Questions and Answers
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.
jobs
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.
Signup and view all the answers
Work specialization refers to the degree to which tasks in the organization are divided into separate ______ with each step completed by a different person.
Signup and view all the answers
The process of organizing coordinates human efforts, assembles ______, and integrates both into a unified whole.
Signup and view all the answers
One of the purposes of organizing is to establish ______ among individuals, groups, and departments.
Signup and view all the answers
Organizing is a process which clarifies ______ and responsibilities associated with individual jobs.
Signup and view all the answers
Departmentalization by ______ groups jobs on the basis of territory or geography.
Signup and view all the answers
In ______ departmentalization, jobs are grouped by product line.
Signup and view all the answers
______ departmentalization brings together personnel from several specialties to complete limited-life tasks.
Signup and view all the answers
______ departmentalization is used when grouping jobs on the basis of process or customer flow.
Signup and view all the answers
A disadvantage of ______ departmentalization is duplication of functions.
Signup and view all the answers
______ departmentalization allows specialization in particular products and services.
Signup and view all the answers
In ______ departmentalization, customers' needs and problems can be met by specialists.
Signup and view all the answers
______ departmentalization is advantageous for handling specific regional issues that arise.
Signup and view all the answers
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.
Signup and view all the answers
Authority refers to the ______ inherent in a managerial position to tell people what to do and to expect them to do it.
Signup and view all the answers
According to the principle of unity of command, each person should report to only one ______.
Signup and view all the answers
The span of control refers to the number of employees a ______ can efficiently and effectively manage.
Signup and view all the answers
A tall organizational structure is characterised by a relatively narrow span of control and a relatively large number of ______ levels.
Signup and view all the answers
Centralization refers to the degree to which decision-making is concentrated at a single point in the ______.
Signup and view all the answers
Decentralization refers to the degree to which lower-level employees provide ______ or make decisions.
Signup and view all the answers
The width of span of control is affected by factors such as the skills and abilities of the ______.
Signup and view all the answers
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.
Signup and view all the answers
When the environment is stable, organizations tend to have more ______.
Signup and view all the answers
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 ______.
Signup and view all the answers
When lower-level managers are capable and experienced at making decisions, organizations tend to have more ______.
Signup and view all the answers
An organization's structure is an important factor in how effectively it will ______.
Signup and view all the answers
Formalized structures are those in which there are many written ______ and regulations.
Signup and view all the answers
Organizational design involves decisions about six key elements, including formalization and ______.
Signup and view all the answers
When corporate culture is open to allowing managers to have a say in what happens, organizations tend to have more ______.
Signup and view all the answers
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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Learn about the formal arrangement of jobs within an organization, dividing work into specific jobs and departments, and assigning tasks and responsibilities.
