Chapter 9: Structuring Organizations For Todays Challenges

Question 1

Specialization

Answer 1

Dividing tasks into smaller jobs

Question 2

Departmentalization

Answer 2

Setting up individual departments to do specialized tasks

Service department, legal department, financial department

Question 3

Organizational chart

Answer 3

Shows who’s accountable for the completion of a specific job and who reports to whom

Question 4

Managing change

Answer 4

Critical managing function. Can the person deal with change

Question 5

Mass production

Answer 5

The efficient production of large quantities of goods

Question 6

Economies of scale

Answer 6

Companies can reduce their production cost if they can purchase raw materials in bulk and develop specialized labour

Mcdoanlds food being cheap as it buys in bulk

Question 7

Unity of command

Answer 7

Each worker is to report to only one boss

Question 8

Division of labour

Answer 8

Functions are to be divided into areas of specialization such as production, marketing, and finance

Question 9

Authority

Answer 9

Managers have the right to give orders

Question 10

Equity

Answer 10

Manager should treat employees and peers with respect and justice

Question 11

Max Weber was all about

Answer 11

Bureaucracy

Question 12

Hierarchy

Answer 12

A system in which one person is at the top and there are levels below them.

CEO>GM>Supervisor>employee

Question 13

Chain of command

Answer 13

The line of authority that moves from the top of a hierarchy to the lowest point

Question 14

Bureaucracy

Answer 14

Organization with many layers of managers who set rules and regulations and oversee all decisions

Question 15

Empowerment

Answer 15

Giving employees such authority and responsibility to make decisions and please customers

Question 16

Centralized authority

Answer 16

Organization structure in which decision making authority is maintained at the top level of management at the company’s headquarters

Example: Burger King is centralized as all decisions are made at the BK HQ, meaning they can’t adapt to local environments (fish burger for Japan?)

Question 17

Decentralized authority

Answer 17

Occurs when decision making authority is delegated to lower-level managers and employees who are more familiar with local conditions

(Nike store in Hawaii will be different in Canada as they won’t offer shorts in January)

Question 18

Span of control

Answer 18

Refers to the optimum number of subordinates a manager supervises

(One person can’t keep an eye on 25 people)

Question 19

Couple factors of span of control

Answer 19

Capabilities of the manager

Need for coordination

Functional complexity

Question 20

Tall organization

Answer 20

Organization structure in which the pyramidal organization chart is quite tall due to all the various levels of management
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Question 21

Flat organization

Answer 21

Has few layers and a broad span of control

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                           I I I I I I I I I I I I I I I I I

Question 22

Departmentalizations (yes, again)

Answer 22

Dividing the organization into seperate units

Question 23

Advantages of departmentalization

Answer 23

Company can achieve economies of scale

Employees can develop in depth skills and process within a specific department

Employees can coordinate work within the function, and too management can easily direct and control various departments

Question 24

Disadvantages to departmentalization

Answer 24

Communication errors

Company’s response to external change may be slow

Employees may only focus on departments goals and not company’s goals

People may not be trained enough to specialize in one catagory

Department members can all think alike, killing new ideas

Question 25

Alternative ways to departmentalize (4 ways)

Answer 25

By product
By customer group
By geographic location
By process

Question 26

Four ways to structure an organization

Answer 26

1) Line Organizations
2) Line and Staff Organization
3) Matrix Style organization
4) across functional, self managed teams

Question 27

Line organization

Answer 27

Has direct two way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with everyone reporting to one manager

Worker > Manger > Manager > CEO

Question 28

Line And staff organization

Answer 28

Direct lines of people although have staff personal who assist line people

                  HR
                    ^
CEO > manager > Super visor > employee 
                    |
          Legal department

Question 29

Line personal

Answer 29

Employees who are part of the chain of command

Question 30

Staff personal

Answer 30

Employees who advice and assist line personal in meeting their goals

HR, legal department, marking research

Question 31

Matrix style organizations

Answer 31

Specialist from different parts of the organization are brought together to work on specific project but still remain part of line and staff structure

Reports to 2 people, project manager 2 and marketing Vice President

SHORT TERM!!

Question 32

Cross functional, self managed teams

Answer 32

Groups of employees from different departments who work together on a long term basis

Don’t need managers approval

Medical doctors during surgery

Question 33

Networking between firms

Answer 33

Using communication technology and other means to link organizations and allow them to work together on common objectives

Question 34

Real-time

Answer 34

Present moment or the actual time in something takes place

Question 35

Virtual corporation

Answer 35

A temporary networked organization made up of replaceable firms that join and leave as needed

Question 36

Benchmarking

Answer 36

Compares an organizations practices, processes, and products against the worlds best

Question 37

Core competencies

Answer 37

Those functions that an organization can do as well as or better than other organizations in the world

Question 38

Restructuring

Answer 38

Redesigning an organization so that it can effectively and efficiently serve its customers

Question 39

Restructuring for empowerment

Answer 39

The upside down pyramid! Gives the bottom line workers an empowering feeling as they’re at the top of the pyramid

Question 40

Total quality management (TQM)

Answer 40

Striving for maximum customer satisfaction by ensuring quality from all departments

Question 41

Continuous improvement (CI)

Answer 41

Constantly inproving the way the organization operates

Question 42

For a organization

Answer 42

Details lines of responsibility, authority, and position

Question 43

Informal organization

Answer 43

System that develops as employees meet, from cliques, and relationships