Foundations of Management Chapters 7,8,9 - Organizational Structure
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What is organization structure?
The pattern of jobs and groups of jobs in an organization
What is organization design?
Management decisions and actions that result in a specific organization structure
What are 4 organization design decisions made by managers?
- How to divide up the task
- The bases to group the jobs
- Size of groups reporting to each superior
- How to distribute authority
What is the division of labor design decision?
- The degree of specialization
- high - low
What is the departmentalization design decision?
Homogeneous or heterogeneous
What is the span of control design decision?
Few or many
What is the authority design decision?
High or low delegation
What is a division of labor?
- Concerns the extent to which jobs are specialized
- Process of dividing work into relatively specialized jobs to achieve advantages of specialization
What is delegation of authority?
Process of distributing authority downward in an organization
What are the delegation decision guidelines?
- How straightforward are the job's decisions
- Are individuals capable to make the decisions
- Are individuals motivated to make the decisions
- Do the benefits of decentralization outweigh its costs
What is departmentalization?
Process in which an organization is structurally divided by combining jobs in departments according to some shared characteristic or basis
What are the four departmentalization bases?
What is an advantage of functional departmentalization?
What is a major disadvantage of functional departmentalization?
Organization goals may be sacrificed in favor of departmental goals
What is the span of control?
The number of individuals who report to a specific manager
What are characteristics of the Mechanistic model?
- Rules and procedures
- Centralized authority
- High specialization of labor
What are characteristics of the Organic model?
- Limited use of rules
- Decentralized authority
- Relatively low degrees of specialization
What do the columns represent in the matrix organization model?
What do the rows represent in the Matrix organization model?
What is a multinational corporation?
Consists of a group of geographically dispersed organizations with different national subsidiaries
What are boundaryless organizations?
- The hierarchy and chain of command are minimized
- Rigidly structured departments are eliminated
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