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what is an organizational structure
the framework that determines how work, tasks, resources, authority, and departments are organized
4 characteristics or an organization
coordination, common goals, division of labor, hierarchy of authority
formal organization
official structure created by management
informal organization
relationships and communication networks that develop among employees and can be powerful even though they arent officially recognized
employees regularly go to a coworker in another department for advice even though that coworker is not their supervisor. what does this demonstrate?
informal organization
what is a bureaucracy
rational, systematic organizational structure based on clearly defined rules, authority, responsibilities, and procedures
what are the bureacracy principles
hierarchy, unity of command, specialization, employee duties and rights, managerial responsibilities, line and staff
what does the bureaucracy approach grow out of?
the classical school of management
hierarchy of authority
lower organization units are controlled by higher ones
unity of command
when subordinates recieve assigned duties from one super and is only accountable to that superior
task specialization
when labor is divided based on tasks and require specialized knowledge/skills
duties/rights of employees
rules, policies and procedures that define responsibilities and limits
managerial responsibilities
when the authority/limits of a manager are clearly defined and usually in the job description
line/staff function
lines primary do functions that help produce revenue while staff/support/and advising roles help activities that dont produce revenue
how is work within departmentalization divided
function, product/service, geographic, customer classification, work flow/process matrix
what is functional departmentalization
grouping employees into departmenta based on similar skills
advantages of departmentalization
specialization, efficient resource use, economies of scale
disadvantages of functional departmentalization
departments can become focused on their own goals, the communication between departments can be difficult, and could respond slow to change
what is mechanistic organization
rigid, formal, centralized, defined, rules/procedures, strong hierarchy, specialized work, stable and controlled
what is organic organization
flexible, informal, decentralized, high employee involvement, broad responsibilities, good communication/adaptation, high change and flexibility
A company has strict rules, specialized jobs, several management levels, and most decisions must be approved by upper management.
mechanistic
A company gives employees significant freedom, encourages collaboration, and allows lower-level employees to make decisions.
organistic
Which structure is generally better suited to a rapidly changing environment
organic because its more flexible and decentralized
Which structure is more likely to have centralized decision-making and formal rules?
mechanistic
A company has separate departments for accounting, marketing, HR, and operations. What structure?
functional departmentalization
what is divisional design
grouping departments according to similar outputs like products, customers, geographic aread
when is divisional design useful
when a company has very different products, customers, or geographic markets
disadvantages of divisional organization
higher costs, internal competion, isolated team behaviors, duplication of resources
advantages of divisional organization
fast decision making, better response, better scalibility
what are the bases for divisional departmentalization
product, customer, geographic
what is geographic departmentalization
organizing divisions based on location/region
what is customer departmnetalization
organizing divisions based on different type of customers
what is product departmentalization
organizing divisions based on different products/product groups
what is a major disadvantage of divisional structure
duplication of services, increasing costs/inconsistency
why does duplication occur in divisional structure
each division may independently maintain support functions such as HR, accounting, or IT
what is a matrix structure
a structure that combines divisions with shared functional resources/services
why might companies use maxtrix structures?
to reduce duplication and share specialized resources across divisions
whats the problem with the matrix structure
employees could have more than 1 boss which causes an issue within the unity of command
You work in IT. You report to the head of IT but also take direction from the manager of the product division you're assigned to.
what structure is this
matrix
What problem does a matrix structure create that a traditional bureaucracy tries to avoid?
Violation/conflict with unity of command because employees may have more than one supervisor.
what is team based structure
an organization based around teams that accomplish tasks and coordinate work across departments
what are important features/ benefits of team-based structures
shared goals, greater independence, many perspectives, team leadership, cross-functional coordination
what is a network structure
a small central organization/hub electronically connected to outside organizations that perform key functions
A company keeps a small central office but contracts outside organizations to perform manufacturing, logistics, and other major functions.
network structure
what is the chain of command
the formal flow of authority through an organization
what is the unity of command
when each employee takes authority/direction from one supervisor
what is delegation
giving another employee responsibility to perform a task or make a decision
why is delegation important
it allows managers to distribute work and authority instead of trying to make every decision by themselves
centralization
decision making authority thats concentrated at higher levels
decentralized
decision making authority distributed to lower levels
Store managers must ask corporate headquarters before making almost any significant decision.
centralization
Store managers can independently solve customer problems, adjust operations, and make many decisions.
decentralization
what is span of control
the number of employees who report directly to one manager
what is a wide span of control
one manager that supervises many employees
what is narrow span of control
one manager supervises fewer employees
when is a wider span of control easier to manage
when employees have similar jobs, are expirienced, require less individual supervision
when is a narrow span of control better
when jobs are different/complex and employees need more sueprvision
what is staff
staff describes the employee's relationship to the organization's primary output, not their importance
what is job design
the way a job is strctured which includes tasks, responsibilities, authority, and work characteristics
what is work specialization
the degree to which organizational work is divided into seperate job/tasks
what is job specialization
having an employee perform a relativley small/specific part of a larger task
what is skill variety
the number of different skills and activities required by a job
what is task identity
the extent to which a job involves comleting a whole identifiable piece of work from beginning to end
what is task signifigance
the extent to which a job has a meaningful impact on other people
what is autonomy
the amount of freedom and independence an employee has over and when work is done
what is feedback in job design
information employees recieve about how effectively they are performing their work
what is job crafting
employees proactively change aspects of their job to make the work more effective or meaningful
what is job enrichment
adding more responsibility, autonomy, control to an employees load to help them feel more satisfied with their work
what is job rotation
moving employees between different roles, tasks, and departments
what is job enlargement
expanding an employees role by adding tasks at the same level of responsibility, skill, and pay
what is outsourcing
using an outside person or company to perform work that could otherwise be done internally
tall structure
many layers and a narrow span of control
horizontal/flat structure
few layers and a wide span of control
HR management
low-turnover, absenteeism, employee satisfaction, job productivity
fufillment seekers
people who look for self-satisfaction, not motivated by rewards
high achievers
goal oriented, concerned about advancement, want to move up the ladder and look for higher positions
clock punchers
people who dont look for work satisfaction, hard to motivate, only do work because they have too
risk takers
entreprenuers, sales staff, willing to talk to people to buy/sell, they dont care about the people
ladder climbers
care about promotions and see power in status
paycheck cashers
use money to support lifestyle
flexibile work hours
adjusting work hours aaround core hours
compressed work week
less days more hours per day
alternative workplace/telecommuting
working at different locations, scenery, food, and people find that rewarding
shared office space and hoteling
shared office spaces for temporary use
job sharing
when more than one employee performs the same job
part time/temp work
working with reduced hours
shift work
provides coverage during non-standard work hours
egronomic design
the practice of structuring work tasks, environments, processes, and management systems to match human physical and mental capabilities
goal of ergonomic design
increase productivity and efficiency while reducing worker fatigue, stress, and injury
what is motivation
the intensity, direction, and persistence of effort toward achieving a goal
what is intensity
how hard someone tries
what is direction
whether effort is focused toward organizationally useful goals
what is persistence
how long someone continues to exert effort
whats the basic formula for performance
motivtion x ability
motivation is the result of what
the interaction between the individual and situation
what theories are needs/content theories
maslow, mcclelland, erg, herzberg
what theories focus on processes of motivation
equity, expectancy, goal-setting, reinforcement approaches
what is maslows basic idea
people have different levels of needs and unmet needs can motivate behavior
maslows needs in order
an employee is primarily concerned with having enough money for food and basic necessities, what type of need is this
physiological need