Chapter 10: Designing Organization Structure Flashcards
What is division of labor or work specialization?
Division of labor, or work specialization, is the process of dividing work into specific, defined tasks and roles within an organization. This approach allows employees to become experts in their assigned tasks, leading to increased efficiency and productivity. However, excessive specialization can lead to employee boredom, dissatisfaction, and reduced quality.
What is the chain of command?
The chain of command is a system that establishes authority relationships in an organization. It dictates who reports to whom and the hierarchy of decision-making and authority. A clear chain of command ensures that everyone in the organization knows who to report to and who has the final decision-making authority, which helps in maintaining order and facilitating effective communication.
What is line authority vs. staff authority?
Line Authority: Refers to the direct authority an individual has over others within the organization, typically related to the core business functions. It includes the power to make decisions and command subordinates.
Staff Authority: Involves providing advice, support, and service in areas outside the direct command. Staff personnel assist line personnel in achieving their objectives through specialized knowledge, expertise, or resources.
What are the five approaches to organizational structure design? What are the advantages and disadvantages of each?
Functional Structure (U-Form): Organizes departments by their functions (e.g., marketing, finance).
- Advantages: Efficiency, specialization, simplicity.
- Disadvantages: Siloed departments, poor communication across functions.
Divisional Structure: Divides the organization into semi-autonomous units or divisions based on product, service, customer, or geography.
- Advantages: Focus on specific markets/products, flexibility, clear accountability.
- Disadvantages: Duplication of resources, potential conflicts between divisions.
Matrix Approach: Combines functional and divisional structures, with dual lines of authority.
- Advantages: Resource efficiency, flexibility, a balance of specialization and generalization.
- Disadvantages: Complexity, potential for conflict, challenging reporting relationships.
Team Approach: Relies on teams rather than formal departments.
- Advantages: Enhanced collaboration, flexibility, employee morale.
- Disadvantages: Potential for role ambiguity, time-consuming meetings.
Virtual Network Approach: Uses technology to connect geographically dispersed workers and other organizations.
- Advantages: High flexibility, reduced overhead costs.
- Disadvantages: Potential for weak organizational culture, reliance on technology.
What is a functional structure or U-form (Unitary Structure)?
A functional structure, or U-Form, organizes an organization into departments based on their functions like marketing, finance, and production. This structure emphasizes departmental specialization but can create silos where departments may not communicate effectively with one another.
What is a divisional structure?
A divisional structure organizes an organization into semi-autonomous divisions that focus on a particular product, service, customer segment, or geographic area. Each division operates almost like a separate company, with its resources and functions, but is still part of the larger organization.
What is a matrix approach?
The matrix approach combines elements of both functional and divisional structures. Employees report to two supervisors – one for their functional area and one for the divisional area. This approach aims to optimize the use of resources and expertise but can lead to complex reporting relationships and potential conflicts.
What is the team approach?
The team approach organizes the company around teams rather than traditional departments. Teams are given specific goals and are empowered to make decisions to achieve those goals. This structure encourages collaboration and flexibility but may lead to ambiguity in roles and responsibilities.
What is the virtual network approach?
The virtual network approach is a modern structure where an organization outsources its major functions and uses technology to connect and coordinate with employees, suppliers, and customers. It focuses on flexibility and responsiveness to changes but relies heavily on technology and may lack a strong organizational culture.
What is a task force?
A task force is a temporary team or committee formed to solve a specific short-term problem involving several departments. Task forces are often cross-functional and focus on specific projects or critical issues, disbanding after the problem is resolved.
What is workflow technology?
Workflow technology involves using software and systems to manage and streamline business processes. It helps in coordinating tasks and information flow within the organization, ensuring that work is efficiently passed from one step to the next.
What is the difference between small-batch production, large batch production and continuous process production? What kind of structure would each use?
Small-Batch Production: Involves producing items in small quantities, often custom-made. This type requires a flexible structure with skilled employees.
Large Batch Production: Produces large numbers of similar items. This benefits from a more bureaucratic structure with standardized processes.
Continuous Process Production: Involves continuous production of items in a flow, often in a highly automated environment. It requires a highly stable, predictable, and mechanized structure.
