Deck 11: Organization Structures and Design

Question 1

Social network analysis identifies the informal structures and their embedded social relationships that are active in an organization.

Answer 1

True

Question 2

The purpose of an organization structure is to design titles for different workers and to assign daily work tasks to them.

Answer 2

True

Question 3

A social network analysis is a tool that identifies formal structures and their social relationships.

Answer 3

False

Question 4

A product structure prompts managers to be responsive to changing market demands and customer tastes.

Question 5

A potential disadvantage of functional structures concerns difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness, and innovation.

Question 6

Divisional structures are common in organizations dealing with only one or a few products or services.

Question 7

An organization's ability to implement its strategy is greatly helped by a structure that allocates tasks through a division of labour and provides for the coordination of performance results.

Question 8

In a functional structure, the functions become formalized not only on the organization chart, but also in the mind-sets of people.

Question 9

When problems occur between functions, they should immediately be referred up to a higher level for resolution.

Question 10

Informal networks are sources of emotional support and friendship that satisfy members' social needs.

Question 11

Informal structures always serve the best interests of the organization.

Question 12

An organization structure is the system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups.

Question 13

When an organization chart shows vice presidents of marketing, manufacturing, finance, and human resources reporting directly to the president of a company, the top management group is organized as a divisional structure.

Question 14

The functional chimneys problem can slow decision making, diminish cooperation and commitment to a common purpose, and interfere with coordination across functions.

Question 15

Advantages of functional structures include the support of in-depth training and reduced accountability for total product or service delivery.

Question 16

In a functional structure, people working on the same product, in the same area, with similar customers, or on the same processes, are grouped together.

Question 17

Functional structures tend to work best in relatively stable environments where problems are predictable and the demands for change and innovation are limited.

Question 18

One of the disadvantages of functional structures is that employees lack a clear career path within functions.

Question 19

Informal structures always work against the achievement of high productivity.

Question 20

An organization chart includes major subunits in which positions reporting to a common manager are shown.

Question 21

The matrix structure makes use of permanent cross-functional teams to integrate functional expertise in support of a clear divisional focus on a product, project, or program.

Question 22

A work process is a group of tasks related to one another that collectively creates something of value to a customer.

Question 23

Product structures group together jobs and activities that serve similar customers or clients.

Question 24

The potential disadvantages of team structures include conflicting loyalties among members regarding both team and functional assignments and the excessive time spent in meetings.

Question 25

Team meetings in the matrix can take lots of time, and the teams may develop "groupitis."

Question 26

A customer structure is the least common structure in the consumer products industry.

Question 27

Geographical structures group together jobs and activities being performed in nearby locations or regions.

Question 28

Members of matrix organizations may experience task confusion and encounter power struggles because of reporting to both a "project team boss" and a "functional boss."

Question 29

Workers in a matrix structure are allowed to be part of only one formal group at a time.

Question 30

Divisional structures can create unhealthy rivalries as divisions compete for resources and top management attention.

Question 31

Customer structures group together jobs and activities dealing with a single product or service.

Question 32

In a matrix structure, top managers are freed from lower-level problem solving to focus time on more strategic issues.

Question 33

Team members' effective utilization of the time they spend together is independent of the quality of their interpersonal relations, group dynamics, and team management.

Question 34

A matrix structure is characterized by poor customer service as it is easy to "pass the buck" if you have two bosses.

Question 35

Process structures group together jobs and activities that are part of processes within the same product area.

Question 36

A divisional structure is characterized by reduced coordination across functional departments.

Question 37

Divisional structures can create healthy rivalries as divisions compete for available resources.

Question 38

Geographical structures are typically used when there is a need to differentiate products or services in various locations, such as in different parts of a country.

Question 39

Team meetings in matrix structures are short and quick, because with two bosses, an employee has twice as many meetings to attend.

Question 40

A potential disadvantage of the matrix structure is that problem solving is forced down the hierarchy to where the best information is available.

Question 41

Empowerment refers to letting others make decisions and exercise discretion in their work.

Question 42

The key to organizational success is finding the one best organization design to fit all problems and opportunities.

Question 43

Due to the absence of structural barriers, boundaryless organizations have few communication and coordination problems.

