Chapter 10

Question 1

What is the deployment of organizational resources to achieve strategic goals?

Answer 1

Division of labor, lines of authority, coordination

Question 2

How do you organize a vertical structure?

Answer 2

1. Tasks assigned to individuals/departments. 2. Formal reporting relationships. 3. Design of systems to ensure effective coordination.

Question 3

What is work specialization (organizing concepts)?

Answer 3

Degree to which organizational tasks are subdivided into individual jobs (division of labor).

Question 4

What is chain of command (organizing concepts)?

Answer 4

Unbroken line of authority that links individuals in organization and specifies who reports to whom.

Question 5

What is authority?

Answer 5

Vested in organizational positions, flows down vertical hierarchy, accepted by subordinates.

Question 6

What are line departments?

Answer 6

Perform primary business tasks like sales and production.

Question 7

What are staff departments?

Answer 7

Support line departments like marketing, research, and accounting.

Question 8

What is line authority?

Answer 8

People in management positions have authority to direct and control immediate subordinates.

Question 9

What is staff authority?

Answer 9

Narrower and includes right to advise, recommend, counsel staff specialists area of expertise.

Question 10

What is span of management?

Answer 10

The number of employees reporting to a supervisor.

Question 11

What is tall structure?

Answer 11

Have more levels and narrow span.

Question 12

What is a flat structure?

Answer 12

Have a wide span and fewer levels.

Question 13

What is centralization vs. decentralization?

Answer 13

Decision authority is located near the top of the organization vs decision authority is pushed downward to all levels.

Question 14

What are the factors that influence centralization versus decentralization?

Answer 14

Change and uncertainty are usually associated with decentralization, strategic fit, crisis requires centralization.

Question 15

What is the divisional approach?

Answer 15

Grouping based on organizational output (product program business).

Question 16

What is the matrix approach?

Answer 16

Combines functional and divisional approaches. Improves coordination and information, dual lines of authority

Question 17

What is the team approach?

Answer 17

Widespread trend, allows managers to delegate authority, flexible and responsive.

Question 18

What is the virtual network structure?

Answer 18

Firm subcontracts most of its major functions to separate companies.

Question 19

What is horizontal coordination?

Answer 19

Companies need for more flexibility than vertical structure, meets fast shifting environment and breaks down barriers between departments.

Question 20

How does structure follow strategy?

Answer 20

Performance influenced by structure, strategic goals should drive structure and structure should facilitate strategic goals.

Question 21

What is a task force?

Answer 21

Temporary team or committee form to solve a specific short-term problem involving several departments

Question 22

What is responsibility and delegation?

Answer 22

Duty to perform a specific task and delegation is the transfer of authority and responsibility to those below them in the hierarchy.

Question 23

What is a project manager?

Answer 23

Person responsible for coordinating activities of several departments for completion of specific project.