Organizational Design Basics: Postgraduate Certification Session 1-2
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Questions and Answers

What is a formal organization?

  • A randomly created social entity
  • A consciously created social entity (correct)
  • An unconsciously created social entity
  • A formally created social entity
  • What is the process by which an organization allocates people and resources to organizational tasks?

  • Role
  • Division of labor
  • Control
  • Differentiation (correct)
  • What is the role of authority in a position within an organization?

  • Establish and control specialization
  • Coordinate and motivate people
  • Hold people accountable and make decisions (correct)
  • Create reporting relationships
  • In a matrix structure, employees report to:

    <p>Both product team manager and functional manager</p> Signup and view all the answers

    What is the process of establishing and controlling the degree of specialization in the organization?

    <p>Division of labor</p> Signup and view all the answers

    Which type of structure consists of people and resources grouped in two ways simultaneously: by function and by project or product?

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

    What is a subunit that consists of a collection of functions or departments that share responsibility for producing a particular good or service?

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

    What is the way an organization designs its hierarchy of authority and creates reporting relationships to link organizational roles and subunits?

    <p>Vertical differentiation</p> Signup and view all the answers

    What is a consciously created interaction pattern pre-mediated in an organization?

    <p>Formal organization</p> Signup and view all the answers

    What is the way an organization groups organizational tasks into roles and roles into subunits?

    <p>Horizontal differentiation</p> Signup and view all the answers

    What is a subunit composed of a group of people, working together, who possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs?

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

    What is the ability to coordinate and motivate people to work in the organization’s interests?

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

    What is the process by which an organization allocates people and resources to organizational tasks?

    <p>Division of labor</p> Signup and view all the answers

    Which type of structure consists of people and resources grouped in two ways simultaneously: by function and by project or product?

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

    What is a subunit composed of a group of people, working together, who possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs?

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

    What is the way an organization groups organizational tasks into roles and roles into subunits?

    <p>Horizontal differentiation</p> Signup and view all the answers

    What is a consciously created interaction pattern pre-mediated in an organization?

    <p>Formal organization</p> Signup and view all the answers

    What is the ability to coordinate and motivate people to work in the organization’s interests?

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

    What is a formal organization?

    <p>A consciously created social entity with an identifiable boundary</p> Signup and view all the answers

    What is the role of authority in a position within an organization?

    <p>The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources</p> Signup and view all the answers

    In a matrix structure, employees report to:

    <p>Two-boss employees</p> Signup and view all the answers

    What is the process of establishing and controlling the degree of specialization in the organization?

    <p>Division of labor</p> Signup and view all the answers

    What is a subunit that consists of a collection of functions or departments that share responsibility for producing a particular good or service?

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

    In organizational design, what does the process of differentiation entail?

    <p>Establishing and controlling the degree of specialization in the organization</p> Signup and view all the answers

    What distinguishes a divisional structure from a functional structure in an organization?

    <p>The way tasks and roles are grouped into subunits</p> Signup and view all the answers

    What characterizes a matrix structure in an organization?

    <p>Grouping of people and resources simultaneously by function and project or product</p> Signup and view all the answers

    What is the primary role of authority in a position within an organization?

    <p>Holding people accountable for their actions and making decisions concerning resources</p> Signup and view all the answers

    What does vertical differentiation refer to in organizational design?

    <p>Designing the hierarchy of authority based on relative rank and authority</p> Signup and view all the answers

    Which type of structure involves employees reporting to two superiors: the product team manager and the functional manager?

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

    What does the process of horizontal differentiation entail in organizational design?

    <p>Grouping organizational tasks into roles and roles into subunits</p> Signup and view all the answers

    What is the main purpose of a formal organization according to the text?

    <p>To create a social entity that exists for continuous management</p> Signup and view all the answers

    What is the role of control in a position within an organization according to the text?

    <p>Coordinating and motivating people to work in the organization's interests</p> Signup and view all the answers

    What characterizes a function in an organizational structure according to the text?

    <p>Group of people with similar skills or knowledge working together</p> Signup and view all the answers

    What does division of labor refer to in organizational design according to the text?

    <p>Process of establishing and controlling the degree of specialization in the organization</p> Signup and view all the answers

    Study Notes

    Formal Organization

    • A formal organization is a structured system of roles and relationships designed to achieve specific goals.
    • It includes official policies and established procedures guiding employee behaviors and interactions.

    Allocation of People and Resources

    • The process involves assigning individuals and resources to various tasks within the organization for efficiency and effectiveness.

    Role of Authority

    • Authority defines the right to make decisions and direct the activities of others within the organization.
    • It establishes a hierarchy, clarifying accountability and responsibility.

    Matrix Structure

    • In a matrix structure, employees report to two superiors: a product team manager and a functional manager, facilitating cross-functional collaboration.

    Specialization Control

    • Establishing and controlling the degree of specialization involves defining specific roles and responsibilities to enhance efficiency and expertise.

    Dual-Functional Structure

    • A type of structure where people and resources are grouped simultaneously by function and by project or product, optimizing resource allocation across different areas.

    Subunit for Goods or Services

    • A subunit consists of a collection of functions or departments focused on a specific product or service, encouraging accountability and specialized performance.

    Hierarchical Design

    • The design of an organization’s hierarchy determines reporting relationships, linking various roles and subunits through an established chain of command.

    Interaction Patterns

    • A consciously created interaction pattern is a pre-mediated structure guiding how members communicate and collaborate within the organization.

    Task Grouping

    • Tasks are grouped into roles, and roles are organized into subunits to ensure specialization and streamline processes.

    Skill-Based Subunit

    • A subunit composes individuals with similar skills or knowledge, working collaboratively to effectively perform tasks related to their expertise.

    Coordination and Motivation

    • The ability to coordinate and motivate individuals aligns their efforts with the organization’s objectives, enhancing overall productivity and morale.

    Differentiation in Organizational Design

    • The process of differentiation involves dividing tasks and roles to specialize activities, enabling better focus and efficiency within departments.

    Divisional vs. Functional Structure

    • Divisional structures group resources based on products or projects, differing from functional structures that organize resources by specific functions or departments.

    Characteristics of Matrix Structure

    • The matrix structure is characterized by dual reporting relationships, balancing project-based outcomes with functional expertise.

    Vertical Differentiation

    • Vertical differentiation refers to the hierarchy levels in an organization, highlighting the chain of command from lower to higher authority.

    Horizontal Differentiation

    • Horizontal differentiation involves grouping roles and departments by common functions or capabilities, promoting specialization at the same organizational level.

    Control Role in Organization

    • Control mechanisms ensure that activities align with organizational goals, monitoring progress and implementing necessary adjustments.

    Function Characteristics

    • A function in an organizational structure is characterized by its specific role in the overall workflow, focused on a particular set of tasks.

    Division of Labor

    • Division of labor refers to the process of breaking down tasks into smaller, specialized roles, improving efficiency and productivity in organizational design.

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    Description

    This quiz covers the fundamentals of organizational design, including the understanding of organizational environment, key elements, types of structures, and design balances. It is intended for students of the postgraduate certification in strategic management. The session also explores the consciously created interaction patterns within an organization.

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