Mastering Organizational Structure

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20 Questions

Which one of these is a type of chain of command that divides employees into those who are in the direct line of command and those who provide staff services to line managers at various levels?

Line-and-staff organization

Which one of these is the number of people under one manager's control, also known as span of control?

Span of management

Which one of these is the concentration of decision-making authority at the top of an organization?

Centralization

Which one of these is the delegation of decision-making authority to employees in lower-level positions?

Decentralization

Which one of these is a type of departmentalization that groups people within an organization according to function, division, matrix, or network?

Departmentalization

Which one of these is a type of structure design that groups workers according to their similar skills, resource use, and expertise?

Functional structure

Which one of these is a type of structure design that groups departments according to similarities in product, process, customer, or geography?

Divisional structure

Which one of these is a type of team that meets to find ways of improving quality, efficiency, and the work environment?

Problem-solving team

Which one of these is a team in which members are responsible for an entire process or operation?

Self-managed team

Which one of these is a measure of how committed team members are to their team's goals?

Cohesiveness

Which term refers to a framework that enables managers to divide responsibilities, ensure employee accountability, and distribute decision-making authority?

Organization chart

What is an organization chart?

A diagram that shows how employees and tasks are grouped and where the lines of communication and authority flow

What is an agile organization?

An organization whose structure allows employees to respond quickly to customer needs and changes in the business environment

What are core competencies?

Activities that a company considers central and vital to its business

What is work specialization?

Specialization in or responsibility for some portion of an organization’s overall work tasks

What is the chain of command?

The lines of authority that connect the various groups within the organization

What is accountability?

An employee’s obligation to report the results of his work to supervisors and justify bad performance

What is responsibility?

The obligation of employees to perform duties and achieve goals and objectives associated with their jobs

What does an organization chart show?

How employees and tasks are grouped and where the lines of communication and authority flow

What is the purpose of an agile organization?

To allow employees to respond quickly to customer needs and changes in the business environment

Study Notes

Organizational Structure

  • Line and Staff Organization: divides employees into those in the direct line of command and those providing staff services to line managers at various levels.

Management Hierarchy

  • Span of Control: the number of people under one manager's control.

Decision-Making

  • Centralization: the concentration of decision-making authority at the top of an organization.
  • Decentralization: the delegation of decision-making authority to employees in lower-level positions.

Departmentalization

  • Functional Departmentalization: groups people within an organization according to function.
  • Divisional Departmentalization: groups people within an organization according to divisions.
  • Matrix Departmentalization: groups people within an organization according to function and product.
  • Network Departmentalization: groups people within an organization according to function and geography.

Structure Design

  • Functional Structure: groups workers according to their similar skills, resource use, and expertise.
  • Product Structure: groups departments according to similarities in product.
  • Process Structure: groups departments according to similarities in process.
  • Customer Structure: groups departments according to similarities in customer.
  • Geographical Structure: groups departments according to similarities in geography.

Teams

  • Quality Circle: a type of team that meets to find ways of improving quality, efficiency, and the work environment.
  • Self-Directed Team: a team in which members are responsible for an entire process or operation.
  • Team Commitment: a measure of how committed team members are to their team's goals.

Organizational Framework

  • Organization Chart: a diagram showing the relationships and ranks of employees within an organization.
  • Agile Organization: an organization that quickly responds to change and is adaptable.

Organizational Concepts

  • Core Competencies: the essential skills and abilities an organization needs to achieve its goals.
  • Work Specialization: the division of labor into smaller, specialized tasks.
  • Chain of Command: the line of authority and decision-making in an organization.
  • Accountability: the responsibility of individuals or teams for their actions and decisions.
  • Responsibility: the obligation to complete tasks and achieve goals.

Test your knowledge on designing an effective organizational structure with this quiz! Learn about organization charts, agile organization structures, and more. Perfect for managers and those interested in improving their company's structure.

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