Chapter 4-7

Question 1

What is Parkinsons Law

Answer 1

This is where managers would like to improve their status. In doing so they would hire more and more subordinates as they would have a larger “empire”.

Question 2

Principle of minimum chain of command

Answer 2

An organization should choose the minimum number of hierarchical levels consistent with its goals and the environment in which it operates.

Question 3

Span of control

Answer 3

The number of subordinates a manager directly manages

Question 4

Centralization

Answer 4

Decisions are made at the top and communicated to lower-level managers for implementation.

Question 5

Standardization

Answer 5

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

Question 6

Mechanistic structures:

Answer 6

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

Question 7

Organic structures:

Answer 7

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

Question 8

Contingency approach:

Answer 8

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

Question 9

Formalization

Answer 9

Is the use of written rules and procedures to standardize operations.

Question 10

Rules

Answer 10

Formal written statements that specify the appropriate
means for reaching desired goals.

Question 11

Simple integrating mechanisms

Answer 11

Hierarchy of authority is clearly defined and is the major integrating mechanism.

Question 12

Complex integrating mechanisms

Answer 12

Task forces and teams are the
major integrating mechanisms.

Question 13

Bureaucracy:

Answer 13

A form of organizational structure in which people can be held accountable for their actions because they are required to act in
accordance with rules and standard operation procedures.

Question 14

Principle one:

Answer 14

A bureaucracy is founded on the concept of rational-legal authority.

Question 15

Principle two:

Answer 15

Organizational roles are held on the basis of technical competence, not because of social status, kinship or heredity.

Question 16

Principle three:

Answer 16

A role’s task responsibility (horizontal differentiation) and decision-making authority (vertical differentiation) and its relationship to other roles in the organization should be clearly specified.

Question 17

Principle four:

Answer 17

The organization of roles in a bureaucracy is such that each lower office in the hierarchy is under the control and supervision of a higher office.

Question 18

Principle five:

Answer 18

Rules, standard operating procedures, and norms should be used to control the behaviour and the relationship among roles in an organization.

Question 19

Principle six:

Answer 19

Administrative acts, decisions and rules should be formulated and put in writing.

Question 20

Management by objectives: (MBO)

Answer 20

A system of evaluating subordinates on their ability to achieve specific organizational goals or performance standards and to meet operating budgets.

Question 21

Cross-functional teams:

Answer 21

Formal work groups of employees form across an organization’s different functions that are empowered to direct and coordinate the value-creation activities necessary to complete different programs or projects.

Question 22

Contingent workers:

Answer 22

Workers who are employed for temporary periods by an organization and who receive no indirect benefits such as health insurance or pensions.

Question 23

Functional structure:

Answer 23

A design that groups people together on the basis of their common expertise and experience or because they use the
same resources.

Question 24

Divisional structure:

Answer 24

A structure in which functions are grouped together according to the specific demands of products, markets or
customers.

Question 25

Product structure:

Answer 25

A divisional structure in which products (goods or services) are grouped into separate divisions, according to their
similarities or differences.

Question 26

Multidivisional structure:

Answer 26

A structure in which support functions are places in self-contained divisions.

Question 27

Product divisional structure:

Answer 27

A divisional structure in which a centralized set of support functions services the needs of a number of different product lines.

Question 28

Self-contained division:

Answer 28

A division that has its won set of support functions and controls its own value-creation activities.

Question 29

Product team structure:

Answer 29

A divisional structure in which specialists from the support functions are combined into product development teams that specialize in the needs of a particular kind of product.

Question 30

Matrix structure:

Answer 30

A structure in which people and resources are grouped in two ways simultaneously: by function or product.

Question 31

Hybrid structure:

Answer 31

The structure of a large organization that has many divisions and simultaneously uses many different types of organizational structure.

Question 32

Terminal value:

Answer 32

A desired end state or outcome that people seek to achieve.

Question 33

Instrumental value:

Answer 33

A desired mode of behaviour.

Question 34

Obstructionist approach:

Answer 34

Obstructionist managers choose to behave unethically and illegally and do all they can to prevent knowledge of their behaviour from reaching other organizational stakeholders and society at large.

Question 35

Defensive approach:

Answer 35

An approach indicating a commitment to ethical behaviour. Defensive managers stay within the law and abide strictly within legal requirements, but they make no attempt to exercise social responsibility beyond what the law dictates.

Question 36

Accommodative approach:

Answer 36

The acknowledgement of the need to support social responsibility. Accommodative managers agree that organizational members ought to behave legally and ethically, and they try to balance the interests of different stakeholders against one another so the claims of stockholders are seen in relation to the claim of other stakeholders.

Question 37

Proactive approach:

Answer 37

Managers who actively embrace the need to behave in socially responsible ways, go out of their way to learn about the need of different stakeholder groups, and are willing to use organizational resources to promote the interests not only of stockholders but of the other stakeholders.