to?

The degree to which tasks in the organization are divided into separate jobs (correct)

The level of efficiency in task completion within an organization

The level of employee satisfaction within an organization

The diversity of skills that workers hold

What are the advantages of work specialization?

Improvement in the quality of work

Decrease in absenteeism (correct)

Simplification of jobs

Increase in employee boredom and fatigue

What are the disadvantages of work specialization?

Jobs becoming too simplified Signup and view all the answers

What happens in a small organization with regard to work specialization?

Low level of work specialization Signup and view all the answers

What is illustrated by an organizational chart?

The formal arrangement of jobs within an organization Signup and view all the answers

What is the continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifies who reports to who?

Chain of command Signup and view all the answers

Which factor affects the width of span of control based on the skills and abilities of the manager?

Skills and abilities of the manager Signup and view all the answers

What is the degree to which decision-making concentrates at a single point in the organization?

Centralization Signup and view all the answers

What is the concept that a person should have only one boss and should report only to that person?

Unity of command Signup and view all the answers

Which factor influences the amount of decentralization in an organization when decisions are relatively minor?

Lower-level managers want a voice in decisions Signup and view all the answers

What is the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures?

Formalization Signup and view all the answers

What refers to the number of employees who can be effectively and efficiently supervised by a manager?

Span of control Signup and view all the answers

In combined departmentalization, what does an organization put into practice?

Several types of departmentalization Signup and view all the answers

What factor affects the width of span of control based on the physical proximity of subordinates?

Physical proximity of subordinates Signup and view all the answers

What is it called when organizations in which decision-making is pushed down to the managers closest to the action?

Decentralization Signup and view all the answers

Study Notes

Organizational Structure and Design

Refers to the framework that outlines how tasks are divided, coordinated, and supervised within an organization.
Influences decision-making processes, communication flow, and overall efficiency.

Work Specialization and Division of Labor

Involves breaking down jobs into smaller, specific tasks to increase productivity.
Each employee focuses on a particular function, leading to enhanced expertise.

Advantages of Work Specialization

Increases efficiency as workers become skilled in specific tasks.
Reduces training time for new employees who can quickly learn standardized tasks.
Enhances productivity through faster task completion.

Disadvantages of Work Specialization

Can lead to employee boredom and dissatisfaction due to repetitive tasks.
Limits a worker's skill set, making them less versatile.
Risk of reduced overall productivity if workers become overly dependent on specialization.

Small Organizations and Work Specialization

Typically exhibit lower levels of work specialization due to fewer employees.
Employees often take on multiple roles, leading to a more varied work experience.

Organizational Chart

Visual representation that outlines the internal structure of an organization.
Illustrates reporting relationships and the hierarchy within the organization.

Chain of Command

Continuous line of authority that clarifies relationships and reporting structures from top management to lower levels.
Essential for maintaining order and accountability within the organization.

Span of Control

Affects the number of employees a manager can effectively supervise.
Dependent on manager skills, abilities, and the complexity of tasks.

Centralization vs. Decentralization

Centralization refers to decision-making concentrated at a single point, often at top management.
Decentralization allows lower-level managers to make decisions, especially for less critical issues.

Unity of Command

The principle that each employee should report to only one supervisor to avoid confusion and conflicting instructions.

Minor Decision Influence

The amount of decentralization is influenced by the significance of the decisions being made; less significant decisions may be decentralized.

Job Standardization

Refers to the level of uniformity in jobs and how much employee behavior is regulated by rules and procedures.
Higher standardization typically leads to more consistent outcomes.

Span of Control - Supervisory Effectiveness

Represents the optimal number of employees that can be managed effectively by one supervisor.

Combined Departmentalization

Involves a mix of different departmental structures, such as functional and product-based, to enhance organizational flexibility and responsiveness.

Physical Proximity Influence

The physical closeness of subordinates can impact a manager’s span of control, as closer proximity often allows for easier supervision and communication.

Decision-Making Push

Organizations that empower lower management to make decisions closest to operational activities illustrate decentralized decision-making practices.

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Description

Test your knowledge of the foundational concepts of organizational structure and design. Explore topics such as formal job arrangement, coordination, and organizational charts.