Organizational Design Chapter 7

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Questions and Answers

Organizational design requires a manager to:

  • decide who leads a group within an organization
  • change the culture of an organization
  • change or develop the structure of an organization (correct)
  • change the logo of an organization

All of the following are part of the process of organizational design EXCEPT:

  • deciding how specialized jobs should be
  • determining the level at which decisions are made
  • determining rules for employee behavior
  • determining goals for the organization (correct)

Which one of the following is synonymous with work specialization?

  • job discrimination
  • job preference
  • division of labor (correct)
  • chain of command

Functional departmentalization groups jobs by:

<p>tasks they perform (D)</p> Signup and view all the answers

A soap company that features a bath soap department, a laundry detergent department, and a dish soap department is using which one of the following?

<p>product departmentalization (D)</p> Signup and view all the answers

The line of authority that extends from the upper levels of management to the lowest levels of the organization is termed the:

<p>chain of command (A)</p> Signup and view all the answers

Today, managers favor this approach with regard to work specialization:

<p>Employees specialize to maintain efficiency. (D)</p> Signup and view all the answers

Which one of the following pairs includes items that are NOT basic elements of organizational design?

<p>chain of command, line authority (A)</p> Signup and view all the answers

Early supporters of work specialization saw it as:

<p>a reliable way to increase productivity (D)</p> Signup and view all the answers

Authority gives an individual the right to do this:

<p>give orders (C)</p> Signup and view all the answers

Which one of the following would likely be found in mechanistic organizations?

<p>standardized jobs (D)</p> Signup and view all the answers

Unity of command prevents an employee from:

<p>all of the above (D)</p> Signup and view all the answers

An organization that adapts to environmental changes is likely:

<p>decentralized (B)</p> Signup and view all the answers

Which organizational structure has no formal hierarchy?

<p>Boundaryless (B)</p> Signup and view all the answers

Which of the following is a major disadvantage of a divisional structure?

<p>Duplication of resources (C)</p> Signup and view all the answers

Organizations with high degrees of formalization are:

<p>Bureaucratic (B)</p> Signup and view all the answers

What kind of structure focuses on projects and temporary groupings?

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

A traditional top-down organization is characterized as:

<p>Highly centralized (C)</p> Signup and view all the answers

Which type of organization eliminates boundaries?

<p>Boundaryless (C)</p> Signup and view all the answers

Flashcards

Organizational Design

The process of changing or developing an organization's structure.

Work Specialization

The process of dividing tasks into specialized jobs.

Functional Departmentalization

Grouping jobs based on tasks performed.

Product Departmentalization

Grouping jobs based on products or services offered.

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Chain of Command

The line of authority from top to bottom of an organization.

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Efficiency in Specialization

Employees specialize in tasks to increase efficiency.

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Basic Elements of Design

Key factors like work specialization and span of control.

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Authority

The right to give orders and make decisions.

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Mechanistic Organization

An organization with standardized jobs and a rigid structure.

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Unity of Command

The principle that an employee should report to only one supervisor.

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Decentralization

An organizational structure that distributes authority at all levels.

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Boundaryless Organization

An organization that has no formal hierarchy or boundaries.

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Disadvantage of Divisional Structure

Duplication of resources across departments.

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Formalization

The extent to which policies, procedures, and rules are documented.

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Matrix Structure

An organizational form that groups employees by both function and project.

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Top-Down Organization

An organization with a highly centralized decision-making process.

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Team Structure

An organization structured around teams rather than hierarchies.

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Standardized Jobs

Roles that are clearly defined and uniform across the organization.

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Duplication of Resources

When multiple divisions perform the same functions leading to inefficiency.

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Adaptation to Changes

The ability of an organization to respond to its environment.

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Elements of Organizational Design

Aspects such as work specialization and departmentalization.

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Goals for the Organization

Strategic aims that guide an organization’s activities.

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Span of Control

The number of subordinates a manager oversees.

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Core Job Functions

Essential tasks required to achieve departmental goals.

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Decentralized Responsibility

Authority spread out to various levels, encouraging decision-making.

