Final- Session 10

Question 1

Two requirements for organizational Structure

Answer 1

1. Division of labor:
   • Subdivision of work into separate jobs assigned to
   different people – leads to job specialization
2. Coordination:
   • Informal communication
   • Formal hierarchy
   • Standardization

Question 2

Span of Control

Answer 2

• Number of people directly reporting to the next
  level
  • Related to coordination through direct supervision
• Wider span of control possible when:
  • Other coordinating mechanisms are present
  • Routine tasks
  • Low employee interdependence

Question 3

Departmentalization

Answer 3

• Specifies how employees and their activities are grouped together
• Three functions:
  
  1. Establishes chain of command
  2. Creates common mental models, measures of
     performance, etc.
  3. Encourages staff to coordinate through informal
     communication

Question 4

Types of Departmentalization Structures

Answer 4

1. Simple
2. Functional
3. Divisional
4. Team-based
5. Matrix
6. Network

Question 5

Simple Structure

Answer 5

• Minimal hierarchy
• Roles are broadly defined
• Informal communication for coordination
• Centralized structure

Question 6

Functional Structure

Answer 6

Organizes employees around specific knowledge or other resources (e.g., marketing, production)

Question 7

Divisional Structure

Answer 7

Organizes employees around outputs, clients, or geographic areas

Question 8

Team-based Structure

Answer 8

• Self-directed work teams
• Teams organized around work processes
• Typically organic structure
• Usually found within divisionalized structure

Question 9

Matrix Structure

Answer 9

Employees are temporarily assigned to a specific

project team and have a permanent functional unit

Question 10

Network Structure

Answer 10

• Alliance of firms creating a product or service

- Supporting firms beehived around a “hub” or “core” firm