Chapter 8: Organization Structure

Question 1

organization chart/organogram depicts three things

Answer 1

1. depicts the formal position in the firm
2. depicts lines or authority
3. where decision making resides

Question 2

Alfred D. Chandler (1962) said that org. structure follows what..?

Answer 2

structure follows strategy

Question 3

differentiation in regards to organization structure

Answer 3

aspect of organization’s internal environment created by job specialization and division of labor

Question 4

what is the division of labor

Answer 4

work subdivided into smaller tasks

Question 5

whats specialization

Answer 5

different ppl perform specific parts of a task

Question 6

whats integration

Answer 6

the differentiated units are put back together so that work is coordinated into an overall product

Question 7

whats coordination

Answer 7

link the various parts of the organization to achieve the organization’s mission

Question 8

what’re the three types of interdependence

Answer 8

1. sequential
2. reciprocal
3. pooled

Question 9

what is a sequential interdependence example

Answer 9

auto assembly line

Question 10

what is reciprocal interdependence example

Answer 10

hospital operating table

Question 11

whats a pooled interdependence example

Answer 11

banking, since each area works interdependently

Question 12

authority

Answer 12

right to make decisions

Question 13

what does authority reside in, person or position?

Answer 13

position

Question 14

board of directors

Answer 14

-make major decisions

Question 15

what governs a board of directors

Answer 15

charter and bylaws

Question 16

what does CEO stand for

Answer 16

chief executive officer

Question 17

what is a CEO accountable to

Answer 17

the board of directors and/or president

Question 18

what happens in firms that have top management teams

Answer 18

CEO’s do not make major decisions, but they rather meet w/ the TMT to make decisions as a unit

Question 19

what’re the 3 hierarchical levels

Answer 19

top, middle, lower

Question 20

organization chart

Answer 20

reporting structure and division of labor in an org.

Question 21

differentiation

Answer 21

many diff units that work on diff kinds of tasks, using diff skills and diff work methods

Question 22

integration

Answer 22

degree to which differentiated work units work together and coordinate their efforts

Question 23

span of control

Answer 23

refers to number of subordinates who report directly to a supervisor

Question 24

operating core

Answer 24

individuals producing the goods or services: production workers

Question 25

strategic apex

Answer 25

top level mgmt responsible for overall effectiveness of the org: prez, CEO, VP

Question 26

middle line

Answer 26

Connects apex to operating core, are in the chain of command: President, CEO, VPs

Question 27

technological staff

Answer 27

ppl who design the work, plan it, train workers: fin./acct. analysts, engineers, IT, HR

Question 28

support staff

Answer 28

provides services to org to assist function, but not directly related to organizational mission, Custodians, mailroom staff, security

Question 29

do organizations with narrow (small) spans of control have flat or tall structures

Answer 29

taller structures

Question 30

do organizations with wide (large) spans of control have flat or tall structures

Answer 30

flatter structures

Question 31

characteristics of a centralized organization

Answer 31

top mgmt teams make most decisions, high level execs make most decisions and pass them down to lower levels for implementation

Question 32

characteristics of a decentralized organization

Answer 32

low level managers also make decisions

Question 33

line departments

Answer 33

deal w/ primary goods and services

Question 34

example of line departments

Answer 34

a sales department

Question 35

staff department

Answer 35

support line departments

Question 36

staff department example

Answer 36

HRM

Question 37

functional structure

Answer 37

structured around function/specialized activities such as production, marketing, and human resources

Question 38

divisional structure

Answer 38

departments around products, customers or regions

Question 39

matrix structure

Answer 39

org. composed of dual reporting relationships in which some managers report to 2 superiors, those two being a functional manager and a divisional manager

Question 40

hybrid structure

Answer 40

consists of a combination of the different structures

Question 41

network structure

Answer 41

collection of independent, single function firms that collaborate on a good or service

Question 42

standardization

Answer 42

establishing common rules and procedures, apply to all

Question 43

formalization

Answer 43

presence of rules and regulations governing how ppl in organizations interact

Question 44

coordination by plan

Answer 44

interdependent units contribute to a common goal

Question 45

coordination by mutual adjustment

Answer 45

feedback and discussions to jointly figure out how to approach problems and devise solutions that are agreeable to everyone

Question 46

unity of command principle

Answer 46

employees must have one and only one boss

Question 47

span of control principle

Answer 47

theres a finite number of ppl a manager can supervise effectively

Question 48

chain of command/scalar principle

Answer 48

there is a chain that connects ppl up and down the organizational hierarchy

Question 49

communication in chain of command or scalar principle

Answer 49

communication must go thru everyone in the chain

Question 50

authority-responsibility principle

Answer 50

manager has the right and obligation to... 1. make decisions 2. use resources

Question 51

in authority-responsibility principle what must the manager report

Answer 51

report and justify outcomes to those above

Question 52

delegation-accountability principle

Answer 52

when transferring authority and responsibility to subordinates, the accountability remains w/ the delegator

Question 53

Peter principle

Answer 53

in most organizations ppl tend to be promoted to their level of incompetence