Organizational Design Basics: Postgraduate Certification Session 1-2

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34 Questions

What is a formal organization?

A consciously created social entity

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

Differentiation

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

Hold people accountable and make decisions

In a matrix structure, employees report to:

Both product team manager and functional manager

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

Division of labor

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

Matrix structure

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

Division

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

Vertical differentiation

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

Formal organization

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

Horizontal differentiation

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?

Function

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

Control

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

Division of labor

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

Matrix structure

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?

Function

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

Horizontal differentiation

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

Formal organization

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

Control

What is a formal organization?

A consciously created social entity with an identifiable boundary

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

The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources

In a matrix structure, employees report to:

Two-boss employees

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

Division of labor

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

Divisional structure

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

Establishing and controlling the degree of specialization in the organization

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

The way tasks and roles are grouped into subunits

What characterizes a matrix structure in an organization?

Grouping of people and resources simultaneously by function and project or product

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

Holding people accountable for their actions and making decisions concerning resources

What does vertical differentiation refer to in organizational design?

Designing the hierarchy of authority based on relative rank and authority

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

Matrix structure

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

Grouping organizational tasks into roles and roles into subunits

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

To create a social entity that exists for continuous management

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

Coordinating and motivating people to work in the organization's interests

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

Group of people with similar skills or knowledge working together

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

Process of establishing and controlling the degree of specialization in the organization

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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