Podcast
Questions and Answers
What type of environment favors decentralization according to the text?
What type of environment favors decentralization according to the text?
Which of the following is NOT a factor that influences the amount of centralization?
Which of the following is NOT a factor that influences the amount of centralization?
What does low formalization within an organization imply about employee behavior?
What does low formalization within an organization imply about employee behavior?
In which scenario is centralization likely favored based on the text?
In which scenario is centralization likely favored based on the text?
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When are highly formalized jobs most likely to be present in an organization?
When are highly formalized jobs most likely to be present in an organization?
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What type of organizational structure is most effective in stable and simple environments?
What type of organizational structure is most effective in stable and simple environments?
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In Woodward's classification, which type of technology is associated with organic organizations?
In Woodward's classification, which type of technology is associated with organic organizations?
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What type of structure is needed for an organization focusing on tightly controlling costs?
What type of structure is needed for an organization focusing on tightly controlling costs?
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As an organization grows larger, what tends to change in its structure?
As an organization grows larger, what tends to change in its structure?
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Which type of environment is best suited for an organic organizational structure?
Which type of environment is best suited for an organic organizational structure?
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When an organization imitates market leaders to maximize profitability, what elements are required in its structure according to the text?
When an organization imitates market leaders to maximize profitability, what elements are required in its structure according to the text?
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What is the main purpose of work specialization in organizational structure?
What is the main purpose of work specialization in organizational structure?
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What are some potential negative outcomes of overspecialization in an organization?
What are some potential negative outcomes of overspecialization in an organization?
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Which of the following is NOT a key element in organizational design decisions?
Which of the following is NOT a key element in organizational design decisions?
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What does departmentalization involve in organizational design?
What does departmentalization involve in organizational design?
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Why is a proper chain of command crucial in organizational design?
Why is a proper chain of command crucial in organizational design?
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How does centralization differ from decentralization in organizational design?
How does centralization differ from decentralization in organizational design?
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What is a key advantage of a boundaryless structure?
What is a key advantage of a boundaryless structure?
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In a team structure, what is the composition of the entire organization?
In a team structure, what is the composition of the entire organization?
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What characterizes a matrix or project structure?
What characterizes a matrix or project structure?
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What is the primary aim of a boundaryless organization?
What is the primary aim of a boundaryless organization?
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What type of organizational design eliminates the chain of command and uses empowered teams instead of departments?
What type of organizational design eliminates the chain of command and uses empowered teams instead of departments?
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Which organizational structure type draws on talent wherever it is found and is highly flexible?
Which organizational structure type draws on talent wherever it is found and is highly flexible?
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What type of organization consists of a small core of full-time employees and hires specialists temporarily?
What type of organization consists of a small core of full-time employees and hires specialists temporarily?
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In a network organization, what does the small core organization do with its major business functions?
In a network organization, what does the small core organization do with its major business functions?
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What type of organization uses outside suppliers to provide product components for its final assembly operations?
What type of organization uses outside suppliers to provide product components for its final assembly operations?
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What are the characteristics of a learning organization?
What are the characteristics of a learning organization?
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Which organizational design challenge involves managing the cultural implications of design elements?
Which organizational design challenge involves managing the cultural implications of design elements?
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What is the key practice that helps an organization continuously learn, adapt, and change?
What is the key practice that helps an organization continuously learn, adapt, and change?
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Study Notes
Factors Influencing Centralization and Decentralization
- Complex and uncertain environment favors decentralization
- Lower-level managers being capable and experienced in decision-making favors decentralization
- Lower-level managers wanting a voice in decisions favors decentralization
- Significant decisions favor decentralization
- Open corporate culture favors decentralization
- Geographically dispersed companies favor decentralization
Formalization
- Highly formalized jobs offer little discretion over what is to be done
- Low formalization means fewer constraints on how employees do their work
Organizational Design Types
- Virtual Organization: a small core of full-time employees with temporary hires for opportunities
- Network Organization: a small core organization that outsources major business functions
- Modular Organization: a manufacturing organization that uses outside suppliers for product components
Organizational Design Challenges
- Keeping employees connected in a dispersed and mobile workforce
- Building a learning organization
- Managing global structural issues and cultural implications
The Learning Organization
- An organization that continuously learns, adapts, and changes through knowledge management
- Characteristics: open team-based organization design, extensive information sharing, leadership with a shared vision, and a strong culture of shared values and trust
Strategy and Structure
- Achievement of strategic goals is facilitated by changes in organizational structure
- Cost minimization requires a mechanistic structure
- Imitation requires both organic and mechanistic elements in the organization's structure
Size and Structure
- As an organization grows, its structure tends to change from organic to mechanistic with increased specialization, departmentalization, centralization, and rules
Technology and Structure
- Organizations adapt their structures to their technology
- Woodward's classification: unit production, mass production, and process production
- Routine technology = mechanistic organizations, non-routine technology = organic organizations
Environmental Uncertainty and Structure
- Mechanistic structures are effective in stable and simple environments
- Organic structures are better suited for dynamic and complex environments
Contemporary Organizational Designs
- Boundaryless Structure: highly flexible and responsive, draws on talent wherever it's found
- Team Structures: the entire organization is made up of work groups or self-managed teams of empowered employees
- Matrix and Project Structures: specialists from different functional departments are assigned to work on projects led by project managers
- Boundaryless Organization: an flexible and unstructured organizational design that breaks down external barriers between the organization and its customers and suppliers
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Description
Test your knowledge about organizational structure and design, including key elements such as work specialization, departmentalization, chain of command, span of control, centralization, decentralization, and formalization. Learn about the purposes of organizing and how it divides work into specific jobs and departments.
