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Chapter 10--Designing Adaptive Organizations

Student: ___________________________________________________________________________

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

Organizing defines !hat to do !hile strategy defines ho! to do it. True False

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The frame!or# in !hich the organization defines ho! tas#s are divided$ resources are deployed and departments are coordinated is called organizational structure. True False

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A organizational map is a visual representation of an organization&s structure$ sho!ing communication and lines of po!er. True False

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Despite the apparent advantages of specialization$ many organizations are moving a!ay from this principle. True False

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The principle of unity of command suggests that managers !ithin an organization should reach agreement on the goals and o)*ectives of the organization. True False

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Authority is the right to use resources$ ma#e decisions and issue orders in an organization. True False

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The duty to perform the tas# or activity an employee has )een assigned is called accounta)ility. True False

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.ost organizations today discourage managers to delegate authority to the lo!er 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 )ecause employees do not have a choice in choosing to accept their commands. True False

/ine departments perform tas#s that reflect the organization0s primary goal and mission. True False The right to advise$ recommend$ and counsel in the staff specialists& area of e1pertise is included in staff authority. True False The num)er of employees reporting to a supervisor is his or her span of management. True False Traditional vie!s of organizational design recommend a span of management of a)out + to 10 su)ordinates per manager. True False .any hierarchical levels and a correspondingly narro! span of management refers to a flat structure. True False The trend in recent years has )een to!ard narro!er spans of control as a !ay to facilitate delegation. True False A tall structure is a management structure characterized )y an overall narro! span of management and a relatively large num)er of hierarchical levels. True False Certainty in the environment is usually associated !ith decentralization. True False The )asis 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 firm0s strategy. True False At Fo1 2nd$ people are grouped together in departments )y common s#ills and !or# activities$ including a sales department and a production department. This is an e1ample of vertical functional approach. True False

The functional structure offers a !ay to decentralize decision ma#ing and provide direction from the teams in the field. True False 3ecause the chain of command converges at the top$ the functional structure provides a !ay to decentralize decision ma#ing and provide unified direction from all managers. True False 4uic# response to e1ternal changes is an advantage of vertical functional structure. True False Divisions are created$ in functional structures$ as self-contained units !ith separate functional departments for each division. True False The divisional structure encourages decentralization. True False 5n a geographic-)ased structure$ all functions in a specific country or region report to the same division manager. True False 6ith a mati1 structure$ the entire organization is made up of horizontal teams that coordinate their !or# and !or# directly !ith customers to accomplish the organization0s goals. True False Aspects of )oth functional and divisional structures simultaneously in the same part of the organization are com)ined in the virtual net!or# approach. True False The horizontal structure provides traditional control !ithin functional departments$ and the vertical structure provides coordination across departments. True False The confusion and frustration caused )y the dual chain of command is a ma*or pro)lem of the matri1 structure. True False The overseer of )oth the product and functional chains of command$ responsi)le for the entire matri1 is the matri1 )oss. True False "

The modular approach is similar to virtual net!or#ing. True False The divisional structure fosters e1cellent coordination !ithin divisions$ )ut coordination across divisions is often poor. True False 5n the divisional approach$ coordination across divisions is great !hereas coordination !ithin divisions is often poor. True False The matri1 approach can )e highly effective in a comple1$ rapidly changing environment in !hich the organization needs to )e fle1i)le and adapta)le. True False One ma*or disadvantage of the virtual net!or# approach is the lac# of hands-on control. True False Coordination is the 7uality of colla)oration across departments. True False 8eengineering is the outcome of information and cooperation. True False A pro*ect manager is a person responsi)le for coordinating the activities of several departments for the completion of a specific pro*ect. True False 8eengineering )asically means preserving the past )y esta)lishing the se7uence of activities )y ho! !or# !as done. True False The radical redesign of )usiness processes to achieve dramatic improvements in cost$ 7uality$ service$ and speed is called reengineering. True False The distinctive feature of the pro*ect manager position is that the person is not a mem)er of one of the departments )egin coordinated. True False

6hen 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 !hen 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 !hen the primary goal is innovation and fle1i)ility. True False 9mall-)atch production is distinguished )y standardized production runs. True False 6hich of the follo!ing refers to the deployment of organizational resources to achieve strategic goals: A. ;lanning 3. Controlling C. Organizing D. /eading 2 9trategic . management 9trategy defines <<<<< to do =it> !hile organizing defines <<<<< to do =it>. A. 3 . C . D . 2 . ho!? !hat ho!? !hy !hat? ho! !hat? !hy !hen? !hat

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Organizational structure includes !hich of these: A. The set of formal tas#s assigned to individuals 3 The set of formal tas#s assigned to . departments C The design of systems to ensure effective coordination of employees across departments D. Formal reporting relationships 2 All of these are part of organizational . structure. Organization structure is defined as the@ A. visual repres entati on of the organi zation . frame!or# in !hich the organization defined ho! tas#s are divided$ resources are deployed$ and departments are coordinated. C division of . la)or. un)ro#en line of authority that lin#s all individuals in the organization. 2 none of . these.

The organization chart@ A. 3. C. D. 2 .

sho!s the ch vertical stru is a visual representation of the organization&s structure. details the formal reporting relationships that e1ist !ithin an all of these. )oth sho!s the characteristics of the organization&s vertical str of the organization&s structure.

