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Organizational structure is the formal arrangement of ______ within an organization.
Organizational structure is the formal arrangement of ______ within an organization.
jobs
Organizing can be defined as a process that initiates implementation of plans by clarifying ______, working relationships and effectively deploying resources.
Organizing can be defined as a process that initiates implementation of plans by clarifying ______, working relationships and effectively deploying resources.
jobs
One of the purposes of organizing is to divide work to be done into specific ______ and departments.
One of the purposes of organizing is to divide work to be done into specific ______ and departments.
jobs
Organizational design involves decisions about six key elements, including ______ and decentralization.
Organizational design involves decisions about six key elements, including ______ and decentralization.
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Work specialization refers to the degree to which tasks in the organization are divided into separate ______ with each step completed by a different person.
Work specialization refers to the degree to which tasks in the organization are divided into separate ______ with each step completed by a different person.
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The process of organizing coordinates human efforts, assembles ______, and integrates both into a unified whole.
The process of organizing coordinates human efforts, assembles ______, and integrates both into a unified whole.
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One of the purposes of organizing is to establish ______ among individuals, groups, and departments.
One of the purposes of organizing is to establish ______ among individuals, groups, and departments.
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Organizing is a process which clarifies ______ and responsibilities associated with individual jobs.
Organizing is a process which clarifies ______ and responsibilities associated with individual jobs.
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Departmentalization by ______ groups jobs on the basis of territory or geography.
Departmentalization by ______ groups jobs on the basis of territory or geography.
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In ______ departmentalization, jobs are grouped by product line.
In ______ departmentalization, jobs are grouped by product line.
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______ departmentalization brings together personnel from several specialties to complete limited-life tasks.
______ departmentalization brings together personnel from several specialties to complete limited-life tasks.
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______ departmentalization is used when grouping jobs on the basis of process or customer flow.
______ departmentalization is used when grouping jobs on the basis of process or customer flow.
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A disadvantage of ______ departmentalization is duplication of functions.
A disadvantage of ______ departmentalization is duplication of functions.
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______ departmentalization allows specialization in particular products and services.
______ departmentalization allows specialization in particular products and services.
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In ______ departmentalization, customers' needs and problems can be met by specialists.
In ______ departmentalization, customers' needs and problems can be met by specialists.
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______ departmentalization is advantageous for handling specific regional issues that arise.
______ departmentalization is advantageous for handling specific regional issues that arise.
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The chain of command refers to the continuous line of ______ that extends from upper levels of an organization to the lowest levels of the organization.
The chain of command refers to the continuous line of ______ that extends from upper levels of an organization to the lowest levels of the organization.
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Authority refers to the ______ inherent in a managerial position to tell people what to do and to expect them to do it.
Authority refers to the ______ inherent in a managerial position to tell people what to do and to expect them to do it.
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According to the principle of unity of command, each person should report to only one ______.
According to the principle of unity of command, each person should report to only one ______.
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The span of control refers to the number of employees a ______ can efficiently and effectively manage.
The span of control refers to the number of employees a ______ can efficiently and effectively manage.
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A tall organizational structure is characterised by a relatively narrow span of control and a relatively large number of ______ levels.
A tall organizational structure is characterised by a relatively narrow span of control and a relatively large number of ______ levels.
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Centralization refers to the degree to which decision-making is concentrated at a single point in the ______.
Centralization refers to the degree to which decision-making is concentrated at a single point in the ______.
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Decentralization refers to the degree to which lower-level employees provide ______ or make decisions.
Decentralization refers to the degree to which lower-level employees provide ______ or make decisions.
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The width of span of control is affected by factors such as the skills and abilities of the ______.
The width of span of control is affected by factors such as the skills and abilities of the ______.
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Employee ______ is a management philosophy that emphasizes the importance of giving employees the autonomy, resources and support they need to act independently and be held accountable for the decisions they make.
Employee ______ is a management philosophy that emphasizes the importance of giving employees the autonomy, resources and support they need to act independently and be held accountable for the decisions they make.
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When the environment is stable, organizations tend to have more ______.
When the environment is stable, organizations tend to have more ______.
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The degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures is known as ______.
The degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures is known as ______.
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When lower-level managers are capable and experienced at making decisions, organizations tend to have more ______.
When lower-level managers are capable and experienced at making decisions, organizations tend to have more ______.
