NOTE TAKING GUIDE - Explain the ____organizational______________________ design of

business.

(_______Organizational___________________ Design of
________Businesses__________________)
• What is _______organizational___________________ design?
• The process of structuring a business’s people, information, and technology to
enable the business to achieve its goals and be successful
• What is the purpose of ___organizational_______________________ design?
• It is used to match the form of the _____organization_____________________
as closely as possible to the purpose(s) the
____organization______________________ seeks to achieve.
•  Vocabulary terms
• Line Of ____Command______________________ (often referred to as the chain of
____Command______________________) The flow of authority within an
______organization____________________ is often referred to as the line of
_______organization___________________. Creating authority that flows in a clear,
continuous line means that you are following the scalar principle.
• Line Authority refers to the formal, direct authority that affects a business’s day-to-day
operations.
• Staff Authority refers to advisory authority and often does not include the right to
actually make decisions or take action.
• Span Of Control Also called span of management, refers to how many workers are
managed by one supervisor.
• Authority is the formally granted ability of an individual to make decisions, pursue goals,
and obtain the resources necessary to support those decisions and goals.
• Responsibility means having a __duty________________________ to get a job done.
• Delegation: Process of assigning a task to a subordinate along with the commensurate
responsibility and authority to carry out the task
• Accountability: Responsibility for the outcome of the process
• Staff departments: The type of authority where managers influence line managers
through staff's specialized advice; departments that support or advise line departments
are called staff departments and include, e.g., human resources, legal, finance, etc.
• Explain principles of ____organizational______________________ design
• The importance of company objectives. It’s important for a business to know its mission
and objectives before choosing an ___organizational_______________________ design.
• The concept of authority. Managers and supervisors in an
____organization______________________ are granted their authority through
______organizational____________________ design.
• Division of labor. Separating a big job into several smaller tasks is an
___organizational_______________________ principle.
• Unity of ____command______________________. The principle of unity of
_______command___________________ states that no employee should have to
report to more than one manager or supervisor.
• The scalar principle. Creating authority that flows in a clear, continuous line.
• Span of control.
• Identify types of __organizational________________________ structures that
______businesses____________________ use (Advantages & Disadvantages)
• Functional structures - the ___organization_______________________ is small,
geographically centralized, & provides few goods & services.
• Advantages: Reduces duplication of activities, Encourages technical expertise
• Disadvantages: Creates narrow perspectives, Difficult to coordinate 
• Divisional structures - the ___organization_______________________ is relatively
large, geographically dispersed, and/or produces wide range of goods/services.
• Advantages: Improves decision making, Fixes accountability for performance,
Increases coordination of functions
• Disadvantages: Hard to allocate corporate staff support, Loses some economies
of scale, Fosters rivalry among divisions 
• Lateral relations  - Use offset coordination problems in functional and divisional
structures.
• Advantages/Disadvantages: Dotted-line supervision, Liaison roles, Temporary
task forces, Permanent teams, Integrating managers 
• Matrix structures - the ____organization______________________ needs constant
coordination of its functional activities
• Advantages: Reinforces & broadens technical excellence, Facilitates efficient use
of resources, Balances conflicting objectives of the
___organization_______________________
• Disadvantage: Increases power conflicts, Increases confusion & stress 2-boss
employees, Impedes decision making