chapter 10

Question 1

organization

Answer 1

a group of people working together to achieve a specific goal

Question 2

organizational structure

Answer 2

a system that coordinates the people, tasks, and activities necessary to carry out a particular purpose

Question 3

explain the impact of organizational structure on the organization

Answer 3

• goals would be difficult to achieve without organizational structure
• successful organizational structures improve the flow of communication between employees, establish clear responsibilities and reporting relationships, provide opportunities for company growth and expansion, and facilitate the successful completion of tasks and activities.

Question 4

An organizational chart is:

Answer 4

a visual document that communicates how a company is organized

Question 5

Main elements of an organizational structure: (10)

Answer 5

• work specialization
• authority
• span of control
• formalization
• centralization or decentralization
• chain of command
• departmentalization
• responsibility and delegation

Question 6

work specialization

Answer 6

also known as division of labor, is the degree to which jobs are divided into specific tasks

Question 7

departmentalization

Answer 7

the process of grouping people with related jobs duties, skills, and experiences into the same area within the overall organizational structure

Question 8

chain of command

Answer 8

the flow of authority and power from the highest to the lowest levels of the organization

Question 9

span of control

Answer 9

refers to the number of direct reports for whom managers are directly responsible

Question 10

authority

Answer 10

the legitimate right given to managers to give orders and make decisions

Question 11

responsibility

Answer 11

the personal obligation to perform present tasks and reach specified goals

Question 12

delegation

Answer 12

the process of transferring authority and responsibility to others to carry out certain tasks and activities

Question 13

centralization

Answer 13

refers to an organizational structure designed to give top-level managers the authority to make decisions on behalf of the entire company

Question 14

decentralization

Answer 14

refers to an organizational structure designed to allow all employees to make decisions and recommend changes

Question 15

formalization

Answer 15

the process of determining procedure, rules, and responsibilities for employees

Question 16

traditional organizational structures are group into six (5) main types:

Answer 16

• simple structures
• functional structures
• divisional structures
• vertical structures
• horizontal structures

Question 17

simple structures

Answer 17

a common organizational structure used in small businesses in which decision-making is centralized with the business owner

Question 18

functional structure

Answer 18

groups employees according to the tasks they perform for the organization, such as marketing, finance, and human resources

Question 19

divisional structure

Answer 19

sometimes called multidivisional structure, groups employees by products and services, by geographic regions, or by customers.

Question 20

vertical structure

Answer 20

based on a chain of command in which leaders sit at the top of the hierarchy and pass down orders to lower-level workers.

Question 21

horizontal structure

Answer 21

also known as flat structure, focuses on teamwork and collaboration to achieve collective goals

Question 22

type of contemporary organizational structure

Answer 22

• matrix structure
• flatter structure
• flatarchies structure
• holacratic structure
• boundaryless structure
• virtual structure

Question 23

matrix organizational structure (type of contemporary organizational structure)

Answer 23

a company structure in which reporting lines are set up as a grid, or matrix.

Question 24

flatter structure (type of contemporary organizational structure)

Answer 24

company structure where some layers of management are removed but a degree of hierarchy remains

Question 25

flatarchies (type of contemporary organizational structure)

Answer 25

type of organizational structure that share characteristics of hierarchies and flat organizations

Question 26

holacratic organizational structure (type of contemporary organizational structure)

Answer 26

distributes decision making authority to self managed “boss-less” teams or “circles”.

Question 27

boundaryless organizational structure (type of contemporary organizational structure)

Answer 27

removes borders across the organization to drive efficiency, innovation, and growth through the free flow of information

Question 28

virtual organizational structure (type of contemporary organizational structure)

Answer 28

one in which employees are geographically spread and tend to communicate by phone, email, and the internet

Question 29

discuss the factors that influence the type of organizational structures being implemented

Answer 29

• to make the right decisions, managers need to take the following factors into account:
  
  • the environment
  • strategy
  • financial condition
  • technology
  • size

Question 30

mechanistic model

Answer 30

formalized structure based on centralization and departmentalization

Question 31

organic model

Answer 31

a less formalized structure based on decentralization and cross-functional teams

Question 32

managers use these two methods for companies when organizing their structures and operations:

Answer 32

• differentiation

- integration

Question 33

differentiation

Answer 33

the process by which organizations are broken down into divisions and departments
- each of which has its own power and autonomy

Question 34

integration

Answer 34

the process by which different parts of the organization are drawn together to achieve a common goal