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An organization's structure is an important factor in how effectively it will ______.
An organization's structure is an important factor in how effectively it will ______.
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Formalized structures are those in which there are many written ______ and regulations.
Formalized structures are those in which there are many written ______ and regulations.
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Organizational design involves decisions about six key elements, including formalization and ______.
Organizational design involves decisions about six key elements, including formalization and ______.
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When corporate culture is open to allowing managers to have a say in what happens, organizations tend to have more ______.
When corporate culture is open to allowing managers to have a say in what happens, organizations tend to have more ______.
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Study Notes
Organizational Structure
- Organizational structure refers to the formal arrangement of jobs within an organization.
- It is a process that initiates implementation of plans by clarifying jobs, working relationships, and effectively deploying resources for attainment of identified and desired results.
Purposes of Organizing
- Divides work to be done into specific jobs and departments.
- Assigns tasks and responsibilities associated with individual jobs.
- Coordinates diverse organizational tasks.
- Clusters jobs into units.
- Establishes relationships among individuals, groups, and departments.
- Establishes formal lines of authority.
- Allocates and deploys organizational resources.
Organizational Design
- A process involving decisions about six key elements:
- Work specialization
- Departmentalization
- Chain of command
- Span of control
- Centralization and decentralization
- Formalization
Work Specialization
- The degree to which tasks in the organization are divided into separate jobs with each step completed by a different person.
- Overspecialization can result in human diseconomies from boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover.
Departmentalization
- Types of departmentalization:
- Functional
- Product
- Geographic
- Process
- Customer
- Matrix
Functional Departmentalization
- Advantages:
- Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations
- Coordination within functional area
- In-depth specialization
- Disadvantages:
- Poor communication across functional areas
- Limited view of organizational goals
Geographic Departmentalization
- Advantages:
- More effective and efficient handling of specific regional issues that arise
- Serve needs of unique geographic markets better
- Disadvantages:
- Duplication of functions
- Can feel isolated from other organizational areas
Product Departmentalization
- Advantages:
- Allows specialization in particular products and services
- Managers can become experts in their industry
- Closer to customers
- Disadvantages:
- Duplication of functions
- Limited view of organizational goals
Process Departmentalization
- Advantages:
- More efficient flow of work activities
- Disadvantages:
- Can only be used with certain types of products
Customer Departmentalization
- Advantages:
- Customers’ needs and problems can be met by specialists
- Disadvantages:
- Duplication of functions
- Limited view of organizational goals
Matrix Departmentalization
- Advantages:
- Oriented toward end results
- Professional identification is maintained
- Pinpoints product-profit responsibility
- Disadvantages:
- Conflict in organization authority exists, causing uncertainty in reporting relationships
- The possibility of disunity of command exists
- Requires the manager to be the most effective and efficient
Chain of Command
- The continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifies who reports to who.
- Authority, responsibility, unity of command
Span of Control
- Number of employees a manager can efficiently and effectively manage.
- Affects the width (degree) of span of control:
- Skills and abilities of the manager
- Employee characteristics
- Characteristics of the work being done
- Similarity of tasks
- Complexity of tasks
- Physical proximity of subordinates
- Standardization of tasks
Centralization and Decentralization
- Centralization: The degree to which decision-making is concentrated at a single point in the organization.
- Decentralization: The degree to which decision-making is pushed down to the managers who are closest to the action.
- Employee empowerment: Increasing the decision-making discretion of employees (increasing decentralization).
Factors that Influence Centralization or Decentralization
- Factors that influence centralization:
- Environment is stable
- Lower-level managers are not as capable or experienced at making decisions as upper-level managers
- Lower-level managers do not want to have a say in decisions
- Decisions are significant
- Organization is facing a crisis or the risk of company failure
- Company is large
- Effective implementation of company strategies depends on managers retaining say over what happens
- Factors that influence decentralization:
- Environment is complex, uncertain
- Lower-level managers are capable and experienced at making decisions
- Lower-level managers want a voice in decisions
- Decisions are relatively minor
- Corporate culture is open to allowing managers to have a say in what happens
- Company is geographically dispersed
Formalization
- The degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.
- Formalization is the extent to which an organization's policies, procedures, job descriptions, and rules are written and explicitly articulated.
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Description
Learn about the formal arrangement of jobs within an organization, dividing work into specific jobs and departments, and assigning tasks and responsibilities.
