Chapter 8

Question 1

the managerial function that involves the deployment of resources in a way that will achieve strategic goals

Answer 1

organizing

Question 2

a system of consciously coordinated activities of two or more people

Answer 2

organization

Question 3

organization formed to make money, or profits, by offering products or services

Answer 3

for-profit organization

Question 4

organization formed to offer services to certain clients, not to make a profit

Answer 4

nonprofit organization

Question 5

voluntary collectives whose purpose is to advance members’ interests

Answer 5

mutual-benefit organizations

Question 6

a system of tasks and reporting relationships that coordinate and motivate an organization’s members so that they can work together to achieve the organization’s goals

Answer 6

organizational structure

Question 7

a system of shared beliefs and values that develops within an organization and guides the behavior of its members; “social glue”

Answer 7

organizational culture

Question 8

“a stool with three legs” made up of the organization’s structure, culture, and human resource management systems

Answer 8

organizational architecture

Question 9

a _____ has an internal focus and values flexibility rather than stability and control; values cohesion, job satisfaction, collaboration, employee development and commitment

ex: Duck Dynasty = family culture

Answer 9

clan culture

Question 10

a ____ has an internal focus and values stability and control over flexibility; ensures promptness, efficiency, and effectiveness

ex: McDonald’s

Answer 10

hierarchy culture

Question 11

a ____ has an external focus and values flexibility; values adaptivity, creativity, and flexibility in the face of environmental change

ex: Google

Answer 11

adhocracy culture

Question 12

a ____ has a strong external focus, is driven by competition, and values stability and control; focuses on effectiveness, as shown by profits, flexibility, and results (considered more important than job satisfaction and employee development)

ex: Brown & Brown Insurance

Answer 12

market culture

Question 13

job satisfaction and organization commitment are highest for which type of culture?

Answer 13

clan culture

Question 14

objective growth and objective profit are lowest for which type of culture?

Answer 14

clan culture

Question 15

subjective innovation and subjective growth are highest for which type of culture?

Answer 15

market culture

Question 16

quality of products and subjective profit are equal for:

Answer 16

clan, market, and adhocracy cultures

Question 17

three layers of organizational culture

Answer 17

observable artifacts
values
basic assumptions

Question 18

these include the physical manifestations of cultures, such as how employees dress, how managers act, how the office is decorated, etc.

Answer 18

observable artifacts

Question 19

the explicitly stated values and norms preferred by an organization

Answer 19

espoused values

Question 20

values and norms actually exhibited by the organization

Answer 20

enacted values

Question 21

invisible, preconscious, and unobservable core values that are meant to guide employee perception and behavior, but are taken for granted and thus are hard to change

Answer 21

basic assumptions

Question 22

how do employees learn culture?

Answer 22

stories, rituals, material symbols, language

Question 23

many companies are tied to their founders and their founders’ beliefs

ex: Walt Disney

Answer 23

hero

Question 24

a narrative based on true events, which is repeated - and sometimes embellished - to emphasize a particular view

Answer 24

stories

Question 25

the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments

Answer 25

rituals

Question 26

an object, act, quality, or event that coveys meaning to others

Answer 26

material symbols

Question 27

used to familiarize new hires with the values, expected behaviors, and social knowledge needed to succeed in a specific organization

Answer 27

socialization

Question 28

when new employees try to establish an understanding of the workplace's culture and dynamics

Answer 28

learning process

Question 29

when new employees adjust themselves to fit the organization's culture

Answer 29

adjustment process

Question 30

4 functions of an organization's culture

Answer 30

1. provide organizational identity 2. facilitate collective commitment 3. promote social-system stability 4. providing direction

Question 31

the founder's values, the industry and business environment, the national culture, and the senior management's vision and behavior

Answer 31

antecedents of culture

Question 32

a combo of observable facts, espoused and enacted values, and basic assumptions of employees

Answer 32

organizational culture

Question 33

organizational design and the rewards systems

Answer 33

organizational structure

Question 34

socialization, mentoring, decision making, group dynamics, communication, empowerment, and leadership

Answer 34

group and social processes

Question 35

common elements of all organizations

Answer 35

1. a common purpose 2. coordinated effort 3. division of labor (work specialization) 4. hierarchy of authority 5. span of control 6. authority 7. centralization of authority

Question 36

the number of people reporting directly to a single manager

Answer 36

span of control

Question 37

when a manager has a small number of people reporting to him or her

Answer 37

narrow span of control

Question 38

when a manager has many people reporting to him or her

Answer 38

wide span of control

Question 39

when an organization has many levels and narrow spans of control

Answer 39

it is tall and narrow

Question 40

when an organization has just a few levels and wide spans of control

Answer 40

it is flat and wide

Question 41

wide spans of control are easier/better for...

Answer 41

standardized tasks

Question 42

narrow spans of control are best for...