The <<<<< delineates the chain of command$ indicates departmental tas#s and ho! they fit together$ and provides order and logic for the organization. A. manage ment chart 3 employee . directory C structural ta)le . D administrative . chart 2 organizational . chart 6hich of the follo!ing refers to the degree to !hich organizational tas#s are su)divided into individual *o)s: A. 3 . C . .ultit as#ing /ines of authority 6or# specialization

D Autonomy . 2 Team . structure

6hen !or# specialization is e1tensive@ A. employee s perform a single tas#. 3 employees perform . many tas#s. C employees are often highly challenged. D employees are . often inefficient. 2 *o)s tend to )e . large. /ouise !or#s in the manufacturing department at 5ce 9culptures. The !or# in /ouise&s department is lo! in tas# specialization. As a result$ /ouise@ A. usually performs a single tas#. 3 does a variety of tas#s and activities. C. is often )ored. D is rarely . challenged. 2 generally goofs. off. <<<<< is also referred to as !or# specialization. A. 3. C. D. 2 . Division of la)or Anity of command 9calar chain 2sprit de corps Birtual net!or# approach

Caco) !as recently loo#ing at his company&s organization chart in an attempt to discover !ho reports to !hom. Caco) is studying his organization&s@ A. degree of formali zation. 3 amount of . differentiation. C degree of . centralization. D . 2 . chain of command. division of la)or.

Anity of command and the scalar principle are )oth closely related to the@ A. amount of !or# speciali zation in an organiz ation. 3 degree of . formalization. C chain of . command. Damount of )ureaucracy in the organization. 2 matri1 . structure.

<<<<< means that each employee is held accounta)le to only one supervisor. A. 9calar principle 3 Anity of command . C 6or# . specialization D Division of la)or . 2 9pan of . management The formal and legitimate right of a manager to ma#e decisions is <<<<<. A. dele gati on 3 responsi . )ility C authorit . y Dspan of managem ent 2 leadersh . ip <<<<< refers to a clearly defined line of authority in the organization that includes all employees. A. 9calar principle 3 Anity of command . C 6or# . specialization D Division of la)or . 2 9pan of . management

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8e)ecca !or#s for a company that has clearly defined lines of authority. 2ach employee #no!s that he or she has authority and responsi)ility for a distinct set of tas#s. 2mployees are also a!are of the company0s reporting structure as !ell as successive management levels all the !ay to the top. 8e)ecca0s company follo!s !hich principle: A. 9pecializat ion principle 3 Anity of command . principle C. 9calar principle D Authority principle . 2 8esponsi)ility . principle Do! does managerial authority flo! through the organizational hierarchy: A. Bertically 3. 9poradically C. Dorizontally D. 5n a circular fashion 2 Authority is static - it does not . flo! The people !ith authority and responsi)ility are su)*ect to reporting and *ustifying tas# outcomes to those a)ove them in the chain of command. This is called <<<<<. A. dele gati on

3 line . authorit y C staff . authorit y D account . a)ility 2 hierarc . hy

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6hich of the follo!ing characteristics distinguishes authority: A. 3. C . D . 2 . 5t is vested in people$ not positions. 9u)ordinates accept it. 5t flo!s across the horizontal hierarchy. 5t emerges from the organizational values. 5ndividuals are )orn !ith this po!er.

Eina !ishes to transfer authority and responsi)ility to her su)ordinates. This process is #no!n as@ A. account a)ility. coordination.

3 . C. delegation. D departmentaliz . ation. 2 passing the . )uc#.

6hich of the follo!ing typically is FOT considered a staff department: A. 3. C. D. 2 . 9trategic planning Accounting .anufacturing Duman resources 8esearch and development

6hich department performs tas#s that reflect the organization&s primary goals and mission: A. /ine 3. 9taff C. ;rimary D. Functional 2 9trategic . planning

<<<<< departments include all of those that provide specialized s#ills in support of <<<<< departments. A. /ine? staff 3. 9taff? line C ;rimary? . functional D Functional? . primary 2 /ine? . functional Carly&s Clothes$ 5nc. manufactures children&s clothes. 6hich of the follo!ing departments for Carly&s Clothes can )e considered a line department: A. Finance departmen t 3 Duman 8esources . department C 8esearch and development department D .anufacturing . department 2 .ar#eting . department 6hich of the follo!ing refers to the num)er of employees reporting to a supervisor: A. The line of auth ority 3The span of managem ent C The chain of command DThe managem ent chain 2 Delegati . on 1"

Traditionally$ a span of management of a)out <<<<< has )een recommended. A. 3. C . D . 2 . thr ee fiv e fifte en seve n t!en ty

9hoshanna is manager of a customer service firm !here she oversees five su)ordinates. To help her su)ordinates learn more a)out the different roles !ithin the company$ 9hoshanna regularly assigns them tas#s that are not part of their normal routine. This is an e1ample of@ A. responsi)ilit y 3. delegation C. authority D chain of command . 2 irrational decision . ma#ing

