Organizational Theory Basics

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Questions and Answers

What is the primary function of an organization?

  • To create job opportunities for everyone
  • To ensure that all employees work independently
  • To encourage individual decision-making
  • To establish systematic relationships among members (correct)

Which of the following best describes 'delegation of authority' in an organization?

  • Eliminating the need for accountability
  • Transferring decision-making power to individuals (correct)
  • Assigning tasks directly to all members
  • Encouraging team members to make independent choices

How does an organization typically establish communication among its members?

  • By prohibiting any form of outside communication
  • Through random assignments of tasks
  • By implementing a hierarchical structure (correct)
  • Through informal gatherings

What must the structure of an organization reflect?

<p>The objectives and plans of the unit (C)</p> Signup and view all the answers

What does the 'Chain of Command' in an organization indicate?

<p>The hierarchy of authority and reporting relationships (B)</p> Signup and view all the answers

What is the significance of dividing work in an organization?

<p>To assign specific responsibilities to individuals or sub-units (B)</p> Signup and view all the answers

What is meant by 'environment within which it is to function' in an organization?

<p>The overall culture and external factors affecting operations (D)</p> Signup and view all the answers

Why should management harness the informal organization?

<p>To improve coordination and morale (D)</p> Signup and view all the answers

What is the primary purpose of Unity of Command in an organizational structure?

<p>To establish a shared vision within the group (C)</p> Signup and view all the answers

What is meant by the term 'Span of Control' in an organizational context?

<p>The number of individuals a manager can effectively oversee (A)</p> Signup and view all the answers

Which factor is associated with determining the best organizational structure?

<p>Contingency Factors including environment and technology (D)</p> Signup and view all the answers

In what way does an organizational structure contribute to achieving goals?

<p>By coordinating the efforts of diverse members (B)</p> Signup and view all the answers

Which of these is NOT a component of organizational structure?

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

Why do people choose to organize in groups rather than act alone?

<p>To overcome individual limitations (D)</p> Signup and view all the answers

What is a key benefit of a formal organizational structure?

<p>Clear distribution of responsibilities (C)</p> Signup and view all the answers

How does clustering people who perform similar tasks contribute to organizational efficiency?

<p>It minimizes communication breakdowns (A)</p> Signup and view all the answers

What is the primary characteristic of a Tall or Vertical Structure?

<p>Many levels of communication (A)</p> Signup and view all the answers

In a Flat or Horizontal Structure, decision-making is primarily characterized by which of the following?

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

Which of the following best describes a Bureaucratic or Line Organization?

<p>Many layers in the chain of command (C)</p> Signup and view all the answers

What does a chain of command in an organization primarily represent?

<p>A formal top-down reporting structure (D)</p> Signup and view all the answers

What can be inferred about the decision-making process in a Tall Structure?

<p>Is centralized in one individual (D)</p> Signup and view all the answers

Which of the following is NOT a feature of a Flat Structure?

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

In a Tall Structure, as one moves up the administrative ladder, what increases?

<p>Responsibility and power (D)</p> Signup and view all the answers

What is the main outcome of effective organizational design?

<p>Integrated system of people and resources (A)</p> Signup and view all the answers

What is the primary purpose of inducting or orienting personnel?

<p>To help both parties assess their compatibility. (C)</p> Signup and view all the answers

Which of the following best describes a staffing pattern?

<p>A plan indicating the types and numbers of staff needed per shift. (A)</p> Signup and view all the answers

What is an essential aspect to consider when developing a staffing pattern?

<p>Government regulatory requirements. (B)</p> Signup and view all the answers

What happens after all pre-employment requirements are accomplished?

<p>The applicant is officially hired and becomes an employee. (B)</p> Signup and view all the answers

Which management tool is used for improving service quality by learning best practices from the industry?

<p>Benchmarking. (D)</p> Signup and view all the answers

Which organizational structure is characterized by clear lines of authority and responsibilities?

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

In which type of organizational structure do informal relationships play a significant role?

<p>Matrix Organization (A)</p> Signup and view all the answers

What type of organizational structure is primarily used on a temporary basis for project completion?

<p>Ad Hoc Organization (C)</p> Signup and view all the answers

Which organizational structure is described as idealistic and an alternative to traditional forms?

<p>Shared Governance Organization (A)</p> Signup and view all the answers

What is a key feature of Corporate Culture?

<p>It involves the tangible signs of corporation. (D)</p> Signup and view all the answers

What best describes the Matrix Organization?

<p>It combines features of both functional and product-based structures. (A)</p> Signup and view all the answers

Which type of relationship is NOT depicted by a broken or dotted line in an organizational structure?

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

Which component is less tangible and challenging to measure within an organization?

<p>Corporate Culture (D)</p> Signup and view all the answers

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Study Notes

Organization Definition

  • Organization is a structured association of individuals working towards a common objective.
  • It systematically arranges tasks and activities essential for achieving goals.

Key Functions of Organization

  • Identification of Tasks: Defines basic work tasks within roles like staffing and job descriptions.
  • Delegation of Authority: Assigns responsibilities and establishes accountability for team members to accomplish goals.
  • Communication Systems: Facilitates coordination through vertical and horizontal relationships.

Characteristics of an Organization

  • Division of Work: Each unit or individual has specific responsibilities.
  • Chain of Command: Clearly indicates reporting relationships and authority.
  • Unity of Command: Ensures that each employee reports to a single supervisor to maintain order.
  • Authority and Responsibility: Establishes lines of authority; responsibilities are distributed within a bureaucratic system.
  • Span of Control: Refers to the number of employees managed by a supervisor, impacting organizational structure.
  • Contingency Factors: Considers external environment and technology affecting task execution.

Reasons for Organizing

  • Individuals organize to collectively overcome limitations in achieving goals.

Best Practices for Organized Groups

  • Successful organizations optimize patterns of activity that are complementary and interdependent, leading to effective cooperation among members.

Organizational Structure Defined

  • Organizational structure is a formal arrangement detailing authority, responsibility, accountability, and communication hierarchy.
  • It represents the top-down reporting structure through organizational charts.

Types of Organizational Structures

  • Tall/Vertical/Centralized Structure: Characterized by narrow spans of control and multiple communication levels.
  • Flat/Horizontal/Decentralized Structure: Features fewer hierarchy levels, promoting quicker decision-making.
  • Line/Bureaucratic Structure: Clearly defined authority and responsibilities through multiple command layers.
  • Functional Organization: Provides clear reporting lines between units while enhancing specialization.
  • Matrix Organization: Combines vertical and horizontal elements, focusing on both products and functional tasks.
  • Shared Governance Organization: Encourages continuous communication between all management levels, promoting a more democratic structure.
  • Ad Hoc Organization: Temporary structure for specific projects, integrating into the formal organization.

Organizational Culture

  • Reflects the organization's personality, values, and norms, influencing behavior and decision-making.
  • Corporate Culture: A distinct system representing the values and beliefs of the organization.

Staffing Patterns

  • Staffing patterns detail the quantity and type of staff required for operational efficiency across shifts.
  • Benchmarking: A management tool comparing practices to improve service quality and competitiveness.
  • Regulatory Requirements: Must comply with legislations such as Philippine RA 5901, mandating a standard 40-hour work week.

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