Chapter 9 Organizational structures

Question 1

Three steps in the delegation process

Answer 1

• Assign responsibility
• Grant authority
• Create accountability

Question 2

Factors influencing the extent of decentralization

Answer 2

• External environment in which the firm operates
• The nature of the decision itself
• The abilities of lower-level managers

Question 3

When should the span of management be wide?

Answer 3

• When the manager and subordinates are very competent
• The organization has a well-established set of standard operating procedures
• Few new problems are expected to arise.

Question 4

When should the span of control be narrow?

Answer 4

• When workers are physically located far from one another
• The manager has much work to do in addition to supervising
• A great deal of interation is required between supervisor and workers
• New problems arise frequently.

Question 5

Operational height

Answer 5

The number of layers, or levels of management in a firm.

Question 6

Line structure

Answer 6

An organizational structure in which the chain of command goes directly from person to person throughout the organization.

Question 7

Line manager

Answer 7

A position in which a person makes decisions and gives orders to subordinates to achieve the organization’s goals.

Question 8

Line-and-staff structure

Answer 8

An organizational structure that utilizes the chain of command from a line structure in combination with the assistance of staff managers

Question 9

Staff manager

Answer 9

A position created to provide support, advice and expertise within an organization.

Question 10

Matrix stucture

Answer 10

An organizational structure that combines vertical and horizontal lines of authority, usually by superimposing product departmentalization on a functionally departmentalized organization.

Question 11

Cross-functional team

Answer 11

A team of individuals with varying specialties, expertise and skills that are brought together to achieve a common task.

Question 12

Network structure

Answer 12

An organizational structure in which administration is the primary function and most other functions are contracted out to other firms.

Question 13

Corporate culture

Answer 13

The inner rites, rituals, heroes and values of a firm.

Question 14

Ad hoc committee

Answer 14

A committee created for a specific short-term purpose

Question 15

Standing committee

Answer 15

A relatively permanent committee charged with perforing some recurring task

Question 16

Task force

Answer 16

A committee established to investigate a major problem or pending decision.

Question 17

Informal organization

Answer 17

The pattern of behavior and interaction that stems from personal rather than official relationship

Question 18

Informal group

Answer 18

A group created by the members themselves to accomplish goals that may or may not be relevant to an organization.

Question 19

Grapevine

Answer 19

The informal communications network within an organization.