OTD Chapter 4

Question 1

Differentiation

Answer 1

The process of establishing and controlling the division of labour.

Question 2

Simple organizations

Answer 2

Differentiation is low, because the division of labour is low.

Question 3

Complex organizations

Answer 3

Differentiation is high, because the division of labour is high.

Question 4

Division

Answer 4

Subunit that consists of a collection of functions or departments that share responsibility for producing a particular good or service.

Question 5

Support functions

Answer 5

Functions that facilitate an organization’s control of its relations with its environment and its stakeholders.

Question 6

Production functions

Answer 6

Functions that manage and improve the efficiency of an organization’s conversion process.

Question 7

Maintenance function

Answer 7

Functions that enables an organization to keep its departments operational.

Question 8

Adaptive functions

Answer 8

Functions that allow an organization to adjust to changes in the environment.

Question 9

Managerial functions

Answer 9

Functions that facilitate the control and coordination of activities within and among departments.

Question 10

Vertical differentiation

Answer 10

The way an organization designs its hierarchy of authority and creates reporting relationships to link organizational roles and subunits.

Question 11

Horizontal differentiation

Answer 11

The way an organization groups organizational tasks into rules and roles into subunits (functions and divisions).

Question 12

Subunit orientation

Answer 12

A tendency to view one’s role in the organization strictly from the perspective of the time frame, goals, and interpersonal orientations of one’s subunit.

Question 13

Integration

Answer 13

The process of coordinating various tasks, functions, and divisions so that they work together and not at cross purposes.

Question 14

Seven integrating mechanisms

Answer 14

1. Hierarchy of authority.
2. Direct contact
3. Liaison role
4. Task force
5. Team
6. Integrating role
7. Integrating departments

Question 15

Hierarchy of authority

Answer 15

A ranking of employees integrated by specifying who reports to whom.

Question 16

Direct contact

Answer 16

Managers meet face to face to coordinate activities.

Question 17

Liaision role

Answer 17

A specific manager is given the responsibility of coordinating with managers from other subunits on behalf of his or her subunit.

Question 18

Liaision role

Answer 18

A specific manager is given the responsibility of coordinating with managers from other subunits on behalf of his or her subunit.

Question 19

Task force

Answer 19

Managers meet in temporary committees to coordinate cross-functional activities.

Question 20

Team

Answer 20

Managers meet regularly in permanent committees to coordinate activities.

Question 21

Integrating role

Answer 21

A full-time position established specifically to improve communication between divisions. A new role is established to coordinate the activities of two or more functions or divisions.

Question 22

Integrating departments

Answer 22

A new department is created to coordinate the activities of functions or divisions.

Question 23

Centralization

Answer 23

Organization setup in which the authority to make decisions is retained by managers at the top of the hierarchy.

Question 24

Advantage centralization

Answer 24

Lets top managers coordinate activities.

Keeps the organization focused on its goals.

Question 25

Disadvantages centralization

Answer 25

Top managers can become overloaded and immerse in operational decision making about day-to-day resource issues.

Question 26

Decentralization

Answer 26

An organization setup in which the authority to make important decisions about organizational and initiated new projects is delegated to managers at all levels of the hierarchy.

Question 27

Advantage decentralization

Answer 27

Promotes flexibility and responsiveness.

Question 28

Disadvantage decentralization

Answer 28

If too much authority is delegated, managers at all levels can make their own decisions. Planning and coordination become very difficult.

Question 29

Standardization

Answer 29

Conformity to specific models or examples - defined by sets of rules and norms - that are considered proper in a given situation.

Question 30

Mutual adjustment

Answer 30

The compromise that emerges when decision making and coordination are evolutionary processes and people use their judgement rather than standardised rules to address a problem.

Question 31

Formalization

Answer 31

The use of written rules and procedures to standardise operations.

Question 32

High level of formalization =

Answer 32

Centralization of authority.

Question 33

Low level of formalization =

Answer 33

Mutual adjustment, and decentralisation of authority.

Question 34

Socialization

Answer 34

The process by which organizational members learn the norms of an organization and internalize these unwritten rules of conduct.

Question 35

Mechanistic structure (meaning)

Answer 35

Structures that are designed to induce people to behave in a predictable, accountable way.

Question 36

Organic structure (meaning)

Answer 36

Structures that promote flexibility, so people initiate change and can adapt quickly to changing conditions.

Question 37

Mechanistic structure (facts)

Answer 37

• Individual specialization
• Simple integrating mechanisms (hierarchy of authority)
• Centralization (most communication is vertical)
• Standardization (use is made of rules and SOPs)

Question 38

Organic structure (facts)

Answer 38

• Joint specialization
• Complex integrating mechanisms (task forces and teams)
• Decentralization (most communication is lateral - from side-to-side)
• Mutual adjustment (face-to-face contact to coordinate tasks)

Question 39

Contingency approach

Answer 39

A management approach in which the design of an organization’s structure is tailored to the sources of uncertainty facing an organization.

According to the contingency theory, an organization should design its structure to fit with the environment in which the organization operates. This is necessary to manage its environment effectively.