Lim Sei Kee @ cK
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Simple structure is a structure characterized
by a low degree of departmentalization, wide
spans of control, authority centralized in a
single person, and a little formalization.
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What are the strengths and weaknesses of
utilizing such structure?
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Strength- Fast, flexible and accountability is
clear
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Weakness- As organization grows, it become
inadequate
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All else being equal, tall or flat organization is
more effective?
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WIDE- more efficient, fewer levels = fewer
managers, save in management salaries.
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Reduce effectiveness- employee performance
suffers because supervisors no longer have time
to provide necessary support and leadership.
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Reduce cost, cut overhead, speed up decision
making, increase flexibility, get closer to
customers, empower employees.
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NARROW- maintain close control.
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Drawback: expensive because add levels of
management, make vertical communication
in the organization more complex, slow
decision making and tend to isolate upper
management.
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Encourage overly tight supervision and
discourage employee autonomy.
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You are now tasked to design a proper
organizational structure for a company. What
are the six important key elements that you
need to consider?
The key question
The answer is provided by
1. To what degree are activities subdivided
into separate jobs?
Work Specialization
2. On what basis will jobs be grouped
together?
Departmentalization
3. To whom do individuals and groups report?
Chain of Command
4. How many individuals can a manager
efficiently and effectively direct?
Span of Control
5. Where does decision-making authority lie?
Centralization and decentralization
6. To what degree will there be rules and
regulations to direct employees and
managers?
Formalization
a)
Characterized by a low degree of staff division, wide extents
of control, centralized authority, and low standardization
b)
Characterized by a high level of staff division and a dual
chain of authority
c)
Characterized by decentralization, low standardization, and
high specialization
d)
Characterized by decentralization, low standardization, and
very little reliance on the chain of authority
e)
Characterized by high centralization and low staff division
a)
Characterized by a low degree of staff division, wide
extents of control, centralized authority, and low
standardization simple
b)
Characterized by a high level of staff division and a dual
chain of authority matrix
c)
Characterized by decentralization, low standardization,
and high specialization team
d)
Characterized by decentralization, low standardization,
and very little reliance on the chain of authority
boundaryless
e)
Characterized by high centralization and low staff
division virtual
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MCQ

1. Which of these statements about
organizational structure is(are) true?

A] It refers to the division of labour.
B] It refers to patterns of coordination.
C] It refers to patterns of work flow and
formal power that direct organizational
activities.
D] All of the above statements are true.
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2. Organization structures

A] affect group behavior more than individual
behavior
B] change rapidly to meet environmental and
market changes
C] contribute positively to organizational
performance
D] can be defined simply as activities that
occur regularly
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3. Work is divided into specialized jobs
because:

A] it potentially increases work efficiency.
B] job incumbents can master their tasks
quickly because work cycles are short.
C] less time is wasted changing from one task
to another.
D] All of the above
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4. Each of these are basic elements of
organizational structure, EXCEPT:

A] formalization
B] departmentalization.
C] standardization.
D] centralization.
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5. A flat organizational structure creates a(n)
__________ span of control.
A] Tall
B] Narrow
C] Wide
D] Centralized

6. What is a problem associated with
formalization?

A] Rules and procedures reduce
organizational flexibility.
B] Employees can become alienated and
disempowered.
C] Rules and procedures can become the
focus of attention.
D] All of the above.
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7. A(n) ___________ structure has a wide span
of control, little formalization, and highly
__________ decision-making.

A] organic; decentralized
B] mechanistic; centralized
C] departmental; departmentalized
D] formal; decentralized
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8. All of these are characteristics of a
company with a simple structure, EXCEPT:

A] few people are employed.
B] owner's direct supervision coordinates
work activities.
C] narrowly defined roles.
D] minimal hierarchy.
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9. Which structure is usually optimal for
project-based organizations with fluctuating
workloads?

A] Functional
B] Divisional
C] Matrix
D] Network
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10. A network structure that represents several
independent companies that form unique
partnership teams to provide customized
products or services, usually to specific clients,
for a limited time are known as:
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A] host organizations.
B] virtual corporations.
C] global organizations.
D] centralized organizations.