Questions and Answers
What is the primary purpose of organizational structure?
To establish working relationships among employees to achieve organizational goals efficiently and effectively
What does an organization chart primarily reflect?
Working relationships among employees
What is the key concern of organizational structure?
Task and reporting relationships
Why do managers need to coordinate jobs, functions, and divisions within an organization?
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What is the formal system of task and reporting relationships within an organization known as?
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What is the purpose of a product team structure?
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What is the risk associated with decentralizing authority?
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What does the minimum chain of command principle state?
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What is a strategic alliance in the context of business?
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What is the purpose of a boundaryless organization?
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What are the four important determinants of organizational structure selection?
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What characterizes nonroutine technology?
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What type of organizational structure favors a highly skilled workforce and teamwork?
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What is the aim of job enrichment?
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What does job simplification involve?
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What are the five characteristics outlined in the Job Characteristics Model by Hackman and Oldham?
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What is a potential drawback of a functional organizational structure?
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What distinguishes a matrix structure from other organizational structures?
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Why are matrix structures commonly used in high-tech companies?
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What is the primary focus of the Market organizational structure?
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Study Notes
Designing Organizational Structure and Job Characteristics
- Managers who increase job enrichment and enlargement lead to flexible and creative worker behavior.
- The Job Characteristics Model by Hackman and Oldham outlines five characteristics that determine job motivation: skill variety, task identity, task significance, autonomy, and feedback.
- Organizational structure is designed based on the environment, strategy, technology, and human resources, with options such as functional, divisional, matrix, or product team structures.
- Functional structure groups jobs into departments based on similar skills or knowledge, allowing for learning and easy monitoring, but it can hinder communication and goal alignment.
- Divisional structures include product, market, and geographic, offering specialization and resource optimization but may lead to coordination challenges.
- Product structure places distinct product lines in separate divisions, allowing for specialization, expertise, and resource management.
- Geographic structure serves regions with self-contained divisions, and global geographic structure involves divisions in each world region.
- Market structure tailors products to customer demands and allows for responsiveness to changing customer needs.
- Matrix structure simultaneously groups people by function and product, resulting in a flexible network of reporting relationships and empowerment of product teams.
- Matrix structures are commonly used in high-tech companies for frequent new product development and the need for quick innovation.
- Organizational structure decisions are crucial for matching the organization's needs and can impact communication, coordination, and alignment of goals.
- The Job Characteristics Model provides a framework for managers to make jobs more motivating by considering skill variety, task identity, task significance, autonomy, and feedback.