Fundamentals of Management Chapter on Organization

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Questions and Answers

What is the primary benefit of job specialization in an organization?

Increased employee boredom

Development of specialized equipment (correct)

Higher rates of employee turnover

Decreased proficiency at tasks

Which of the following is NOT considered a basic form of organization design?

Experimental Design (correct)

Functional (U-Form) Design

Matrix Design

Divisional (M-Form) Design

What is job rotation primarily used for in modern organizations?

Decreasing task variety

Training employees for skills and flexibility (correct)

Reducing efficiency

Increasing employee boredom

Which major situational influence does NOT impact organization design?

Employee age Signup and view all the answers

What is a primary limitation of job specialization?

Employee boredom and dissatisfaction with mundane tasks Signup and view all the answers

Which form of organization design combines features of both functional and divisional designs?

Matrix Design Signup and view all the answers

What is one possible alternative to job specialization?

Job Rotation Signup and view all the answers

Which of the following describes the bureaucratic model of organization design?

A hierarchical structure with clear rules and procedures Signup and view all the answers

What is the main characteristic of a conglomerate (H-Form) design?

Diversification across unrelated businesses Signup and view all the answers

Which organizational design allows for opportunities in coordination and resource sharing?

Divisional or M-form Design Signup and view all the answers

In a matrix design, who do employees report to?

Both their departmental and project managers Signup and view all the answers

What advantage is NOT associated with the M-form organizational design?

Centralized control over all decisions Signup and view all the answers

What condition is best suited for a matrix design?

Strong environmental pressure for quick decisions Signup and view all the answers

Which of the following is a disadvantage of the matrix design?

Complexity and confusion in command structure Signup and view all the answers

Which of these companies exemplifies the multidivisional (M-form) design?

The Limited, Inc. Signup and view all the answers

What does the term 'shared resources' imply in the context of organizational designs?

Resources that different departments or divisions can use together Signup and view all the answers

What is a primary advantage of the bureaucratic model in organizations?

Efficiency in function due to well-defined practices Signup and view all the answers

What is one significant disadvantage of a bureaucratic organization?

Organizational inflexibility and rigidity Signup and view all the answers

Which of the following describes a characteristic of bureaucracies as cited in the content?

They require standard procedures for equity. Signup and view all the answers

According to the content, what does 'core technology' refer to?

The conversion process used to transform inputs into outputs Signup and view all the answers

What factor is suggested to influence organizational design according to the content?

Complexity of technology Signup and view all the answers

What critical relationship was identified by Joan Woodward regarding organization design?

Between technology and organization design Signup and view all the answers

Which of the following best describes the bureaucratic model’s view on expertise?

Expertise must be recognized and valued. Signup and view all the answers

What critique is implied about the bureaucratic model's approach to organization design?

It often overlooks social and human processes. Signup and view all the answers

What characteristic is associated with large batch/mass production firms?

Bureaucratic structures with high labor specialization Signup and view all the answers

Which type of environment do organic organizations typically operate in?

Unstable and unpredictable environments Signup and view all the answers

What does the concept of differentiation in an organization refer to?

The degree to which the organization is broken down into subunits Signup and view all the answers

What form of technology is characterized by producing custom-made products?

Unit or Small-Batch Technology Signup and view all the answers

What is the relationship between environmental stability and organizational design according to Burns and Stalker?

Stable environments are associated with mechanistic organizations Signup and view all the answers

How does organizational size affect its focus according to research findings?

Smaller firms concentrate on core technology Signup and view all the answers

Which of the following is NOT a characteristic of continuous process technology?

Produces products in small batches Signup and view all the answers

What do Lawrence and Lorsch believe environmental factors do to sub-units within an organization?

Impact the overall design of the organization differently Signup and view all the answers

What is the main objective of job enrichment?

To give workers more tasks and control Signup and view all the answers

What does autonomy refer to in the job characteristics approach?

The degree of control the worker has over their work Signup and view all the answers

Which of the following is NOT a core dimension of the job characteristics approach?

Job location Signup and view all the answers

Which psychological state is enhanced through the five core job dimensions?

Motivation Signup and view all the answers

What is the purpose of departmentalization in an organization?

To group jobs logically for management Signup and view all the answers

How can job enrichment impact employee turnover?

It may decrease turnover Signup and view all the answers

What role do work teams play as an alternative to job specialization?

They create interrelated work systems Signup and view all the answers

What is the goal of continually assigning new tasks in job enrichment?

To enhance responsibility and growth Signup and view all the answers

Study Notes

The Nature of Organizing

Organization design involves structural elements and their relationships to manage goals effectively.
Job specialization is breaking down tasks into smaller parts, enhancing efficiency and proficiency.
Benefits of specialization include improved skill proficiency, reduced transfer times, and easier employee replacements.
Limitations of specialization include employee boredom and dissatisfaction with repetitive tasks.

Alternatives to Specialization

Job rotation involves systematically moving employees between jobs for skill development.
Job enlargement increases the number of tasks performed by a worker.
Job enrichment enhances job complexity and worker autonomy to improve satisfaction and control.

Bureaucratic Model of Organization Design

Developed by Max Weber, the bureaucratic model applies structured rules and procedures for efficiency.
Advantages include organizational efficiency and prevention of favoritism; disadvantages are rigidity and neglect of social dynamics.
Bureaucracies are prevalent in government and education sectors, requiring strict adherence to processes.

Situational Influences on Organization Design

Core technology refers to the essential processes transforming inputs into outputs, impacting organizational structure.
Joan Woodward identified relationships between technology complexity and organizational design, observing that more complex technologies lead to increased management levels.
Woodward categorized technology into unit/small-batch, large batch/mass production, and continuous process, with each type influencing organizational structure distinctively.

Environmental Factors (Burns and Stalker)

Organizations are affected by environmental stability: mechanistic structures thrive in stable conditions, while organic structures prevail in unstable environments.
Lawrence and Lorsch highlighted that subunit differentiation and integration impact the overall design based on environmental factors.

Organizational Size

Size is defined by the total number of full-time employees, influencing an organization's focus and structure.
Research indicates small firms concentrate on core technologies while larger firms may adopt diversified structures.

Basic Forms of Organization Design

Functional (U-Form) involves organizing by specialized functions such as marketing or finance.
Conglomerate (H-Form) organizes around different businesses, facilitating resource-sharing.
Divisional (M-Form) comprises multiple related businesses under one corporate framework, allowing for decentralized decision-making.
Matrix design combines departmentalization bases (functional and product) to create dual reporting structures, encouraging flexibility and resource sharing.

Job Characteristics Approach

Core dimensions include skill variety, task identity, task significance, autonomy, and feedback, influencing job satisfaction and performance.
Growth-need strength emphasizes employees' desire to develop capabilities, correlating with core dimensions for motivating work environments.

Departmentalization

The process of grouping jobs logically leads to specialization and efficient management as organizations grow.
Bases for departmentalization include function, product, geography, and customer, allowing for organized supervision as complexity increases.

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Description

Test your understanding of organizational structure and design as discussed in Ricky W. Griffin's 'Fundamentals of Management'. This quiz covers key concepts such as job specialization, departmentalization, and various organizational models. Explore the situational influences that affect organization effectiveness.