Chapter 10--Designing Adaptive OrganizationsStudent: ___________________________________________________________________________

1. The deployment of organizational resources to achieve strategic goals refers to organizing. True False

2. Organizing defines what to do while strategy defines how to do it.

True False

3. The framework in which the organization defines how tasks are divided, resources are deployed and

departments are coordinated is called organizational structure. True False

4. A organizational map is a visual representation of an organization's structure, showing communication

and lines of power. True False

5. Despite the apparent advantages of specialization, many organizations are moving away from this

principle. True False

6. The principle of unity of command suggests that managers within an organization should reach

agreement on the goals and objectives of the organization. True False

7. Authority is the right to use resources, make decisions and issue orders in an organization.

True False

8. The duty to perform the task or activity an employee has been assigned is called accountability.

True False

9. Most organizations today discourage managers to delegate authority to the lower levels given the

challenges to meet customer needs and adapt to the environment. True False

The acceptance theory of authority argues that managers have authority because employees do not have achoice in choosing to accept their commands. True False

1

Line departments perform tasks that reflect the organizations primary goal and mission. True False

The right to advise, recommend, and counsel in the staff specialists' area of expertise is included in staff authority. True False

The number of employees reporting to a supervisor is his or her span of management. True False

Traditional views of organizational design recommend a span of management of about 7 to 10 subordinates per manager. True False

Many hierarchical levels and a correspondingly narrow span of management refers to a flat structure. True False

The trend in recent years has been toward narrower spans of control as a way to facilitate delegation. True False

A tall structure is a management structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels. True False

Certainty in the environment is usually associated with decentralization. True False

The basis for grouping positions into departments and departments into the total organization is referred to as departmentalization. True False

For companies to operate effectively, the amount of centralization or decentralization should fit the firmsstrategy. True False

At Fox End, people are grouped together in departments by common skills and work activities, including a sales department and a production department. This is an example of vertical functional approach. True False

2

The functional structure offers a way to decentralize decision making and provide direction from the teams in the field. True False

Because the chain of command converges at the top, the functional structure provides a way to decentralize decision making and provide unified direction from all managers. True False

Quick response to external changes is an advantage of vertical functional structure. True False

Divisions are created, in functional structures, as self-contained units with separate functional departments for each division. True False

The divisional structure encourages decentralization. True False

In a geographic-based structure, all functions in a specific country or region report to the same division manager. True False

With a matix structure, the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organizations goals. True False

Aspects of both functional and divisional structures simultaneously in the same part of the organization are combined in the virtual network approach. True False

The horizontal structure provides traditional control within functional departments, and the vertical structure provides coordination across departments. True False

The confusion and frustration caused by the dual chain of command is a major problem of the matrix structure. True False

The overseer of both the product and functional chains of command, responsible for the entire matrix is the matrix boss. True False

3

The modular approach is similar to virtual networking. True False

The divisional structure fosters excellent coordination within divisions, but coordination across divisions is often poor. True False

In the divisional approach, coordination across divisions is great whereas coordination within divisions isoften poor. True False

The matrix approach can be highly effective in a complex, rapidly changing environment in which the organization needs to be flexible and adaptable. True False

One major disadvantage of the virtual network approach is the lack of hands-on control. True False

Coordination is the quality of collaboration across departments. True False

Reengineering is the outcome of information and cooperation. True False

A project manager is a person responsible for coordinating the activities of several departments for the completion of a specific project. True False

Reengineering basically means preserving the past by establishing the sequence of activities by how work was done. True False

The radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed is called reengineering. True False

The distinctive feature of the project manager position is that the person is not a member of one of the departments begin coordinated. True False

4

When an organization uses a differentiation strategy, it strives for internal efficiency. True False

The pure functional structure is appropriate for achieving internal efficiency goals. True False

A vertical structure that emphasizes specialization and centralization is appropriate when environmental uncertainty is high. True False

A rigid, vertical structure in an uncertain environment prevents the organization form adapting to change. True False

The functional structure is appropriate when the primary goal is innovation and flexibility. True False

Small-batch production is distinguished by standardized production runs. True False

Which of the following refers to the deployment of organizational resources to achieve strategic goals? A. PlanningB. ControllingC. OrganizingD. LeadingE. Strategic management

Strategy defines _____ to do (it) while organizing defines _____ to do (it). A. how; whatB. how; whyC. what; howD. what; whyE. when; what

Organizational structure includes which of these? A. The set of formal tasks assigned to individualsB. The set of formal tasks assigned to departmentsC.

