Organizational Structure & Design

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Questions and Answers

In organizational design, what is the primary goal of 'differentiation'?

  • To centralize decision-making processes for efficiency.
  • To establish clear lines of authority and rank within the organization.
  • To create a standardized set of rules and norms.
  • To allocate people and resources to organizational tasks and establish authority relationships. (correct)

When decision-making authority is delegated to managers throughout the organization, this is known as:

  • Formalization
  • Standardization
  • Decentralization (correct)
  • Centralization

What does 'vertical differentiation' in an organization refer to?

  • The specialization of tasks among employees.
  • The degree to which an organization relies on formal written rules and procedures.
  • The distribution of authority between different levels of the organization. (correct)
  • The grouping of organizational tasks to enable specialization.

How does 'horizontal differentiation' contribute to organizational structure?

<p>It groups organizational tasks to enable employee specialization. (C)</p> Signup and view all the answers

What is the primary focus of the 'strategic apex' in an organization?

<p>Ensuring the organization follows its mission and managing its environment. (B)</p> Signup and view all the answers

Which part of an organization is primarily concerned with converting strategic objectives into operational plans?

<p>Middle Line (A)</p> Signup and view all the answers

Which element of an organization is responsible for conducting the activities necessary to deliver outputs?

<p>The Operating Core (C)</p> Signup and view all the answers

What is the main function of the 'Technostructure' within an organization?

<p>To standardize skills and seek the best ways to do the job. (B)</p> Signup and view all the answers

What type of activities are typically carried out by the 'Support Staff' in an organization?

<p>Administrative functions that contribute to efficiency and effectiveness. (B)</p> Signup and view all the answers

Which of Mintzberg's configurations is characterized by centralized power and minimal technostructure?

<p>Simple Structure (A)</p> Signup and view all the answers

What organizational structure is known for its highly formalized procedures and centralized decision-making?

<p>Machine Bureaucracy (D)</p> Signup and view all the answers

In which of Mintzberg's configurations do highly trained professionals have significant control over their work?

<p>Professional Organization (D)</p> Signup and view all the answers

What is a key characteristic of a 'Divisional Organisation'?

<p>Autonomous divisions with decentralized decision-making. (C)</p> Signup and view all the answers

Which type of organizational configuration is best suited for creativity and innovation, with a decentralized structure?

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

In the context of organizational design, what does 'formalization' refer to?

<p>The degree to which standardized rules and procedures govern organizational activities. (A)</p> Signup and view all the answers

What is the primary focus of 'regulated control flows' within an organization?

<p>The formal control system regulating vertical information and decision-making. (D)</p> Signup and view all the answers

What is the main purpose of 'regulated staff information flows' in an organization?

<p>To provide staff with information and advice. (A)</p> Signup and view all the answers

Which type of organizational decision is described as being taken routinely and executed quickly?

<p>Operating decisions (A)</p> Signup and view all the answers

How do 'administrative decisions' differ from 'strategic decisions' in organizational design?

<p>Administrative decisions guide operating decisions; strategic decisions impact the entire organization. (A)</p> Signup and view all the answers

Which of the following best characterizes 'Ad Hoc' decisions in the context of organizational design?

<p>They are a mix of different types of decisions. (C)</p> Signup and view all the answers

What is the main purpose of 'job specialization' as a design parameter?

<p>To divide labor by assigning each employee to a specific task. (A)</p> Signup and view all the answers

Which design parameter involves grouping employees together based on specific tasks to coordinate work?

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

What does 'span of control' refer to as a design parameter?

<p>The number of subordinates a manager manages directly. (C)</p> Signup and view all the answers

Why is 'behavior formalization' important in organizational design?

<p>It specifies the relationships and roles within the company. (C)</p> Signup and view all the answers

Which design parameter defines the level at which decision-making occurs within the organization?

<p>Centralization vs. Decentralization (D)</p> Signup and view all the answers

Flashcards

Organizational structure

Dividing work into various tasks and coordinating them to achieve organizational goals.

Mutual Adjustment

Coordinating work by informal communication and understanding between individuals.

Direct Supervision

Coordination achieved through direct oversight and instruction.

Standardization of Work Processes

Ensuring uniformity by regulating the work process and procedures.

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Standardization of Work Outputs

Setting specific metrics workers must achieve.

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Standardization of Worker Skills

A focus on the skills workers need to preform a task.

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Strategic Apex

Ensuring the organization's mission is followed and managing relationship with its environment.

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Middle Line

Managers converting strategic plans into operational plans.

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Operating Core

Workers carrying out the activities for outputs.

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Technostructure

Analysts standardizing skills and specifying output criteria.

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Support Staff

Workers performing administrative functions.

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Simple Structures

Organizational structures that are simple and centralized.

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Machine Bureaucracy

Organizations with formalized procedures, rules, and communication.

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Professional Organization

Organizations with highly trained professionals having control over their work.

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Divisional Organization

Organizations with independent business units and decentralized decision-making.

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Adhocracy

Organizations with organic structure, decentralized power, and multidisciplinary teams.

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Centralized

Authority concentrated at the top.

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Decentralized

Authority delegated to managers.

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Differentiation

Allocating people/resources to tasks and establishing authority relationships.

