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BUAD309 Final

Chapter 15

QuestionAnswer
work specialization The degree to which tasks in the organization are divided into separate jobs with each step completed by a different person. Overspecialization can result in human diseconomies such as boredom, fatigue, stress, poor quality, increased absenteeism, and hi
Functional Departmentalization Grouping jobs by functions performed
product departmentalization Grouping jobs by product line
Geographical Departmentalization Grouping jobs on the basis of territory or geography
Process departmentalization Grouping jobs on the basis of product or customer flow
customer Grouping jobs by type of customer and needs
Formalization the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.
High degree of formalization characteristics jobs offer little discretion over what is to be done.
Lower degreee of formalization characteristics Low formalization means fewer constraints on how employees do their work.
Mechanistic org. structure design that is rigid and tightly controlled.characterized by high specialization, rigid departmentalization, narrow spans of control, high formalization, a limited information network, and little participation in decision making by lower-level employees
Organic structure of organization design that is highly adaptive and flexible. It is characterized by little work specialization, minimal formalization, and little direct supervision of employees.
STRATEGIES Innovation-Pursuing competitive advantage through meaningful and unique innovations favors an organic structuring Cost minimization-Focusing on tightly controlling costs requires a mechanistic structure for the organization
STRATEGY and structure Achievement of strategic goals is facilitated by changes in organizational structure that accommodate and support change.
size and structure As an organization grows larger, its structure tends to change from organic to mechanistic with increased specialization, departmentalization, centralization, and rules/regulations.
Simple Structure an organizational design with low departmentaliza¬tion, wide spans of control, authority centralized in a single person, and little formalization.
functional structure organizational design that groups similar or related occupational specialties together.
divisional structure organizational structure made up of separate, semiautonomous units or divisions.
Created by: rbmooney
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