Organizational Design

How does the matrix structure positively affect a company's employees?

It places them in the appropriate departments and teams and reassigning them as required.

Explain division of labor

Separating a big job into several smaller tasks is an organizational principle

What type of organization is well-suited for a divisional organizational structure?

This is a common structure used by consumer products and food companies with multiple product lines.

Better ability to compete

An innovative organization comes up with new products and ideas before competitors do.

What is the scalar principle?

Creating authority that flows in a clear, continuous line

Explain why span of control depends on the company.

It depends on the manager, the company, the industry, and the skill levels of the employees on the work team.

Explain how the functional structure suffers from a lack of flexibility.

It's difficult to communicate and coordinate among departments, and when special projects or problems arise, it may take a while to generate ideas and solutions. Change does not come quickly within the functional structure.

How does an individual gain authority?

Proper authority is given to those who have it.

Explain how the matrix organizational structure is a combination of the functional and the divisional structures.

Under the matrix structure, authority flows both down and across the organization. Each employee can belong to both a traditional functional department as well as a cross functional team.

Why is it important for employees to have a single manager or supervisor? (unity of command)

When employees have more than one authority to answer to, they can get confused or feel unsure about which manager's expectations should take precedence.

increased productivity

When employees know what their jobs are, know to whom they report, have good communication with their colleagues, and work in an innovative environment, it's natural that they will be productive.

What type of organization is well-suited for a functional organizational structure?

a business with a marketing department, an accounting department, a sales department, a production department, etc. This traditional structure is ideal for organizations that function within a stable environment, such as a company that produces a small number of products with a steady demand.

How can the divisional structure create a better customer experience?

a customer question or complaint made in a certain territory can go directly to that territory's manager instead of national headquarters.

organizational design

enables the business to achieve it's goals and to be successful.

clear lines of authority

every employee has at least one person of authority that they must answer to.

Explain why the matrix structure violates the unity of command principle.

giving employees more than one manager to answer to.

Why is it important for a business to know its mission and objectives before choosing an organizational design?

organizational design must fit with organizational objectives—not the other way around.

Explain the concept of lateral relations.

the amount of teamwork included in any type of organizational design, particularly in the form of special projects and task forces.

encouraged innovation

the creation or discovery of something new.