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Organizational structure and design - What are the 6 key elements in organizational design?

Q: Explain organizing and organizational design.

Organizing : the function of management that creates the organization's structure . Organizational design : when managers develop or change the organization's structure . Involves making decisions bout how specialized jobs should be. Usually made by top - managers .

Q: What is work specialization? Does it increase productivity?

Work specialization is the division of work activities into separate job tasks . It does increase productivity , but only to a certain point . After that point, human diseconomies outweigh economic advantage.

Q: What is departmentalization and what are the 5 common forms?

Departmentalization is grouping jobs together . Common forms are: Functional - groups based on work performed (e.g. accounting, human resources) Product - groups based on major product areas in the organization (e.g. men's footwear, accessories) Customer - groups based on customer's problems and needs (e.g retail, wholesale, government) Geographic - groups based on location serves (e.g. North, Midwest, Asia) Process - groups based on the basis of work or customer flow (e.g. testing, payment)

Q: What are cross-functional teams?

Cross-functional teams are teams made up of individuals from various departments that cross traditional department lines.

Q: Explain chain of command, authority, responsibility and power.

Chain of command : the line of authority extending from upper organizational levels to lower levels, which clarifies who reports to whom . Authority : the rights inherent in a managerial position to give orders and expect the orders to be obeyed . Responsibility : when employees are given rights , they also assume a corresponding obligation to perform, which they will be held accountable for. Power : an individual's capacity to influence decisions .

5 important questions on Organizational structure and design - What are the 6 key elements in organizational design?

Explain organizing and organizational design.

Organizing: the function of management that creates the organization's structure.
Organizational design: when managers develop or change the organization's structure. Involves making decisions bout how specialized jobs should be. Usually made by top-managers.

What is work specialization? Does it increase productivity?

Work specialization is the division of work activities into separate job tasks.
It does increase productivity, but only to a certain point. After that point, human diseconomies outweigh economic advantage.

What is departmentalization and what are the 5 common forms?

Departmentalization is grouping jobs together. Common forms are:

Functional - groups based on work performed (e.g. accounting, human resources)
Product - groups based on major product areas in the organization (e.g. men's footwear, accessories)
Customer - groups based on customer's problems and needs (e.g retail, wholesale, government)
Geographic - groups based on location serves (e.g. North, Midwest, Asia)
Process - groups based on the basis of work or customer flow (e.g. testing, payment)

What are cross-functional teams?

Cross-functional teams are teams made up of individuals from various departments that cross traditional department lines.

Explain chain of command, authority, responsibility and power.

Chain of command: the line of authority extending from upper organizational levels to lower levels, which clarifies who reports to whom.
Authority: the rights inherent in a managerial position to give orders and expect the orders to be obeyed.
Responsibility: when employees are given rights, they also assume a corresponding obligation to perform, which they will be held accountable for.
Power: an individual's capacity to influence decisions.