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Dustin&s su)ordinates are highly trained and all perform similar tas#s. 3rittany&s su)ordinates are spread over t!o locations and she has little availa)le in the !ay of support systems. 6hich of the follo!ing statements is most correct: A. Ficho le&s span of mana geme nt can )e larger than Gevin& s. Fichole !ill have pro)lems !ith unity of command. Gevin&s span of management can )e larger than Fichole&s. Gevin has more pro)lems !ith !or# specialization . 2 Fone of . these

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6hich of the follo!ing organizations have a flat structure compared to others: A. Organization A !ith eleven hierarchical levels 3 Organization 3 !ith three hierarchical . levels C Organization C !ith eight hierarchical . levels D Organization D !ith si1 hierarchical levels . 2 Organization 2 !ith seven hierarchical . levels 6hich of the follo!ing factors is FOT associated !ith larger span of control: A. 6or# performed )y su)ordinates is sta)le and routine. 3. 9u)ordinates perform similar !or# tas#s. C 9u)ordinates are located at various different locations. . D 9u)ordinates are highly trained and need little direction. . 2 8ules and procedures defining tas# activities are . availa)le. 8elative to a flat organizational structure$ a tall structure has a <<<<< span of management and <<<<< hierarchical levels. A. !ide ? fe!e r narro!? fe!er narro!? !ider narro!? more !ide? more

3 . C . D . 2 .

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<<<<< is the trend in recent years. A. Ereat er !or# specia lizatio n

3 /ess . delegation C6ider spans of management DFarro!er spans of management 2 Tall . structure 3arney and 3etty !or# at .ountain ;ea#$ 5nc. Although they )oth !or# on the assem)ly line$ they have the authority to ma#e many decisions a)out their *o). .ountain ;ea# can )e said to have@ A. a high degree of decentr alizatio n. 3 a !ide span of management. C a high degree of centralization. D a narro! span of management. 2 no . management.

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<<<<< means that decision authority is located near the <<<<< of the organization. A. Centr alizati on? )otto m 3 Decentraliza . tion? top C Centralizati . on? top D Centralizatio . n? middle 2 Fone of . these Change and uncertainty in the environment are usually associated !ith <<<<<. A. !or# speciali zation 3 decentralizati . on C centralization . D tight vertical . control 2 division of . la)or 6hich of the follo!ing is the )asis for grouping positions into departments and departments into the total organization: A. Depar tment alizati on Centralizati on Decentraliz ation Formalizati on 9pecializati on

3 . C . D . 2 . 1,

Caco)$ a customer service representative for A3 8etailers$ has seven levels of management )et!een himself and the company0s C2O. 5n contrast$ his friend 8honda$ a customer service representative for HI 8etailers$ has only four levels of management )et!een her and the company C2O. Compared to HI$ Caco)0s company has !hat type of organizational structure: A. 3. C. D. 2 . Far ro! 6ide Flat Tall 5denti cal

The functional$ <<<<<$ and <<<<< are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy. A. divisio nal$ teams 3 divisional$ . matri1 C matri1$ teams . D matri1$ . net!or#s 2 teams$ . net!or#s The use of teams may lead to too much@ A. division of la)or. 3. decentralization. C authority and responsi)ility in top management&s hands. D. formalization. 2 narro! span of . management.

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5n times of crisis or ris# of company failure$ authority should )e@ A d . e c e n tr a li z e d . cent raliz ed at the )ott om. cent rali zed at the top. spre ad thro ugh a !ide span of man age men t. 2 fl . at .

6hen departments are grouped together on the )asis of organizational outputs$ the organization is using a@ A. 3 . C . D . 2 . functional structure. matri1 structure. divisional structure. virtual net!or# structure. team-)ased structure.

9elf-contained unit structure is a term used for@ A. divisional structure. functional structure.

3 . C. term structure. D. matri1 structure. 2 virtual net!or# . structure.

8elative to the functional structure$ the divisional structure@ A. 3 . C . D . 2 . encourages decentralization. has a higher degree of !or# specialization. has a more pronounced division of la)or. has e1cellent coordination across departments. results in an efficient use of resources.

Theresa !or#s in an organization !here coordination across organizational units is poor and the units perceived themselves to )e in competition !ith one another for organizational resources. These characteristics are consistent !ith !hich of the follo!ing structures: A. 3 . C . D . 2 . A matri1 structure A functional structure A divisional structure A team-)ased structure A virtual net!or# structure

All functions in a specific country or region report to the same division manager in <<<<< divisions. A. fun ctio nal 3 matri . 1 C geograp hic)ased D teams . 2 net!or . #s Elo)al companies often use a <<<<< structure to achieve simultaneous coordination of products across countries. A. 3 . C. D . 2 . functi onal divisional matri1 product)ased process)ased

A formal chain of command for )oth functional and divisional relationships is provided )y the <<<<< approach to structure. A. matri 1 3 vertical . functional C . D . 2 . division al product team)ased

Gent !or#s at the Tic# Toc#$ 5nc. De has t!o )osses$ one a functional manager and the other a divisional manager. Tic# Toc#$ 5nc. has a <<<<< structure. A. fun cti on al divisi onal geogr aphic matri 1 produ ct

3 . C . D . 2 .

