Organizational Design and Job Characteristics

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Questions and Answers

What is the primary goal of job design in an organization?

To create an effective and efficient workforce (correct)

To minimize the number of tasks performed by workers

To increase the number of employees hired

To ensure employees have limited responsibilities

Which of the following is NOT a component of job enrichment?

Encouraging skill development among workers

Limiting workers' decision-making authority (correct)

Allowing workers to monitor their performance

Empowering workers to find better methods

In the Job Characteristics Model, which characteristic involves the employee using a wide range of skills?

Skill variety (correct)

Feedback

Autonomy

Task identity

What does job simplification aim to achieve?

Reducing the number of tasks each worker performs Signup and view all the answers

How does functional structure benefit an organization?

By organizing all departments needed to produce goods or services Signup and view all the answers

Which of the following is an example of feedback in a job setting?

Receiving direct information about job performance Signup and view all the answers

What aspect of job design does task significance relate to?

The meaningfulness of the work to the organization Signup and view all the answers

Which component of job design is focused on increasing the number of different tasks a worker performs?

Job enlargement Signup and view all the answers

What is the primary purpose of organizing in a managerial context?

To set up a structure that allows efficient and effective goal achievement. Signup and view all the answers

Which of the following best defines organizational structure?

The formal system that coordinates and motivates members to achieve goals. Signup and view all the answers

What is organizational design primarily focused on?

Developing a specific structure and culture for optimal efficiency. Signup and view all the answers

Which factor is NOT a consideration for choosing an organizational structure?

The personal preferences of the CEO. Signup and view all the answers

Why is it essential for managers to coordinate jobs and functions?

To facilitate collaboration and achieve organizational goals. Signup and view all the answers

What are the four sources of organizational culture NOT likely to include?

Market competition analysis. Signup and view all the answers

What does organizational architecture encompass?

The combined influence of organizational structure, control systems, culture, and HR management. Signup and view all the answers

How can a company’s culture lead to a competitive advantage?

Through fostering alignment with the company’s strategic goals and enhancing employee engagement. Signup and view all the answers

What is the primary characteristic of a geographic structure?

Divisions are based on geographic location. Signup and view all the answers

Which of the following best describes a matrix structure?

It assigns two managers to each employee. Signup and view all the answers

How does a product team structure differ from a matrix structure?

It eliminates dual reporting relationships. Signup and view all the answers

What is the primary impact of a tall organizational structure on communication?

It causes delays and potential distortion in communication. Signup and view all the answers

What advantage does a market structure provide to managers?

Enhances flexibility to respond to changing customer needs. Signup and view all the answers

Which of the following best describes the role of a staff manager?

They manage specialized functions like finance or marketing. Signup and view all the answers

What defines a cross-functional team?

A team formed of managers from various departments to accomplish tasks. Signup and view all the answers

What is an effect of having a wide span of control in an organization?

It leads to quicker communication. Signup and view all the answers

What should top managers strive for regarding the levels of authority in a hierarchy?

To construct the least number of levels necessary for efficiency. Signup and view all the answers

Which divisional structure would be most suitable for a company pursuing a multidomestic strategy?

Geographic structure Signup and view all the answers

Which statement about a product team structure is accurate?

Employees are permanently aligned to a cross-functional team. Signup and view all the answers

What does a line manager primarily have within the organization?

Formal authority over subordinates and resources. Signup and view all the answers

What is a potential disadvantage of a matrix structure?

It can create confusion due to dual authority. Signup and view all the answers

Which of the following is a disadvantage of a tall organizational structure?

It increases costs due to more management levels. Signup and view all the answers

How does a flat organizational structure affect management workload?

Managers often experience higher workloads due to more direct reports. Signup and view all the answers

In terms of authority, what does allocating authority entail?

Deciding how to hold individuals accountable for their actions. Signup and view all the answers

What is the primary advantage of decentralizing authority within an organization?

Empowerment of lower-level managers to make decisions Signup and view all the answers

Which aspect is not typically considered a component of organizational culture?

Employee training programs Signup and view all the answers

How do organizational norms influence employee behavior?

By establishing informal, societal standards Signup and view all the answers

What do organizational ethics primarily establish?

The moral values and rules for internal and external conduct Signup and view all the answers

Which type of organizational structure is likely to lead to a culture that focuses on authority?

Tall organization Signup and view all the answers

What impact do human resource policies have on employee engagement?

They influence the level of attachment to the organization Signup and view all the answers

Which of the following statements about centralized organizations is true?

They concentrate decision-making authority at the top Signup and view all the answers

What best describes organizational values?

Shared standards used to evaluate achievement of goals Signup and view all the answers

What is a significant disadvantage of a functional organizational structure?

It can lead to departments becoming insular. Signup and view all the answers

In a divisional structure, what is a primary characteristic of product structure?

Each distinct product line operates within its own self-contained division. Signup and view all the answers

Which advantage of the functional structure directly affects managerial oversight?

Ease of monitoring and evaluating worker performance. Signup and view all the answers

What is a key benefit of divisional structures in terms of resource management?

Faster decision-making processes within divisions. Signup and view all the answers

Which of the following best captures the emphasis of a divisional structure?

Focus on specific products or markets. Signup and view all the answers

What challenge might a divisional structure face compared to a functional structure?

Increased duplication of resources. Signup and view all the answers

Which of the following is NOT an advantage of the functional structure?

Enhances communication across departments. Signup and view all the answers

What is a direct outcome of managers having separate business units in divisional structures?