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Bureaucratic Organizations

Organizations characterized by rigid procedures and formal rules.

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Project-Based Structure

An organizational structure focusing on temporary projects and groupings.

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Job Discrimination

Unfair treatment of employees based on personal characteristics.

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Chain of Responsibility

The progression of authority and responsibility down the organization.

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Organizational Design Role

The managerial task of changing the organization's structure.

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Work Specialization Purpose

Dividing tasks to improve efficiency and productivity.

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Deciding Job Specialization

Determining how specific jobs are focused within an organization.

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Mechanistic Organization Traits

Characterized by rigid structures and standardized jobs.

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Unity of Command Importance

Prevents employees from having multiple supervisors.

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Centralization vs Decentralization

Centralization concentrates authority, decentralization distributes it.

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Boundaryless Organization Features

An organization without formal hierarchies or boundaries.

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Duplication of Resources Problem

Occurs in divisional structures leading to inefficiency.

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High Formalization Nature

Organizations with many rules and policies documented.

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Team Structure Focus

An organizational form centered around collaborative teams.

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Disadvantage of Functional Structure

Can lead to lack of communication between departments.

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Project-Based Structure Characteristics

An organization that emphasizes projects and teamwork.

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Role of Authority

The legitimate right to make decisions and give orders.

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Standardized Jobs Feature

Roles that are uniform and strictly defined.

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Adaptability in Organizations

The capacity to adjust to environmental changes.

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Division of Labor Synonym

Known as work specialization, dividing tasks among workers.

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Job Discrimination Definition

Unfair treatment based on personal attributes in job roles.

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Types of Departmentalization

Methods like functional, product, and customer to group jobs.

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Span of Control Meaning

The number of employees supervised by a manager.

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Chain of Responsibility Concept

The flow of authority and accountability in an organization.

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Empowered Employees Feature

Employees with autonomy to make decisions.

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Bureaucratic Organization Traits

Highly structured with rigid procedures and controls.

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Standard Operating Procedures

Documented methods to carry out tasks in bureaucracy.

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Environmental Adaptation Definition

An organization's ability to adjust to external changes.

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Conflict Resolution in Unity of Command

Prevents conflicting orders for efficient operation.

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Study Notes

Multiple Choice Questions - Chapter 7

  • Organizational Design requires managers to change or develop the structure of an organization, not just the logo or culture.

  • Organizational Design Process excludes determining goals for the organization, but includes deciding job specialization levels, employee behavior rules, and decision-making levels.

  • Work Specialization is synonymous with division of labor.

  • Functional Departmentalization groups jobs based on tasks performed.

  • Product Departmentalization is used by a soap company that separates bath soap, laundry detergent, and dish soap into different departments, rather than customer or territory-based grouping.

  • Chain of Command defines the line of authority extending from upper to lower levels of management.

  • Work Specialization is favored by managers emphasizing efficiency.

  • Basic Elements of Organizational Design excludes "chain of command" and "line authority" as pairs, but includes work specialization, span of control, centralization, decentralization, and departmentalization, and formalization.

  • Early Work Specialization Supporters saw it as a reliable way to increase productivity rather than for employee morale or as a source of innovation.

  • Authority grants the right to give orders.

  • Functional Departmentalization groups jobs by tasks performed.

  • Mechanistic Organizations are characterized by standardized jobs.

  • Unity of Command prevents employees from having multiple supervisors or conflicting orders, ensuring a clear line of authority.

  • Adaptable Organizations are more likely decentralized to respond to environmental changes, leading to greater flexibility.

  • Boundaryless Organization has no formal hierarchy, facilitating adaptability and collaboration.

  • Disadvantages of Divisional Structure can include duplication of resources, poor adaptability, lack of innovation, and inefficient decision-making

  • Formalized Organizations are characterized as bureaucratic, rigid, and less adaptable.

  • Project-Focused Structures (e.g., Matrix Structures) focus on projects and temporary groupings.

  • Traditional Top-Down Organizations are characterized as highly centralized, not decentralized, informal, or collaborative.

  • Boundaryless Organizations eliminate organizational boundaries, exceeding the matrix, team, and functional organizational types.

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