Disadvantages of the virtual net!or# approach include@ A. 3 . C. D. 2 . a lac# of hands-on control. the possi)ility of losing an important part of the organization. !ea#ened employee loyalty. all of these. a lac# of hands-on control and !ea#ened employee loyalty.

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9alta Communications is a glo)al telecommunications company that has operations on four continents. The C2O0s direct supervisors include B;s for the Forth American 9outh American$ 2uropean$ and the Asian divisions. 9alta can )est )e descri)ed as using !hat organizational structure: A. 3. C . D . 2 . Fet! or# .atri1 Function al Division al Eeograp hic

The matri1 structure violates !hich of the follo!ing principles of management: A. Anity of direction 3 Anity of command . C 6or# . specialization D Division of la)or . 2 9pan of . management All of the follo!ing are the ma*or disadvantages of the matri1 structure 2JC2;T@ A. it generates a large amount of conflict. 3 managers spend much time . resolving conflict. C the confusion caused )y the dual chain of command. Dthe po!er im)alance that can result )et!een the sides of the matri1. 2 enlarged tas#s for . employees.

Cuan is a top manager at 5.F./.$ a matri1 organization. De oversees )oth the product and functional chains of command$ and is responsi)le for maintaining a po!er )alance )et!een the t!o sides of the matri1. Cuan is a <<<<<. A. polit ical lead er 3 function . al leader C division . al leader D matri1 . leader 2 top . leader The <<<<< is the product or functional )oss$ !ho is responsi)le for one side of the matri1. A. matri1 )oss 3 production . supervisor C department )oss . D. top leader 2 t!o-)oss . employee

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<<<<< teams are )rought together as a formal department in the organization. A . C ro ss fu n ct io n al 3 ;er man ent C For . mal D Ad . hoc 2 Ta . s# 6alt !or#s for a large company. 8ecently$ his organization )egan to contract out such functions as training$ engineering$ and computer service. This approach is consistent !ith a <<<<< structure. A. fu nct io nal tea m divisi onal

3 . C .

Dvirtual net!o r# 2 servi . ce

The <<<<< is an organization structure that divides the ma*or functions of the organization into separate companies. A. diversific ation approach team approach

3 . C virtual net!or# . approach

D 3CE approach . 2 functional . approach The <<<<< is an organization structure that divides the ma*or functions of the organization into separate companies and coordinates their activities from a small head7uarters organization. A. diversific ation approach team approach

3 . C virtual net!or# . approach

D 3CE approach . 2 functional . approach 5n the <<<<< structure$ the organization is vie!ed as a central hu) surrounded )y a net!or# of outside specialists !hich are sometimes spread all over the !orld. A. virtu al net! or# matri1 function al division al geograph ic

3. C . D . 2 . +

According to .AFAE28&9 9DO;TA/G in Chapter 10$ all of the follo!ing are effective !ays for a manager to delegate 2JC2;T@ A. delegate the !hole tas#. 3 select the right person. . C save feed)ac# for completion of the pro*ect. D evaluate and re!ard . performance. 2 give thorough . instruction. 5n the <<<<< approach$ a manufacturing company uses outside suppliers to provide entire chun#s of a product$ !hich are then assem)led into a final product )y a handful of !or#ers. A. vir tu al ne t! or # 3 mod . ular Cvirtual organi zation D tea . m 2 matr . i1

The )iggest advantage to a virtual net!or# approach is <<<<< and <<<<< on a glo)al scale. A. 3 . C . D . 2 . fle1i)ility? competitiv eness coordination? organization communication? organization communication? no cost fle1i)ility? coordination

All of the follo!ing are advantages of a functional structure 2JC2;T@ A. 3 . C . D . 2 . economies of scale. e1cellent coordination )et!een functions. in-depth s#ill specialization and development. high 7uality technical pro)lem solving. career progress !ithin functional departments.

An advantage of functional structures is the@ A. resulting economies of scale. enlarged tas#s for employees.

3 . C easy pinpointing of responsi)ility for . product pro)lems. D . 2 . development of general management s#ills. fle1i)ility in an unsta)le environment.

6hich of the follo!ing structures is the leanest of all organization forms )ecause little supervision is re7uired: A. Function al approach 3 Birtual net!or# . approach C Team approach . D .atri1 approach . 2 Divisional . approach 9hooting 9tar$ 5nc. has slo! response to e1ternal changes$ centralized decision ma#ing$ and poor coordination across departments. 5t is li#ely structured@ A. along divisi onal lines.

3 along . functional lines. C )ased on the team approach. D)ased on the virtual net!or# approach. 2 none of . these.

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Organ 8entals Corporation has )een having numerous pro)lems. Communication across departments is poor and decisions are )ac#ing up at the top of the organization. Organ 8entals uses a <<<<< structure. A. 3. C . D. 2 . geog raphi c product function al matri1 team)ased

All of the follo!ing are advantages of a divisional structure 2JC2;T@ A. high concern for customers& needs. 3 fast response$ fle1i)ility in an unsta)le . environment. C emphasis on overall product and division goals. . D development of general management s#ills. . 2 there is little duplication of services across . divisions. 6hich is an advantage of the divisional structure: A. Concern for customers& needs is high. 3 There is little duplication of services across . divisions. C There is good coordination across divisions. . D Top management retains tight control of the . organization. 2 There is no competition for corporate . resources.