The design of systems to ensure effective coordination of employees across departments

D. Formal reporting relationshipsE. All of these are part of organizational structure.

5

Organization structure is defined as the: A.

visual representation of the organization.

B.

framework in which the organization defined how tasks are divided, resources are deployed, and departments are coordinated.C. division of

labor.D. unbroken line ofauthority that links all individuals in the organization.

E. none of these.

The organization chart: A. shows the characteristics of the organization's vertical structure.B. is a visual representation of the organization's structure.C. details the formal reporting relationships that exist within an organization.D. all of these.E. both shows the characteristics of the organization's vertical structure and is a visual representation of

the organization's structure.

The _____ delineates the chain of command, indicates departmental tasks and how they fit together, and provides order and logic for the organization. A. management chartB. employee directoryC. structural tableD. administrative chartE. organizational chart

6

Which of the following refers to the degree to which organizational tasks are subdivided into individual jobs? A. MultitaskingB. Lines of

authorityC. Work

specializationD. AutonomyE. Team structure

When work specialization is extensive: A.

employees perform a single task.

B. employees perform many tasks.

C.

employees are often highly challenged.

D. employees are often inefficient.

E. jobs tend to be large.

Louise works in the manufacturing department at Ice Sculptures. The work in Louise's department is low in task specialization. As a result, Louise: A.

usually performs a single task.

B.

does a variety of tasks and activities.

C. is often bored.D. is rarely challenged.E. generally goofs-off.

_____ is also referred to as work specialization. A. Division of laborB. Unity of commandC. Scalar chainD. Esprit de corpsE. Virtual network approach

7

Jacob was recently looking at his company's organization chart in an attempt to discover who reports to whom. Jacob is studying his organization's: A. degree of

formalization.B. amount of

differentiation.C. degree of

centralization.D. chain of

command.E. division of labor.

Unity of command and the scalar principle are both closely related to the: A.

amount of work specialization in an organization.

B. degree of formalization.

C. chain of command.

D.

amount of bureaucracy in theorganization.

E. matrix structure.

_____ means that each employee is held accountable to only one supervisor. A. Scalar principleB. Unity of commandC. Work specializationD. Division of laborE. Span of management

The formal and legitimate right of a manager to make decisions is _____. A. delegationB. responsibil

ityC. authorityD.

span of management

E. leadership

8

_____ refers to a clearly defined line of authority in the organization that includes all employees. A. Scalar principleB. Unity of commandC. Work specializationD. Division of laborE. Span of management

Rebecca works for a company that has clearly defined lines of authority. Each employee knows that he orshe has authority and responsibility for a distinct set of tasks. Employees are also aware of the companysreporting structure as well as successive management levels all the way to the top. Rebeccas company follows which principle? A. Specialization principleB. Unity of command

principleC. Scalar principleD. Authority principleE. Responsibility principle

How does managerial authority flow through the organizational hierarchy? A. VerticallyB. SporadicallyC. HorizontallyD. In a circular fashionE. Authority is static - it does not flow

The people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command. This is called _____. A. delegatio

nB. line

authorityC. staff

authorityD. accountab

ilityE. hierarchy

Which of the following characteristics distinguishes authority? A. It is vested in people, not positions.B. Subordinates accept it.C. It flows across the horizontal

hierarchy.D. It emerges from the organizational

values.E. Individuals are born with this power.

9

Gina wishes to transfer authority and responsibility to her subordinates. This process is known as: A. accountability.B. coordination.C. delegation.D. departmentalizati

on.E. passing the buck.

Which of the following typically is NOT considered a staff department? A. Strategic planningB. AccountingC. ManufacturingD. Human resourcesE. Research and development

Which department performs tasks that reflect the organization's primary goals and mission? A. LineB. StaffC. PrimaryD. FunctionalE. Strategic planning

_____ departments include all of those that provide specialized skills in support of _____ departments. A. Line; staffB. Staff; lineC. Primary;

functionalD. Functional;

primaryE. Line; functional

Carly's Clothes, Inc. manufactures children's clothes. Which of the following departments for Carly's Clothes can be considered a line department? A. Finance departmentB. Human Resources

departmentC.

Research and development department

D. Manufacturing department

E. Marketing department

10

Which of the following refers to the number of employees reporting to a supervisor? A.

The line of authority

B.

The span of management

C.

The chain ofcommand

D.