Greater managerial freedom to tailor strategies. Signup and view all the answers

Study Notes

Contemporary Management Chapter 10: Managing Organizational Structure and Culture

Learning Objectives: This chapter aims to:
- Identify factors influencing managers' organizational structure choices.
- Explain how managers group tasks into motivating jobs.
- Describe different organizational structures and their rationale.
- Explain job coordination using authority and integration mechanisms.
- Identify and explain the sources of organizational culture and its impact on competitiveness.

Organizational Architecture

Definition: Organizational structure, control systems, culture, and human resource management practices that determine resource utilization efficiency and effectiveness.

Designing Organizational Structure

Organizing: The process by which managers establish working relationships among employees to achieve organizational goals efficiently and effectively.
Organizational Structure: A formal system of task and reporting relationships that coordinates and motivates organizational members to achieve organizational goals.
Organizational Design: The process managers use to create a specific organizational structure and culture to ensure efficient and effective company operation.

Factors Affecting Organizational Structure

Organizational Environment: External factors impacting design decisions.
Strategy: The plan for achieving goals influences the structure chosen.
Technology: The technological processes impact grouping & coordinating.
Human Resources: Existing skills and capabilities in the workforce shape structural decisions.

Grouping Tasks into Jobs: Job Design

Job Design: The process of deciding how tasks are divided into jobs (division of labor).
Division of Labor: Effective and efficient workforce results from appropriate task division.
Job Simplification: Reducing the number of tasks performed by each worker.
Job Enlargement: Increasing the number of tasks in a given job through changes in division of labor.
Job Enrichment: Increasing the degree of responsibility a worker has over a job (e.g., empowering workers, encouraging skills development, decision-making authority, performance monitoring).

The Job Characteristics Model

Skill Variety: Employee uses a range of skills.
Task Identity: Worker completes tasks from beginning to end.
Task Significance: Worker sees the task's importance to the organization.
Autonomy: Employee has freedom to schedule & complete tasks.
Feedback: Worker receives direct information about job performance.

Grouping Jobs into Functions

Functional Structure: Organizational structure with departments for each part needed to produce goods or services.

Functional Structure: Advantages & Disadvantages

Advantages: Encourages learning, facilitating monitoring and evaluation of work, and creating a structure to monitor the competitive environment.
Disadvantages: Potential for poor communication between departments, and a focus on one department rather than the organization as a whole.

Divisional Structures: Product, Market, and Geographic

Divisional Structure: An organizational structure organized by business units, where functions work together toward a specific product or customer.
- Product Structure: Distinct product lines in separate, self-contained divisions.
- Geographic Structure: Divisions based on geographic locations.
- Market Structure: Divisions based on customer types.

Divisional Structures: Advantages

Product Structure: Allows functional managers to specialize, specialization of division managers, removes corporate supervision, improves resource use, brings managers closer to customers, enabling faster response.
Geographic Structure: Suitable for diverse markets, more responsive to local market needs, and allows for local adaptation.
Market Structure: Allows for responsiveness to specific customer needs.

Matrix Structure

Matrix Structure: Simultaneously groups people and resources by function and product.
Flexibility: Very adaptable design.
Two-Boss Employees: Employees have two managers.
Product Team Structure: Employees are permanently assigned to cross-functional teams, reporting to a product team manager.
Cross-functional Team: Team comprised of employees from diverse departments to achieve organizational tasks.

Allocating Authority

Authority: The power to hold people accountable for their actions and to make decisions about organizational resources.
Hierarchy of Authority: The organization's chain of command; specifies relative authority of each manager.
Span of Control: Number of subordinates who directly report to a manager.
Line Managers: Someone in the direct line of command with formal authority over lower-level employees.
Staff Managers: Someone responsible for managing a specialist function.

Tall and Flat Organizations

Tall Structures: Many levels of authority, narrow spans of control.
- Challenges: Communication difficulty, delays in decision implementation, communication distortion.
Flat Structures: Few levels of authority, wide spans of control.
- Challenges: Potential for overworked managers.
Minimum Chain of Command: Organizing principle that emphasizes maintaining the fewest levels of authority necessary for efficient utilization of organizational resources.

Centralization and Decentralization of Authority

Decentralization: Giving lower-level managers and employees responsibility to make important decisions concerning the use of organizational resources.

Integrating Mechanisms

Used to coordinate tasks and activities across different departments.
- Direct Contact: Managers meet to solve problems collaboratively.
- Liaison Roles: Dedicated roles to facilitate communication among different departments.
- Task Forces: Temporary teams to address specific projects.
- Cross-functional teams: Permanently formed teams of diverse functional areas to achieve a goal, example product launch.
- Integrating roles and departments: Senior managers integrating teams and gathering information from other teams.

Organizational Culture

Definition: Shared beliefs, values, norms, and expectations that shape how employees relate and cooperate to achieve organizational goals.
- Organizational Norms: Specify the kinds of shared beliefs, attitudes, and behaviors employees should observe and follow, and define appropriate approaches to interactions internally and externally.
- Organizational Values: Shared standards to evaluate whether employees contribute to achieving company vision and goals.
Sources of Organizational Culture:
- Organizational characteristics of members
- Organizational ethics
- Organizational structure
- Employment relationships (HR).
Strong Cultures: Help build momentum, enable adaptation.
Weak Cultures: Fail to inspire employees, lead to stagnation

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Description

This quiz explores key concepts in organizational design and job characteristics. It covers job enrichment, job simplification, and the Job Characteristics Model. Test your understanding of how these elements shape effective organizations.