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Advantages of the matri1 structure include@ A. it incre ases empl oyee parti cipat ion. 3it ma#es efficient use of human resources. Cit !or#s !ell in a changing environmen t. it develops )oth general and specialist managemen t s#ills. 2 all of . these.

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6hich of the follo!ing is=are> an advantage of team structure: A. 5ncre ased )arri ers amo ng depa rtme nts 3Anplanned decentraliz ation CTime and resources spent on meetings D /ess response time$ 7uic#er decisions 2 All of . these 9tephanie !or#s in one of seven research and development departments at Tara&s Terrace$ 5nc. This !ould suggest that Tara&s Terrace has a@ A. functio nal structur e. divisional structure. !ide span of control.

3 . C .

D high degree of centralization. 2 matri1 . structure.

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6hich of the follo!ing is a contemporary approach to structural design in departmentalization: A. Functio nal 3. Divisional C Traditional . divisions D. Teams 2 Eeographic. )ased The team approach to departmentalization is a response to@ A. lac# of participative teams. 3. centralized decision-ma#ing. C. the competitive glo)al environment. D. all of these. 2 )oth lac# of participative teams and centralized decision. ma#ing.

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Coordination is defined as@ A. the a)ilit y of the orga nizat ion to prod uce timel y prod ucts. the 7uality of colla)oratio n across department s. C differenti . ation. the 7uantity of goods produced )y the organizatio n. 2 all of . these.

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5nnovative Creations Corporation is designed along functional lines. Fe! product development is very slo! and the process is plagued )y many pro)lems. One of the pro)lems is that the people in mar#eting never communicate !ith the people in production. This is an e1ample of poor <<<<<. A. coor dinat ion 3 plannin . g C motivati . ng D leading . 2 controlli . ng 6hich of the follo!ing happens as organizations gro!: A. ;ositi ons and depart ments are delete d. 3.anagement layers are eliminated to save cost. .anagers have to find !ays to tie different departments. DTop management )ecomes more autocratic. 2 Fone of . these.

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6hen the organization is structured along <<<<< lines$ coordination is re7uired. A. functional 3. divisional C. team D. all of these 2 functional or . divisional The outcome of information and cooperation is <<<<<. A. 3 . C . D . orga nizat ion plannin g coordina tion differenti ation

2 controlli . ng A tas# force is <<<<< committee=s> formed to solve a specific pro)lem. A. 3 . C . D . 2 . a standi ng a permanent a temporary all of these none of these

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.arissa !as recently assigned to a committee !hose tas# is to research ne! product opportunities. Once this group generates a list of si1 or seven via)le options$ it !ill )e dis)anded. This group is also #no!n as a <<<<<. A. team 3 standing . committee C permanent . committee D tas# force . 2 none of . these 6hich of the follo!ing leads to strong coordination across functional areas and greater fle1i)ility in responding to changes in the environments: A. 3. C. D . 2 . 8eengine ering /ayoffs Do!nsizing A temporary committee An ad hoc committee

3oars& Fest Distri)utors is continually hampered )y an ina)ility to adapt to an unsta)le environment. 6hich of the follo!ing is a plausi)le e1planation as to !hy:

A. 3oars& Fest&s structure is too 3. 3oars& Fest&s structure is too horizontal. C. 3oars& Fest uses a vertical structure. D. All of these. 2 3oth 3oars& Fest&s structure is too loose and structure is too . horizontal.

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.a#ai&s .ar#eting .i1 =...> does not use its resources !isely. The employees at ... spend too much time in meetings and not enough time focusing on the tas# at hand. ...&s management should consider changing the organizational structure from <<<<< to <<<<<. A. horizontal$ vertical team )ased$ horizontal

3 . C. vertical$ team )ased D. mechanistic$ rigid 2 team-)ased$ virtual . net!or#

Flash Card 5nc. recently under!ent a significant company-!ide change that involved revision of its manufacturing and leadership processes. The result of this !as a stronger emphasis on horizontal coordination. This level of change is referred to as <<<<<. A. reorganiz ation 3. reengineering C. e-engineering D strategic planning . 2 corporate . structuring A=n> <<<< is responsi)le for coordinating the activities of several departments. A. departme nt manager 3. line manager C pro*ect manager . D. operative 2 moderating . manager

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/isa is responsi)le for coordinating the efforts of several different departments. 6hich of the follo!ing titles )est descri)es her position: A. Departme nt manager 3. .iddle manager C First-level . supervisor D ;ro*ect manager . 2 Chairman of the . )oard Typically$ pro*ect managers have authority over <<<<< )ut not over <<<<< assigned to it. A. 3 . C . D . people? the pro*ect the pro*ect? people resources? the pro*ect people? other resources

2 finances? . products 6hich of the follo!ing is not an approach to structural design that reflects different uses of the chain of command: A. .atri1 approach 3 Team-)ased approach . C. ;rocess approach D Divisional approach . 2 Birtual net!or# . approach

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Gara&s department is made up of people !ith similar s#ills and !or# activities. Der organization uses the <<<<< approach to departmentalization. A. tea m)as ed 3horizo ntal matri1 C divisi . onal Dvertica l functio nal 2 proce . ss .ondavi Corporation has a finance department$ a mar#eting department$ and a production department. .ondavi@ A. 3 . C . D . 2 . uses a functional structure. has a geographic structure. uses a divisional structure. uses product-)ased structure. uses a matri1 structure.