The managementchain

E. Delegation

Traditionally, a span of management of about _____ has been recommended. A. ThreeB. FiveC. fifteenD. sevenE. twenty

Shoshanna is manager of a customer service firm where she oversees five subordinates. To help her subordinates learn more about the different roles within the company, Shoshanna regularly assigns them tasks that are not part of their normal routine. This is an example of: A. responsibilityB. delegationC. authorityD. chain of commandE. irrational decision making

11

Dustin's subordinates are highly trained and all perform similar tasks. Brittany's subordinates are spread over two locations and she has little available in the way of support systems. Which of the following statements is most correct? A. Nichole's span of management can be larger than Kevin's.

B. Nichole will have problems with unity of command.

C. Kevin's span of management can be larger than Nichole's.

D. Kevin has more problems with work specialization.

E. None of these

Which of the following organizations have a flat structure compared to others? A. Organization A with eleven hierarchical

levelsB. Organization B with three hierarchical levelsC. Organization C with eight hierarchical levelsD. Organization D with six hierarchical levelsE. Organization E with seven hierarchical levels

Which of the following factors is NOT associated with larger span of control? A. Work performed by subordinates is stable and routine.B. Subordinates perform similar work tasks.C. Subordinates are located at various different locations.D. Subordinates are highly trained and need little direction.E. Rules and procedures defining task activities are available.

Relative to a flat organizational structure, a tall structure has a _____ span of management and _____ hierarchical levels. A. wide;

fewerB. narrow;

fewerC. narrow;

widerD. narrow;

moreE. wide; more

12

_____ is the trend in recent years. A.

Greater work specialization

B. Less delegation

C.

Wider spans ofmanagement

D.

Narrower spans of management

E. Tall structure

Barney and Betty work at Mountain Peak, Inc. Although they both work on the assembly line, they have the authority to make many decisions about their job. Mountain Peak can be said to have: A.

a high degree of decentralization.

B.

a wide span of management.

C.

a high degree of centralization.

D.

a narrow span of management.

E. no management.

_____ means that decision authority is located near the _____ of the organization. A.

Centralization;bottom

B. Decentralization; top

C. Centralization;top

D.

Centralization;middle

E. None of these

Change and uncertainty in the environment are usually associated with _____. A. work

specializationB. decentralizationC. centralizationD. tight vertical

controlE. division of labor

13

Which of the following is the basis for grouping positions into departments and departments into the totalorganization? A. Departmentali

zationB. CentralizationC. Decentralizati

onD. FormalizationE. Specialization

Jacob, a customer service representative for AB Retailers, has seven levels of management between himself and the companys CEO. In contrast, his friend Rhonda, a customer service representative for YZ Retailers, has only four levels of management between her and the company CEO. Compared to YZ,Jacobs company has what type of organizational structure? A. NarrowB. WideC. FlatD. TallE. Identical

The functional, _____, and _____ are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy. A. divisional,

teamsB. divisional,

matrixC. matrix, teamsD. matrix,

networksE. teams, networks

The use of teams may lead to too much: A. division of labor.B. decentralization.C.

authority and responsibility in top management's hands.

D. formalization.E. narrow span of management.

14

In times of crisis or risk of company failure, authority should be: A.

decentralized.

B. centralized at the bottom.

C. centralized at the top.

D.

spreadthrough a wide span of management.E. flat.

When departments are grouped together on the basis of organizational outputs, the organization is using a: A. functional structure.B. matrix structure.C. divisional structure.D. virtual network

structure.E. team-based structure.

Self-contained unit structure is a term used for: A. divisional structure.B. functional structure.C. term structure.D. matrix structure.E. virtual network structure.

15

Relative to the functional structure, the divisional structure: A. encourages decentralization.B. has a higher degree of work

specialization.C. has a more pronounced division of

labor.D. has excellent coordination across

departments.E. results in an efficient use of resources.

Theresa works in an organization where coordination across organizational units is poor and the units perceived themselves to be in competition with one another for organizational resources. These characteristics are consistent with which of the following structures? A. A matrix structureB. A functional structureC. A divisional structureD. A team-based structureE. A virtual network structure

All functions in a specific country or region report to the same division manager in _____ divisions. A. functiona

lB. matrixC.

geographic-based

D. teamsE. networks

Global companies often use a _____ structure to achieve simultaneous coordination of products across countries. A. functionalB. divisionalC. matrixD. product-basedE. process-based

A formal chain of command for both functional and divisional relationships is provided by the _____ approach to structure. A. matrixB. vertical

functionalC. divisionalD. productE. team-based

16

Kent works at the Tick Tock, Inc. He has two bosses, one a functional manager and the other a divisional manager. Tick Tock, Inc. has a _____ structure. A. function

alB. division

alC. geograp

hicD. matrixE. product

Disadvantages of the virtual network approach include: A. a lack of hands-on control.B. the possibility of losing an important part of the

organization.C. weakened employee loyalty.D. all of these.E. a lack of hands-on control and weakened employee loyalty.

