Organizational Structure and Job Specialization Quiz

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Questions and Answers

Which of the following represents a key aspect of creating a structure in an organization?

  • Establishing who reports to whom (correct)
  • Deciding on employee benefits
  • Conducting employee performance reviews
  • Setting financial budgets

What is meant by workflow in the context of organizing?

  • The financial procedures of the organization
  • The allocation of benefits and compensation
  • The communication methods among teams
  • The order in which tasks are completed (correct)

Which of the following is not a function of the organizing process?

  • Defining employee roles
  • Arranging tasks
  • Allocating resources
  • Setting company vision (correct)

How does job specialization improve task efficiency?

<p>By allowing employees to master specific tasks (A)</p> Signup and view all the answers

What is a potential risk of job specialization?

<p>Reduced innovation potential (C)</p> Signup and view all the answers

Which term describes the grouping of employees based on their specialized tasks?

<p>Departmentalization (C)</p> Signup and view all the answers

What defines a line department in an organizational structure?

<p>It can issue instructions to lower-level departments. (B)</p> Signup and view all the answers

What characterizes centralized organizations in terms of decision-making?

<p>Decision-making authority is concentrated at higher levels. (D)</p> Signup and view all the answers

Which statement is true regarding staff departments?

<p>They typically provide support and advice to other departments. (D)</p> Signup and view all the answers

What does a wider span of control indicate about a manager's responsibilities?

<p>The manager supervises a larger number of subordinates. (D)</p> Signup and view all the answers

How does centralization affect the span of control for managers?

<p>Managers have narrower spans of control due to increased workload. (B)</p> Signup and view all the answers

What is one of the advantages of a narrower span of control?

<p>Better supervision and training of each employee. (A)</p> Signup and view all the answers

What is the result of decentralized decision-making authority?

<p>Fewer layers of management. (C)</p> Signup and view all the answers

What typically happens in organizations with a tall structure?

<p>Spans of control are narrower. (B)</p> Signup and view all the answers

What describes the management style in decentralized organizations?

<p>Employees at lower levels can make decisions independently. (B)</p> Signup and view all the answers

Which of the following describes a potential disadvantage of a wider span of control?

<p>Less time for direct supervision of employees. (A)</p> Signup and view all the answers

What does 'span of control' refer to in management?

<p>The number of employees that a manager supervises. (C)</p> Signup and view all the answers

What factor should influence a manager's span of control?

<p>The complexity of tasks being managed. (C)</p> Signup and view all the answers

On what basis are jobs grouped together in the case of 'functional departmentalization'?

<p>Similar activities, skills, or areas of expertise (D)</p> Signup and view all the answers

Which type of departmentalization would be best suited for organizing teams around distinct products?

<p>Product departmentalization (B)</p> Signup and view all the answers

If a company structures its departments based on the region they serve, which type of departmentalization is being used?

<p>Geographical departmentalization (D)</p> Signup and view all the answers

In a manufacturing firm, if a department is organized around different stages of production, what type of departmentalization is being utilized?

<p>Process departmentalization (C)</p> Signup and view all the answers

Which departmentalization type focuses primarily on specific customer needs and segments?

<p>Customer departmentalization (A)</p> Signup and view all the answers

Flashcards

Organizing

The process of systematically arranging resources, tasks, and people to achieve organizational goals.

Organizational Structure

The framework that defines reporting relationships and authority within an organization. It answers the question "Who reports to whom?"

Workflow

The sequence of tasks and activities necessary to complete a specific job or process, answering the question "Who does what in which order?"

Specialization of Labor

A management strategy where each employee has a specific role and function, contributing their specialized skills to the overall success.

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Everybody Doing a Bit of Everything

The situation where every individual in a company is attempting to carry out a diverse array of tasks, leading to inefficiencies.

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Job Specialization

The process of assigning specific tasks to individuals based on their skills and knowledge, creating specialized roles within a company.

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Departmentalization

Grouping employees by their similar skills, functions, or areas of expertise to create efficient work units.

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Task Efficiency

Focusing on a specific set of tasks to develop deep knowledge and proficiency, leading to faster and more accurate work.

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Risks of Job Specialization

The potential downsides of excessive specialization, where employees become too narrow in their skills and lack adaptability.

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Reduced Training Time

When employees are trained in specific areas to perform specialized tasks, reducing overall training time for a wider range of skills.

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Improved Quality and Accuracy

Specialists gain a deeper understanding of their tasks and processes, contributing to higher quality and accuracy in their work.

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Creating Departments

The process of organizing employees into different departments based on shared responsibilities or expertise.

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Staff Departments

Departments that provide support and advice to line departments, but cannot issue instructions to them.

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Line Departments

Departments that are directly involved in achieving the organization's main goals and have the authority to issue instructions to lower levels.

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Span of Control

The number of subordinates a manager directly supervises. A manager with many subordinates has a wide span of control.