An organization strives for internal efficiency !ith a=n> <<<<< strategy. A. 3 . C . D. 2 . integra tion diversificati on differentiati on defensive cost leadership

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6ith a=n> <<<<< strategy$ the organization attempts to develop innovative products uni7ue to the mar#et. A. diff eren tiati on integrat ion reengin eering

3 . C .

D cost . leadersh ip 2 defensi . ve A pure functional structure is most appropriate for achieving@ A. inno vatio n. 3 differenti . ation. Cinternal efficiency goals. D fle1i)ilit . y. 2 all of . these 6hich of the follo!ing structures is most consistent !ith a strategy of sta)ility: A. 3 . C . D . 2 . % Team )ased structure Organic structure .atri1 structure Functional structure /earning structure

The pure functional structure does not ena)le the organization to )e@ A. a cost leade r. efficient.

3 . C fle1i)le. . D. sta)le. 2 all of . these.

6hich of the follo!ing structures !or#s )est in an uncertain organizational environment: A. 3 . C . D . 2 . A tight structure A mechanistic structure A horizontal structure A functional structure A vertical structure

A=n> <<<<< !or#s )est in a sta)le organizational environment. A. loose organizational structure

3. vertical structure C. organic structure D. horizontal structure 2 loose organizational structure or an organic . structure

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6hich of the follo!ing is an incorrect fit in a sta)le organizational environment: A. A tight structure 3 A rigid structure . C A functional . structure D A horizontal . structure 2 A vertical . structure 5n <<<<< production$ firms produce goods in )atches of one or a fe! products designed to customer specification. A . se rv ic e 3cust omer indu ced Cconti nuou s proc ess Dsma ll )atc h 2 ma . ss

%%

9!ift .ove Facilities manufacturers t!o different )icycle models. The company produces a high volume of products using standardized production runs. The company does very little product customization. 9!ift .ove uses !hat type of technology structure: A. 9ervice production 3. .ass production C /arge-)atch production . D 9mall-)atch production . 2 Continuous process . production Organizations such as Amazon.com$ Eoogle$ Face)oo#$ and ;riceline.com are e1amples of firms that are )ased on@ A. digital technology. 3. tangi)le output. C direct contact !ith . customers. D mechanistic technology. . 2 products rather than . services. 5n a <<<<< organization$ the entire !or# flo! is mechanized in a sophisticated and comple1 form of production technology. A. service production 3. mass production C. large-)atch production D small-)atch production . 2 continuous process . production

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<<<<< refers to the fact that services are perisha)le and cannot )e stored in inventory. A. 3 . C . D . 3ound aryles sness Tangi)le output 5ntangi)le output Fle1i)le operations

2 Centralizati . on Scenario - Javier Gomez Cavier is a veteran manager !ith ;i1el 5nternational$ 5nc. =;55>. 8ecently ;55 purchased a small )usiness in the printing industry. Cavier has )een assigned the tas# of managing this ne! ac7uisition and is currently deciding ho! )est to design its structure. Currently$ employees are assigned to one of three departments$ including sales$ production$ and legal defense. 5n determining Cavier&s span of management$ he should consider all of the follo!ing 2JC2;T@
a. ). c. d. e.

is the !or# perf do su)ordinates perform similar tas#s: are rules and procedures defining tas# activities availa)le: do Cavier&s personal preferences and style favor a larger or small span: all of these.

%(

Scenario - Javier Gomez Cavier is a veteran manager !ith ;i1el 5nternational$ 5nc. =;55>. 8ecently ;55 purchased a small )usiness in the printing industry. Cavier has )een assigned the tas# of managing this ne! ac7uisition and is currently deciding ho! )est to design its structure. Currently$ employees are assigned to one of three departments$ including sales$ production$ and legal defense. The analysis of !hether the ne! division should )e centralized or decentralized should include all of the follo!ing 2JC2;T@
a. ). c. d. e. corporate history and culture. the threat of crisis or the ris# of company failure. the structure of competitors and customers. all of these should )e included.

the level of chan

%+

Scenario - Javier Gomez Cavier is a veteran manager !ith ;i1el 5nternational$ 5nc. =;55>. 8ecently ;55 purchased a small )usiness in the printing industry. Cavier has )een assigned the tas# of managing this ne! ac7uisition and is currently deciding ho! )est to design its structure. Currently$ employees are assigned to one of three departments$ including sales$ production$ and legal defense. Current departmentalization of Cavier&s ne! division can )e characterized primarily as@
a. ). c. d. e. divisional. horizontal matri1. team-)ased. none of these.

vertical function

%,

Scenario - Javier Gomez Cavier is a veteran manager !ith ;i1el 5nternational$ 5nc. =;55>. 8ecently ;55 purchased a small )usiness in the printing industry. Cavier has )een assigned the tas# of managing this ne! ac7uisition and is currently deciding ho! )est to design its structure. Currently$ employees are assigned to one of three departments$ including sales$ production$ and legal defense. 5f Cavier organizes !ith a horizontal matri1 structure$ some potential advantages that he could anticipate include all of the follo!ing$ 2JC2;T@
a. ). c. d. e. greater fle1i)ility and adapta)ility to a changing environment. development of )oth general and specialist management s#ills. decreased need for coordination among managers. all of these are potential advantages.

