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16 Cards in this Set

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What does an organizational chart depict?
The organization of the work and the relationships among positions (not the relationship among employees).
Why do we need organizational structure?
Decision making authority
Responsibility for performance
Accountability for performance
What are the different elements of organizational structure?
Divsision of work
Chain of command
Span of control
Basis ob business organization
Define the division of work.
Denotes the type of work that is being done, organization of the work, and the level where it should occur.
Define chain of command.
Shows who reports to whom, which decisions are to be made by which people, and where decisions are to be made. Comes from the military model.
Define span of control.
Denotes how many management levels there are and then the number of specialized activies supervised by a given manager.
How can different businesses be organized?
Can be centralized (run from the top) or decentralized (more control at lower levels). Can also be functional (organized around divisions or product lines).
What are line positions?
Line positions are the operating core- they perform the primary function of the organization. They are indispensable in accomplishing the organizational mission.
What are staff positions?
These are support functions that often denote clerical or technical divisions. They advise or provide service to line positions.
Name the five different organizational structures.
Craft
Entrepreneurial
Bureaucracy
Divsional
Matrix
What is the craft stage?
A working owner who may or may not also have employees. It is a start up design which is simple and centralized. All members are part of the operating core and perform all tasks. It is very responsive to environmental changes but the owner can become easily overwhelmed if the workload increases rapidly.
What is the entrepreneurial stage?
This is seen in small organizations and uses the division of labor for efficiency. Its advantages are that it is more efficient then a craft model but it loses some of the earlier responsivness.
What is the bureaucracy stage?
Jobs are divided into highly specialized areas. The focus is on speciliation by function. There is an extensive hierarchy of authority (chain of command) and control is centralized. There is standardization within jobs and they generally have a large staff component. The advatage is the clear separation of jobs and relationships between them however it can be cumbersome and slow to respond.
What is the divisional stage?
Designed to focus on a market segement or specific product line. It has decentralized organization and the span of control varies. The advantages are that it is responsive to market or product needs and there is a strong employee association within the division however it can be cumbersome.
What is the matrix stage?
Combines product line and functional focus. Decentralized for functional lines with a dual reporting structure. Division of work is less clear. The advantages are the responsiveness to program needs with good departmental support however the dual reporting structure can cause confusion.
Are students and volunteers shown on formal organizational charts?
No