16 Questions
What is authority in an organization?
A right to give orders, make decisions, and take actions because of a position in the organization.
What is the primary difference between centralization and decentralization?
Centralization involves decision-making at upper levels of the organization, while decentralization involves lower-level managers providing input or making decisions.
What factors influence the span of control?
Employee experience and training, similarity of employee tasks, and complexity of those tasks.
What is formalization in an organization?
The extent to which an organization's jobs are standardized and guided by rules and procedures.
What is the relationship between strategy and structure?
Certain structural designs work best with different organizational strategies.
What is the impact of size on an organization's structure?
As an organization grows beyond 2,000 employees, it tends to become more mechanistic.
What role does technology play in an organization?
Technology is used to convert inputs into outputs.
What are the two types of organizational structures?
Organic and Mechanistic.
What is the primary function of organizing in an organization?
Creating the organization's structure
What is the process of making decisions about how specialized jobs should be, the rules to guide employees' behaviors, and the level at which decisions will be made?
Organization design
What is the result of dividing work activities into separate job tasks?
Work specialization
What is the purpose of departmentalization in an organization?
To group common work activities together to achieve coordinated and integrated work
What is the term for the line of authority extending from upper to lower organizational levels?
Chain of command
What is the difference between line authority and staff authority?
Line authority involves direct supervision, while staff authority provides support and advice to line managers
What is the purpose of staff authority functions in an organization?
To support, assist, and advise line managers, reducing their informational burdens
What is the key difference between authority and power?
Authority is based on a manager's position, while power is based on influence and persuasion
Study Notes
Organizational Structure and Design
- Organizing is the management function that creates an organization's structure, which involves making decisions about job specialization, departmentalization, authority, and span of control.
- Organizational design is the process of making decisions about how specialized jobs should be, the rules to guide employees' behaviors, and the level at which decisions will be made.
Elements of Organizational Structure
- Work specialization: dividing work activities into separate job tasks to increase efficiency.
- Departmentalization: grouping common work activities together to ensure coordination and integration.
- Authority and responsibility: clarifying who reports to whom and establishing the chain of command.
- Span of control: determining how many employees a manager can effectively supervise.
- Centralization vs. decentralization: deciding whether decision-making authority should be held at upper levels or distributed among lower-level managers.
- Formalization: standardizing jobs and guiding employee behavior through rules and procedures.
Authority and Power
- Authority: the right to give orders and expect obedience, based on a manager's position in the organization.
- Power: an individual's ability to influence decisions, which may not be based on their position.
Types of Authority
- Line authority: the right to direct the work of an employee according to the chain of command.
- Staff authority: supporting, assisting, and advising line managers to reduce their informational burdens.
Span of Control
- The most effective and efficient span of control depends on employee experience and training, task similarity, and task complexity.
Centralization and Decentralization
- Centralization: decision-making authority is held at upper levels of the organization.
- Decentralization: lower-level managers provide input or make decisions.
Formalization
- The degree to which an organization's jobs are standardized and employee behavior is guided by rules and procedures.
Models of Organizational Design
- Different structural designs are suited to different organizational strategies.
- The size and technology of an organization can influence its structural design, with larger organizations tending towards mechanistic structures and smaller organizations towards organic structures.
This quiz covers the management function of organizing, creating an organization's structure, and the process of organizational design. It includes elements of organizational structure and decision-making.
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