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Questions and Answers
Which characteristic is NOT typically associated with organic organizational designs?
Which characteristic is NOT typically associated with organic organizational designs?
A functional organizational structure is primarily defined by which of the following?
A functional organizational structure is primarily defined by which of the following?
In a virtual organization, what is the role of core employees?
In a virtual organization, what is the role of core employees?
Which of the following organizational designs often employs a project manager to oversee staffing from various functions?
Which of the following organizational designs often employs a project manager to oversee staffing from various functions?
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What key feature differentiates a simple organizational structure from a divisional structure?
What key feature differentiates a simple organizational structure from a divisional structure?
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What risk is associated with overspecialization in work activities?
What risk is associated with overspecialization in work activities?
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Which type of departmentalization groups jobs based on geographic location?
Which type of departmentalization groups jobs based on geographic location?
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What is the principle of unity of command in organizational structure?
What is the principle of unity of command in organizational structure?
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In which type of organization is decision-making primarily concentrated at the upper levels?
In which type of organization is decision-making primarily concentrated at the upper levels?
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Which element of organizational structure involves standards and explicit procedures governing job roles?
Which element of organizational structure involves standards and explicit procedures governing job roles?
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Which characteristic is NOT typical of a mechanistic organizational structure?
Which characteristic is NOT typical of a mechanistic organizational structure?
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What does the span of control in an organization refer to?
What does the span of control in an organization refer to?
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Which statement best describes decentralization in an organizational context?
Which statement best describes decentralization in an organizational context?
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Study Notes
Organizational Structure
- Organizational structure is the formal arrangement of jobs within an organization.
- Organizational chart visually represents the organization's structure.
Key Elements of Organizational Structure
- Work Specialization (Division of Labor): Dividing work into separate tasks. Overspecialization can lead to negative outcomes like boredom, fatigue, and higher turnover.
- Departmentalization: Grouping jobs to coordinate work. Methods include functional, geographical, product, process, and customer departmentalization.
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Chain of Command: A line of authority from top to bottom.
- Authority: The right to direct others.
- Responsibility: The obligation to perform assigned duties.
- Unity of Command: Each employee reports to only one manager.
- Span of Control: Number of employees a manager effectively manages. Affects organizational levels and number of managers.
- Centralization: Degree of decision-making concentration at the top. Higher centralization means top managers make more decisions with little input from lower levels.
- Decentralization: Degree of decision-making input and authority given to lower-level employees.
- Formalization: Degree to which jobs are standardized and employee behavior is guided by rules and procedures. High formalization means explicit job descriptions, rules, and procedures with limited employee discretion.
Mechanistic vs. Organic Organizations
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Mechanistic Organizations: Rigid and tightly controlled.
- High specialization
- Rigid departmentalization
- Clear chain of command
- Narrow span of control
- Centralization
- High formalization
- Effective for efficiency, consistency, and quality.
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Organic Organizations: Highly adaptive and flexible.
- Cross-functional teams
- Cross-hierarchical teams
- Free flow of information
- Wide spans of control
- Decentralization
- Low formalization
Types of Organizational Designs
- Simple Structure: Low departmentalization, wide spans of control, centralized authority, little formalization (common in entrepreneurial ventures).
- Functional Structure: Groups similar or related occupational specialties together.
- Divisional Structure: Separate, semi-autonomous units or divisions.
- Matrix Structure: Assigns specialists from different functional departments to work on projects led by a project manager.
- Virtual Organization (Network or Modular): Small core of full-time employees who outsource major business functions.
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Description
This quiz covers the key elements of organizational structure, including work specialization, departmentalization, chain of command, and span of control. Understand how these components interact to shape an organization and the importance of effective organizational design.
