Questions and 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.
empowerment
When the environment is stable, an organization tends to be more ______.
centralized
In a ______ organization, lower-level employees are not given much discretion to make decisions.
centralized
When the environment is complex and uncertain, an organization tends to be more ______.
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Organisational design decisions include factors such as employee ______ and formalization.
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In an organization with high ______, there are many written rules and regulations.
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A company's structure is an important factor in how effectively it will ______.
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The degree to which jobs within the organization are standardized is known as ______.
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In a decentralized organization, decision-making discretion is ______ to lower-level employees.
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When an organization is facing a crisis, it tends to become more ______.
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Study Notes
Organizational Structure
- The formal arrangement of jobs within an organization
- Organizing: a process that initiates implementation of plans by clarifying jobs, working relationships, and effectively deploying resources for attainment of identified and desired results (goals)
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
Types of Departmentalization
- Functional: grouping jobs by functions performed
- Product: grouping jobs by product line
- Geographic: grouping jobs on the basis of territory or geography
- Process: grouping jobs on the basis of product or customer flow
- Customer: grouping jobs by type of customer and needs
- Matrix: teams formed in which individuals report to two or more managers
Departmentalization Advantages and Disadvantages
- Functional: efficiencies from putting together similar specialties, poor communication across functional areas
- Geographic: more effective and efficient handling of specific regional issues, duplication of functions
- Product: allows specialization in particular products and services, duplication of functions
- Process: more efficient flow of work activities, can only be used with certain types of products
- Customer: customers’ needs and problems can be met by specialists, duplication of functions
- Matrix: brings together personnel from several specialties, conflict in organization authority
Chain of Command
- The continuous line of authority that extends from upper levels of an organization to the lowest levels
- Authority: rights inherent in a managerial position to tell people what to do and to expect them to do it
- Responsibility: obligation to perform any assigned duties
- Unity of command: management principle that each person should report only to one manager
Span of Control
- The number of employees a manager can efficiently and effectively manage
- Factors affecting 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
- Tall structure: narrow span of control, many hierarchical levels
- Flat structure: broad span of control, few hierarchical levels
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
Factors Influencing Centralization and Decentralization
- Centralization: stable environment, lower-level managers not capable or experienced, lower-level managers do not want a say in decisions, significant decisions, organization is large, effective implementation of company strategies
- Decentralization: complex and uncertain environment, lower-level managers capable and experienced, lower-level managers want a voice in decisions, relatively minor decisions, corporate culture is open to allowing managers to have a say, company is geographically dispersed
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Description
This quiz covers the definition and process of organizing in an organizational structure, including job arrangements and resource deployment for goal attainment.
