Chapter 15

Question 1

Organization design should

Answer 1

Promote the flow of information and speeds decision-making.

Clearly define internal authority and responsibility.

Create desired balance between coordination and differentiation to respond to changes in the environment.

Question 2

Organization chart

Answer 2

Representation of an organizations internal structure, indicating how various task or functions are interrelated.

Question 3

Authority

Answer 3

The formal and legitimate right of a manager to make decisions.

Authority is vested in organizational positions, not people.
Authority is excepted by subordinates.
Authority flows down the vertical hierarchy.

Question 4

Responsibility

Answer 4

And employees duty to perform the assigned task.

Question 5

Accountability

Answer 5

The managers expectation that the employee will except credit or blame for his/her work.

Accountability is the mechanism through which authority and responsibility are aligned.

Authority + responsibility = accountability.

Question 6

Delegation

Answer 6

The process of giving authority to a person or group or team to make decisions and act.

Question 7

Span of management

Answer 7

The number of employees reporting to a supervisor.

Tall vs flat

Question 8

Functional approach

Answer 8

Grouping leaders and employees according to their areas of expertise and the resources they used to perform jobs.

Question 9

Product design

Answer 9

All functions that contribute to a product or organize under 1 leader.

Most common in branch management

Question 10

Geographic design

Answer 10

Activities organize around geographic location.

Most common in large global organizations

Question 11

Network design

Answer 11

Subcontracts some of many of its operations to other firms and coordinates them to accomplish specific goals