Org structure ch 16

Question 1

Centralisation

Answer 1

Formal decision making authority is held by a few people, usually at the top

Question 2

Decentralisation

Answer 2

Decision making authority is dispersed throughout the organisation

Question 3

Departmentalisation specifies

Answer 3

how employees and their activities are grouped together

Question 4

Division of labor is

Answer 4

• Subdividing work into separate jobs assigned to different people
• limited by ability to coordinate work
• Potentially increases work efficiency
• Necessary as company growth and work becomes more complex

Question 5

Divisional Structure

Answer 5

Organizes employees around outputs,clients, or geographic areas

Question 6

Divisional structure Good vs Bad

Answer 6

Benefits:
- Building block structure – accommodates growth
- Focuses on markets/products/clients

Limitations:
- Duplication, inefficient use of resources
- Specializations are dispersed–silos of knowledge
- Politics/conflict when two forms of equal value

Question 7

Elements of org structure

Answer 7

1. Span of control
2. Centralization
3. Formalization
4. Departamentalization

Question 8

Formalisation is

Answer 8

The degree to which organizations standardize behavior through rules, procedures, formal training, and related mechanisms.
Increases with orgs age size and regulation

Question 9

Functional org structure

Answer 9

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

Question 10

Functional structure good vs bad

Answer 10

Benefits:
- Economy of scale
- Supports professional identity and career paths
- Easier supervision

Limitations:
- More emphasis on subunit than organizational goals
- Higher dysfunctional conflict
- Poorer coordination – requires more controls

Question 11

Matrix structure

Answer 11

Employees are temporarily assigned to a specificproject team and have a permanent functional unit

Question 12

Matrix structure Good/bad

Answer 12

Benefits:
- Uses resources and expertise effectively
- Improves communication, flexibility, innovation
- Focuses specialists on clients and products
- Supports knowledge sharing within specialty
- Solution when two divisions have equal importance

Limitations:
- Increases goal conflict and ambiguity
- Two bosses dilutes accountability
- More conflict, organizational politics, and stress

Question 13

Mechanistic Structure

Answer 13

• Narrow span of control
• High fromalization
• high centralization

Question 14

Network structure

Answer 14

Alliance of firms creating a product or service
Supporting firms beehived around a “hub” or “core” firm

Question 15

Network structure Good/Bad

Answer 15

Benefits:
- Highly flexible
- Potentially better use of skills and technology
- Not saddled with same resources for all products

Limitations:
- Exposed to market forces
- Less control over subcontractors than in-house

Question 16

Org structure is:

Answer 16

Division of labor and patterns of coordination, communication, workflow, and formal power that direct organizational activities

Question 17

Organic structure

Answer 17

• Wide span of control
• little formalization
• decentralised decisions

Question 18

Problems with flatter hierarchies:

Answer 18

• Undermines management functions
• Increases workload and stress
• restricts management career developement

Question 19

Problems with formalisation

Answer 19

• Reduces organizational flexibility
• Discourages organizational learning/creativity
• Reduces work efficiency
• Increases job dissatisfaction

Question 20

Problems with tall hierarchies

Answer 20

• Overhead costs
• Worse upward information
• Focus power around managers, so staff less empowered

Question 21

Span of control is

Answer 21

• Number of people directly reporting to the next level
  (Assumes coordination through direct supervision)
• Wider span of control possible when:
  1. Other coordinating mechanisms present
  2. Routine tasks
  3. Low employee interdependence

Question 22

Team based structure

Answer 22

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

Question 23

Team based structure Good/bad

Answer 23

Benefits:
- Responsive, flexible
- Lower admin costs
- Quicker, more informed decisions

Limitations:
- Interpersonal training costs
- Slower during team development
- Role ambiguity increases stress
- Problems with supervisor role changes
- Duplication of resources

Question 24

When companies get bigger

Answer 24

• taller hierarchy
• Widen span

Question 25

Different forms of divisional structure

Answer 25

• geographic
• product structure
• client structure

Question 26

Three factors of departamentalization

Answer 26

1. establish chain of command
2. Creates common mental models, measures of performance etc
3. Encourages coordination through informal communication

Question 27

Why is there a movement away from gerorefical form

Answer 27

1. less need for local representation
2. reduced geographic variation
3. More global clients