Salta Communications is a global telecommunications company that has operations on four continents. The CEOs direct supervisors include VPs for the North American South American, European, and the Asian divisions. Salta can best be described as using what organizational structure? A. NetworkB. MatrixC. FunctionalD. DivisionalE. Geographic

The matrix structure violates which of the following principles of management? A. Unity of directionB. Unity of commandC. Work specializationD. Division of laborE. Span of management

All of the following are the major disadvantages of the matrix structure EXCEPT: A. it generates a large amount of

conflict.B. managers spend much time

resolving conflict.C.

the confusion caused by the dual chain of command.

D.

the power imbalance that can result between the sides of the matrix.

E. enlarged tasks for employees.

17

Juan is a top manager at I.F.L., a matrix organization. He oversees both the product and functional chains of command, and is responsible for maintaining a power balance between the two sides of the matrix. Juan is a _____. A. political

leaderB. functional

leaderC. divisional

leaderD. matrix

leaderE. top leader

The _____ is the product or functional boss, who is responsible for one side of the matrix. A. matrix bossB. production

supervisorC. department bossD. top leaderE. two-boss employee

_____ teams are brought together as a formal department in the organization. A.

Cross-functional

B.

Permanent

C. Formal

D. Ad-hoc

E. Task

Walt works for a large company. Recently, his organization began to contract out such functions as training, engineering, and computer service. This approach is consistent with a _____ structure. A. functio

nal B. team C. division

al D.

virtual network

E. service

18

The _____ is an organization structure that divides the major functions of the organization into separate companies. A. diversification

approachB. team approachC. virtual network

approachD. BCG approachE. functional approach

The _____ is an organization structure that divides the major functions of the organization into separate companies and coordinates their activities from a small headquarters organization. A. diversification

approachB. team approachC. virtual network

approachD. BCG approachE. functional approach

In the _____ structure, the organization is viewed as a central hub surrounded by a network of outside specialists which are sometimes spread all over the world. A. virtual

networkB. matrixC. functionalD. divisionalE. geographic

According to MANAGER'S SHOPTALK in Chapter 10, all of the following are effective ways for a manager to delegate EXCEPT: A. delegate the whole task.B. select the right person.C.

save feedback for completion of the project.

D. evaluate and reward performance.

E. give thorough instruction.

19

In the _____ approach, a manufacturing company uses outside suppliers to provide entire chunks of a product, which are then assembled into a final product by a handful of workers. A.

virtual network

B. modular

C.

virtual organization

D. teamE. matrix

The biggest advantage to a virtual network approach is _____ and _____ on a global scale. A. flexibility;

competitivenessB. coordination;

organizationC. communication;

organizationD. communication; no costE. flexibility; coordination

All of the following are advantages of a functional structure EXCEPT: A. economies of scale.B. excellent coordination between functions.C. in-depth skill specialization and development.D. high quality technical problem solving.E. career progress within functional departments.

An advantage of functional structures is the: A. resulting economies of scale.B. enlarged tasks for employees.C. easy pinpointing of responsibility for

product problems.D. development of general management

skills.E. flexibility in an unstable environment.

Which of the following structures is the leanest of all organization forms because little supervision is required? A. Functional approachB. Virtual network

approachC. Team approachD. Matrix approachE. Divisional approach

20

Shooting Star, Inc. has slow response to external changes, centralized decision making, and poor coordination across departments. It is likely structured: A.

along divisional lines.

B. along functional lines.

C.

based on the team approach.

D.

based on the virtual network approach.

E. none of these.

Organ Rentals Corporation has been having numerous problems. Communication across departments is poor and decisions are backing up at the top of the organization. Organ Rentals uses a _____ structure. A. geographicB. productC. functionalD. matrixE. team-based

All of the following are advantages of a divisional structure EXCEPT: A. high concern for customers' needs.B. fast response, flexibility in an unstable environment.C. emphasis on overall product and division goals.D. development of general management skills.E. there is little duplication of services across divisions.

Which is an advantage of the divisional structure? A. Concern for customers' needs is high.B. There is little duplication of services across

divisions.C. There is good coordination across divisions.D. Top management retains tight control of the

organization.E. There is no competition for corporate resources.

