BUAD 304 Final Flash Cards

Play Memory | Create Card File | Append to Card File
Title: BUAD 304 Final
Description: Flashcards for BUAD 304 Final for Fall 2011
Number of Cards: 18
Save Count: 0
Author: pcucc9189
Created: 2011-12-13
Tags: buad304 business
Private No

Save Count represents the number of people who have saved this card set to their flashcard list. Consider this an endorsement!

    • Question
    • Answer
    • Side 3
    • The elements of Organizational Structure:
    • Work Specialization, Departmentalization, Chain of Command, Span of Control, Centralization/Decentralization, & Formalization
    • Formalization:
    • the degree to which the jobs within an organization are standardized, and to what degree rules and policies are applied. (High = Less Freedom)
    • Work Specialization:
    • 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
    • Chain of Command:
    • A clear connection of authority and responsibility in an
      organization that defines who reports to whom.
    • Departmentalization:
    • 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.
    • Span of Control:
    • This determines the number of levels and managers an organization has. Usually, the wider or larger the span, the more efficient the organization is.
    • Centralization/Decentralization:
    • The degree to which decision making is concentrated
      at a single point in the organization.
    • 5 Types of Departmentalization:
    • Functional, Product, Geographic, Process, and Costumer
    • Types of Organizational Design:
    • The Simple Structure, The Bureaucracy, The Matrix, Virtual Organization, Simple Structure, Horizatonal/Boundaryless Organization
    • two extreme models of Organizational Design:
    • Mechanistic (Bureaucracy) and Organic (Matrix, Virtual, Horizontal/Boundaryless, Simple Structure)
    • The Simple Structure
    • 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
    • Bureaucracy
    • 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
    • The Matrix
    • 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…
    • The Virtual Organization
    • small, core organization that
      outsources major business functions
      o Highly centralized
      o Little or no departmentalization
      o Like today’s movie making organizations
    • Horizontal/Boundaryless Organization
    • 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
    • Mechanic Model
    • a. High Specialization
      b. Rigid Departmentalization
      c. Clear Chain of Command
      d. Narrow Spans of Control
      e. Centralization
      f. High Formalization
    • Organic Model
    • 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
    • What are the determinants of structure?
    • 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.