Behavioral Organization - Chapter 15

Front 1

Define Organizational Structure

Back 1

Organizational structure depicts how job tasks are formally divided, grouped, and coordinated.

Front 2

List the key elements of Organizational Structure

Back 2

1. Work Specialization
2. Departmentalization
3. Chain of command
4. Span of control
5. Centralization / Decentralization
6. Formalization

Front 3

Define Work Specialization

Back 3

The degree to which tasks in the organization are subdivided into separate jobs

Front 4

Define Departmentalization

Back 4

The basis by which jobs are grouped together

1. Function
2. Product/Service
3. Geography
4. Process
5. Customer

Front 5

Define Chain of Command

Back 5

The line of authority present in decision making

Front 6

Define Unity of Command

Back 6

The idea that a subordinate should only have one superior to whom he or she is directly responsible

Front 7

Define Span of Control

Back 7

the number of subordinates a manager directs

Front 8

List the 3 common organizational structures

Back 8

1. Simple Structure
2. Bureaucracy
3. Matrix

Front 9

Define Simple Structure

Back 9

An organization structure characterized by a low degree of departmentalization, wide spans of control, authority centralized to a single person, and little formalization

Most widely practices in small businesses

Strengths
Fast, flexible, inexpensive to operate, and accountability is clear

Weaknesses
Does not scale as the company grows
Risky because everything is dependent on one person

Front 10

Define Bureaucracy

Back 10

# 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
# Standardization is Key!!!
# Characteristics
# Need less talented individuals
# Rules and regulations substitute for managerial discretion
# Obsessive concern for following rules

Front 11

Define Matrix Org Structure

Back 11

An organization structure that creates dual lines of authority and combines functional and product departmentalization

Front 12

List the Key Concepts Behind the Matrix Org Structure

Back 12

Combines two forms of departmentalization: functional and product
# Attempts to gain the strength of both while removing the weaknesses: Functional departmentalization puts specialists together which allows the sharing of resources while Product departmentalization facilitates the coordination among specialists
# Breaks the Unity-of-command concept since employee will have a functional and product boss
# Facilitates the coordination of complex and interdependent activities. The silo effect is reduced because constant communication is required because of the dual lines of authority. Employees are less likely to lose themselves in self imposed silos.

Front 13

List the Pros and Cons for Bureaucracy

Back 13

# Pros
# Standardized tasks are performed in a highly efficient manner
# Cons
# Subunit conflicts caused by specialization where subunit goals become more important than organizational goals
# No room for modification if case doesn't fit process in place
# No effecient if employees confront problems that are unfamiliar and lack programmed decision rules

Front 14

List the new design options available for organizational structure

Back 14

1. Virtual Organization
2. Boundaryless Organization

Front 15

Describe Virtual Organization

Back 15

# defn: A small, core organization that outsources major business functions
# Highly centralized with little or no departmentalization
# Provides maximum flexibility while concentrating on what the organization does best
# Reduced control over key parts of the business
# Pros
# Very Flexible; allows individuals with innovative ideas and little money to compete with major players in the market
# Cons
# Constantly changing causing roles, goals and responsibilities to be unclear
# Geographically dispersed team members are finding it difficult to share information and knowledge

Front 16

Describe Boundaryless Organization

Back 16

# defn: An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams
# Coined by Jack Welch, former chairman of GE
# Wanted to eliminate vertical and horizontal boundaries and break down external barriers between the company and its customers and suppliers
# Removing Vertical Boundaries
# Flattens the hierarchy and minimizes rank and status
# Removing Horizontal Boundaries
# Task completed by
# replacing functional departments with cross-functional teams and organize activities around processes
# Lateral transfers or rotational assignments

Front 17

List the two extreme models of organizational design

Back 17

1. Mechanistic
2. Organic

Front 18

List the key elements of a Mechanistic Org Design

Back 18

# High Specialization
# Rigid Departmentalization
# Centralization
# Narrow Span of Control
# High Formalization
# Clear Chain of Command

Front 19

List the key elements of an Organic organizational design

Back 19

# Cross-functional teams
# Cross-hierarchical teams
# Free flow of information
# Wide spans of control
# Decentralization
# Low Formalization

Front 20

Why do org structures differ?

Back 20

1. Strategy
2. Organizational Size
3. Technology
4. Environment

Front 21

What are the 3 dimensions of strategy that cause org structures to differ

Back 21

# Innovatition Strategy
# defn: A strategy that emphasizes the introduction of major new products or services.
# Organic Structure
# Cost-minimization Strategy
# defn: A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting
# Mechanistic Structure
# Immitation Strategy
# defn: A strategy that seeks to move into new products or new markets only after their viability has already been proven
# Attempts to minimize risk and maximize opportunity for profit
# Mixture of Organic and Mechanistic: Tight controls over existing products while looser controls for new products