Chapter 7 Designing Organizational Structures

Question 1

Questions

Answer 1

Answers

Question 2

The order and design of relationships within a firm is called __________. It consists of two or more people working together with a common objective and clarity of purpose.

Answer 2

organization

Question 3

The process of dividing work into separate jobs and assigning tasks to workers is called _________.

Answer 3

division of labor

Question 4

______________ is the degree to which tasks are subdivided into smaller jobs.

Answer 4

specialization

Question 5

The process of grouping jobs together so that similar or associated tasks and activities can be coordinated is called ______________.

Answer 5

departmentalization

Question 6

A visual representation of the structured relationships among tasks and the people given the authority to do those tasks is called a(n) ___________.

Answer 6

organization chart

Question 7

Which type of departmentalization is based on the primary functions performed within an organizational unit?

Answer 7

functional departmentalization

Question 8

Which type of departmentalization is based on the goods or services produced or sold by the organizational unit?

Answer 8

product departmentalization

Question 9

Which type of departmentalization is based on the production process used by the organizational unit?

Answer 9

process departmentalization

Question 10

Which type of departmentalization is based on the primary type of customer served by the organizational unit?

Answer 10

customer departmentalization

Question 11

Which type of departmentalization is based on the geographic segmentation of the organizational units?

Answer 11

geographic departmentalization

Question 12

An organizational structure with direct, clear lines of authority and communication flowing from the top managers downward is called _______________-.

Answer 12

line organization

Question 13

An organizational structure that includes both line and staff positions is a(n) _______________ organization.

Answer 13

line-and-staff organization

Question 14

All positions in the organization directly concerned with producing goods and services and that are directly connected from top to bottom are called ___________.

Answer 14

line positions

Question 15

Positions in an organization held by individuals who provide the administrative and support services that line employees need to achieve the firm’s goals are ________________.

Answer 15

staff positions

Question 16

Which organizational structure combines functional and product departmentalization by bringing together people from different functional areas of the organization to work on a special project?

Answer 16

matrix structure (project management)

Question 17

An organizational structure in which authority and responsibility are held by a group rather than an individual is a(n) ______________ structure.

Answer 17

committee structure

Question 18

The degree to which group members want to stay in the group and tend to resist outside influences is called _____________.

Answer 18

group cohesiveness

Question 19

These types of groups share resources and coordinate efforts to help members better perform their individual jobs.

Answer 19

work groups

Question 20

A(n) __________ is like a work group but also requires the pooling of knowledge, skills, abilities, and resources to achieve a common goal.

Answer 20

work teams

Question 21

What type of teams usually have members of the same department who meet regularly to suggest ways to improve operations and solve specific problems?

Answer 21

problem-solving teams

Question 22

Teams without formal supervision that plan, select alternatives, and evaluate their own performance are called _______________.

Answer 22

self-managed work teams

Question 23

A(n) ___________________ has members from the same organizational level but from different functional areas.

Answer 23

cross-functional team

Question 24

The levels of management within an organization is a(n) _______________ and typically includes top, middle, and supervisory management.

Answer 24

managerial hierarchy

Question 25

The line of authority that extends from one level of an organization’s hierarchy to the next, from top to bottom, and makes clear who reports to whom is the _________________.

Answer 25

chain of command

Question 26

__________ is the legitimate power, granted by the organization and acknowledged by employees, that allows an individual to request action and expect compliance.

Answer 26

authority

Question 27

The assignment of some degree of authority and responsibility to persons lower in the chain of command is _________________.

Answer 27

delegation of authority

Question 28

The number of employees a manager directly supervises is the manager’s ________.

Answer 28

span of control (also called span of management)

Question 29

The degree to which formal authority is concentrated in one area or level of an organization is ______________________. Top management makes most of the decisions.

Answer 29

centralization

Question 30

Which organizational structure is characterized by a relatively high degree of job specialization, rigid departmentalization, many layers of management, narrow spans of control, centralized decision-making, and a long chain of command?

Answer 30

mechanistic organization

Question 31

The process of pushing decision-making authority down the organizational hierarchy is called ________________.

Answer 31

decentralization

Question 32

Which organizational structure is characterized by a relatively low degree of job specialization, loose departmentalization, few levels of management, wide spans of control, decentralized decision-making, and a short chain of command?

Answer 32

organic organization

Question 33

The network of connections and channels of communication based on the informal relationships of individuals inside an organization is a(n) _________________.

Answer 33

informal organization

Question 34

The order and design of relationships within a firm which consists of two or more people working together with a common objective and clarity of purpose is a(n) _______________.

Answer 34

formal organization

Question 35

Completely redesigning business structures and processes in order to improve operations is called ___________________.

Answer 35

reengineering

Question 36

A network of independent companies linked by information technology to share skills, costs, and access to one another’s markets is called a ________________. It allows the companies to come together quickly to exploit rapidly changing opportunities.

Answer 36

virtual corporation