Podcast
Questions and Answers
What is the primary goal of organizing, as described in the text?
What is the primary goal of organizing, as described in the text?
- To establish a clear chain of command.
- To establish clear authority and responsibility for each task.
- To ensure the smooth operation of all departments.
- To arrange and structure work for achieving organizational goals. (correct)
What is the defining characteristic of 'organizational structure' as described in the text?
What is the defining characteristic of 'organizational structure' as described in the text?
- The hierarchy of authority within an organization.
- The division of labor within an organization.
- The relationships between departments within an organization.
- The formal arrangement of jobs within an organization. (correct)
How does Eli Lilly & Company's decision to revamp its operational structure demonstrate the concept of organizational design?
How does Eli Lilly & Company's decision to revamp its operational structure demonstrate the concept of organizational design?
- It emphasizes the need for clear departmentalization.
- It highlights the importance of a strong chain of command.
- It shows how structure can be adjusted to meet new challenges and opportunities. (correct)
- It illustrates the importance of authority and responsibility.
What does the example of Eli Lilly & Company suggest about the importance of organizational design in addressing challenges?
What does the example of Eli Lilly & Company suggest about the importance of organizational design in addressing challenges?
Which principle is directly related to the idea that each employee should report to only one supervisor?
Which principle is directly related to the idea that each employee should report to only one supervisor?
Which organizational design element focuses on grouping similar tasks or activities together?
Which organizational design element focuses on grouping similar tasks or activities together?
Which concept defines the formal lines of authority within an organization, establishing who reports to whom?
Which concept defines the formal lines of authority within an organization, establishing who reports to whom?
What does the term 'authority and responsibility' refer to in the context of organizational design?
What does the term 'authority and responsibility' refer to in the context of organizational design?
Which of the following best describes departmentalisation in an organisational structure?
Which of the following best describes departmentalisation in an organisational structure?
What is the primary focus of the chain of command in an organization?
What is the primary focus of the chain of command in an organization?
In an organisational hierarchy, what is meant by authority?
In an organisational hierarchy, what is meant by authority?
What does the concept of unity of command refer to in a workplace?
What does the concept of unity of command refer to in a workplace?
Which of the following is NOT a key element of organisational design?
Which of the following is NOT a key element of organisational design?
What are the potential negative effects of overspecialisation in a work environment?
What are the potential negative effects of overspecialisation in a work environment?
What is the primary function of the chain of command in an organization?
What is the primary function of the chain of command in an organization?
Which aspect of the organisational structure does span of control refer to?
Which aspect of the organisational structure does span of control refer to?
Which term refers to the rights associated with a managerial position?
Which term refers to the rights associated with a managerial position?
How does decentralisation typically affect decision-making within an organization?
How does decentralisation typically affect decision-making within an organization?
Unity of command is important because it helps to:
Unity of command is important because it helps to:
Which form of departmentalization focuses on the specific functions of the organization?
Which form of departmentalization focuses on the specific functions of the organization?
In an organizational hierarchy, the chain of command primarily helps in:
In an organizational hierarchy, the chain of command primarily helps in:
What does responsibility in the context of management refer to?
What does responsibility in the context of management refer to?
Which of the following is a potential downside of a strict chain of command?
Which of the following is a potential downside of a strict chain of command?
In the context of departmentalization, which type focuses on customer groups?
In the context of departmentalization, which type focuses on customer groups?
Study Notes
Organisational Chart
- A visual representation of an organisation's structure
Designing Organisational Structure
- A process involving decisions about six key elements:
- Work specialisation
- Departmentalisation
- Chain of command
- Span of control
- Centralisation and decentralisation
- Formalisation
Work Specialisation
- Dividing work activities into separate job tasks
- Also known as division of labour
- Important organising mechanism, but can lead to overspecialisation and human diseconomies such as:
- Boredom
- Fatigue
- Stress
- Poor quality
- Increased absenteeism
- Higher turnover
Departmentalisation
- Grouping jobs into manageable units to achieve organisational goals
- Five common forms of departmentalisation:
- Functional departmentalisation
- Product departmentalisation
- Geographical departmentalisation
- Process departmentalisation
- Customer departmentalisation
Chain of Command
- The continuous line of authority that extends from upper levels of an organisation to the lowest levels
- Clarifies who reports to whom
- Associated terms:
- Authority: the rights inherent in a managerial position to tell people what to do
- Responsibility: the obligation to perform tasks and duties
- Unity of command: each individual should have only one supervisor
Organising
- Arranging and structuring work to accomplish an organisation's goals
Organisational Structure
- The formal arrangement of jobs within an organisation
Case Study: Eli Lilly & Company
- A major US pharmaceutical company facing revenue loss due to expiring drug patents
- Implemented a new operational structure with five global business units and an improved product research and development center to foster new drug development and replace lost revenue.
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Description
Learn about the visual representation of an organisation's structure and the process of designing it, including work specialisation, departmentalisation, and more.
