Industrial Psychology Topic 2 Quiz

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Questions and Answers

What characterizes an organization situated in a diverse environment?

It has a single product and serves one geographic area.

It offers a greater variety of products, services, and clients. (correct)

It primarily focuses on a local client base.

It is less affected by market competition.

In which type of environment are organizations likely to face resource scarcity and higher competition?

Munificent environment

Hostile environment (correct)

Stable environment

Integrated environment

How does organizational size influence job specialization and structure?

Job specialization increases with the number of employees. (correct)

Smaller organizations do not have sophisticated structures.

Larger organizations require less job specialization.

Organizational size has no effect on structure.

What role does technology play in organizational structure design?

It influences how products or services are produced. Signup and view all the answers

How does organizational strategy relate to an organization's structure?

Corporate leaders shape both the strategy and the structure. Signup and view all the answers

What does centralization in an organizational structure refer to?

Formal decision-making authority is concentrated among a few individuals. Signup and view all the answers

Which element of organizational structure describes the number of employees a manager supervises directly?

Span of control Signup and view all the answers

What is a characteristic of a flat organizational structure?

Few layers of management. Signup and view all the answers

What does formalization involve in an organizational setting?

Establishing standardized rules and procedures. Signup and view all the answers

Which of the following best describes departmentalization?

The grouping of tasks into specific jobs. Signup and view all the answers

In which structure is decision-making authority typically more dispersed?

Decentralized structure Signup and view all the answers

What is a common advantage of a matrix organizational structure?

Improved flexibility and resource allocation. Signup and view all the answers

How does the concept of division of labor relate to organizational structure?

It assigns specific jobs to individuals to enhance efficiency. Signup and view all the answers

What type of organizational structure is characterized by a narrow span of control and high formalization?

Mechanic Structure Signup and view all the answers

Which type of departmentalization organizes employees based on geographical areas?

Divisional Structure Signup and view all the answers

In which type of environment are organic structures better suited due to their adaptability?

Dynamic Environment Signup and view all the answers

What is a characteristic of a simple structure in organizational design?

Minimal hierarchy and few employees Signup and view all the answers

Which structure is primarily built around self-directed teams completing entire work pieces?

Team-Based Structure Signup and view all the answers

What type of departmentalization would likely use a matrix approach to leverage multiple structures?

Matrix Structure Signup and view all the answers

Why should organizations decentralize in complex environments?

To push decisions to informed subunits Signup and view all the answers

Which of the following is an example of a divisional structure focused on client needs?

Client Structure Signup and view all the answers

Study Notes

Organizational Structures and Systems

Understanding organizational models is crucial for effective management and operational success.
Different organizational structures include functional, multi-divisional, flat, matrix, team, network, and hierarchical models, each with distinct advantages and disadvantages.

Elements of Organizational Structure

Division of Labor: Tasks are subdivided into separate jobs assigned to different individuals.
Span of Control: Refers to the number of people directly reporting to a given manager; influences organization size and structure.
Centralization: Centralized organizations have decision-making authority concentrated at the top, while decentralized structures distribute decision powers throughout.
Formalization: Measures the extent of standardized behavior within the organization, differentiating between mechanistic (high formalization) and organic (low formalization) structures.
Departmentalization: How activities and employees are grouped together, influencing coordination and efficiency.

Types of Departmentalization

Simple Structure: Few employees, minimal hierarchy, focused on one product or service.
Functional Structure: Employees organize around specific functions or expertise.
Divisional Structure: Organized by geographic area, product lines, or client types, allowing for specialized operations.
- Geographic, Product, and Client Structures are sub-types of divisional organization.
Team-Based Structure: Centers around self-directed teams responsible for completing whole work units.
Matrix Structure: Combines two structures to exploit the benefits of both.
Network Structure: Involves an alliance of multiple organizations to deliver a product or service.

External Environment Influences

Dynamic vs. Stable Environments: Dynamic environments need organic structures for adaptability; stable environments are more predictable and can operate within rigid structures.
Complex vs. Simple Environments: Complex systems involve numerous variables leading to a need for decentralized decision-making to manage demands effectively.
Diverse vs. Integrated Environments: Diverse environments require firms to adapt structures that align with product and geographic diversity; integrated ones focus on singular service and product offerings.
Hostile vs. Munificent Environments: Hostile environments face resource scarcity and competition, necessitating dynamic structures; munificent environments are resource-rich and stable.

Organizational Size and Technology

Size impacts organizational structure; larger organizations typically necessitate more formalized processes and specialized roles.
Technology influences organizational design based on how products or services are delivered, impacting efficiency and adaptability.

Organizational Strategy

Strategy defines how an organization positions itself concerning stakeholders, drawing on its resources and capabilities to achieve goals.
While size, technology, and environment guide structure decisions, organizational leaders ultimately shape the design to align with strategic objectives.

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Description

This quiz tests your understanding of organizational structures and systems. Learn the value, importance, and various models while evaluating their pros and cons. Prepare to engage with concepts including functional, multi-divisional, and flat structures.