Unformatted text preview: Discussion Questions on Chapter 9
Organizational Structure & Design
Unknown Name_______________________________________________________________ Q1. Explain the meaning of the following terms: a. Organizing: is arranging and structuring work to achieve the organization’s goals
b. Organizational Structure: is the formal arrangement of jobs within an organization
c. Organizational Design: is developing or changing an organization’s structure
d. Work Specialization: tasks are divided into separate jobs with each step completed by a
e. Cross-functional teams: work teams composed of individuals from various functional specialties
,are being used along with traditional departmental arrangements.
f. Chain of Command:
the line of authority extending from upper organizational levels to the lowest levels,
which clarifies who reports to whom. Three concepts related to
chain of command are authority, responsibility, and unity of command. g. Authority: is the rights inherent in a managerial position to tell people what to do
and to expect them to do it.
h. Responsibility: Responsibility is the obligation to perform any assigned duties. i. Unity of Command: is the management principle that each person should report to
only one manager.
j. Span of Control: the number of employees a manager can
efficiently and effectively manage.
k. Employee Empowerment: giving employees more authority (power) to make
Q. 2 What are the purposes of Organizing? • Divides work to be done into specific jobs and departments.
• Assigns tasks and responsibilities associated with individual jobs.
• Coordinates diverse organizational tasks.
• Clusters jobs into units.
• Establishes relationships among individuals, groups, and departments.
• Establishes formal lines of authority.
• Allocates and deploys organizational resources Q. 3 Explain what is Departmentalization & what are the types of it? the basis by which jobs are grouped.
There are five major ways to departmentalize:
Functional, product, geographical, process, customer Q. 4 From what you have studied, is the span of control important? Why? What are
the determines the “ideal” span of control? Yes, because it determines how many levels and
managers an organization will have. – Width of span is affected by:
Skills and abilities of the manager
Characteristics of the work being done
Similarity and complexity of tasks
Q. 5 What is the difference between Centralization & Decentralization? 1. Centralization is the degree to which decision making is concentrated at upper
levels of the organization.
2. Decentralization is the degree to which lower-level employees provide input or
actually make decisions.
The current trend is toward decentralizing decision making in order to make
organizations more flexible and responsive. Q. 6 Discuss Formalization. The degree to which jobs within the organization are standardized and the extent
to which employee behavior is guided by rules and procedures.
-Highly formalized jobs offer little
discretion over what is to be done.
-Low formalization means fewer
constraints on how employees do their work. Q. 7 What are the factors that influence the amount of centralization &
decentralization? More Centralization:
• Environment is stable.
• Lower-level managers are not as capable at making decisions as upper-level
• Lower-level managers do not want to have a say in decisions.
• Decisions are relatively minor.
• Organization is facing a risk of company failure.
• Company is large.
• Environment is complex, uncertain.
• Lower-level managers are capable at making decisions.
• Lower-level managers want a voice in decisions.
• Decisions are significant.
• Corporate culture is open to allowing managers to have a say in what happens.
• Company is geographically dispersed. Q. 8 Compare between Mechanistic & Organic Organizations. Mechanistic Organization
• High specialization
• Rigid departmentalization
• Clear chain of command
• Narrow spans of control
• High formalization
• Cross-functional teams
• Cross-hierarchical teams
• Free flow of information
• Wide spans of control
• Low formalizatio Q. 9 Explain what are the strengths & weaknesses of Traditional Organizational
designs. Simple Structure
Strength: fast and flexible
Weaknesses: not appropriate as organization grows
Strengths: cost-saving advantages of specialization
Weaknesses: follow up the functional goals can cause managers to lose sight of
whats best for overall organization
Strengths: Focuses on results, Division managers are responsible for what
happen to their products and services
Weaknesses: Duplication of activities and resources increases costs Q. 10 Explain the traditional organizational designs. Simple structure is an organizational design with low departmentalization, wide
spans of control, authority centralized in a single person, and little formalization.
Functional structure is an organizational design that groups similar or
related occupational specialties together.
Divisional structure is an organizational structure made up of separate,
semiautonomous units or divisions. Q. 11 Explain the contemporary organization designs. Many of today’s organizations are finding that traditional organizational designs
are not appropriate for their increasingly dynamic and complex business
environments. and It contains :
Matrix and project structures
The boundaryless Organization
The Virtual Organization
The network organization Q. 12 Discuss today’s organizational design challenges. Many of today’s organizations are finding that traditional hierarchical organizational
designs are not appropriate for their increasingly dynamic and complex business
1. Keeping employees connected
Today’s managers face the major challenge of keeping their employees
connected to the organization,
2. Building a learning organization
develop the capacity to continuously learn, adapt, and change.
3. Managing global structural issues
Researchers have concluded that although structures of organizations
around the globe are similar, cultural uniqueness is maintained because
of differences in behavior within companies in different areas of the
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- Spring '17
- Management, c. Organizational Design