What is Organizational Structure?
Describes the static structure of an organization.
Involves the distribution of tasks and authorizations.
Contains jobs and departments.
What is Organizational Procedure?
Describes the dynamic configuration of work processes.
What are the characteristics of a functional organization?
Key types include:
Single line system.
Oriented on performance.
Segmentation of functions on the second hierarchy level.
What are the advantages of a functional organization?
Simple and manageable structure.
Utilization of specialization effects (economies of scale, experience curve).
Self-contained, clearly defined, and easily controllable functional areas.
What are the disadvantages of a functional organization?
Large number of interfaces and interdependencies leading to considerable coordination problems.
The danger of departmental selfishness and suboptimization.
Overloading of company management (chimney effect).
Overemphasis on specialization.
Limited possibilities for personnel development.
What type of companies is a functional organization suitable for?
Suitable for small and medium-sized companies with a manageable and homogeneous range of services that have a relatively stable corporate environment.
What are the characteristics of a divisional organization?
Oriented on products, markets, business units, or projects.
What are the advantages of a divisional organization?
Relieves management to focus on strategic issues.
Better coordination and faster decisions within divisions.
Flexible reaction to environmental changes.
Division heads have autonomy, boosting motivation and better success assessment.
More opportunities for personnel development.
What are the disadvantages of a divisional organization?
Risk of divisional egoism and short-term focus on profit.
Resource allocation issues and possible work duplication.
Requires more management positions.
Needs central functions for overall coordination.
Risk of conflicts between divisions and central functions.
For what type of companies is a divisional organization suitable?
Suitable for medium and large multi-product companies in a dynamic business environment.
What is Schein’s 3-Level Model of Organizational Culture?
Schein’s 3-Level Model identifies three levels of organizational culture: artifacts, espoused values, and basic underlying assumptions.
What are artefacts in Edgar Schein's 3-level model of organizational culture?
Tangible or verbally identifiable elements.
Examples: Rituals, stories, legends, dress codes, office layout, symbols.
What are espoused values in Edgar Schein's 3-level model of organizational culture?
Partly tangible, partly intangible elements.
Examples: Norms and standards like maxims, regulations, prohibitions, company philosophies, mission statements.
What are Basic Underlying Assumptions in Schein’s 3-Level Model?
Intangible and mostly unconscious elements.
Examples: Beliefs about the environment, truth, time, people, actions, social interactions.
How do the levels of Schein’s Model differ in visibility and interpretability?
Artifacts are visible but hard to interpret, espoused values are stated and easier to identify, and basic underlying assumptions are deeply embedded and hardest to change.
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