Podcast
Questions and Answers
What type of companies are likely to use a departmentalization structure by product?
What type of companies are likely to use a departmentalization structure by product?
- Small startups
- Decentralized companies
- Companies with a flat organizational structure
- Older and larger companies (correct)
What is a disadvantage of departmentalization by location?
What is a disadvantage of departmentalization by location?
- It requires a large administrative staff (correct)
- It leads to overlapping positions
- It is only suitable for small companies
- It allows for a faster response to unique demands
What type of companies are likely to use a departmentalization structure by customer?
What type of companies are likely to use a departmentalization structure by customer?
- Companies with a flat organizational structure
- Service-based companies (correct)
- Companies with a hierarchical structure
- Manufacturing companies
What is a characteristic of departmentalization by product?
What is a characteristic of departmentalization by product?
What is an advantage of departmentalization by location?
What is an advantage of departmentalization by location?
What is a characteristic of multibase departmentalization?
What is a characteristic of multibase departmentalization?
What is an advantage of departmentalization by customer?
What is an advantage of departmentalization by customer?
What is a disadvantage of departmentalization by product?
What is a disadvantage of departmentalization by product?
What is an advantage of departmentalization by product?
What is an advantage of departmentalization by product?
What type of companies are likely to use multibase departmentalization?
What type of companies are likely to use multibase departmentalization?
Study Notes
Delegation and Decentralization
- Delegation of authority: assigning part of a manager's work and power to other workers
- Reasons for delegation:
- No manager can do everything
- Develops the skills of subordinates
- Leadership grooming
- Barriers to delegation:
- Fear the work will not get done
- Fear the work will be done too well and attract all attention of top management
- Disorganization and inability to plan and assign work effectively
Organizational Structure
- Basic forms of organizational structure:
- Line Structure
- Line-and-Staff Structure
- Matrix Structure
- Network Structure
- Line Structure:
- Simplest and oldest form
- Direct chain of command throughout the organization
- Line managers make decisions and give orders to workers
- Quick decisions with direct accountability
- Popular in small organizations
Organizational Characteristics
- Job Specialization alternatives:
- Job rotation
- Job enlargement (more duties and responsibilities)
- Job enrichment (more control)
- Departmentalization:
- Process of grouping jobs into manageable units
- Common bases of departmentalization:
- By function
- By product
- By location
- By customer
- Departments by:
- Function
- Advantage: Simplified supervision
- Disadvantage: Slow decision making
- Product
- Advantage: Easy decision making
- Disadvantage: Emphasis on product rather than organization
- Location
- Advantage: Organization can respond to unique regional needs
- Disadvantage: Large administrative staff is necessary
- Customer
- Advantage: Deal efficiently with unique customer groups
- Disadvantage: Large administrative staff is necessary
- Function
- Multibase Departmentalization:
- Most firms use more than one basis for departmentalization to improve efficiency and avoid overlapping positions
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Description
This quiz covers the principles of delegation, decentralization, and centralization in management. It includes the concept of delegating authority, benefits of delegation, and barriers to delegation.