21

Advantages of the matrix structure include: A.

it increases employee participation.

B. it makes efficient use of human resources.

C. it works well in a changing environment.

D. it develops both general and specialist management skills.

E. all of these.

Which of the following is(are) an advantage of team structure? A.

Increased barriers among departments

B.

Unplanned decentralization

C.

Time and resources spent on meetings

D.

Less responsetime, quicker decisions

E. All of these

Stephanie works in one of seven research and development departments at Tara's Terrace, Inc. This would suggest that Tara's Terrace has a: A. functional

structure.B. divisional

structure.C. wide span of

control.D.

high degree of centralization.

E. matrix structure.

22

Which of the following is a contemporary approach to structural design in departmentalization? A. FunctionalB. DivisionalC. Traditional

divisionsD. TeamsE. Geographic-based

The team approach to departmentalization is a response to: A. lack of participative teams.B. centralized decision-making.C. the competitive global environment.D. all of these.E. both lack of participative teams and centralized decision-making.

Coordination is defined as: A. the ability of the organization to produce timely products.

B. the quality of collaboration across departments.

C. differentiation.

D. the quantity of goods produced by the organization.

E. all of these.

Innovative Creations Corporation is designed along functional lines. New product development is very slow and the process is plagued by many problems. One of the problems is that the people in marketing never communicate with the people in production. This is an example of poor _____. A. coordinatio

nB. planningC. motivatingD. leadingE. controlling

23

Which of the following happens as organizations grow? A.

Positions and departments are deleted.

B. Management layers are eliminated to save cost.

C. Managers have to find ways to tie different departments.

D.

Top management becomes more autocratic.

E. None of these.

When the organization is structured along _____ lines, coordination is required. A. functionalB. divisionalC. teamD. all of theseE. functional or divisional

The outcome of information and cooperation is _____. A. organizatio

nB. planningC. coordinatio

nD. differentiati

onE. controlling

A task force is _____ committee(s) formed to solve a specific problem. A. a standingB. a permanentC. a temporaryD. all of theseE. none of these

24

Marissa was recently assigned to a committee whose task is to research new product opportunities. Once this group generates a list of six or seven viable options, it will be disbanded. This group is also known asa _____. A. teamB. standing

committeeC. permanent

committeeD. task forceE. none of these

Which of the following leads to strong coordination across functional areas and greater flexibility in responding to changes in the environments? A. ReengineeringB. LayoffsC. DownsizingD. A temporary

committeeE. An ad hoc committee

Boars' Nest Distributors is continually hampered by an inability to adapt to an unstable environment. Which of the following is a plausible explanation as to why? A. Boars' Nest's structure is too loose.B. Boars' Nest's structure is too horizontal.C. Boars' Nest uses a vertical structure.D. All of these.E. Both Boars' Nest's structure is too loose and structure is too horizontal.

Makai's Marketing Mix (MMM) does not use its resources wisely. The employees at MMM spend too much time in meetings and not enough time focusing on the task at hand. MMM's management should consider changing the organizational structure from _____ to _____. A. horizontal, verticalB. team based, horizontalC. vertical, team basedD. mechanistic, rigidE. team-based, virtual network

Flash Card Inc. recently underwent a significant company-wide change that involved revision of its manufacturing and leadership processes. The result of this was a stronger emphasis on horizontal coordination. This level of change is referred to as _____. A. reorganizationB. reengineeringC. e-engineeringD. strategic planningE. corporate structuring

25

A(n) ____ is responsible for coordinating the activities of several departments. A. department managerB. line managerC. project managerD. operativeE. moderating manager

Lisa is responsible for coordinating the efforts of several different departments. Which of the following titles best describes her position? A. Department managerB. Middle managerC. First-level supervisorD. Project managerE. Chairman of the board

Typically, project managers have authority over _____ but not over _____ assigned to it. A. people; the projectB. the project; peopleC. resources; the

projectD. people; other

resourcesE. finances; products

Which of the following is not an approach to structural design that reflects different uses of the chain of command? A. Matrix approachB. Team-based approachC. Process approachD. Divisional approachE. Virtual network approach

Kara's department is made up of people with similar skills and work activities. Her organization uses the _____ approach to departmentalization. A. team-

basedB.

horizontal matrix

C. divisional

D.

vertical functional

E. process

26

Mondavi Corporation has a finance department, a marketing department, and a production department. Mondavi: A. uses a functional

structure.B. has a geographic

structure.C. uses a divisional

structure.D. uses product-based

structure.E. uses a matrix structure.

