Management Chapter 9: Organizational Structure and Design
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Management Chapter 9: Organizational Structure and Design

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Questions and Answers

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?

  • Organizational Design
  • Organizational Structure (correct)
  • Organizational Chart
  • Departmentalization

    • 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?

    <p>Departmentalization</p> Signup and view all the answers

    What is the visual representation of organizational structure called?

    <p>Organizational Chart</p> Signup and view all the answers

    What is the primary purpose of an organizational chart?

    <p>To visualize the formal arrangement of jobs within an organization</p> Signup and view all the answers

    What is the term for the process of arranging and structuring work to accomplish an organization's goals?

    <p>Organizing</p> Signup and view all the answers

    What is the primary purpose of centralization-decentralization in organizational design?

    <p>To decide how much authority to give to lower-level managers</p> Signup and view all the answers

    What is the contemporary view on authority, responsibility, and unity of command in today's organizations?

    <p>More relevant</p> Signup and view all the answers

    What principle states that a person should report to only one manager?

    <p>Unity of command</p> Signup and view all the answers

    What type of organizational structure is depicted in the diagram, where Europe and Asia are separate units?

    <p>Regional structure</p> Signup and view all the answers

    In which type of organizational structure would Prod A and Prod B be grouped together?

    <p>Product-based structure</p> Signup and view all the answers

    What is the primary goal of grouping by function in an organizational structure?

    <p>To increase efficiency</p> Signup and view all the answers

    What type of organizational structure is depicted in the diagram, where Sales and Mktg are grouped together?

    <p>Functional structure</p> Signup and view all the answers

    What is the term for the combination of different organizational structures, such as functional and regional?

    <p>Hybrid structure</p> Signup and view all the answers

    What is the main advantage of a regional organizational structure?

    <p>Better adaptation to local markets</p> Signup and view all the answers

    What is the concept that a person should have one boss and report only to that person?

    <p>Unity of Command</p> Signup and view all the answers

    What is the primary factor that affects the width of a manager's span of control?

    <p>Skills and abilities of the manager</p> Signup and view all the answers

    What is the term for the process of increasing the decision-making authority of employees?

    <p>Employee Empowerment</p> Signup and view all the answers

    What is the primary characteristic of a decentralized organization?

    <p>Decision-making authority is pushed down to lower-level managers</p> Signup and view all the answers

    What is the term for the number of employees who can be effectively and efficiently supervised by a manager?

    <p>Span of Control</p> Signup and view all the answers

    In a centralized organization, who typically makes the decisions?

    <p>Top managers</p> Signup and view all the answers

    What is the primary reason why a manager's span of control may be narrower in a complex task environment?

    <p>The tasks require more supervision and guidance</p> Signup and view all the answers

    What is the primary benefit of employee empowerment?

    <p>Improved employee motivation</p> Signup and view all the answers

    What is the primary advantage of adapting organizational structure to accommodate strategic goals?

    <p>Improved achievement of strategic goals</p> Signup and view all the answers

    As an organization grows in size, what tends to occur in its structure?

    <p>It becomes more mechanistic</p> Signup and view all the answers

    What is a characteristic of a mechanistic organization?

    <p>High formalization</p> Signup and view all the answers

    What is a characteristic of an organic organization?

    <p>Cross-hierarchical teams</p> Signup and view all the answers

    What is the relationship between strategy and structure?

    <p>Structure follows strategy</p> Signup and view all the answers

    What is a contingency factor that affects organizational design?

    <p>Size of the organization</p> Signup and view all the answers

    Why are lower-level managers not given a say in decision-making in a centralized organization?

    <p>Lower-level managers are not capable of making decisions</p> Signup and view all the answers

    When is decentralization more likely to occur?

    <p>When the environment is complex and uncertain</p> Signup and view all the answers

    What is a characteristic of mechanistic organizations in terms of information flow?

    <p>Restricted flow of information</p> Signup and view all the answers

    What is the primary difference between mechanistic and organic organizations?

    <p>Level of formalization</p> Signup and view all the answers

    What is the impact of high formalization on employee behavior?

    <p>Employees have little discretion over what is to be done</p> Signup and view all the answers

    What is the contemporary view of authority, responsibility, and unity of command?

    <p>They are less relevant in today's organizations</p> Signup and view all the answers

    What is a characteristic of an organization that is decentralized?

    <p>The corporate culture is open to allowing managers to have a say in what happens</p> Signup and view all the answers

    What is the result of effective implementation of company strategies in a decentralized organization?

    <p>Managers have more involvement and flexibility in decision-making</p> Signup and view all the answers

    What is a characteristic of an organization that is centralized?

    <p>Decisions are relatively minor</p> Signup and view all the answers

    What is the impact of low formalization on employee behavior?

    <p>Employees have more discretion over what is to be done</p> Signup and view all the answers

    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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    Description

    This quiz covers the key elements of organizational design, including views of work specialization, chain of command, span of control, and forms of departmentalization. It also differentiates authority and delegation.

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