C5 Flashcard

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What is organizational structure?

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Organizational structure refers to how tasks, roles, and responsibilities are divided within an organization, including communication and decision-making flows. It helps ensure efficient operations and collaboration among departments.

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What is organizational design?

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Organizational design is the process of creating or adjusting an organization's structure to achieve its goals, involving decisions about task division, resource allocation, and coordination.

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What factors influence organizational design?

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The factors are the organizational environment, strategy, technology, and human resources.

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How does the organizational environment affect design?

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The environment affects the flexibility or formality of the structure, depending on factors such as resource scarcity and the rate of change.

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How do strategies affect organizational structure?

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Differentiation strategies require a flexible structure for innovation, while low-cost strategies need a formal structure to control costs.

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How does technology influence organizational design?

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Companies that use advanced technology or information technology often require a hierarchical structure to enable quick and flexible decision-making.

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How does human resources influence the choice of organizational structure?

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The skills and experience of employees determine whether the structure should be centralized (focused on control) or decentralized (focused on empowerment) is appropriate.

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How many types of organizational structures are discussed?

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Functional structure, divisional structure, and matrix structure.

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What is functional structure and what are its advantages and disadvantages?

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Functional structure groups employees based on their expertise. Advantages include specialization and efficient resource allocation. Disadvantages include limited collaboration between functions and slow decision-making.

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What is a divisional structure and what are its advantages and disadvantages?

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A divisional structure organizes an organization based on products, regions, or customer groups. Advantages include focus and accountability, while disadvantages include potential redundancy and limited knowledge sharing between departments.