Answer 42

complex or specialized tasks

Question 43

refers to the obligation to report and justify work results to people higher in the organizational hierarchy

Answer 43

accountability

Question 44

the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy

Answer 44

delegation

Question 45

______ managers have the authority to make decisions and usually have people reporting to them; indicated by a solid vertical line on an organization chart ex: vice presidents, heads of accounting

Answer 45

line managers

Question 46

______ have authority functions; they provide advice, recommendations, and research to line managers; indicated by dotted horizontal lines on an organization chart ex: legal counsels, human resource depts

Answer 46

staff personnel

Question 47

in organizations with ______, higher-level managers make decisions; often associated with theory x perspective

Answer 47

centralized authority

Question 48

in organizations with ______, decisions are made by middle-level and supervisory-level managers to whom higher managers have delegated power; often associated with theory y perspective

Answer 48

decentralized authority

Question 49

involves the establishment of optimal organizational structures that will establish accountability and responsibility and ultimately help the firm achieve its strategy

Answer 49

organizational design

Question 50

involve vertical management hierarchies and clear reporting relationships

Answer 50

traditional organizational designs

Question 51

a structure with centralized authority, a flat hierarchy, few rules, and low work specialization ex: small mom-and-pop firms in their earliest stages

Answer 51

simple organizational structure

Question 52

a structure in which people with similar occupational specialties are put together in formal groups ***best for small firms or firms with a single focus

Answer 52

functional organizational structure

Question 53

advantages of functional structure

Answer 53

1. people working together in the same functional area can learn from one another 2. managers can easily monitor and evaluate employees 3. managers can more easily achieve success bc they are only responsible for one function of the company

Question 54

disadvantages of functional structure

Answer 54

1. it may be hard to facilitate communication between functional groups 2. groups might be so focused on achieving success that they lose sight of organization's overall goals 3. there may be a breakdown of processes across functions

Question 55

a structure in which people with diverse occupational specialties are put together in formal groups with similar products or services, customers or clients, or geographic regions

Answer 55

divisional structure

Question 56

_______ divisions group activities around similar products or services ex: Pepsi could have a bev. division and a snack division

Answer 56

product

Question 57

_______ divisions group activities around common customers or clients

Answer 57

customer

Question 58

_______ divisions group activities around defined regional locations

Answer 58

geographic

Question 59

advantages of divisional structure

Answer 59

1. greater customization is possible 2. coordination is built into the structure 3. managers can allocate resources to the appropriate divisions in the most attractive markets 4. clear accountability

Question 60

disadvantages of a divisional structure

Answer 60

1. each division has to perform its own functional tasks (unnecessary and costly functional duplication) 2. potential for loss of control as diff. divisions may have diff. approaches to work processes and output 3. may be hard to maintain a unified sense of identity and organization culture

Question 61

a structure that combines functional and divisional chains of command in a grid so that there are two command structures -- vertical and horizontal

Answer 61

matrix organizational structure

Question 62

in a ______ structure, employees report to two bosses: their functional manager and their project manager

Answer 62

matrix

Question 63

advantage of matrix structure

Answer 63

1. allows organization to use its employees for projects in addition to traditional functional work

Question 64

disadvantages of matrix structure

Answer 64

1. having two bosses may create problems 2. having two goals may create problems 3. approach may increase overhead and reduce efficiency 4. use of teams may lead to diffusion of accountability for results

Question 65

______ design involves the use of temporary or permanent teams to break down internal boundaries and improve collaboration ***works in conjunction with cross-functional teams

Answer 65

horizontal

Question 66

advantages of horizontal structures

Answer 66

1. they facilitate organizational learning 2. they improve responsiveness to customers 3. they enjoy the advantages of teamwork, including flexibility, empowerment, and broader perspectives

Question 67

disadvantages of horizontal structures

Answer 67

1. there may be difficulty separating the organization's activities into "process" and "non-process" 2. could lead to a cinderella problem (individuals not assigned to a team may feel neglected) 3. emphasis on cross-functional teamwork might get in the way of functional specialization 4. managers may perceive a "loss of turf" and try to inhibit horizontal collaboration

Question 68

difference between matrix and horizontal design structures

Answer 68

the horizontal structure is MORE EFFICIENT and flatly organized with cross-functional teams; in contrast, a matrix structure merges employees from diff. divisions but RETAINS STRICT chain of command

Question 69

a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks ***the collaborators may include competitors, suppliers, and customers

Answer 69

boundaryless organization

Question 70

a structure in which a central core of the organization is complemented by outside, independent firms that provide outsourced goods and services and are linked to the central core via computers ex: Nike, Apple, Vizio

Answer 70

hollow structure aka "network structure"

Question 71

advantages of hollow structures

Answer 71

1. costs are lower, due to lower overhead and capital expenditures 2. firm can purse best sources of specialization and technology when it chooses suppliers 3. suppliers may naturally come to improve both on cost and quality 4. firm may be able to lower costs and achieve higher quality, making it more flexible and competitive 5. firm can easily change part of its production process (switching suppliers)

Question 72

a structure in which a firm assembles product chunks, or modules, provided by outside contractors

Answer 72

modular structure aka "hollowest of hollow structures"

Question 73

what is the difference between hollow and modular structure?

Answer 73

in a modular structure, EVERYTHING is outsourced, rather than just a few depts

Question 74

advantages of modular structure

Answer 74

1. may speed up production and lower costs 2. firms can take advantage of another firm's competencies 3. firms can experiment with multiple suppliers 4. firms can experiment by combining modules in diff ways

Question 75

disadvantages of modular structure

Answer 75

1. not all products and services can be "chunked" 2. diff modules may not fit together properly if firm doesn't properly specify how they should interface 3. entire process is only as fast as the slowest supplier

Question 76

a structure in which the firm creates a company outside a company specifically to respond to an attractive (and often temporary) market opportunity

Answer 76

virtual structure

Question 77

an organization whose members are geographically separated, usually working through e-mail, collaborative computing, and other computer connections

Answer 77

virtual organization

Question 78

the link between strategy and structure

Answer 78

1. organization structure should be based, in part, on the strategy the organization hopes to implement through its structure 2. organizational structure should facilitate the achievement of strategic goals, so strategic goals should drive structure ex: firm focused on cost-leadership would most likely have a functional, formal structure; firm with diff. strategy would need a more flexible, organic, complex structure