Chapter 7

Question 1

Define an organizational structure

Answer 1

Specification of the jobs to be done and how they are related, required by all organizations to meet specific needs

Question 2

What factors influence organizational structure

Answer 2

1. purpose, mission, strategy
2. size, technology, what changes in enviro.
3. can be carefully planned OR develop as organization evolves

Question 3

Define chain of command

Answer 3

Organizational chart showing employee positions and the flow of decision-making power

Question 4

Define specialization

Answer 4

Process of identifying the specific jobs that need to be done and the people who will perform them

Question 5

Define departmentalization

Answer 5

Determining how tasks should be grouped together into logical units to make the workplace more efficient

Question 6

How are specialization and growth related

Answer 6

1. small companies have fewer employees (less specialization)
2. large companies become more efficient through specialization

Question 7

How is departmentalization beneficial (4)

Answer 7

• increases efficiency (division of labour)
• better control and coordination
• easier to monitor performance
• profit centres are accountable

Question 8

What are the bases of departmentalization (5)

Answer 8

Functional, customer, product, geographic, process

Question 9

Define decision-making hierarchy

Answer 9

Who is responsible for making certain decisions

Question 10

Define the 3-step process

Answer 10

1. assigning tasks
2. performing tasks
3. distributing authority

Question 11

What takes place in step 1 of the 3-step process

Answer 11

Assigning Tasks
1. Responsibility: duty to perform an assigned task
2. Authority: power to make decisions to complete a task

Question 12

What takes place in step 2 of the 3-step process

Answer 12

Performing Tasks
1. Delegation: assignment of a task, responsibility, or authority to a subordinate
2.Accountability: obligation of subordinates to finish tasks and justify outcomes

Question 13

What takes place in step 3 of the 3-step process

Answer 13

Distributing Authority
1. Centralization: top managers reserve most of the decision-making rights
2. Decentralization: lower- and middle-level managers have some discretion in making decisions on their own

Question 14

Define span of control + types (2)

Answer 14

number of subordinates that a manager is responsible for supervising
1. wide span: many subordinates
2. narrow span: very few subordinates

Question 15

How do complicated tasks relate to span of control

Answer 15

Complicated tasks require more supervision and a narrow span of control

Question 16

What are the 3 forms of authority

Answer 16

Line, staff, committee/team

Question 17

Define line authority

Answer 17

direct chain of command (indicated by a solid line in the org. chart)

Question 18

Define staff authority

Answer 18

staff that advise/support line managers (indicated by a dotted line in the organizational chart)

Question 19

Define committee/team authority

Answer 19

authority granted to committees/work teams (permanent or temporary); plan their work and complete the task independently

Question 20

Define functional structure

Answer 20

units are formed based on the job functions (i.e. payroll, accounting, sales & purchasing)

Question 21

Define divisional structure

Answer 21

divisions operating as semi-autonomous units and profit centres (ex products, customers, geography)

Question 22

Define project organization

Answer 22

used by organizations with new product opportunities or special projects

Question 23

How is project organization used in a matrix organization

Answer 23

project manager and regular line managers share authority until the project is completed

Question 24

Define international organization

Answer 24

designed to help a company succeed in international markets; international departments & divisions, integrated global organization

Question 25

What are the types of organizational design (4)

Answer 25

Boundaryless
Team
Virtual
Learning

Question 26

Define informal organization

Answer 26

network of social interactions and relationships among employees unrelated to the formal structure;

Question 27

Define informal groups

Answer 27

groups of individuals who decide to interact among themselves even though they are not required to do so

Question 28

Define organizational grapevine

Answer 28

an informal communication network that carries gossip and other information

Question 29

How do organizational grapevine and informal groups relate to each other

Answer 29

powerful force that can alter the formal structure

Question 30

How are managers involved in organizational grapevine

Answer 30

must maintain open channels of communication and respond to inaccurate information to minimize damage

Question 31

How do managers use organizational grapevine to their advantage (3)

Answer 31

measure employee reactions, gain information and improve decision making