An organization strives for internal efficiency with a(n) _____ strategy. A. integrationB. diversificationC. differentiationD. defensiveE. cost leadership

With a(n) _____ strategy, the organization attempts to develop innovative products unique to the market. A. differentia

tionB. integratio

nC. reengineer

ingD. cost

leadershipE. defensive

A pure functional structure is most appropriate for achieving: A. innovation.B. differentiati

on.C.

internal efficiency goals.

D. flexibility.E. all of these

27

Which of the following structures is most consistent with a strategy of stability? A. Team based

structureB. Organic structureC. Matrix structureD. Functional

structureE. Learning structure

The pure functional structure does not enable the organization to be: A. a cost

leader.B. efficient.C. flexible.D. stable.E. all of these.

Which of the following structures works best in an uncertain organizational environment? A. A tight structureB. A mechanistic

structureC. A horizontal

structureD. A functional

structureE. A vertical structure

A(n) _____ works best in a stable organizational environment. A. loose organizational structureB. vertical structureC. organic structureD. horizontal structureE. loose organizational structure or an organic structure

Which of the following is an incorrect fit in a stable organizational environment? A. A tight structureB. A rigid structureC. A functional

structureD. A horizontal

structureE. A vertical structure

28

In _____ production, firms produce goods in batches of one or a few products designed to customer specification. A. servi

ceB.

customer-induced

C.

continuous process

D.

small batch

E. mass

Swift Move Facilities manufacturers two different bicycle models. The company produces a high volume of products using standardized production runs. The company does very little product customization. Swift Move uses what type of technology structure? A. Service productionB. Mass productionC. Large-batch productionD. Small-batch productionE. Continuous process production

Organizations such as Amazon.com, Google, Facebook, and Priceline.com are examples of firms that are based on: A. digital technology.B. tangible output.C. direct contact with

customers.D. mechanistic technology.E. products rather than services.

In a _____ organization, the entire work flow is mechanized in a sophisticated and complex form of production technology. A. service productionB. mass productionC. large-batch productionD. small-batch productionE. continuous process production

29

_____ refers to the fact that services are perishable and cannot be stored in inventory. A. Boundarylessn

essB. Tangible

outputC. Intangible

outputD. Flexible

operationsE. Centralization

Scenario - Javier Gomez

Javier is a veteran manager with Pixel International, Inc. (PII). Recently PII purchased a small business in the printing industry. Javier has been assigned the task of managing this new acquisition and is currently deciding how best to design its structure. Currently, employees are assigned to one of three departments, including sales, production, and legal defense.

In determining Javier's span of management, he should consider all of the following EXCEPT:a. is the work performed by subordinates stable and routine?b. do subordinates perform similar tasks?c. are rules and procedures defining task activities available?d. do Javier's personal preferences and style favor a larger or small span?e. all of these.

30

Scenario - Javier Gomez

Javier is a veteran manager with Pixel International, Inc. (PII). Recently PII purchased a small business in the printing industry. Javier has been assigned the task of managing this new acquisition and is currently deciding how best to design its structure. Currently, employees are assigned to one of three departments, including sales, production, and legal defense.

The analysis of whether the new division should be centralized or decentralized should include all of the following EXCEPT:a. the level of change and uncertainty in the environment.b. corporate history and culture.c. the threat of crisis or the risk of company failure.d. the structure of competitors and customers.e. all of these should be included.

Scenario - Javier Gomez

Javier is a veteran manager with Pixel International, Inc. (PII). Recently PII purchased a small business in the printing industry. Javier has been assigned the task of managing this new acquisition and is currently deciding how best to design its structure. Currently, employees are assigned to one of three departments, including sales, production, and legal defense.

Current departmentalization of Javier's new division can be characterized primarily as:a. vertical functional.b. divisional.c. horizontal matrix.d. team-based.e. none of these.

31

Scenario - Javier Gomez

Javier is a veteran manager with Pixel International, Inc. (PII). Recently PII purchased a small business in the printing industry. Javier has been assigned the task of managing this new acquisition and is currently deciding how best to design its structure. Currently, employees are assigned to one of three departments, including sales, production, and legal defense.

If Javier organizes with a horizontal matrix structure, some potential advantages that he could anticipate include all of the following, EXCEPT:a. a more efficient use of resources.b. greater flexibility and adaptability to a changing environment.c. development of both general and specialist management skills.d. decreased need for coordination among managers.e. all of these are potential advantages.

