Foundations of Management Chapters 7,8,9 - Organizational Structure

  1. What is organization structure?
    The pattern of jobs and groups of jobs in an organization
  2. What is organization design?
    Management decisions and actions that result in a specific organization structure
  3. 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
  4. What is the division of labor design decision?
    • The degree of specialization
    • high - low
  5. What is the departmentalization design decision?
    Homogeneous or heterogeneous
  6. What is the span of control design decision?
    Few or many
  7. What is the authority design decision?
    High or low delegation
  8. 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
  9. What is delegation of authority?
    Process of distributing authority downward in an organization
  10. 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
  11. What is departmentalization?
    Process in which an organization is structurally divided by combining jobs in departments according to some shared characteristic or basis
  12. What are the four departmentalization bases?
    • Functional
    • Geographic
    • Product
    • Customer
  13. What is an advantage of functional departmentalization?
  14. What is a major disadvantage of functional departmentalization?
    Organization goals may be sacrificed in favor of departmental goals
  15. What is the span of control?
    The number of individuals who report to a specific manager
  16. What are characteristics of the Mechanistic model?
    • Rules and procedures
    • Centralized authority
    • High specialization of labor
  17. What are characteristics of the Organic model?
    • Limited use of rules
    • Decentralized authority
    • Relatively low degrees of specialization
  18. What do the columns represent in the matrix organization model?
  19. What do the rows represent in the Matrix organization model?
    • Projects 
    • Products
  20. What is a multinational corporation?
    Consists of a group of geographically dispersed organizations with different national subsidiaries
  21. What are boundaryless organizations?
    • The hierarchy and chain of command are minimized
    • Rigidly structured departments are eliminated
Card Set
Foundations of Management Chapters 7,8,9 - Organizational Structure
Organization Structure