Chapter 16 Organizational Structure & Design

Question 1

Organizational structure

Answer 1

the anatomy of the organization, providing a foundation within which the organization functions
focuses on the differentiation of positions, formulations of rules and procedures, and prescriptions of authority

Question 2

Organizational design

Answer 2

the way employees do their work
in light of purposes and goals, how structure can contribute to organizational effectiveness

Question 3

Formalization

Answer 3

A dimension of organizational structure that refers to the extent to which rules, procedures, and other guides to action are written and enforced.

Question 4

Centralization

Answer 4

A dimension of organizational structure that refers to the extent to which authority to make decisions is retained in top management.

Question 5

Complexity

Answer 5

A dimension of organizational structure that refers to the number of different jobs and/or units within an organization.

Question 6

Four principles for managing of Fayol

Answer 6

• principle of specialization
• principle of unity of direction
• principle of authority and responsibility
• scalar chain principle

Question 7

Bureaucracy

Answer 7

Particular way to organize collective activities

Question 8

Three models of organizational design

Answer 8

Mechanistic model
Organistic
Matrix

Question 9

Different departmentalization structures

Answer 9

• Functional
• Geographic
• Product
• Customer

Question 10

Span of control

Answer 10

The number of subordinates reporting to a superior. The span is a factor that affects the shape and height of an organizational structure

Question 11

Four design decisions

Answer 11

1. divison in labor
2. delegation of authority
3. departmentalization
4. span of control

Question 12

Three dimensions of organizational structure that interact with design choices

Answer 12

1. formalization
2. centralization
3. complexity

Question 13

Horizontal differentiation

Answer 13

The number of different units existing at the same level in an organization. The greater the horizontal differentiation, the more complex is the organization

Question 14

Vertical differentiation

Answer 14

The number of authority levels in an organization. The more authority levels an organization has, the more complex is the organizaiton

Question 15

Relationships between complexity and the four design decisions

Answer 15

1. the greater the specialization of labor the greater the complexity
2. the greater the delegation of authority the greater the complexity of the organization
3. the greater the use of geographic, customer and product bases the greater the complexity
4. narrow spans of control are associated with higher complexity

Question 16

Virtual organization

Answer 16

A collection of geographically distributed, functionally and/or culturally diverse aggregations of individuals that are linked by electronic forms of communication

Question 17

Boundaryless organization

Answer 17

A firm in which chains of command are eliminated, spans of control are unlimited, and rigid departments are replaced with empowered teams