Unit 4 Short Answers

Question 1

1. Explain Formal vs Informal structures. Provide advantages and disadvantages of each

Answer 1

Formal structures:
- structure of an organization in its official state, ex: organization chart.
- Advantages:division of work, supervisory relationships, levels of management
- Disadvantages: multiple communication channels & layers of management
Informal structures
- organization made up of the unofficial, but often critical, working relationships between organization members.
-Advantages: teamwork, informal learning
-Disadvantages: rumors, may carry inaccurate information

Question 2

2. Explain how divisional structures work. Be sure to outline the different types, the focus of each and provide examples of how the company would be organized. Explain the advantages and disadvantages of each

Answer 2

Divisional structure: Group to gather people who work one the same product or process, serve similar customers, located in the same geographical region.
types
- Product: focus on good/service produced, general manager > grocery products
- Geographical: focus on location of activity, president > asian/ American division
- Customer: focus on customer of client serviced, agency administrator > senior citizens
-process: activities part of same process, catalog sales manager > order fulfillment

Potential advantage of divisional structures
• Improved coordination and responsibility
Potential disadvantage of divisional structures
• Duplication of resources and efforts across divisions.

Question 3

3. Describe a Matrix structure. Be sure to explain how it works

Answer 3

• combines functional and divisional structures.
• reporting relationships are set up in a grid rather than a hierarchy
• employees have dual reporting relationships
  advantages: better cooperation across functions
  disadvantages: multiple boss/ supervisory system can create task confusion and conflict in work prioritizes and deadlines.

Question 4

4. Discuss Team structures

Answer 4

• use permanent and temporary teams to solve problems,
  -advantages: eliminates difficulties with communication and decision making
  -disadvantages: excessive time spent in meetings

Question 5

5. Discuss the different change strategies from class. How would managers behave for each and what is the likely result

Answer 5

• Top-down change: Strategic and comprehensive change that is initiated with the goals of the organization Driven by the organization’s top leadership
  -bottom-up change:
  • The initiatives for change come from any and all parts of the organization, not just top management.
  • Crucial for organizational innovation.
  • Made possible by: Employee empowerment and involvement
  Types
• force-coercion: using formal authority to create change by decree and position power.
• power bases: legitimacy, rewards and punishment
• manager behaviour: direct forcing and unilateral action, political manoeuvring and indirect action.
  Rational Persuasion
• creating change through rational persuasion and empirical argument
• power base: expertise
• manager behavior: Informational efforts using credible knowledge, demonstrated facts and logical argument
  shared power
• developing support for change through personal values and commitments
• power bases: reference
• manager behaviour: Participative efforts to share power and involve others in planning and implementing change

Question 6

6. Discuss the four steps of product and sustainable innovation

Answer 6

1. idea creation: discovering a potential product or way to modify an existing one.
2. initial experimentation: sharing the idea with others and testing it in prototype form
3. feasibility determination: testing the practicality and financial viability of the new product
4. final application: commercializing the product for sale to customers or clients

Question 7

7. Why are people resistant to change? Explain each reason in detail and provide an example that illustrates the reason

Answer 7

• Fear of the unknown
• Loss of confidence
• Loss of control
• Work overload

Question 8

8. Find an example of a sustainable innovation. Explain how it is making the world a better place.

Answer 8

An example of a sustainable innovation is solar panels which use the renewable solar energy from the sun. They help make the world a better place by providing people with power in a way that reduces greenhouse gases emissions and reducing climate change. Which in turn protects humans, wildlife and ecosystems.

Question 9

9. Find an example of a social entrepreneur or a company that demonstrates that the owners are social entrepreneurs. Be sure to provide detail about what they do and how they are helping society, individuals or the planet