Ch. 15 Foundations of Organization Structure
Ch. 15 Foundations of Organization Structure MGMT 3720
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This 4 page Class Notes was uploaded by Alora Lornklang on Monday April 11, 2016. The Class Notes belongs to MGMT 3720 at University of North Texas taught by Dr. James D. Powell in Spring 2016. Since its upload, it has received 14 views. For similar materials see Organizational Behavior in Business at University of North Texas.
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Date Created: 04/11/16
MGMT 3720 Organizational Behavior Chapter Review Ch. 15: Foundations of Organization Structure 1. Identify the six elements of an organization’s structure. Organizational structure o Defines the way in which job tasks are formally divided, grouped and coordinated. 1) Work Specialization o The degree to which tasks in an organization are subdivided into separate jobs. o Repetition of work o Training for specialization 2) Departmentalization o The basis by which jobs in an organization are grouped together. By functions performed By type of product or service the organization produces. By geography or territory. 3) Chain of Command o The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom. o Authority The rights inherent in a managerial position to give orders and to expect the orders to be obeyed. o Unity of command The idea that a subordinate should have only one superior to whom he or she is directly responsible 4) Span of control o The number of subordinates a manager can efficiently and effectively direct. 5) Centralization o The degree to which decisionmaking is concentrated at a single point in an organization. o Advantages of a decentralized organization: Can act more quickly to solve problems 6) Formalization o The degree to which jobs within an organization are standardized o A highly formalized job gives the job incumbent a minimum amount of discretion. 2. Identify the characteristics of a bureaucracy. Simple structure o An organization structure characterized by a low degree of departmentalization, wide spans of control, authority, centralized in a single person, and little formalization. Bureaucracy o An organization structure with highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command. 3. Describe a matrix organization. Matrix Structure o An organization structure that creates dual lines of authority and combines functional and product departmentalization. 4. Identify the characteristics of a virtual organization. Virtual organization: o A small, core organization that outsources major business functions. o The essence of the virtual organization is that it is typically a small, core organization that outsources major business functions. 5. Show why managers want to create boundaryless organization. Boundaryless organization o An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams. The Leaner Organization: Downsizing General Electric cuts a division that aren’t doing well as opposed to cutting 10% of entire workforce from all departments 6. Demonstrate how organizational structures differ, and contrast mechanistic and organic structural models. Mechanistic model o A structure characterized by extensive departmentalization, high formalization, a limited information network and centralization. o High specialization o Rigid departmentalization o Clear chain of command o Narrow spans of control o Centralization o High formalization o Popcorn example in class o Commodity vs. Premium Organic model o A structure that is flat, uses crosshierarchical and crossfunctional teams, has low formalization, possesses a comprehensive information network, and relies on participative decisionmaking. o Crossfunctional teams o Crosshierachical teams o Free flow of information o Wide spans of control o Decentralization o Low formalization o Smartphones example in class An organization’s structure is a means to help management achieve its objectives. Most strategy frameworks focus on three strategy dimensions: o Innovation o Cost minimization o Imitation Innovation strategy (Organic model) o A strategy that emphasizes the introduction of major new products and services. Costminimization (mechanistic model) o A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation, or marketing expenses, and pricecutting. Imitation strategy o A strategy that seeks to move into new products or new markets only after their viability has already been proven. Technology o The way in which an organization transfers its inputs into outputs. Environment o Institutions or forces outside an organization that potentially affect the organization’s performance. o Want a structure that responds to dynamism Organizational Size o Large organizations tend to have more specialization, more departmentalization, more vertical levels, and more rules and regulations than do small organizations. o The impact of size becomes less important as an organization expands 7. Analyze the behavioral implications of different organizational designs An organization’s structure can have significant effects on its members. It’s impossible to generalize o Not everyone prefers the freedom and flexibility of organic structures. o Some people are most productive and satisfied when work tasks are standardized and ambiguity minimized. Organizational Designs and Employee Behavior o Work specialization contributes to higher employee productivity. o No evidence supports a relationship between span of control and employee satisfaction or performance.
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