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MGMT 201 Ch 13

QuestionAnswer
Define Organizational Structure Defines how job tasks are formally divided, grouped, and coordinated.
What are the four types of Organizational Structure? Work Specialization, Departmentalization, Chain of Command, Span of Control, Centralization and Decentralization, Formalization
Define Work Specialization. Describes the degree to which activities in the organization are subdivided into separate jobs. (Divides work into a number of steps, each completed by a separate individual.)
What are the benefit(s) of Work Specialization? Greater efficiency; Lower Costs
What are the cost(s) of Work Specialization? Human costs when carried too far; Job enlargement
Define Departmentalization. Basis by which jobs are grouped together so that common tasks can be coordinated.
List the 5 common bases of Departmentalization. Function, Product, Geography, Process, Customer
Define Chain of Command. Describes the unbroken line of authority that extends from the top of the organization down to the lowest echelon and clarifies who reports to whom.
What are the two types of Chains of Commands? Authority - positional rights; Unity of Command - one boss
Define Span of Control. Refers to the number of employees a manager is expected to effectively and efficiently direct; also determines the number of levels and managers an organization has.
What's the current Span of Control trend? Wider spans of control
What two things are greatly affected by Span of Control? Speed of communication; Decision making
Define Centralization. The degree to which decision making is concentrated at a single point in the org.
Define Decentralization. The degree with which decision making is concentrated at the front line employees and supervisors in the org.
Is the current trend towards Centralization or Decentralization? Decentralization
Define Formalization. The degree to which jobs within an organization are standardized.
Name the two types of formalization and describe them. Formal - minimum discretion over what is to be done, when it is to be done, and how; Informal - freedom to act is necessary.
Simple Structure Low Departmentalization; Wide Span of Control; Centralized Authority (one person); Little Formalization
What are the advantage(s) of the Simple Structure? Simple - fast, flexible, and inexpensive to operate; Clear accountability
What are the disadvantage(s) of the Simple Structure? Only useful in small organizations; Risky - All on one person
Bureaucracy Highly routine operating tasks are achieved through specialization; Formal rules and regulations; Centralized authority; Narrow Spans of Control; Functional Departmentalization; Decision making follows the Chain of Command
What are the advantage(s) of Bureaucracy? Ability to perform standardized activities in a highly efficient manner
What are the disadvantage(s) of Bureaucracy? Obsessive rule-following; Rules and regulations substitute for managerial direction
Matrix Structure Uses both Functional and Product Departmentalization; Dual Chain of Command (functional managers and product managers)
What are the advantage(s) of the Matrix Structure? Facilitates coordination; Creates an efficient allocation of specialists
What are the disadvantage(s) of the Matrix Structure? Possible Confusion (no unity-of command so ambiguity about who reports to whom); Power Struggles (between functional and product managers possibly over who gets the best specialists); Stress (due to too much ambiguity)
Define Virtual as a New Design Option. Small, core organization that outsources its major business functions. High Centralization Little-No Departmentalization Maximum Flexibility
What are the advantage(s) of Virtual as a New Design Option? Its FLEXIBILITY allows organizations to focus on what they do best.
What are the disadvantage(s) of Virtual as a New Design Option? Unclear roles, goals, and responsibilities; Can result in limited innovation and slow response time Reduces control over important parts of the business.
Define The Boundryless Organization as a New Design Option. Seeks to eliminate vertical and horizontal internal boundaries (the Chain of Command), break down external barriers between the company & its customers & suppliers, have limitless Spans of Control, and replace departments with empowered teams.
Define The Leaner Organization: Downsizing as a New Design Option. Downsizing is a systematic effort to make an organization leaner by selling off business units, closing locations, or reducing staff.
What 2 things have been controversial about The Leaner Organization: Downsizing as a New Design Option? Negative impact on employees; Impact on organizational performance
Created by: mcarmody1
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