Exam 1: Chapter 7- Organizational Design

Question 1

Organizational Design

Answer 1

The formal systems, levers, and decisions an organization adopts or employs in pursuit of its strategy

Question 2

Division of Labor

Answer 2

the manner in which work in a firm is divided among employees

Question 3

Organizers

Answer 3

Those who believe that more control is warranted in organizational design to ensure that jobs are performed satisfactorily and efficiently

Question 4

Bureaucratic Approach

Answer 4

an extreme form of organizational control in which systems are highly formalized and are characterized by extensive rules, procedures, policies, and instructions

Question 5

Extreme control is seen within the….

Answer 5

Bureaucratic approach

Question 6

Behaviorists

Answer 6

those who support a more open organizational structure where roles and responsibilities are loosely defined

Question 7

Clan Approach

Answer 7

a type of organizational control that includes self-supervising teams that are responsible for a set of tasks

Question 8

Organizational Structure

Answer 8

the pattern of organizational roles, relationships, and procedures that enable coordinated action among employees

Question 9

Functional Structure

Answer 9

A structure that organizes a firm in terms of the main activities that need to be performed, such as production, marketing, sales, and accounting

Question 10

Division Sturcutre

Answer 10

a structure that groups diverse functions into separate divisions

Question 11

Matrix Structure

Answer 11

a structure where both divisional and functional managers have equal authority in the organization
combines both aspects

Question 12

The Organizational Structure’s three primary functions

Answer 12

1) Allows a firm to perform a variety of activities by diving the firm’s labor force according to tasks and functions
2) Allows the members of a firm to coordinate their activities through mechanisms such as supervision, formal rules and procedures, plans and budgets, training and socialization
3) defines the borders of a firm and its relationships with both the business environment and other firms

Question 13

The functional structure works very well for….

Answer 13

small businesses with a limited number of products or services

Question 14

Functional organizational structures are best suited for….

Answer 14

competitive situations where the most important aspect of competition is efficiency of production or functional expertise

Question 15

One main weakness of functional organizational structure is…

Answer 15

its inability to deal with changes in the business environment

Question 16

Network Structure

Answer 16

a structure where “knowledge workers” are organized to work as individual contributors or to be a part of a work cluster that provides a certain expertise for the organization

Question 17

Decision rights

Answer 17

Rights that include initiating, approving, implementing, and controlling various types of strategic or tactical decisions

Question 18

Delegation

Answer 18

the process by which managers transfer decision rights to individual employees

Question 19

Centralized organization

Answer 19

an organizational structure characterized by formal structures that control employee behavior by concentrating decisions in a top-down, hierarchical fashion

Question 20

Decentralized Organization

Answer 20

an organizational structure where key decisions are made at all levels of the firm, not mandated form the top

Question 21

Centralized organizations tend to be…

Answer 21

larger and older, exist in more mature industries, often imposes a rigid structure that constrains employees’ activity

Question 22

Mutual Adaptation

Answer 22

the process by which firms impact the nature of their overarching industrial environment and adapt their organization in response to evolving contextual factors

Question 23

Four stages in a business’ “life cycle”

Answer 23

Start-up, growth, maturity, and decline

Question 24

Recently, firms’ have been more customer focused with four specific activities into their organizational design

Answer 24

Coordination, cooperation, capability development, connection (with external partners)

Question 25

Silos

Answer 25

a functional or divisional unit that operates by its own rules and guidelines and does not openly share information with other units