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Questions and Answers
What is the primary purpose of organizing in an organization?
What is the primary purpose of organizing in an organization?
- To allocate and deploy organizational resources
- To establish a hierarchy of jobs and departments
- To establish a chain of command and span of control
- To divide work into specific jobs and departments (correct)
What is the formal arrangement of jobs within an organization called?
What is the formal arrangement of jobs within an organization called?
- Organizational Design
- Organizational Structure (correct)
- Organizational Chart
- Departmentalization
What are the six key elements involved in organizational design?
What are the six key elements involved in organizational design?
- Work specialization, departmentalization, chain of command, span of control, centralization-decentralization, and formalization (correct)
- Work specialization, departmentalization, chain of command, span of control, centralization-decentralization, and authority
- Work specialization, departmentalization, chain of command, span of control, unity of command, and responsibility
- Work specialization, departmentalization, chain of command, span of control, formalization, and unity of command
What is the process of grouping jobs into units called?
What is the process of grouping jobs into units called?
What is the visual representation of organizational structure called?
What is the visual representation of organizational structure called?
What is the primary purpose of an organizational chart?
What is the primary purpose of an organizational chart?
What is the term for the process of arranging and structuring work to accomplish an organization's goals?
What is the term for the process of arranging and structuring work to accomplish an organization's goals?
What is the primary purpose of centralization-decentralization in organizational design?
What is the primary purpose of centralization-decentralization in organizational design?
What is the contemporary view on authority, responsibility, and unity of command in today's organizations?
What is the contemporary view on authority, responsibility, and unity of command in today's organizations?
What principle states that a person should report to only one manager?
What principle states that a person should report to only one manager?
What type of organizational structure is depicted in the diagram, where Europe and Asia are separate units?
What type of organizational structure is depicted in the diagram, where Europe and Asia are separate units?
In which type of organizational structure would Prod A and Prod B be grouped together?
In which type of organizational structure would Prod A and Prod B be grouped together?
What is the primary goal of grouping by function in an organizational structure?
What is the primary goal of grouping by function in an organizational structure?
What type of organizational structure is depicted in the diagram, where Sales and Mktg are grouped together?
What type of organizational structure is depicted in the diagram, where Sales and Mktg are grouped together?
What is the term for the combination of different organizational structures, such as functional and regional?
What is the term for the combination of different organizational structures, such as functional and regional?
What is the main advantage of a regional organizational structure?
What is the main advantage of a regional organizational structure?
What is the concept that a person should have one boss and report only to that person?
What is the concept that a person should have one boss and report only to that person?
What is the primary factor that affects the width of a manager's span of control?
What is the primary factor that affects the width of a manager's span of control?
What is the term for the process of increasing the decision-making authority of employees?
What is the term for the process of increasing the decision-making authority of employees?
What is the primary characteristic of a decentralized organization?
What is the primary characteristic of a decentralized organization?
What is the term for the number of employees who can be effectively and efficiently supervised by a manager?
What is the term for the number of employees who can be effectively and efficiently supervised by a manager?
In a centralized organization, who typically makes the decisions?
In a centralized organization, who typically makes the decisions?
What is the primary reason why a manager's span of control may be narrower in a complex task environment?
What is the primary reason why a manager's span of control may be narrower in a complex task environment?
What is the primary benefit of employee empowerment?
What is the primary benefit of employee empowerment?
What is the primary advantage of adapting organizational structure to accommodate strategic goals?
What is the primary advantage of adapting organizational structure to accommodate strategic goals?
As an organization grows in size, what tends to occur in its structure?
As an organization grows in size, what tends to occur in its structure?
What is a characteristic of a mechanistic organization?
What is a characteristic of a mechanistic organization?
What is a characteristic of an organic organization?
What is a characteristic of an organic organization?
What is the relationship between strategy and structure?
What is the relationship between strategy and structure?
What is a contingency factor that affects organizational design?
What is a contingency factor that affects organizational design?
Why are lower-level managers not given a say in decision-making in a centralized organization?
Why are lower-level managers not given a say in decision-making in a centralized organization?
When is decentralization more likely to occur?
When is decentralization more likely to occur?
What is a characteristic of mechanistic organizations in terms of information flow?
What is a characteristic of mechanistic organizations in terms of information flow?
What is the primary difference between mechanistic and organic organizations?
What is the primary difference between mechanistic and organic organizations?
What is the impact of high formalization on employee behavior?
What is the impact of high formalization on employee behavior?
What is the contemporary view of authority, responsibility, and unity of command?
What is the contemporary view of authority, responsibility, and unity of command?
What is a characteristic of an organization that is decentralized?
What is a characteristic of an organization that is decentralized?
What is the result of effective implementation of company strategies in a decentralized organization?
What is the result of effective implementation of company strategies in a decentralized organization?
What is a characteristic of an organization that is centralized?
What is a characteristic of an organization that is centralized?
What is the impact of low formalization on employee behavior?
What is the impact of low formalization on employee behavior?
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Study Notes
Organizational Structure and Design
- Organizing: arranging and structuring work to accomplish an organization's goals
- Organizational Structure: the formal arrangement of jobs within an organization
- Organizational Chart: a visual representation of organizational structure
Organizational Design
- Involves decisions about six key elements:
- Work specialization
- Departmentalization
- Chain of command
- Span of control
- Centralization and decentralization
- Formalization
Purposes of Organizing
- Divides work to be done into specific jobs and departments
- Assigns tasks and responsibilities associated with individual jobs
- Coordinates diverse organizational tasks
- Clusters jobs into units
- Establishes relationships among individuals, groups, and departments
- Establishes formal lines of authority
- Allocates and deploys organizational resources
Chain of Command
- Authority: the rights inherent in a managerial position to tell people what to do and to expect them to do it
- Responsibility: the obligation or expectation to perform
- Unity of Command: the concept that a person should have one boss and should report only to that person
Span of Control
- The number of employees who can be effectively and efficiently supervised by a manager
- Width of span is affected by:
- Skills and abilities of the manager
- Employee characteristics
- Characteristics of the work being done
- Similarity and complexity of tasks
- Physical proximity of subordinates
- Standardization of tasks
- Sophistication of the organization's information system
- Strength of the organization's culture
- Preferred style of the manager
Centralization and Decentralization
- Centralization: the degree to which decision making is concentrated at upper levels in the organization
- Decentralization: organizations in which decision making is pushed down to the managers who are closest to the action
- Employee Empowerment: increasing the decision-making authority (power) of employees
Formalization
- The degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures
- Highly formalized jobs offer little discretion over what is to be done
- Low formalization means fewer constraints on how employees do their work
Mechanistic and Organic Organizations
- Mechanistic organizations:
- High specialization
- Rigid departmentalization
- Clear chain of command
- Narrow spans of control
- Centralization
- High formalization
- Organic organizations:
- Cross-functional teams
- Cross-hierarchical teams
- Free flow of information
- Wide spans of control
- Decentralization
- Low formalization
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