Page 210 - Fundamentals of Management Myths Debunked (2017)_Flat

6 Review

CHAPTER SuMMARy

6-1 Describe six key elements in organizational are better matched with mechanistic structures, but dynamic
design. ones fit better with organic structures.

6-3 Compare and contrast traditional and
The first element, work specialization, refers to dividing work
activities into separate job tasks. The second, departmental- contemporary organizational designs.
ization, is how jobs are grouped together, which can be one
of five types: functional, product, customer, geographic, or Traditional structural designs include simple, functional, and
process. The third—authority, responsibility, and power—all divisional. A simple structure is one with low departmental-
have to do with getting work done in an organization. Au- ization, wide spans of control, authority centralized in a single
thority refers to the rights inherent in a managerial position person, and little formalization. A functional structure is one
to give orders and expect those orders to be obeyed. Respon- that groups similar or related occupational specialties togeth-
sibility refers to the obligation to perform when authority er. A divisional structure is one made up of separate business
has been delegated. Power is the capacity of an individual units or divisions. Contemporary structural designs include
to influence decisions and is not the same as authority. The team-based structures (the entire organization is made up of
fourth, span of control, refers to the number of employees work teams); matrix and project structures (where employees
a manager can efficiently and effectively manage. The fifth, work on projects for short periods of time or continuously); and
centralization and decentralization, deals with where the ma- boundaryless organizations (where the structural design is free
jority of decisions are made—at upper organizational levels of imposed boundaries). A boundaryless organization can either
or pushed down to lower-level managers. The sixth, formal- be a virtual or a network organization.
ization, describes how standardized an organization’s jobs
are and the extent to which employees’ behavior is guided by 6-4 Discuss the design challenges faced
rules and procedures.
by today’s organizations.
6-2 Identify the contingency factors that favor
either the mechanistic model or the organic One design challenge lies in keeping employees connected,
which can be accomplished through using information technol-
model of organizational design. ogy. Another challenge is understanding the global differences
that affect organizational structure. Although structures and
A mechanistic organization design is quite bureaucratic where- strategies of organizations worldwide are similar, the behavior
as an organic organization design is more fluid and flexible. within them differs, which can influence certain design elements.
The strategy-determines-structure factor says that as organiza- Another challenge is designing a structure around the mind-set of
tional strategies move from single product to product diversi- being a learning organization. Finally, managers are looking for
fication, the structure will move from organic to mechanistic. organizational designs with efficient and effective flexible work
As an organization’s size increases, so does the need for a more arrangements. They’re using options such as telecommuting,
mechanistic structure. The more nonroutine the technology, the compressed workweeks, flextime, job sharing, and contingent
more organic a structure should be. Finally, stable environments workers.

dIScUSSIon QUeSTIonS

6-1 Discuss the six key concepts defining organization 6-4 Is there any difference between a boundaryless organi-
design. zation and a structureless organization? Explain with
6-2 Organization design is shaped by management and examples.
environment. Illustrate why the design might be 6-5 Contrast mechanistic and organic organizations.
traditional or contemporary. 6-6 Explain the contingency factors that affect organizational
6-3 Compared to the strengths and weaknesses of a func- design.
tional structure, what are the strengths and weaknesses 6-7 With the availability of information technology that
of a simple structure? allows employees to work anywhere, anytime, is

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