The deployment of organizational resources to achieve strategic goals is known as _____. ________________________________________

The framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated is called _____. ________________________________________

The visual representation of an organization's structure is called the _____. ________________________________________

Division of labor is also known as _____. ________________________________________

The degree to which organizational tasks are subdivided into individual jobs is called _____. ________________________________________

The _____ is an unbroken line of authority that links all persons in an organization and shows who reports to whom. ________________________________________

32

When each employee is held accountable to only one supervisor, it is called _____. ________________________________________

The _____ refers to a clearly defined line of authority in the organization that includes all employees. ________________________________________

_____ is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes. ________________________________________

The three characteristics of authority are that it must be _____, _____, and _____. ________________________________________

_____ is the duty to perform the task or activity an employee has been assigned. ________________________________________

_____ means that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command. ________________________________________

_____ is the process managers use to transfer authority and responsibility to positions below them in the hierarchy. ________________________________________

_____ departments perform tasks that reflect the organization's primary goal and mission, while _____ departments include all those that provide specialized skills in support of _____ departments. ________________________________________

_____ means that people in management positions have formal authority to direct and control immediate subordinates. ________________________________________

The _____ is the number of employees reporting to a supervisor. ________________________________________

A(n) _____ structure has a wide span, is horizontally dispersed, and has fewer hierarchical levels. ________________________________________

A(n) _____ structure has an overall narrow span and more hierarchical levels. ________________________________________

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With _____ decision authority is pushed downward to lower organization levels. ________________________________________

_____ means that decision authority is located near the top of the organization. ________________________________________

A(n) ______ structure is the grouping of positions into departments based on similar skills, expertise, andresource use. ________________________________________

The _____ structure occurs when departments are grouped together based on organizational outputs. ________________________________________

The divisional structure is sometimes called a(n) _____, _____, or _____. ________________________________________

An alternative for assigning divisional responsibility is to group company activities by _____. ________________________________________

The _____ combines aspects of both functional and divisional structures simultaneously, in the same partof the organization. ________________________________________

_____ teams consist of employees from various functional departments who are responsible to meet as a team and resolve mutual problems. ________________________________________

In the _____ approach of structural design, departments are independent, contracting services to the central hub for a profit. ________________________________________

The _____ structure means that the firm subcontracts many of its major functions to separate companies and coordinates their activities from a small headquarters organization. ________________________________________

The _____ approach is when a manufacturing company uses outside suppliers to provide large components of the product, which are then assembled into a final product by a few workers. ________________________________________

The quality of collaboration across departments is known as _____. ________________________________________

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A(n) _____ is a temporary team designed to solve a short-term problem involving several departments. ________________________________________

A(n) _____ is a person who is responsible for coordinating the activities of several departments for the completion of a specific project. ________________________________________

_____ is the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. ________________________________________

A(n) _____ structure is most appropriate when the external environment is stable. ________________________________________

_____ refers to services that are perishable and, unlike physical products, cannot be stored in inventory. ________________________________________

List the five approaches to departmentalization.

List three disadvantages of the divisional structure.

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List the advantages of the virtual network structure.

List the three basic types of production technology.

Describe service technology.

Compare and contrast authority, responsibility, accountability, and delegation.

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Briefly explain the concept of line and staff departments and authority.

Define span of management and explain if there is an ideal span of management.

List the factors that are associated with less supervisor involvement and thus larger spans of control.

Identify the three factors that typically influence centralization versus decentralization.

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What is the horizontal matrix approach to departmentalization and what are its main advantages?

What is(are) the difference(s) between cross-functional and permanent teams?

What is the team approach to departmentalization and what are its main disadvantages?

Describe reengineering and what it involves.

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Define task forces and project management.

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Chapter 10--Designing Adaptive Organizations Key

1. TRUE 2. FALSE 3. TRUE 4. FALSE 5. TRUE 6. FALSE 7. TRUE 8. FALSE 9. FALSE FALSE TRUE TRUE TRUE TRUE FALSE FALSE TRUE FALSE TRUE TRUE TRUE FALSE FALSE FALSE FALSE TRUE TRUE FALSE FALSE FALSE

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TRUE FALSE TRUE TRUE FALSE TRUE TRUE TRUE FALSE TRUE FALSE TRUE TRUE FALSE TRUE FALSE TRUE FALSE FALSE C C E B D E C A B A D C B C

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A C A D B C C A B D B D B C B C D C A C B A D B B C C A A C C C A

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D D E B E E A B D C C A C B A B A B B C E A E D B D D B A C D C C