Question 44

Network structures consist of a central business core that that is linked through networks of relationships with outside contractors and suppliers of essential services.

Question 45

Organizational design is the process of choosing and implementing organizational structures that best arrange resources to accomplish the organization's mission and objectives.

Question 46

A virtual organization is an extreme form of a boundaryless organization and requires as a fluid network of alliances in order to function in a wireless manner.

Question 47

Project teams are permanent in nature and cannot be disbanded.

Question 48

Supplier strategic alliances link businesses in preferred supplier-customer relationships that guarantee a smooth and timely flow of quality supplies among the partners.

Question 49

A virtual organization operates in a shifting network of external strategic alliances that are engaged as needed, and typically are supported by extensive information technology utilization.

Question 50

Network structures result in increasing overhead and reducing operating efficiency.

Question 51

Boundaryless sourcing refers to the contracting of business functions to outside suppliers.

Question 52

In addressing the potential disadvantages of team structures, managers should manage time effectively but need not promote effective interpersonal relations, group dynamics, and team management.

Question 53

Organizations with team structures make extensive use of both permanent and temporary teams to solve problems, complete special projects, and accomplish day-to-day tasks.

Question 54

In a virtual organization, when the work is complete, the alliance rests until next called into action.

Question 55

Boundaryless organizations eradicate internal boundaries among parts and external boundaries linking with the external environment.

Question 56

A bureaucracy is a form of organization based on logic, order, and the legitimate use of formal authority.

Question 57

The potential disadvantages of the network structure are due primarily to the demands of flexibility in responding to changing conditions, having fewer full-time employees to help build the supervisor's managerial empire, and the need to operate across great distances.

Question 58

Network organizations own only the support functions and outsource core functions.

Question 59

Key requirements for a boundaryless organization are the absence of hierarchy, empowerment of team members, technology utilization, and acceptance of impermanence.

Question 60

The advantages of network structures include (a) staying cost competitive through reduced overhead and increased operating efficiency, and (b) operating with fewer full-time employees and less complex internal systems.

Question 61

The line of authority that vertically links each position with successively higher levels of management is chain of command.

Question 62

Adaptive organizations operate with a minimum of bureaucratic structure and with cultures that encourage worker empowerment and participation.

Question 63

Delegation is the process of entrusting work to others in the organization by giving them the right to make decisions and take action.

Question 64

Dynamic environments and changing conditions call for more organic designs.

Question 65

Adaptive organizations stimulate the utilization of narrow spans of control and tall structures.

Question 66

The authority-and-responsibility principle states: "authority should equal responsibility when work is delegated from a supervisor to a subordinate."

Question 67

According the research findings of Paul Lawrence and Jay Lorsch, successful firms operating in certain environments had more organic designs, whereas successful firms operating in uncertain environments had more mechanistic designs.

Question 68

Tom Burns and George Stalker found that the mechanistic organizations thrived when the environment was unstable and changing because it provided a necessary counterbalancing sense of order.

Question 69

Centralized organizations delegate decision making throughout all levels of management, and decentralized organizations concentrate decision making at the top levels of management.

Question 70

An organization with narrow spans of control will have fewer managers and more subordinates per manager, whereas an organization with wide spans of control will have more managers and fewer subordinates per manager.

Question 71

Mechanistic designs are tight structures with a horizontal form.

Question 72

Organic designs are laissez-faire systems in which a lot of work gets done through informal structures and networks of interpersonal contacts.

Question 73

Decentralized authority, fewer rules and procedures, and personal means of coordination are characteristics of organic designs.

Question 74

Narrow spans of control create an organization that is more efficient and flexible, whereas wider spans of control usually result in additional management overhead costs.

Question 75

The mechanistic design is characterized by decentralization, wider spans of control, and few rules and procedures.

Question 76

Effective delegation leads to empowerment of workers and can increase employees' job satisfaction and work performance.

Question 77

A clear-cut division of labour, a strict hierarchy of authority, formal rules and procedures, and promotion based on competency are features that characterize bureaucracy.

Question 78

Span of control refers to the number of subordinates reporting directly to a manager.

Question 79

As organizations grow, they get taller as more levels are added to the chain of command.

Question 80

In a mechanistic organization, an employee works in an orderly and disciplined environment, adheres to many rules and procedures, and is closely supervised.