Podcast
Questions and Answers
Which factor is most likely to directly impact the structure of an organization?
Which factor is most likely to directly impact the structure of an organization?
How does the changing nature of tasks and demands affect organizational structure?
How does the changing nature of tasks and demands affect organizational structure?
Which of the following is NOT an influencing factor on an organization’s structure?
Which of the following is NOT an influencing factor on an organization’s structure?
In what way can the personality of a manager influence organizational structure?
In what way can the personality of a manager influence organizational structure?
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Which of the following most accurately represents a reason why organizations might undergo structural changes?
Which of the following most accurately represents a reason why organizations might undergo structural changes?
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What is a characteristic feature of a simple organizational design?
What is a characteristic feature of a simple organizational design?
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In a simple organizational design, which statement is true regarding employee roles?
In a simple organizational design, which statement is true regarding employee roles?
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How does the role of the owner typically relate to management in a simple organizational design?
How does the role of the owner typically relate to management in a simple organizational design?
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What is a major implication of having a single manager with a wide range of control in a simple organizational design?
What is a major implication of having a single manager with a wide range of control in a simple organizational design?
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What is a potential drawback of the simple organizational design due to its structural characteristics?
What is a potential drawback of the simple organizational design due to its structural characteristics?
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Study Notes
Simple Organizational Design
- This design is common for new businesses.
- It features a small number of departments.
- Each department reports to one manager who has broad control and authority.
- The business owner often acts as the manager.
- The manager oversees a majority of operations.
Organizational Structure Advancement
- Organizational structures can change based on:
- Manager's personality
- Changing demands of tasks
- Organizational environment
- Changes in members
- New technologies, customer demands, supplier activities, and social/political systems can influence organizational design.
### Traditional Theories
- Refer to older, conventional organizational design approaches.
- Include simple, functional, and divisional organizational designs.
Simple Organizational Design: Advantages
- Managers make quick decisions.
- Accountability is distinct.
- The structure is flexible.
Simple Organizational Design: Disadvantages
- Overdependence on one manager for many tasks.
- The design needs to be changed as the business grows.
Functional Design
- This design emphasizes departmentalization by grouping similar specialties or units together.
- Department groupings can occur based on:
- Activities
- Skill/expertise
- Resources
- Products/services
- Customer types
Functional Design: Advantages
- Each department focuses on a particular area of work due to specialization.
- This focus allows for mastery of skills, leading to increased productivity and speed.
- Clear lines of management create clear accountability.
- Employees have a clear understanding of their own and others' roles.
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Description
Explore key concepts and theories related to organizational design, including simple structures and their advantages and disadvantages. Understand how various factors, such as technology and management style, impact the evolution of organizational frameworks.
