MGMT CH 15

the 2 steps in adapting to their environment:

1. recognizing the need to change. 2. adapting through reconstructing

more than 80% of organizations have fewer than

19 employees

providing employees with_____can help them learn to navigate their new work environment.

a sense of control

____commitment is lower in organizations that restructure

affective

why is a simple structure the most common form of organizational design?

bec there are more small firms than large ones

are designed for efficiency and rely on high levels of work specialization, formalization, centralization, chains of command and narrow spans of control

bureaucracies

an organizational form that exhibits many of the facets of the mechanistic organization

bureaucratic structures

consist on customers, competitors, supplies, distributors and other factors EXTERNAL to the firm

business environment

organizational design is influenced by 4 factors:

business environment corporate strategy technology size of firm

where decisions are formally made in an organization

centralization

if only the top managers within a company have the authority to make final decisions, this would be a____structure

centralized

can be seen as the specific flow of authority down through levels of an organizations structure

chain of command

essentially answers the question "who reports to whom"

chain of command

organizations depend on this specific flow of authority to attain order, control and predictable performance.

chain of command

employees are grouped around a specific client, serving different customer groups

client based structure

the total number of emploees

company size

describes an organizations objectives and goals and how it tries to capitalize on its assets to make money

company structure

____becomes necessary as the company grows larger

decentralization

if decision making authority is pushed down to lower level employees and these employees feel empowered to make decisions, this would be a _____structure.

decentralized

organic organizations have low...& are....

degree of work specification; decentralized

focus on providing high quality or unusual products, often taking an organic approach

differentiator (target)

company's also refer to work specialization as

division of labor

____environments change on a frequent basis and require organizations to have structures that are more adaptive

dynamic

organic organizations are flexible, adaptive, outward-focused organizations that thrive in_____

dynamic environments

routine technology capitalizes on

efficeiency

whether an organization is effective or not depends on its

environment

business environment consist of customers, competitors, suppliers, distributors, and other factors_____to the firm

external

an organizations span of control is a flat structure when...

fewer hierarchical levels and a wide span of control

a simple structure is a ____organization with one person making_____

flat; centralized decisions

variable technology needs to be

flexible

companies that have a lot of rules are

formal

is a necessary coordination mechanism when organizations want to deliver a standardized product or service

formalization

refers to the numbers of rules and procedures that are sued to standardize behaviors and decisions

formalization

2 types of bureaucratic structures:

functional & multi-divisional

are extremely efficient when the organization has a relatively low focus, fewer product lines and a stable environment.

functional structure

the most basic type of bureaucratic structure

functional structure

the most mechanistic of bureaucratic organizations

functional structure

emoloyees are grouped around location

geographic structure

can cause organizations to lose the ability associated with employees who can be flexible in what they do

highly specialized jobs

restructuring efforts can_____and jeopardize _____

increase stress; employees trust

as an organization____ its very difficult for them not to develop some kind of bureaucracies.

increases

organic structures stress_____communication & employees are encouraged to develop specific knowledge and expertise____

lateral; outside their specialization

mechanistic organizations have very clear____& high levels of____

lines of authority; hierarchal control

high specialized jobs cause employees to

lose satisfaction & flexibility

rely selling products at the lowest possible cost and being as efficient as they can, often taking a mechanistic approach

low cost producer (walmart)

to reduce the negative effects of restructuring, organizations should focus on____who remain after the restructuring.

managing the stress levels of the employees

an organizations span of control is a tall structure when...

many hierarchical levels and a narrow span of control

are very flexible, but can create high stress levels for employees

matrix structures

combines two types of structure into one, typically based on functional and projects or product divisions.

matrix structures

stable environments are more suitable for what type of design?

mechanistic

the larger an organization becomes, the more likely it will be to have a ______design

mechanistic

the more routine a technology is, the more____a structure should be.

mechanistic

structure that relies on formalization, hierarchical chain of command, work specialization, and NARROW spans of control

mechanistic organization

Ex of organic structure

microsoft

____span of control is best for an organizations productivity

moderate

restructuring has a___effect on commitment

moderate negative

___structures usually develop from companies with functional structures whose interest and goals become too diverse for that structure to handle.

multi-divisional

bureaucratic organizational forms in which employees are grouped into divisions around products, geographic regions, or clients.

multi-divisional structure

allow for close working relationships but can significantly increase labor cost and cause employees to be resentful for being too supervised.

narrow span of control

changes to an organizations structure can have____effects on the employee who works for the company, at least in____term.

negative; short term

helps organizational members and outsiders understand and comprehend how work is structured within the company

org. chart

dynamic environments are more suitable for what type of design?

organic EX-microsoft

structure that relies on low levels of formalization, hierarchical chain of command, work specialization, and WIDE spans of control

organic structures

a drawing that represents every job in the organization and the formal reporting relationships between those jobs

organizational chart

the process of creating, selecting, or changing the structure of an organization.

organizational design

formally dictates how jobs and tasks are divided and coordinated between individuals

organizational structure

employees are grouped around products

product structures

the process of changing an organizations structure

restructuring

organizational structure can be_____& illustrated through an_____

simple or complex; organizational chart

are generally used by small organizations where the manager, president and owner are all the same person

simple structure

is NOT large enough to have a degree of formalization

simple structure

the most common form of organizational design

simple structures

represents how many employees he or she is responsible for in an organization

span of control

____environments dont change frequently or rapidly

stable

mechanistic organizations are efficient, rigid, predictable and standardized organizations that thrive in

stable environments

one of the biggest factors in an environments effect on structure is whether the outside environment is

stable or dynamic

____performance is ____ in organizations that restructure.

task, lower

the method by which an organization transforms inputs into outputs

technology

functional structure groups employees by

the functions they perform

mechanistic organizations--communication is passed through____communication

vertical

restructuring has a___on performance

weak negative effect

mechanistic organizations--employees are encouraged to develop specific knowledge and expertise____

within their area of specification

the degree to which tasks in an organization are divided into separate jobs

work specialization

5 major elements of organizational structure:

work specialization chain of command span of control centralization formalization

a high level of ______tends to bring about a high level of_____

work specialization, formalization