a more efficient

The deployment of organizational resources to achieve strategic goals is #no!n as <<<<<. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< The frame!or# in !hich the organization defines ho! tas#s are divided$ resources are deployed$ and departments are coordinated is called <<<<<. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< The visual representation of an organization&s structure is called the <<<<<. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< Division of la)or is also #no!n as <<<<<. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< The degree to !hich organizational tas#s are su)divided into individual *o)s is called <<<<<. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

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The <<<<< is an un)ro#en line of authority that lin#s all persons in an organization and sho!s !ho reports to !hom. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< 6hen each employee is held accounta)le 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 ma#e decisions$ issue orders$ and allocate resources to achieve organizationally desired outcomes. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< The three characteristics of authority are that it must )e <<<<<$ <<<<<$ and <<<<<. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< <<<<< is the duty to perform the tas# or activity an employee has )een assigned. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< <<<<< means that the people !ith authority and responsi)ility are su)*ect to reporting and *ustifying tas# outcomes to those a)ove them in the chain of command. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< <<<<< is the process managers use to transfer authority and responsi)ility to positions )elo! them in the hierarchy. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< <<<<< departments perform tas#s that reflect the organization&s primary goal and mission$ !hile <<<<< departments include all those that provide specialized s#ills in support of <<<<< departments. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< <<<<< means that people in management positions have formal authority to direct and control immediate su)ordinates. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< The <<<<< is the num)er of employees reporting to a supervisor. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< A=n> <<<<< structure has a !ide span$ is horizontally dispersed$ and has fe!er hierarchical levels. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< '0

A=n> <<<<< structure has an overall narro! span and more hierarchical levels. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< 6ith <<<<< decision authority is pushed do!n!ard to lo!er organization levels. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< <<<<< means that decision authority is located near the top of the organization. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< A=n> <<<<<< structure is the grouping of positions into departments )ased on similar s#ills$ e1pertise$ and resource use. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< The <<<<< structure occurs !hen departments are grouped together )ased on organizational outputs. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< The divisional structure is sometimes called a=n> <<<<<$ <<<<<$ or <<<<<. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< An alternative for assigning divisional responsi)ility is to group company activities )y <<<<<. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< The <<<<< com)ines aspects of )oth functional and divisional structures simultaneously$ in the same part of the organization. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< <<<<< teams consist of employees from various functional departments !ho are responsi)le to meet as a team and resolve mutual pro)lems. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< 5n the <<<<< approach of structural design$ departments are independent$ contracting services to the central hu) for a profit. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< The <<<<< structure means that the firm su)contracts many of its ma*or functions to separate companies and coordinates their activities from a small head7uarters organization. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< The <<<<< approach is !hen a manufacturing company uses outside suppliers to provide large components of the product$ !hich are then assem)led into a final product )y a fe! !or#ers. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< '1

The 7uality of colla)oration across departments is #no!n as <<<<<. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< A=n> <<<<< is a temporary team designed to solve a short-term pro)lem involving several departments. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< A=n> <<<<< is a person !ho is responsi)le for coordinating the activities of several departments for the completion of a specific pro*ect. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< <<<<< is the radical redesign of )usiness processes to achieve dramatic improvements in cost$ 7uality$ service$ and speed. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< A=n> <<<<< structure is most appropriate !hen the e1ternal environment is sta)le. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< <<<<< refers to services that are perisha)le and$ unli#e physical products$ cannot )e stored in inventory. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< /ist the five approaches to departmentalization.

/ist three disadvantages of the divisional structure.

'

/ist the advantages of the virtual net!or# structure.

/ist the three )asic types of production technology.

Descri)e service technology.

Compare and contrast authority$ responsi)ility$ accounta)ility$ and delegation.

3riefly e1plain the concept of line and staff departments and authority.

'"

Define span of management and e1plain if there is an ideal span of management.

/ist the factors that are associated !ith less supervisor involvement and thus larger spans of control.

5dentify the three factors that typically influence centralization versus decentralization.

6hat is the horizontal matri1 approach to departmentalization and !hat are its main advantages:

6hat is=are> the difference=s> )et!een cross-functional and permanent teams:

'%

6hat is the team approach to departmentalization and !hat are its main disadvantages:

Descri)e reengineering and !hat it involves.

Define tas# forces and pro*ect management.

