Management Chapter 10: Organizational Structure Design

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Questions and Answers

What is the main purpose of organizing in an organization?

To divide work into specific jobs and departments (correct)

To create chaos and disorder

To eliminate formal lines of authority

To avoid allocating organizational resources

Which of the following is NOT one of the key elements in organizational design discussed in the text?

Formalization

Centralization-decentralization

Work specialization

Staff motivation (correct)

What is the purpose of an organizational chart?

To create chaos and confusion

To visualize the formal arrangement of jobs within an organization (correct)

To represent informal relationships within an organization

To allocate organizational resources

Which of the following is a form of departmentalization?

Product departmentalization Signup and view all the answers

How does centralization-decentralization contribute to organizational design?

It determines the level at which decisions are made Signup and view all the answers

What does work specialization aim to achieve in an organization?

To group tasks based on specific products or services Signup and view all the answers

What is work specialization in an organization?

It is the degree to which tasks are divided into separate jobs with each step completed by a different person Signup and view all the answers

What is another term for work specialization?

Division of labor Signup and view all the answers

What are the potential problems associated with overspecialization according to the text?

Boredom and work stress Signup and view all the answers

How does departmentalization contribute to work coordination in an organization?

By grouping common work activities together Signup and view all the answers

What is a popular trend in departmentalization according to the text?

Cross-functional teams Signup and view all the answers

What are the common ways of departmentalizing jobs according to the text?

Grouping jobs by functions performed Signup and view all the answers

In what way does product grouping departmentalize jobs?

By product line Signup and view all the answers

How does centralization contribute to organizational design?

By retaining decision-making authority at the top level Signup and view all the answers

What is one potential problem associated with overspecialization according to the text?

Boredom and poor quality Signup and view all the answers

What does work specialization aim to achieve according to the text?

Improving work outputs and efficiency Signup and view all the answers

Study Notes

Organizing in an Organization

The main purpose of organizing in an organization is to achieve efficiency and effectiveness by dividing tasks into manageable jobs and assigning them to individuals or teams.

Organizational Design

Key elements in organizational design include:
- Work specialization
- Departmentalization
- Centralization-decentralization
- Chain of command
- Span of control
Organizational design does not include cost control as a key element.

Organizational Chart

The purpose of an organizational chart is to visualize the structure of an organization, showing the relationships between different jobs and departments.

Departmentalization

Types of departmentalization include:
- Functional departmentalization (grouping jobs by functions or activities)
- Product departmentalization (grouping jobs by product or service)
- Geographical departmentalization (grouping jobs by location)
- Customer departmentalization (grouping jobs by customer type)
Product grouping is a form of departmentalization where jobs are grouped based on the product or service being produced.

Work Specialization

Work specialization is the process of dividing tasks into smaller, more manageable parts to increase efficiency and productivity.
Another term for work specialization is job specialization.
Work specialization aims to achieve:
- Increased efficiency
- Improved productivity
- Enhanced quality
- Better job satisfaction
Potential problems associated with overspecialization include:
- Job boredom
- Lack of job satisfaction
- Decreased productivity

Centralization-Deцентраlization

Centralization contributes to organizational design by allowing for more control and decision-making authority at the top of the organization.
Decentralization contributes to organizational design by delegating decision-making authority to lower-level managers and employees.
The centralization-decentralization continuum affects organizational design by influencing the distribution of authority and decision-making power.

Trends and Contributions

Departmentalization contributes to work coordination by grouping jobs into manageable units and facilitating communication and collaboration.
A popular trend in departmentalization is the use of cross-functional teams to improve communication and collaboration across different departments.
Common ways of departmentalizing jobs include functional, product, geographical, and customer departmentalization.

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Description

Test your knowledge of organizational design with this quiz covering traditional and contemporary views of work specialization, chain of command, span of control, departmentalization forms, authority, responsibility, centralization-decentralization, and formalization.