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D A C A B C D B C D A E A C D C C B D D B A E C e d a d organizing organization structure organization chart work specialization work specialization

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chain of command unity of command scalar principle Authority vested in organizational positions not people; accepted by subordinates; flowing down the vertical hierarchy. Responsibility Accountability Delegation Line; staff; line Line authority span of management flat tall decentralization Centralization functional divisional product structure; program structure; self-contained unit structure geographic region matrix approach Cross-functional virtual network virtual network modular coordination task force project manager Reengineering vertical Intangible output Vertical functional, divisional, horizontal matrix, teams, and virtual network. Choose three of the following -- duplication of resources across divisions, less technical depth and specialization in divisions, poor coordination across divisions, less top management control, and competition for corporate resources.

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Global competitiveness, workforce flexibility/challenge, and reduced administrative overhead. The three basic types of production technology include small-batch and unit production, large-batch and mass production, and continuous process production. Service technology can be defined as having intangible input and direct contact with customers. Authority is defined as the formal and legitimate rights of a manager to make decisions, issue orders, and allocate resources. Responsibility is the duty to perform the task that has been assigned. Many argue that authority and responsibility go hand-in-hand, i.e., in order for someone to fulfill their responsibility, they must have an equivalent level of authority. Accountability means that those with authority and responsibility are subject to reporting and justifying task outcomes to those higher in the chain of command. Accountability brings authority and responsibility together. The principle of delegation allows managers to transfer authority and responsibility to those lower in the organizational hierarchy. Delegation should increase an organization's flexibility by allowing people "on the spot" to make decisions. Line departments perform tasks that reflect the organization's primary task and mission. Staff departments include all those departments that provide specialized skills in support of line departments. In a typical production firm, line departments make and sell the product, while staff departments might include accounting and human resource management. Line authority means that people in management positions have the formal power to direct immediate subordinates. Staff authority is the right to advise, recommend, and counsel in the staff specialist's area of expertise. The span of management, or span of control, is the number of employees who report directly to one supervisor. There is not an ideal span of management. The number depends upon several characteristics of the situation including the nature of the work done by the subordinates, the locations where the work is done, the training and education of the workers, the level of definition of the task, the time available to the manager, and the manager's personal preferences and style. (1) Work performed by subordinates is stable and routine. (2) Subordinates perform similar work tasks. (3) Subordinates are concentrated in a single location. (4) Subordinates are highly trained and need little direction in performing tasks. (5) Rules and procedures defining task activities are available. (6) Support systems and personnel are available for the manager. (7) Little time is required in nonsupervisory activities such as coordination with other departments or planning. (8) Managers' personal preferences and styles favor a large span. (1) Greater change and uncertainty in the environment are usually associated with decentralization. (2) The amount of centralization or decentralization should fit in the firm's strategy. (3) In times of crisis of company failure, authority may be centralized at the top. A horizontal matrix structure utilizes functional and divisional chains of command simultaneously in the same part of the organization. This structure has dual lines of authority and purposely violates the principle of unity of command. Major advantages include: (1) more efficient use of human resources because specialists can be transferred from one division to another; (2) increased adaptability; (3) increased management skills; (4) greater interdisciplinary cooperation; and (5) enlarged tasks for employees. Cross-functional teams consist of employees from various functional departments who are responsible to meet as team and resolve mutual problems.Team members typically still report to their functional departments, but they also report to the team, one member of whom may be the leader. Permanent teams are groups of employees who are brought together similar to a formal department. Each team brings together employees from all functional areas focused on a specific task or project. Emphasis is on horizontal communication and information sharing because representatives from all functions are coordinating their work and skills to complete a specific organizational task. There are at least two different types of teams. Cross-functional teams consist of employees from various functional departments who are responsible to meet as team and resolve mutual problems. While team members still report to their functional manager, they will also report to the team, perhaps to a team leader. Permanent teams consist of groups of employees who are brought together as a formal department. Similar to a divisional structure, although much smaller in the number of employees involved, permanent teams are often the result of reengineering. Disadvantages of the team structure include dual loyalties and conflict, the time and resources spent on meetings, and unintended/ineffective decentralization, which may occur because team members do not have the conceptual skills to be effective. Reengineering, sometimes called business process reengineering, is the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. Reengineering involves a shift to a horizontal structure based on teams. Basically, it means starting over, throwing out all the notions of how work was done and deciding on how it can best be done now. A task force is a temporary team or committee designed to solve a short-term problem involving several department A project manager is a person who is responsible for coordinating the activities of several departments for the completion of a specific project.

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