MG4031 Management Principles: Org Structure & Design

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Questions and Answers

What is the primary purpose of formalisation in an organisation?

To enhance creativity among employees

To predict and control employee behavior (correct)

To encourage independent decision-making

To eliminate the need for rules

Decentralised decision-making means authority is concentrated at the top of the organisation.

False

What is meant by legitimate power in an organisational context?

Position in hierarchy

The __________ organisation is one of the new organisational forms that has emerged recently.

Matrix Signup and view all the answers

Which of the following is NOT a feature of a bureaucratic structure?

High flexibility Signup and view all the answers

Match the type of organisational structure with its characteristic:

Simple Structure = Small organisations with low complexity Machine Bureaucracy = Highly standardised rules and procedures Professional Bureaucracy = Highly skilled professionals working independently Divisionalised Structure = Focus on product or service output Signup and view all the answers

Flatter hierarchies have become a recent trend in organisational structures.

True Signup and view all the answers

What principle typically governs responsibility in an organisation?

Delegation Signup and view all the answers

What is the primary purpose of organizational structure?

To divide tasks and coordinate activities Signup and view all the answers

Structural configuration refers exclusively to the processes of an organization's operation.

False Signup and view all the answers

Name one advantage of functional departmentalization.

People can concentrate their efforts. Signup and view all the answers

The __________ levels refer to the hierarchy within an organization.

hierarchical Signup and view all the answers

Which type of departmentalization would be most beneficial for adapting to local markets?

Geographical Departmentalisation Signup and view all the answers

A wide span of control means a supervisor has only a few employees reporting directly to them.

False Signup and view all the answers

What is one disadvantage of product departmentalization?

Duplication of functional services. Signup and view all the answers

In managing organizational design, __________ refers to the extent of rules governing operations.

formalization Signup and view all the answers

Match each type of departmentalization with its characteristic:

Functional Departmentalisation = Focus on specific functions Product Departmentalisation = Focus on product lines Geographical Departmentalisation = Adaptation to local conditions Mixed Departmentalisation = Combination of several types of structure Signup and view all the answers

Which configuration would show employees reporting to more than one manager?

Mixed departmentalisation Signup and view all the answers

Narrow divisions of labor mean tasks are broken down into fewer specific tasks.

True Signup and view all the answers

What is one characteristic of a tall structure?

Multiple hierarchical levels. Signup and view all the answers

The process of dividing work among employees and coordinating their activities is called __________.

organizational structure Signup and view all the answers

Match the following components of organizational structure with their descriptions:

Division of Labour = Extent to which work is broken into tasks Spans of Control = Number of employees reporting to a supervisor Decision Making = Processes for making choices in the organization Authority = Power to direct actions and make decisions Signup and view all the answers

Study Notes

MG4031 Management Principles: Organisational Structure and Design

The reading material is Chapter 6, "Modern Management", pages 171-193.
Learning objectives include understanding organizational structure's definition, composition, and role; distinguishing between structural configuration and operation; outlining departmentalization types; explaining Mintzberg's structures; and understanding organizational structure evolution.
Organizational structure is the process of dividing tasks among individuals, groups, or units, coordinating their activities to achieve organizational goals.
It establishes task, reporting, and authority relationships, essentially the pattern of division and coordination within an organization.
Organizational structure is a critical source of competitive advantage, fitting with and supporting strategy and culture. This is especially important in effective organizations.
Organizational structure is divided into two primary components:
- Structural Configuration: This aspect of structure deals with the size and shape of the organizational chart (e.g., number of hierarchical levels). Key elements include division of labor, spans of control, hierarchical levels, and departmentalization.
- Structural Operation: This component focuses on the processes and operations within the organization. Key elements include formalization, decision-making, responsibility, and authority.

Structural Configuration

Division of Labor: The extent to which organizational work is broken down into different tasks (wide vs. narrow division). Historical approaches to division of labor range from task specialization through job enrichment to socio-technical systems.
Span of Control: The number of employees directly reporting to a supervisor (narrow vs. wide).
Hierarchical Levels: The number of levels in the organizational hierarchy and the flow of reporting relationships (flat vs. tall structures).
Departmentalization: Methods of grouping activities (functional, product, geographical, mixed).

Structural Operation

Formalization: The degree to which rules and procedures shape employee tasks and behaviors; high formalization implies many rules, low formalization implies few rules.
Decision Making: How authority regarding decisions is centralized or decentralized; centralized policy refers to a decision where authority is at the top of the organization, while decentralized decisions are made at various levels.
Responsibility: The obligation to achieve goals and manage employees. Typically involves delegation.
Authority: Power that is legitimized within a social context. This can be based on legitimate power (position in hierarchy) or expert power (knowledge-based).

Approaches to Structure

Universal Approaches: Historically, these approaches focused on a "one-best-way" to structure regardless of factors like external environment (e.g., classical principles of Fayol and Weber).
Approaches typically neglect the informal organization and ignore external factors such as the organization's environment, size, technology, and the informal organization in their structural design.

Mintzberg's Framework

A framework for understanding different types of organizational structures.
Common structure types include simple structure, machine bureaucracy, professional bureaucracy, divisional structure, and adhocracy.

Recent Trends in Organizational Structure

Trends move away from bureaucracy towards more flexible structures.
Recent trends include flatter hierarchies, changes in job design, increased responsibility and authority, and increased team use.
New organizational forms are emerging, such as matrix, team-based, and virtual organizations.

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Description

Explore Chapter 6 of 'Modern Management' focused on organizational structure and design. This quiz will test your understanding of essential concepts including departmentalization types, Mintzberg's structures, and the evolution of organizational structures. Delve into the significance of task division and coordination in achieving organizational goals.