Buad 304 Final

Front 1

The elements of Organizational Structure:

Back 1

Work Specialization, Departmentalization, Chain of Command, Span of Control, Centralization/Decentralization, & Formalization

Front 2

Formalization:

Back 2

the degree to which the jobs within an organization are standardized, and to what degree rules and policies are applied. (High = Less Freedom)

Front 3

Work Specialization:

Back 3

division of labor. It describes the degree to which activities in the organization are subdivided into separate jobs. Specific tasks are identified and individuals are assigned to work on that task

Front 4

Chain of Command:

Back 4

A clear connection of authority and responsibility in an
organization that defines who reports to whom.

Front 5

Departmentalization:

Back 5

The basis by which jobs within an organization are grouped.
Once jobs have been divided through Work Specialization, they need to be grouped so
that common tasks can be coordinated.

Front 6

Span of Control:

Back 6

This determines the number of levels and managers an organization has. Usually, the wider or larger the span, the more efficient the organization is.

Front 7

Centralization/Decentralization:

Back 7

The degree to which decision making is concentrated
at a single point in the organization.

Front 8

5 Types of Departmentalization:

Back 8

Functional, Product, Geographic, Process, and Costumer

Front 9

Types of Organizational Design:

Back 9

The Simple Structure, The Bureaucracy, The Matrix, Virtual Organization, Simple Structure, Horizatonal/Boundaryless Organization

Front 10

two extreme models of Organizational Design:

Back 10

Mechanistic (Bureaucracy) and Organic (Matrix, Virtual, Horizontal/Boundaryless, Simple Structure)

Front 11

The Simple Structure

Back 11

o low degree of departmentalization
o wide span of control
o authority centralized in a single person
o little formalization
- Most widely practiced in small businesses in which
owners are also the managers
- Simple, fast, flexible, inexpensive, and accountability is clear

Front 12

Bureaucracy

Back 12

o STANDARIZATION
o Highly routine operating tasks achieved through
specialization
o Very formalized rules and regulations
o Tasks are grouped into functional departments
o Centralized authority
o Narrow spans of control
o Decision making that follows the chain of command

Front 13

The Matrix

Back 13

o Creating dual lines of authority
o Combining functional and product departmentalization
§ Functional departmentalization = put like specialists
together
§ Product departmentalization = facilitates coordination
among specialties to achieve on time completion and
meet budget targets
o Breaks unity-of-command concept
o Used in advertising agencies, research and development
laboratories, hospitals, universities…

Front 14

The Virtual Organization

Back 14

small, core organization that
outsources major business functions
o Highly centralized
o Little or no departmentalization
o Like today’s movie making organizations

Front 15

Horizontal/Boundaryless Organization

Back 15

organization that seeks to:
o Eliminate chain of command
o Have limitless spans of control
o Replace departments with empowered teams
g. Pros:
i. Communication, organizational processes, and feedback are
improved
ii. It is much more responsive
iii. Highly flexible and business focused.
iv. As layers are removed, conflicts and coordination costs are removed.
h. Cons:
i. They are difficult to implement in larger organizations.
ii. People must possess certain skills in order to communicate
effectively, while knowledge and proper training is a must

Front 16

Mechanic Model

Back 16

a. High Specialization
b. Rigid Departmentalization
c. Clear Chain of Command
d. Narrow Spans of Control
e. Centralization
f. High Formalization

Front 17

Organic Model

Back 17

Simple Structure, Matrix Structure, Virtual Organizations, and The Boundaryless/Horizontal Organizations fall under this category.
a. Cross- functional Teams and Cross Hierarchical Teams
b. Free Flow of Information
c. Wide Spans of Control
d. Decentralization
e. Low Formalization

Front 18

What are the determinants of structure?

Back 18

1. Strategy: an organization structure is a means to help management achieve its objective. As a result, an organization must first have a strategy before they can choose the structure that will complement best.
2. Size: the organizations size can have a considerable effect on its structure. (as organization grows, it becomes more Mechanistic.)
3. Technology: Deals with how an organization transfers its inputs into outputs. The
degree of task routines provides insight into the organizations structure (routine tasks = mechanistic)
4. Environment: Refers to institutions or forces outside of the organization that potentially
affect the organization’s performance. The degree of uncertainty provides insight into the organization structure. A low lever of uncertainty in the organization environment symbolizes a Mechanistic structure.