Organizational Structure and Design Basics

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Questions and Answers

What does the term 'unity of command' refer to in an organizational context?

Each person should report to only one manager. (correct)

The collective authority of all managers over employees.

A system where employees select their managers.

Every employee reporting to multiple managers.

Which organizational structure is characterized by being adaptive and flexible?

Functional organization

Organic organization (correct)

Hierarchical organization

Mechanistic organization

In which scenario is centralization typically preferred?

When the organization is large and geographically dispersed.

When lower-level managers have significant decision-making capabilities.

When employees desire more input in organizational decisions.

When the decision-making environment is stable. (correct)

What is 'employee empowerment' in the context of decision-making?

Giving employees more authority to make decisions. Signup and view all the answers

What does formalization indicate in an organization?

The extent to which jobs are standardized and guided by rules. Signup and view all the answers

Which of the following best describes 'span of control'?

The number of employees a manager can effectively manage. Signup and view all the answers

In which situation would an organization likely adopt a decentralized structure?

When significant operational flexibility is required. Signup and view all the answers

What typically drives an organization towards a mechanistic structure?

The need for strict control and clear hierarchies. Signup and view all the answers

What is the primary purpose of organizational design?

To create or change an organization’s structure Signup and view all the answers

What does work specialization involve?

Dividing work activities into separate job tasks Signup and view all the answers

Which term describes the formal arrangement of jobs within an organization?

Organizational structure Signup and view all the answers

What does chain of command clarify?

Who reports to whom within an organization Signup and view all the answers

What is the definition of departmentalization?

The basis by which jobs are grouped together Signup and view all the answers

Which type of authority allows a manager to directly supervise the work of employees?

Line authority Signup and view all the answers

Which element is NOT a part of organizational design?

Employee wellness programs Signup and view all the answers

What does formalization refer to in an organizational context?

The extent to which rules and procedures are followed Signup and view all the answers

Study Notes

Organizational Structure

Organizing is a management function that involves structuring work to achieve organization goals
An organizational structure refers to the formal arrangement of jobs within an organization.
An organizational chart visually represents an organization's structure.
Organizational design refers to creating or changing an organization's structure.

Elements of Organizational Design

Work specialization divides work activities into separate job tasks.
Departmentalization involves grouping jobs based on a shared characteristic, such as function, product, customer, geographic location, or process..
The chain of command refers to the line of authority from upper organizational levels to the lowest, clarifying who reports to whom.
Line authority entitles a manager to direct the work of an employee.
Staff authority supports, assists, and advises those with line authority.
Responsibility is the obligation to perform assigned duties.
Unity of command states that each person should report to only one manager.
Span of control refers to the number of employees a manager can effectively manage.
Centralization concentrates decision-making at higher organizational levels.
Decentralization involves lower-level employees making decisions or contributing to decision-making.
Employee empowerment gives employees more decision-making authority.
Formalization refers to the standardization of jobs and the extent to which employee behavior is guided by rules and procedures.

Mechanistic vs. Organic Structures

A mechanistic organization is rigid, tightly controlled, and uses a centralized decision-making process.
An organic organization is highly adaptive, flexible, and uses more decentralized decision-making.

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Description

This quiz explores key concepts in organizational structure and design, focusing on how to effectively organize work to meet goals. Topics covered include work specialization, departmentalization, and the chain of command. Test your understanding of these essential management functions.