What is the goal behind creating a divisional structure in an Organisation quizlet?

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Terms in this set (57)

Organizational structure

A formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals.

Identify the factors that influence managers' choice of an organizational structure.

The four main determinants of organizational structure are the external environment, strategy, technology, and human resources.

Organizational design

The process by which managers make specific organizing choices that result in a particular kind of organizational structure.

What happens when the external environment is changing ,ore quickly and the uncertainty is also greater?

The problems are greater for managers in trying to gain access to scarce resources.

When are less coordination and communication among people and functions are needed to obtain resources?

This is when the external environment is stable, resources are readily available, and uncertainty is low.

True or False? Different strategies often call for the use of different organizational structures and cultures.

True

How are managers able to gain more control over their different businesses?

Managers gain more control when they move to a more flexible structure.

What happens when an organization uses a more complicated technology?

It becomes more difficult to regulate or control the technology because more unexpected events are possible to appear.

What is the benefits of a more routine technology?

The formal structure becomes more appropriate since tasks are simple and the steps needed to produce goods and services have been worked out in advance.

What was the argument that Charles Perrow made?

He argued that two factors determine how complicated or nonroutine technology is: task variety and task analyzability.

Task variety

It is the number of new or unexpected problems or situations that a person or function encounters in performing tasks or jobs.

Task analyzability

It is the degree to which programmed solutions are available to people or functions to solve the problems they encounter.

True or False? Nonroutine or complicated technologies are characterized by low task variety and high task analyzability.

False: High task variety and low task analyzability

The more highly skilled its workforce, and the greater the number of employees who work together in groups or teams, the more likely an organization is to use what?

It is more likely to use a flexible, decentralized structure and a professional culture based on values and norms that foster employee autonomy and self control.

The way an organization's structure works depends on the organizing choices managers make about three issues:

1. How to group tasks into individual jobs.
2. How to group jobs into functions and divisions.
3. How to allocate authority and coordinate or integrate functions and divisions.

Job design

The process by which managers decide how to divide tasks into specific jobs.

Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Managers use job design to group tasks into jobs. Once that is done, managers can then enlarge and enrich jobs to create more interesting jobs and to get workers to act flexibly. Another way to see how motivating or satisfying a job is by a tool that is provided by the job characteristic model.

Job simplification

The process of reducing the number of tasks that each worker performs.

Job enlargement

Increasing the number of different tasks in a given job by changing the division of labor.

Job enrichment

Increasing the degree of responsibility a worker has over his or her job.

What are four examples of job enrichment?

1. Empowering workers to experiment to find new or better ways of doing the job.
2. Encouraging workers to develop new skills.
3. Allowing workers to decide how to do the work and giving them the responsibility for deciding how to respond to unexpected situations.
4. Allowing workers to monitor and measure their own performance.

Who created the job characteristic model?

J.R. Hackman and G. R. Oldham

True or False? According to Hackman and Oldham, every job has five characteristics that determine how motivating the job is.

True

Name the characteristics that determine how employees react to their work and lead to outcomes such as high performance and satisfaction and low absenteeism and turnover.

1. Skill variety
2. Task identity
3. Task significance
4. Autonomy
5. Feedback

Skill variety

The extent to which a job requires that an employee use a wide range of different skills, abilities, or knowledge.

Task identity

the extent to which a job requires that a worker perform all the tasks necessary to complete the job, from the beginning to the end of the production process

Task significance

The degree to which a worker feels his or her job is meaningful because of its effect on people inside the organization, such as coworkers, or on people outside the organization, such as customers.

Autonomy

The degree to which a job gives an employee the freedom and discretion needed to schedule different tasks and decide how to carry them out.

Feedback

The extent to which actually doing a job provides a worker with clear and direct information about how well he or she has performed the job.

Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

...

Functional structure

An organizational structure composed of all the departments that an organization requires to produce its goods or services.

Divisional structure

An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer.

What is the goal behind the change to a divisional structure?

It is to create smaller, more manageable units within the organization.

What are the three forms of divisional structure?

product structure, geographic structure, and market structure

Product structure

An organizational structure in which each product line or business is handled by a self-contained division.

Geographic structure

An organizational structure in which each region of a country or area of the world is served by a self-contained division.

Market structure

An organizational structure in which each kind of customer is served by a self-contained division; also called customer structure.

Matrix structure

An organizational structure that simultaneously groups people and resources by function and products.

Cross-functional team

A group of managers brought together from different departments to perform organizational tasks.

Product team structure

An organizational structure in which employees are permanently assigned to a cross-functional team and report only to the product team manager or to one of his or her direct subordinates.

Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

...

Authority

The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources.

Hierarchy of authority

An organization's chain of command specifying the relative authority of each manager.

Span of control

The number of subordinates who report directly to a manager.

Line manager

Someone in the direct line or chain of command who has formal authority over people and resources at lower levels.

Staff manager

Someone responsible for managing a specialist function such as fiancé or marketing.

What has many levels of authority relative to company size?

tall organization

What has fewer levels relative to company size?

flat organization

Decentralizing authority

Giving lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources.

Integrating mechanisms

Organizing tools that managers can use to increase communication and coordination among functions and divisions.

Task force

A committee of managers from various functions or divisions who meet to solve a specific, mutual problem - also called ad hoc committee.

Managers can increase coordination among functions and divisions by establishing what?

liaison roles

Describe how information technology (IT) is helping managers build strategic alliances and network structures to increase organizational efficiency and effectiveness.

...

B2B network structure

A series of global strategic alliances that an organization creates with suppliers, manufacturers, and distributors to produce and market a product.

Outsource

To use outside suppliers and manufacturers to produce goods and services.

Boundaryless organization

An organization whose members are linked by computers, mobile and virtual technology, computer-aided design systems, videoconferencing, and cloud computing, and who rarely, if ever, see one another face to face.

Knowledge management system

A company specific virtual information system that systematizes the knowledge of its employees and facilitates the sharing of their expertise.

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