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Flashcards in Lesson 13 Deck (34)
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What are 4 elements of the company structure that makes a difference in how we behave and how work is coordinated?

- centralization
- formalization
- hierarchical levels
- deparmentalization


What is centralization?

the degree to which decision making authority is concentrated at higher levels in an organization


What is decentralization?

- decisions are made and problems are solved at lower levels by employees who are closer to the problem


What is a disadvantage to centralization?

more stress/demands at the higher levels on mental and physical capabilities


What is formalization?

extent to which policies, procedures, job descriptions, and rules are written and explicitly articulated


What does formalization do?

makes behaviour more predictable, turn to hand book, people respond simialrly


What happens where there is a high degree of formalization?

lead to reduced innovativeness because employees are used to behaving in a certain manner


In regard to hierarchical levels, what is the concept, span of control mean? (2)

- number of employees reporting to a single manager
- in a tall structure, span is smaller, greater opportunities to manage activities
- in a wide structure, span is wider


What do flat organizations provide? (3)

- greater need satisfaction for employees, self-actualization
- they don't have opportunities to receive supervision and guidance- role ambiguity
- advancement is limited, fewer layser


What is meant by departmentalizations?

how organizations group jobs and departments together


What are the 2 forms of departmentalization structures?

- functional structures
- divisional structures


Explain what are functional structures?

- they group jobs based on similarity in functions
- departments
- each person serves a specialized role, and handles a large columns of transactions


Explain what are divisional structures? (2)

- each unique product or service the company is producing will have its own department
- within each department, functions such as marketing, manufacturing, and other roles are replicated


What are some disadvantages of the divisional structure model? (2)

- replicating within each department, leads to inefficiency, and not as much information sharing
- instead of performing specialized tasks, employees will be in charge of performing many different tasks in the service of the product (generalists, not specialists)


When is it advantageous to use functional structures?

- when an organization does not have a large number of products and services requiring special attention.
- stable environments that are slower to change


What are the two configurations of organizational structures, depending on how these elements are arranged?

- mechanistic structures
- organic structures


what are mechanistic structures? (3)

- highly formalized and centralized
- communication follows formal channels
- employees are given specific job descriptions of their roles and responsibilities


Mechanistic structures are often rigid and resistant to change, making them...

unsuitable for being innovative and taking quick action


What is the downside of mechanistic structures? (3)

- inhibiting entrepreneurial action
- discouraging the use of individual initiative
- limit individual autonomy and self determination


When the environment is more stable, what are the advantages of mechanistic structures?

- efficiency (min costs)


What are organic structures?

- flexible, decentralized structures with low levels of formalization


What are advantages of organic structures? (3)

- communication is more fluid and flexible
- job descriptions are broader
- high levels of job satisfaction


What are the two contemporary forms of organizational structures?

- Matrix organizations
- Boundaryless organizations


What are matrix organizations?

- cross a traditional functional structure with a product structure
- employees reporting to department managers are pooled together to form team


What are the advantages of matrix structures?

- created in response to uncertainty and the need to give attention to specific products
- provide quick responses to technical demands


What is the benefit for using the matrix structure over the product departments?

increases communication and cooperation b/w departments as PM need to coordinate their actions with depart managers


What are the disadvantages to a matrix structure?

- each employee reports to at least 2 or more managers
- not as predictable communication lines
- managers are more interdependent, need to spend more effort of coordinating
- multiple leaders can mean role conflict


What is a boundaryless organization?

organization that eliminates traditional barriers between departments and external environment


What are the two types of boundaryless organizations?

- modular organization
- strategic alliances


What is the form modular organization mean?

where all the nonessential functions are outsourced, retain only value generating functions in house, while the rest of the operations are outcourced