Organizational Structures Quiz

Organizational Structures

• Organizational structure outlines how activities achieve strategic goals.
• It defines roles, reporting lines, and decision-making processes.
• An organization chart visually represents the structure.

Types of Organizational Structures

Functional Structure

• Organized by departments based on expertise (e.g., marketing, finance).
• Vertical hierarchy with a president at the top.

Divisional Structure

• Organized by product or market.
• Each division has its own functional teams.
• President at the top; multiple products/divisions.

Hybrid Structure

• Combines functional and divisional structures.
• Teams report to multiple managers across different functions and products.

Matrix Structure

• Teams report to multiple leaders.
• Horizontal structure fosters communication and innovation.
• President/CEO at the top.
• Utilizes existing expertise; avoids external recruitment for projects.

Team Structure

• Composed of teams working toward common goals.
• Flexible and less hierarchical.
• Improves problem-solving, decision-making, and teamwork.

Network Structure

• Specialists from diverse departments collaborate on projects.
• Flexible for adapting production and designs.

Boundaryless Structure

• Minimizes hierarchy and functional separation.
• Encourages open information flow and innovation.

Chain of Command

• A vertical line of authority, enabling orders to be passed down through the hierarchy.
• Shorter chains of command are increasingly popular.
• Improves efficiency in disciplined organizations (military).

Decentralization

• Delegation of daily operations and decision-making to lower levels.
• Example: franchise models (restaurants).
• Benefits include increased expertise, quicker decisions, and motivation for lower-level managers.

More Organic Structures

• Flexible workplaces with horizontal communication.
• Increased employee empowerment and autonomy.
• Sharing responsibilities in groups and teams.

Organizational Design

Bureaucracy

• Organized based on formal authority, rules, and procedures.
• Promotion based on competency (ability to follow rules).
• Best in stable environments; not ideal in rapidly changing environments.

Mechanistic Design

• Predictable goals and centralized authority.
• Formal rules, narrow spans of control, and specialized tasks.

Organic Design

• Adaptable goals and decentralized authority.
• Few rules, wide spans of control, shared tasks, and informal coordination.

Meaning of Work

• Individual factors influence motivation (e.g., money, social pressures, learning).

Psychological Contract

• Expectations of reciprocal exchanges between employees and employers.

Quality of Work Life

• Measured by job/career satisfaction, well-being, work-life balance, stress, and control.

Job Satisfaction

• Cognitive, affective, and behavioral components measuring contentment with the job itself.

Flexibility

• Allows employees to choose work hours and location (part-time, telecommute).
• Enhances work-life balance, reduces stress, and boosts job satisfaction.

Job Design

• Organizes tasks and roles to increase productivity and motivation.
• Important factors include task nature, number of tasks, and manner of completion.

Job Rotation, Enrichment, Enlargement, and Simplification

• Rotation: Movement across different departments (more learning).
• Enrichment: Adds more tasks and responsibilities (improves motivation).
• Enlargement: Increases the number of tasks (reduces monotony).
• Simplification: Reduces the number of tasks (focuses on specific tasks).

Alternative Work Schedules

• Flexible hours, compressed work weeks, job sharing, telecommuting, part-time work.