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Vertical Differentiation

The distribution of authority between levels in an organization..

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Horizontal Differentiation

Grouping similar tasks to enable specialization.

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Regulated control flows

Formal system of authority.

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Operating Work Flow

Movements of materials and info.

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Regulated Staff Information Flows

Communication for staff support.

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Work Specialization

assigning each employee to a specific task

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Study Notes

  • Organizational Theory
  • Professor: Ivonne P. Cadavid
  • BUS 358E

Organizational Structure and Design

  • Introduction
  • Coordination in 5 parts
  • The Organization in 5 parts
  • Minzberg's Organizational Configurations
  • The Organization as a System of flows
  • Design Parameters

Introduction

  • Every organized human activity requires division of labor and task coordination
  • Organizational structure the formal system of task and authority relationships that control how people coordinate

Coordination in Five Parts:

  • Mutual Adjustment
  • Direct Supervision
  • Standardization of Work Processes
  • Standardization of Work Outputs
  • Standardization of Worker Skills

Organization in Five Parts:

  • Strategic Apex: Top management ensures mission adherence and manages environment relationship
  • Middle Line: Group of managers convert apex plans to operational plans
  • Operating Core: Carries out activities to deliver outputs
  • Technostructure: Analysts standardize job skills like HR, Training, Finance
  • Support Staff: Administrative functions that contribute to overall effectiveness, like PR, legal, and R&D

Mintzberg's Organizational Configurations:

  • Simple Structures
  • Machine Bureaucracy
  • Professional Organization
  • Division Organization
  • Ad-Hocracy/ Idealistic Organization

Centralized and Decentralized Organizations

  • Centralized: Authority to make important decisions at the top
  • Decentralized: Authority delegated to managers

Differentiation

  • Differentiation: process the organization allocates people and resources to organizational tasks
  • Establishes the task and authority relationships that allow it to achieve its goals.
  • Vertical Differentiation: Distribution of authority between levels
  • Horizontal Differentiation: Grouping of tasks to enable employee specialization

Division of labor

  • Division of Labor: Process of establishing and controlling specialization

Organizational Roles

  • Organizational role: Behavior required for a position in the organization

Authority

  • Authority: Power to hold people accountable and make organization decisions

Hierarchy

  • Hierarchy: Classification of employees based on authority and rank

Standardized and Formalized Organizations

  • Standardized: Defined by rules and norms
  • Formalization: Written rules/procedures to standardize operations

Division of labor

  • Division of Labor: Establishing / controlling specialization degree

Organic and Mechanistic Structures

  • Organic structures: Promote flexibility for quick adaptation
  • Mechanic structures: Designed for predictable and accountable behavior

Characteristics of Simple Structures:

  • Centralized power from strategic apex
  • Little to NO technostructure
  • Few support staffers
  • Loose labor division
  • Low differentiation
  • Small managerial hierarchy

Characteristics of Machine Bureaucracy:

  • Very formalized procedures & communication
  • Centralized decision-making
  • Functional task grouping
  • Clearly defined jobs
  • Tight vertical structure
  • Examples: Large scale car manufacturing plants, government

Characteristics of Professional Organization:

  • Bureaucratic
  • Relies on highly trained professionals that demand control
  • High specialization
  • Decentralized decisions
  • Clear authority lines
  • Standardized procedures
  • Examples: Schools, Universities, law firms and hospitals

Characteristics of Divisional Organization

  • Organization with different product lines & business units
  • Decentralized decisions
  • Has division structures
  • Central headquarters supporting autonomous divisions
  • Multinational corporations are examples

Characteristics of Adhocracy

  • Organic structure with decentralized power
  • Specialists forming multi-disciplinary teams
  • Non-standardized
  • Lack of structured coordination to promote creativity
  • Pharmaceutical and tech industries are examples

Organization as a System of Flows:

  • Shows positions in organization, groups, & authority flow
  • Interconnected through flows of authority, work materials, information, & decisions

THREE DISTINCTION FLOWS IN A REGULATED SYSTEM:

  • Operating Work Flow: materials and information in combinations; input, processing and output functions
  • Regulated Control Flows: regulates vertical flows; chain of authority
  • Regulated Staff Information Flows: Communication flow between line and staff; purpose to feed the staff information and advice

The Organizational Design Process:

  • Operating decisions: Routine and quick decisions
  • Administrative decisions: guide/coordinate operating decisions
  • Strategic decisions: Significant impact; least routine
  • Ad Hoc: Mix of decision types.

Design Parameters:

  • Job Specialization: division of labor
  • Behavior formalization: standardization of work content
  • Training/Indoctrination: Standardization of skills
  • Vertical vs. Horizontal decentralization
  • Unit Grouping: Direct supervision, admin division, formal authority, regulated flows, informal communication
  • Unit size: system of informal communication, direct supervision
  • Planning/control systems: Standardization of outputs
  • Liaison devices: informal communication
  • Work Specialization: assigns each worker to a task
  • Departmentalization/compartments: groups employees to coordinate
  • Formalization: Specifies roles within company
  • Centralization vs. Decentralization: decision-making level
  • Span of Control: Subordinates per manager
  • Chain of Command: Hierarchy

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