Lecture 7: Organizational Structure, and Design
Flashcards: Organizational Structure & Design
1. Organizing
The function of management that determines what needs to be done, how it will be done, and who will do it.
2. Organization Design
When managers develop or change the organization’s structure.
3. Six Basic Elements of Organizational Structure
Work Specialization
Departmentalization
Authority and Responsibility
Span of Control
Centralization vs. Decentralization
Formalization
4. Work Specialization
Dividing work activities into separate job tasks; also called division of labor.
5. Economies and Diseconomies of Work
Effects of specialization on productivity and efficiency.
6. Departmentalization
Grouping jobs together based on shared characteristics.
7. Types of Departmentalization
Functional: Groups employees based on work performed (e.g., HR, IT).
Product: Groups employees based on product areas (e.g., footwear, apparel).
Customer: Groups employees based on customer needs (e.g., retail, wholesale).
Geographic: Groups employees based on location (e.g., North, South, Midwest).
Process: Groups employees based on workflow (e.g., testing, payment).
8. Authority and Responsibility
Chain of Command: The line of authority extending from top to bottom.
Responsibility: The obligation to perform assigned duties.
Line Authority: The direct right to command subordinates.
Staff Authority: Advisory positions created to support line authority.
9. Unity of Command
A structure where each employee reports to only one manager.
10. Authority vs. Power
Authority: The right to give orders and expect obedience.
Power: The ability to influence decisions.
11. Types of Power
Coercive Power: Based on fear.
Reward Power: Based on control of rewards.
Legitimate Power: Based on position in the hierarchy.
Expert Power: Based on expertise or special skills.
Referent Power: Based on personal traits and relationships.
12. Span of Control
The number of employees a manager can effectively supervise.
13. Factors Affecting Span of Control
Employee experience and training.
Similarity of employee tasks.
Complexity of tasks.
14. Centralization vs. Decentralization
Centralization: Decision-making at upper levels.
Decentralization: Decision-making spread across lower levels.
15. Formalization
The degree to which jobs are standardized with rules and procedures.
16. Mechanistic Organizations
Rigid, tightly controlled structure.
High specialization, centralized authority, clear chain of command.
17. Organic Organizations
Flexible, adaptive structure.
Decentralized decision-making, informal communication, wider spans of control.
18. Contingency Factors Affecting Structural Choice
Strategy: Simple strategies require simple structures.
Size: Larger organizations tend to be more mechanistic.
Technology: Different technologies affect structure.
Environment: Stable environments favor mechanistic structures; dynamic environments favor organic structures.
19. Traditional Organizational Designs
Simple Structure: Low departmentalization, centralized control.
Functional Structure: Groups similar job functions.
Divisional Structure: Separate business units or product divisions.
20. Contemporary Organizational Designs
Team Structure: Workgroups replace traditional hierarchy.
Matrix Structure: Employees report to multiple managers.
Project Structure: Employees continuously work on projects.
Boundaryless Structure: Eliminates traditional internal and external barriers.
21. Boundaryless Organizations
Internal Boundaries: Breaking down departmental silos.
External Boundaries: Reducing separation between the organization and its stakeholders.
22. Virtual Organization
A small core of full-time employees relying on external specialists.
23. Network Organization (Modular Organization)
Uses external suppliers for product components or services.
24. Challenges in Organizational Design
Keeping employees connected.
Managing global operations.
Creating a learning organization.
Designing flexible work arrangements.
25. Learning Organizations
An organization where employees continually acquire and share new knowledge.
26. Flexible Work Arrangements
Remote Work: Employees work from locations outside the office.
Telecommuting: Employees work remotely using technology.
Compressed Workweek: Employees work longer hours but fewer days.
Flextime: Employees choose their work hours within set limits.
Job Sharing: Two employees share the responsibilities of one job.
Contingent Workers: Freelancers, contract workers, or temporary staff.