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BUAD ch.15 homework

BUAD ch.15 homework - Nina Madison Questions for Review 1...

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Nina Madison Questions for Review 1. What are the six key elements that define an organization’s structure? The six key elements that define an organization’s structure is work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. Work specialization: the degree to which tasks in an organization are subdivided into separate jobs Departmentalization: the basis by which jobs in an organization are grouped together Chain of command: the unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom Span of control: the number of subordinates a manager can efficiently and effectively direct Centralization: the degree to which decision making is concentrated at a single point in an organization Formalization: the degree to which jobs within an organization are standardized 2. What is a bureaucracy, and how does it differ from a simple structure? A bureaucracy is an organization structure with highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command. A simple structure is an organization structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization. A bureaucracy differs from a simple structure in that it is usually much larger than businesses with simple structures. Its is also much more complex and involves components from multiple areas, and highly specialized people. Also not everything depends on one person like in the simple structure. Bureaucracies also rely heavily on standardized work processes for coordination and control. They also can get by with less talented people but there can be an obsession with the strict rules. 3. What is a matrix organization? A matrix organization is an organization structure that creates dual lines of authority and combines functional and product departmentalization. The strength in this type of organization is that it puts similar employees together to minimize the number of employees necessary and therefore allows them all to share the resources. The weakness of this kind of structure is getting the group of employees together within a decent time frame and within a low budget cost.
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