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Chapter 10--Designing Adaptive Organizations Gey


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T8A2 FA/92 T8A2 T8A2 FA/92 T8A2 T8A2 T8A2 FA/92 T8A2 FA/92 T8A2 T8A2 FA/92 T8A2 FA/92 T8A2 FA/92 FA/92 C C 2 3 D 2 C A 3 A D C 3 C A

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C A D 3 C C A 3 D 3 D 3 C 3 C D C A C 3 A D 3 3 C C A A C C C A D D

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2 3 2 2 A 3 D C C A C 3 A 3 A 3 3 C 2 A 2 D 3 D D 3 A C D C C D A C

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A 3 C D 3 C D A 2 A C D C C 3 D D 3 A 2 C e d a d organizing organization structure organization chart !or# specialization !or# specialization chain of command unity of command scalar principle Authority

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vested in organizational positions not people? accepted )y su)ordinates? flo!ing do!n the vertical hierarchy. 8esponsi)ility Accounta)ility Delegation /ine? staff? line /ine authority span of management flat tall decentralization Centralization functional divisional product structure? program structure? self-contained unit structure geographic region matri1 approach Cross-functional virtual net!or# virtual net!or# modular coordination tas# force pro*ect manager 8eengineering vertical 5ntangi)le output Bertical functional$ divisional$ horizontal matri1$ teams$ and virtual net!or#. Choose three of the follo!ing -- 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. Elo)al competitiveness$ !or#force fle1i)ilityKchallenge$ and reduced administrative overhead. The three )asic types of production technology include small-)atch and unit production$ large-)atch and mass production$ and continuous process production. 9ervice technology can )e defined as having intangi)le input and direct contact !ith customers.

(1

Authority is defined as the formal and legitimate rights of a manager to ma#e decisions$ issue orders$ and allocate resources. 8esponsi)ility is the duty to perform the tas# that has )een assigned. .any argue that authority and responsi)ility go hand-in-hand$ i.e.$ in order for someone to fulfill their responsi)ility$ they must have an e7uivalent level of authority. Accounta)ility means that those !ith authority and responsi)ility are su)*ect to reporting and *ustifying tas# outcomes to those higher in the chain of command. Accounta)ility )rings authority and responsi)ility together. The principle of delegation allo!s managers to transfer authority and responsi)ility to those lo!er in the organizational hierarchy. Delegation should increase an organization&s fle1i)ility )y allo!ing people Lon the spotL to ma#e decisions. /ine departments perform tas#s that reflect the organization&s primary tas# and mission. 9taff departments include all those departments that provide specialized s#ills in support of line departments. 5n a typical production firm$ line departments ma#e and sell the product$ !hile staff departments might include accounting and human resource management. /ine authority means that people in management positions have the formal po!er to direct immediate su)ordinates. 9taff authority is the right to advise$ recommend$ and counsel in the staff specialist&s area of e1pertise. The span of management$ or span of control$ is the num)er of employees !ho report directly to one supervisor. There is not an ideal span of management. The num)er depends upon several characteristics of the situation including the nature of the !or# done )y the su)ordinates$ the locations !here the !or# is done$ the training and education of the !or#ers$ the level of definition of the tas#$ the time availa)le to the manager$ and the manager&s personal preferences and style. =1> 6or# performed )y su)ordinates is sta)le and routine. = > 9u)ordinates perform similar !or# tas#s. ="> 9u)ordinates are concentrated in a single location. =%> 9u)ordinates are highly trained and need little direction in performing tas#s. ='> 8ules and procedures defining tas# activities are availa)le. =(> 9upport systems and personnel are availa)le for the manager. =+> /ittle time is re7uired in nonsupervisory activities such as coordination !ith other departments or planning. =,> .anagers& personal preferences and styles favor a large span. =1> Ereater change and uncertainty in the environment are usually associated !ith decentralization. = > The amount of centralization or decentralization should fit in the firm&s strategy. ="> 5n times of crisis of company failure$ authority may )e centralized at the top. A horizontal matri1 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. .a*or advantages include@ =1> more efficient use of human resources )ecause specialists can )e transferred from one division to another? = > increased adapta)ility? ="> increased management s#ills? =%> greater interdisciplinary cooperation? and ='> enlarged tas#s for employees. Cross-functional teams consist of employees from various functional departments !ho are responsi)le to meet as team and resolve mutual pro)lems. Team mem)ers typically still report to their functional departments$ )ut they also report to the team$ one mem)er of !hom may )e the leader. ;ermanent teams are groups of employees !ho are )rought together similar to a formal department. 2ach team )rings together employees from all functional areas focused on a specific tas# or pro*ect. 2mphasis is on horizontal communication and information sharing )ecause representatives from all functions are coordinating their !or# and s#ills to complete a specific organizational tas#. There are at least t!o different types of teams. Cross-functional teams consist of employees from various functional departments !ho are responsi)le to meet as team and resolve mutual pro)lems. 6hile team mem)ers still report to their functional manager$ they !ill also report to the team$ perhaps to a team leader. ;ermanent teams consist of groups of employees !ho are )rought together as a formal department. 9imilar to a divisional structure$ although much smaller in the num)er 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 unintendedKineffective decentralization$ !hich may occur )ecause team mem)ers do not have the conceptual s#ills to )e effective. 8eengineering$ sometimes called )usiness process reengineering$ is the radical redesign of )usiness processes to achieve dramatic improvements in cost$ 7uality$ service$ and speed. 8eengineering involves a shift to a horizontal structure )ased on teams. 3asically$ it means starting over$ thro!ing out all the notions of ho! !or# !as done and deciding on ho! it can )est )e done no!. A tas# force is a temporary team or committee designed to solve a short-term pro)lem involving several department A pro*ect manager is a person !ho is responsi)le for coordinating the activities of several departments for the completion of a specific pro*ect.