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Narrow Span of Control

The number of subordinates directly under a manager is relatively small. This allows for closer supervision and more communication.

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Centralized Organization

The main decision-making authority rests at the top levels of management. Lower levels have little autonomy.

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Decentralized Organization

Decision-making power is distributed throughout different levels of the organization, empowering lower-level managers and employees.

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Advantages of Wide Span of Control

Advantages of a wider span of control include flexibility, reduced costs, faster decision-making for some issues, and greater employee empowerment due to autonomy.

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Advantages of Narrow Span of Control

Advantages of a narrower span of control include better supervision, more direct communication, faster decision-making for some issues, and reduced workloads for managers.

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Factors Affecting Span of Control

Factors that should determine a manager's span of control include the complexity of tasks, skills of subordinates, geographic dispersion, and the manager's experience and leadership style.

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Centralized Decision-Making

In centralized organizations, decisions made at lower levels must get approval from upper management.

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Tall Organizations

Centralized organizations are characterized by a tall pyramid structure where many layers of management exist.

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Span of Control (Centralized)

Managers in centralized organizations are responsible for controlling a smaller number of employees due to the many approval processes.

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Decentralized Decision-Making

In decentralized organizations, employees at lower levels can make decisions independently.

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Flat Organizations

Decentralized organizations have a flat structure with fewer layers of management due to minimal approval processes.

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Span of Control (Decentralized)

Managers in decentralized organizations can manage a greater number of employees as they need less time to review and approve decisions.

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Advantages of Centralization

A centralized structure creates a more structured environment where processes are strictly followed. Employees can focus on specialized tasks, leading to efficiency.

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Advantages of Decentralization

A decentralized structure allows for faster decision-making and greater employee autonomy. This can lead to innovation, but may lack consistency.

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Impact of Structure on Organization

The way an organization structures itself impacts decision-making, employee autonomy, and the layers of management.

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Product Departmentalization

Organizing employees into departments based on the products they handle. Each department focuses on a specific product or product line.

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Geographical Departmentalization

Organizing employees into departments based on their geographic location. Each department manages operations for a specific region or area.

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Functional Departmentalization

Organizing employees into departments based on their function or expertise. Each department specializes in a specific area like marketing, finance, or production.

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Process Departmentalization

Organizing employees into departments based on the stages of a process they handle. Each department focuses on a specific stage of production or service delivery.

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Customer Departmentalization

Organizing employees into departments based on the customer segments they serve. Each department caters to specific customer types or needs.

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Study Notes

Chapter 12: "What Departments Does Your Company Need?"

  • Organizing is the second managerial activity after planning
  • Organizing involves systematically arranging resources, tasks, and people to achieve organizational goals
  • Organizing has two pillars: creating structure and deciding on workflow
  • Structure defines who reports to whom
  • Workflow defines who does what, and in what order
  • In larger organizations, employees are grouped into departments based on similar functions, tasks, or areas of expertise (departmentalization)
  • Benefits of departmentalization include: enhanced collaboration, better communication, efficient resource allocation, and accountability
  • Departments in a hierarchy relate to each other (chain of command)
  • Top management instructs and receives reports from middle management, supervisors, and employees/workers in the traditional organizational structure
  • The chain of command outlines the flow of authority from top managers to lower-level employees
  • "Span of Control" refers to the number of subordinates a manager supervises
  • Wider span of control offers flexibility and cost savings, but can lead to potential issues such as lack of supervision and challenges in communication and coordination
  • Narrower spans of control provide better supervision and communication but can result in more manager layers
  • Factors affecting span of control include task complexity, manager skills, team competence, nature of work (collaboration), decentralization level, communication methods, and geographic dispersion of team members
  • Organizations can be centralized (top management retains decision-making authority) or decentralized (decision-making authority distributed across the organization)
  • Centralized organizations typically have narrower spans of control and more layers of management ("tall" organizations)
  • Decentralized organizations typically have wider spans of control and fewer layers of management ("flat" organizations)
  • Departments can be categorized into cost centers or profit centers
  • Cost centers focus on maintaining low operational costs
  • Profit centers focus on generating revenue and profits
  • A matrix organizational structure combines advantages of functional and divisional structures
  • Employees in a matrix structure report to a functional manager and a divisional manager (e.g., project manager)
  • Team-based structures group employees into self-directed teams for better collaboration, flexibility, and empowerment
  • Virtual structures (also called network structures) rely on distributed teams and external partners for cost-effectiveness and flexibility
  • Workflow management manages tasks, resources, and information in a sequence to meet organizational objectives
  • Workflow management focuses on answering five key questions per task: Task assignment, location decision, scheduling, priority setting, and resource allocation.
  • Interconnected chains of tasks are known as business processes.
  • Workflow management involves determining the order of tasks
  • Workflow management involves task assignment, location decisions, scheduling, priority setting and resource allocation.
  • Workflow management will help an organization reach its goals.

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