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Chapter 15

MGT5313 Ch. 15

QuestionAnswer
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
Created by: ewilkes2
 

 



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