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?
- The historical success of the company
- The loyalty of the employees
- The organizational environment (correct)
- The profitability of the 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?
- It has no significant effect on the structure.
- It may lead to a more rigid structure.
- It can cause a shift towards a hierarchical approach.
- It often results in a decentralized structure. (correct)
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?
- Employee's job satisfaction (correct)
- Manager's personality
- Changing nature of tasks and demands
- Members comprising the organization
In what way can the personality of a manager influence organizational structure?
In what way can the personality of a manager influence organizational structure?
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?
What is a characteristic feature of a simple organizational design?
What is a characteristic feature of a simple organizational design?
In a simple organizational design, which statement is true regarding employee roles?
In a simple organizational design, which statement is true regarding employee roles?
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?
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?
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.
###Â 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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