chapter 11

Question 1

Organizing

Answer 1

arranges people and resources to work together to
accomplish a goal

Question 2

Organization structure

Answer 2

system of tasks, reporting relationships,
and communication linkages

Question 3

Informal structures

Answer 3

set of unofficial relationships among organization
members

Question 4

Social network analysis

Answer 4

Identifies informal structures and social
relationships in the organization

Question 5

Potential advantages of informal structures

Answer 5

• Allow people to make contacts with others who can help them get things done
• Stimulate learning as people work and interact together
• Sources of emotional support and friendship that satisfy members’ social
  needs

Question 6

Potential disadvantages of informal structures

Answer 6

• Presence of “In and out groups”
• Susceptibility to rumor
• May carry inaccurate information
• May breed resistance to change

Question 7

Functional Structures

Answer 7

• People with similar skills and performing similar tasks are
  grouped together into formal work units
• Members work in their functional areas of expertise
• Work well for small organizations producing few products or
  services

Question 8

Functional Structures: Potential advantages

Answer 8

• Economies of scale with efficient use of resources
• Task assignments consistent with expertise and training
• High-quality technical problem-solving
• In-depth training and skill development / Clear career paths within functions

Question 9

Functional Structures: Potential Disadvantages

Answer 9

• Difficulties in pinpointing responsibilities
• Sense of cooperation and common purpose break down
• Narrow view of performance objectives

Question 10

Divisional Structures

Answer 10

• Group together people who work on the same product or
  process, serve similar customers, and/or are located in the same
  area or geographical region
• Common in complex organizations
• Avoid problems associated with functional structures

Question 11

Potential advantages of divisional structures

Answer 11

• More flexibility in responding to environmental changes
• Improved coordination across functional areas
• Clear points of responsibility
• Expertise focused on specific customers, products, and regions
• Greater ease in restructuring

Question 12

Potential disadvantages of divisional structures

Answer 12

• Duplication of resources and efforts across divisions
• Competition and poor coordination across divisions
• Emphasis on divisional goals at expense of organizational goals

Question 13

Matrix Structure

Answer 13

• Combines functional and divisional structures to gain advantages
  and minimize disadvantages of each
• Used in: Manufacturing | Service industries | Professional fields |
  Non-profit sector | Multi-national corporations

Question 14

Potential advantages of matrix structures

Answer 14

• Better cooperation across functions
• Improved decision-making / Increased flexibility in restructuring
• Better customer service
• Better performance accountability
• Improved strategic management

Question 15

Potential disadvantages of matrix structures

Answer 15

• Two-boss system is susceptible to power struggles
• Two-boss system can create task confusion and conflict in work priorities
• Team meetings are time consuming
• Team may develop “groupitis ”
• Increased costs due to adding team leaders to structure

Question 16

1. Team Structures

Answer 16

• Extensively use permanent and temporary teams to solve
  problems, complete special projects, and accomplish day-to-day
  tasks
• Often use cross-functional teams composed of members from
  different functional departments
• Project teams are convened for a specific task or project and
  disbanded once completed

Question 17

Potential advantages of team structures

Answer 17

• Breakdown of interpersonal barriers and mobilizing of diverse talents
• Improved morale
• Greater sense of task involvement and identification
• Increased enthusiasm for work
• Improved quality and speed of decision making

Question 18

Potential disadvantages of team structures:

Answer 18

Potential disadvantages of team structures:
* Conflicting loyalties among members
* Excessive time spent in meetings
* Effective use of time depends on quality of interpersonal relations, group
dynamics, and team management

Question 19

2. Network Structure

Answer 19

• Use information technologies to link with networks of outside
  suppliers and service contractors
• Own only core components and use strategic
  alliances or outsourcing to provide other components

Question 20

Potential advantages of network structures

Answer 20

• Firms can operate with fewer full-time employees and less complex internal
  systems
• Reduced overhead costs and increased operating efficiency
• Permit employment of outsourcing strategies and contracted services

Question 21

Potential disadvantages of network structures

Answer 21

• Control and coordination problems may arise from network complexity
• Potential loss of control over outsourced activities
• Potential lack of loyalty among infrequently used contractors
• Excessively aggressive outsourcing can be dangerous

Question 22

3. Boundaryless Organizations

Answer 22

• Eliminate many internal boundaries among subsystems and
  external boundaries with the external environment
• A combination of team and network structures, with the addition
  of “temporariness”
• Encourage creativity, quality, timeliness, flexibility, and efficiency
• Knowledge sharing is both a goal and essential component
• Key requirements:
• Little hierarchy
• Empowerment of team members
• Technology utilization
• Acceptance of impermanence
• Virtual organization
• A special form of boundaryless organization
• Operates in a shifting network of external alliances that are engaged as
  needed, using IT and the Internet

Question 23

Organizational Designs

Answer 23

• Process of creating structures that accomplish mission and
  objectives
• An attempt to achieve a good match between structure and
  situational contingencies
• Alternatives include mechanistic or bureaucratic at one extreme,
  and organic or adaptive at the other

Question 24

Bureaucracy

Answer 24

• A form of organization based on logic, order, and the legitimate
  use of formal authority
• Bureaucratic designs feature …
• Clear-cut division of labour
• Strict hierarchy of authority
• Formal rules and procedures
• Promotion based on competency

Question 25

Mechanistic designs

Answer 25

work in a stable environment

• Predictable goals
• Centralized authority
• Many rules and procedures
• Narrow spans of control
• Specialized tasks
• Few teams and task forces
• Formal and impersonal means of coordination

Question 26

Organic designs

Answer 26

work in a rapidly changing and uncertain
environment

• Adaptable goals
• Decentralized authority
• Few rules and procedures
• Wide spans of control
• Shared tasks
• Many teams and task forces
• Informal and personal means of coordination

Question 27

Three Steps in Delegation:

Answer 27

Step 1: Assign responsibility – explain task and expectations

Step 2: Grant authority – allow others to make decisions and act

Step 3: Create accountability – require others to report back on results

Question 28

Centralization

Answer 28

is the concentration of authority for making most
decisions at the top levels of the organization

Question 29

Decentralization

Answer 29

is the dispersion of authority to make decisions
throughout all levels of the organization