Organizational Structure and Change OBHR

What are the four building blocks of organizational structure?

Centralization, Formalization, Hierarchical Levels, and Departmentalization.

What is Centralization?

The degree to which decision-making authority is concentrated at higher levels in an organization.

Where are important decisions made in Centralized companies?

At higher levels of the hierarchy.

What is a negative outcome often seen in centralized companies?

A more negative emotional tone, resulting in employee exhaustion.

What is an advantage of centralized companies?

They may have more efficient operations.

What is an advantage of Decentralized companies?

Problems are solved at lower levels by those closer to the problem, and it is good for creativity.

What is Formalization?

The extent to which policies, procedures, job descriptions, and rules are written and explicitly articulated.

What is an advantage of high formalization?

It leads to a consistency of behavior.

What are disadvantages of high formalization?

Reduced innovativeness, reduced motivation and job satisfaction, and a slower pace of decision-making.

In formalized companies, how much autonomy do employees have?

Employees have little autonomy to make decisions on a case-by-case basis.

What is a Tall structure?

It has several layers of management between frontline employees and the top level, resulting in a smaller span of control.

What need do Tall structures better satisfy for employees?

The security needs of employees.

What is a Flat structure?

It consists of few layers, resulting in a wider span of control.

What are benefits of Flat structures?

They provide greater need satisfaction and greater levels of self-actualization for employees.

What are disadvantages of Flat structures?

They may not offer many opportunities to receive supervision and guidance, and they offer limited advancement opportunities.

What is Span of control?

The number of employees reporting to a single manager.

What is the basis for Functional structures?

They group jobs based on similarity in functions (e.g., Marketing, Finance, Human Resources).

What is the basis for Divisional structures?

They use departments to represent unique products, services, customers, or geographic locations the company is serving.

What is Active Resistance?

Employees may sabotage the change effort and be outspoken objectors to the new procedures.

What is Passive Resistance?

Employees may be disturbed by changes without necessarily voicing these opinions.

What is Compliance?

Employees go along with proposed changes with little enthusiasm.

What is the behavior of defenders of the new way?

Employees who show enthusiastic support.

What is the name of Lewin's change model?

Lewin’s Three-Stage Model.

What is the first stage in Lewin’s model?

Unfreezing Prior to Change.

What is the purpose of the Unfreezing stage?

To help prepare employees for change.

Name three steps to help prepare employees for change (Unfreezing).

Create a vision for change, communicate a plan for change, develop a sense of urgency, build a coalition, provide support, or allow employees to participate.

What is the second stage in Lewin’s model?

Executing Change.

What is the final stage in Lewin’s model?

Refreezing.

What is the goal of the Refreezing stage?

To make the change become part of the company’s culture and routine, ensuring the long-term success of the change effort.

Name three steps to making the change become routine (Refreezing).

Publicize success, build on prior change, reward change adoption, or make change a part of the organizational culture.