Chapter 8 Organization Structure & Design

Organizational charts provide all of the following EXCEPT
unofficial relationships among an organizations members.
The organizational Chart describes the mission with a company.
FALSE
The set of unofficial relationships among an organization’s members is called a(n) __________ structure.
informal
Managers arrange people and jobs into meaningful working relationships in order to clarify all of the following:
Who is in charge of whom; How different work units are supposed to cooperate with each other; Who should do what.
Fortunately, it is easier to create high-performing organizations than it is to talk about them.
FALSE
Separating people to perform different tasks that aggregate into a unified whole is known as
division of labor
The Society for Human Resource Management reported that after the economy suffered a round of massive layoffs, human resource professionals observed in their firms a decrease in workplace eavesdropping as well as a decrease in gossip and rumors about downsizing.
FALSE
Georgia is both the Chairman of the Board and CEO of GMA, Inc. Such dual role has a potential to weaken the corporate governance at her company.
TRUE
A chart that describes the companies formal structure is called a(n):
organization chart
Which management function entails the process of arranging people and resources to work toward a common goal?
organizing
A(n) __________ graphically describes the arrangement of work positions and reporting relationships.
organization chart
Informally defined organizations made up of unofficial employee working relationships are often referred to as __________ organizations.
shadow
Research finds that it is easier to create high-performing organizations since they do not require any resources.
FALSE
In organizations having informal structures, you will find unofficial relationships that cut across levels and move from side to side.
TRUE
Controlling arranges people and resources to work toward a goal.
FALSE
The four types of divisional structures are product, geographical, customer, and functional.
FALSE
Which structure groups together people working on the same product, in the same geographical area, or with similar customers?
Divisional
Your manager is considering options between a matrix structure and a team structure. Based on what you have learned in this class, you can tell her that the major difference between a matrix structure and a team structure is that a team structure:
has no project management
Network strategies implemented through the use of information technologies create ____________.
virtual organizations
A cross-functional team member in a matrix structure reports to __________ manager(s).
two
Which of the following is typically NOT a way in which organizations group people and jobs in a divisional structure?
by tasks performed
All of the following are forms of divisional structure EXCEPT:
supplier
Mars Inc., the world’s largest candy company, suffers from the functional chimneys problem.
TRUE
The teams that make up the matrix structure are called __________ teams.
cross-functional
Which of these is NOT a potential advantage of functional structures?
functional chimneys
The lack of communications between functional departments in a functional structure often results in which of the following?
a lack of coordination between functional units
In most organizations, teamwork is something that can be accomplished quickly.
FALSE
A __________ structure groups together people with similar skills who perform similar tasks.
functional
Network structures:
result in greater speed and flexibility in dealing with changing environments.
A cross-functional team structure has no project manager.
FALSE
The key features of a network structure are a minimal core staff, with as much of the support activity contracted out as possible.
TRUE
The structural approach that attempts to generate the advantages of both the functional and divisional forms is the ________ structure.
matrix
Big Money Bank has many branches which are all managed by branch managers who have loans, investments, operations, and trust managers reporting directly to them. This is an example of a __________ structure.
product
Community Bank currently operates with a functional structure. At this bank, there is lack of communication across functional departments. The bank is facing which of these problems?
functional chimneys
Matrix structures offer all of the following advantages:
improved communication across functions; a clear accountability for projects; problem-solving at the team-level.
Network structures are valued because they can offer:
lower costs and flexibility
A matrix organization combines a functional structure and a division structure.
TRUE
Which of these is NOT true about team structures? They are
seldom used in organizations.
Virtual organizations:
eliminate boundaries that traditionally separate a firm from its suppliers and customers
A computer company has grouped people together based on the products produced. The three major groupings are (1) computer hardware, (2) monitors, and (3) peripherals, such as printers and scanners. This company is using a __________ structure.
divisional
One of the problems with a functional structure is communication between functional groups.
TRUE
The essence of the functional chimney problem is that the subunits operate as if they are independent from, or in competition with all of the other subunits in the organization.
TRUE
The process type of divisional structure focuses on:
the activities part of the same process
All of the following are considered common organizational structures EXCEPT:
hierarchical
The process of grouping together people and jobs into work units is called __________.
departmentalization
Mechanistic structures are most like organic designs.
FALSE
Remote Servicing, Inc. (RSI) can be described as a flat organization. Managers at RSI would have a __________ span of control
wide
__________ splits one job between two people.
job sharing
A manager from LMT Corporation allows her employees to do their jobs as they see fit. This may be due to:
empowerment
span of control is:
The number of employees directly reporting to a manager.
__________ is the process of configuring organizations to meet environmental challenges.
organizational design
Top management has the power to make most of the important decisions in a ______ organization.
centralized
Which of the following is accurate with regard to trends in organizational design?
Organizations are becoming flatter with fewer levels of management.
Judy is considering delegating the task of office scheduling to Tonisha, one of her subordinates. Which of the following is NOT necessary for Judy to do to successfully delegate this task?
Walk Tonisha through each step and closely monitor her to make sure she gets it right
The best decisions made in organizations seem to be:
a blend of centralized and decentralized, facilitated by information technology
A basic principal of management is that, “When delegating, authority should equal responsibility.”
TRUE
A classical management principle that says authority should equal responsibility refers to which of the following?
delegation
The main purpose of organizing as a management function is to ________.
arrange people and resources to accomplish work
An organization chart is most useful for ________.
showing designated supervisory relationships
Rumors and resistance to change are potential disadvantages often associated with ________.
informal structures
When an organization chart shows that vice presidents of marketing, finance, manufacturing, and purchasing all report to the president, top management is using a ________ structure.
functional
The “two-boss” system of reporting relationships is both a potential source of problems and one of the key aspects of ________ structures.
matrix
A manufacturing business with a functional structure has recently acquired two other businesses with very different product lines. The president of the combined company might consider using a ________ structure to allow a better focus on the unique needs of each product area.
divisional
An organization using a ________ structure should expect that more problems will be solved at lower levels and that top managers will have more time free to engage in strategic thinking.
matrix
The functional chimneys problem occurs when people in different functions ________.
fail to communicate
An organization that employs just a few “core” or essential full-time employees and outsources a lot of the remaining work shows signs of using a ________ structure.
network
A “tall” organization will likely have ________ spans of control than a “flat” organization with the same number of members.
narrower
If a student in one of your course groups volunteers to gather information for a case analysis and the other members tell him to go ahead and choose the information sources he believes are most important, the group is giving this student ________ to fulfill the agreed-upon task.
authority
The bureaucratic organization described by Max Weber is similar to the ________ organization described by Burns and Stalker.
mechanistic
Which organization design would likely be a good fit for a dynamic and changing external environment?
organic
Which alternative work schedule is identified by Working Mother magazine as being used by all companies on its list of “100 Best Employers for Working Moms”?
flexible hours