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Chapter 15
MGT5313 Ch. 15
| Question | Answer |
|---|---|
| the division of labor and the patterns of coordination, communication, work flow, and formal power that direct organizational activities | organizational structure |
| the subdivsion of work into separate jobs assigned to different people | division of labor |
| reasons for division of labor | 1. increases work efficiency 2. master tasks quickly b/c short work cycles 3. less time wasted changing tasks 4. training costs reduced 5. easier to match ppl with jobs |
| 3 coordinating mechanisms in organizations | 1. informal communication 2. formal hierarchy 3. standardization |
| sharing information about mutual tasks; forming common mental models to synchronize work activities | informal communication |
| assigning legitimate power to individuals, who then use this power to direct work processes and allocate resources | formal hierarchy |
| creating routine patterns of behavior or output | standardization |
| people responsible for coordinating a work process by encouraging employees in each work unit to share information and informally coordinate work activities; must rely on persuasion and commitment | integrators |
| 3 forms of standardization | 1. standardized processes 2. standardized outputs 3. standardized skills |
| 4 basic elements of organizational structure | 1. span of control 2. centralization 3. formalization 4. departmentalization |
| the number of people directly reporting to the next level in the organizational hierarchy | span of control |
| the degree to which formal decision authority is held by a small group of people, typically those at the top of the organizational hierarchy | centralization |
| disperse decision authority and power throughout the organization | decentralize |
| the degree to which organizations standardize behavior through rules, procedures, formal training, and related mechanisms | formalization |
| problems with formalization | 1. reduce organizational flexibility 2. undermine a learning orientation required for knowledge management and creativity 3. declining organizational efficiency 4. employees feel disempowered 5. rules become the focus of attention rather than the organiza |
| an organizational structure with a narrow span of control and high degrees of formalization and centralization | mechanistic structure |
| an organizational structure with a wide span of control, with little formalization, and decentralized decision making | organic structure |
| structure that operates better in a stable environment because it relies on efficiency and routine behaviors | mechanistic |
| structure that works better in rapidly changing (dynamic) environments because it is more flexible and responsive to these changes | organic |
| specifies how employees and their activities are grouped together | departmentalization |
| ways departmentalization influences organizational behavior | 1. establishes the chain of command - the system of common supervision among positions and units within the org 2. focuses people around common mental models or ways of thinking 3. encourages coordination through informal communication among people and su |
| 5 pure types of departmentalization | 1. simple 2. functional 3. divisional 4. matrix 5. team-based |
| employ only a few people and typically offer only one distinct product or service; interchanging roles | simple structure |
| an organizational structure that organizes employees around specific knowledge or other resources; ceo - finance, production, marketing | functional structure |
| benefits of functional structure | 1. encourages specialization and increases employees' identification with their profession 2. permits greater specialization so that the organization has expertise in each area 3. creates common pools of talent that typically serve everyone in the org |
| limitations of functional structure | 1. focus attention on skills rather than on the company's product 2. might not develop a broader understanding of the business 3. produces higher dysfunctional conflict and poor coordination in serving clients or developing products |
| an organizational structure that groups employees around geographic areas, clients or outputs; ex around outputs: ceo - consumer products, lighting products, medical systems | divisional structure |
| minibusinesses that may operate as subsidiaries rather than departments | strategic business units |
| 3 types of divisional structure | 1. geographic 2. product 3. client |
| organizes employees around distinct regions of the country or globe | geographic structure |
| organizes work around distinct outputs | product/service structure |
| employees are organized around specific customer groups | client structure |
| disadvantages of divisionalized structure | 1. tends to duplicate resources 2. resources are not used as efficiently as in functional structures where resources are pooled across the entire org 3. creates silos of knowledge 4. reduces the ability and motivation of these ppl to share their knowledge |
| a type of departmentalization that overlays two organizational forms in order to leverage the benefits of both | matrix structure |
| benefits of matrix structure | 1. optimizes the use of resources 2. improves communication efficiency, project flexibility, and innovation 3. focuses employees on serving clients or creating products, yet keeps expertise organized around their specialization |
| problems with matrix structure | 1. increases goal conflict and ambiguity 2. existence of two bosses can dilute accountability |
| a type of departmentalization with a flat hierarchy and relatively little formalization, consisting of self-directed work teams responsible for various work processes | team-based structure |
| 4 distinguishing features of team-based structure | 1. built around SDWTs 2. teams are typically organized around work processes 3. has a very flat hierarchy, usually with no more than two or three management levels 4. has very little formalization |
| advantages of team-based structure | 1. more responsive and flexible 2. reduces costs due to less direct supervision 3. improves communication and cooperation across traditional boundaries 4. greater autonomy allows quicker and more informed decision making |
| disadvantages of team-based structure | 1. costly to maintain due to need for ongoing interpersonal skills training 2. takes more time to coordinate teamwork 3. employees experience more stress due to ambiguity 4. leaders experience more stress due to increased conflict, loss of functional powe |
| an alliance of several organizations for the purpose of creating a product or serving a client | network structure |
| a knowledge base that resides throughout the organization and provides a strategic advantage | core competencies |
| network structures representing several independent companies that form unique partnership teams to provide customized products or services, usually to specific clients, for a limited time | virtual corporations |
| 4 contingencies of organizational design | 1. external environment 2. size 3. technology 4. strategy |
| anything outside the organization, including most stakeholders, resources, and competitors | external environment |
| 4 characteristics of external environments | 1. dynamism 2. complexity 3. diversity 4. hostility |
| the mechanisms or processes by which an organization turns out its products or services | technology |
| the number of exceptions to standard procedure that tend to occur | variability |
| the predictability or difficulty of the required work | analyzability |
| the way an organization positions itself in its setting in relation to its stakeholders, given the organization's resources, capabilities, and mission | organizational strategy |
| bringing unique products to the market or attracting clients who want customized goods and services | differentiation strategy |
| maximize productivity and are thereby able to offer popular products or services at a competitive price | cost leadership strategy |