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Questions and Answers
Which of the following best describes organizational theory?
Which of the following best describes organizational theory?
- The study of productivity and performance of organizations
- The study of the actions of employees and groups within organizations
- The study of social organizations and their structures and operations (correct)
- The study of professional and social relationships within organizations
What do economists, business analysts, and academic researchers studying organizational theory aim to understand?
What do economists, business analysts, and academic researchers studying organizational theory aim to understand?
- The importance of social relationships among employees
- The importance of structures between business leaders and their staff
- The dynamics of a successful business (correct)
- The importance of professional relationships among employees
Which of the following is a primary aspect addressed by classical theory in organizational theory?
Which of the following is a primary aspect addressed by classical theory in organizational theory?
- Formal organizational structure (correct)
- Informal organizational structure
- Professional dynamics and relationships
- Productivity and performance
Which principle of the classical theory argues that the production of a commodity splits into various divisions of manufacturing?
Which principle of the classical theory argues that the production of a commodity splits into various divisions of manufacturing?
Which theory focuses on the emotional and psychological components of peoples' behavior in an organization?
Which theory focuses on the emotional and psychological components of peoples' behavior in an organization?
Which theory considers interactions between people within an organization and the surrounding environment?
Which theory considers interactions between people within an organization and the surrounding environment?
According to the contingency theory, who makes the most valuable or impactful choices in an organization?
According to the contingency theory, who makes the most valuable or impactful choices in an organization?
Which structure allows employees to be in-depth specialists as they are more likely to have niche positions?
Which structure allows employees to be in-depth specialists as they are more likely to have niche positions?
Which structure may result in confusion regarding roles, responsibilities, and priorities?
Which structure may result in confusion regarding roles, responsibilities, and priorities?
Which structure fosters better communication and collaboration between team members?
Which structure fosters better communication and collaboration between team members?
Which structure relies on open communication and reliable partners, both internal and external?
Which structure relies on open communication and reliable partners, both internal and external?
Which factor can impact the stability and security of an organization?
Which factor can impact the stability and security of an organization?
Which organizational structure type groups employees based on the function they provide?
Which organizational structure type groups employees based on the function they provide?
Which type of organizational structure is the most popular?
Which type of organizational structure is the most popular?
What does open systems theory argue about an organization's environment?
What does open systems theory argue about an organization's environment?
Which type of organizational structure has a narrow span of control?
Which type of organizational structure has a narrow span of control?
What is a trade-off of specialization?
What is a trade-off of specialization?
What determines the formal reporting lines in an organization?
What determines the formal reporting lines in an organization?
Which type of organizational structure has no managers?
Which type of organizational structure has no managers?
Which of the following is NOT one of the four key elements of an organization's structure according to Edgar Schein?
Which of the following is NOT one of the four key elements of an organization's structure according to Edgar Schein?
What is the benefit of specialization in the workplace?
What is the benefit of specialization in the workplace?
What is a potential disadvantage of team-based organizations in a globalized industry?
What is a potential disadvantage of team-based organizations in a globalized industry?
What is the role of managers in communicating an organization's common purpose?
What is the role of managers in communicating an organization's common purpose?
Which one of the following is a disadvantage of the divisional organizational structure?
Which one of the following is a disadvantage of the divisional organizational structure?
Which one of the following is a characteristic of the line organizational structure?
Which one of the following is a characteristic of the line organizational structure?
Which one of the following is a disadvantage of the team-based organizational structure?
Which one of the following is a disadvantage of the team-based organizational structure?
Which one of the following is an advantage of the network organizational structure?
Which one of the following is an advantage of the network organizational structure?
Which of the following is NOT a primary aspect addressed by classical theory in organizational theory?
Which of the following is NOT a primary aspect addressed by classical theory in organizational theory?
What do economists, business analysts, and academic researchers studying organizational theory aim to understand?
What do economists, business analysts, and academic researchers studying organizational theory aim to understand?
Which of the following is a characteristic of the line organizational structure?
Which of the following is a characteristic of the line organizational structure?
Which type of organizational structure groups employees based on their geographic location?
Which type of organizational structure groups employees based on their geographic location?
Which factor can have a great impact on a business's ability to grow and remain successful?
Which factor can have a great impact on a business's ability to grow and remain successful?
Which organizational structure type is characterized by employees having one clear supervisor?
Which organizational structure type is characterized by employees having one clear supervisor?
Which type of organizational structure is the most popular?
Which type of organizational structure is the most popular?
Which type of organizational structure allows employees to use their skills in different roles?
Which type of organizational structure allows employees to use their skills in different roles?
Which type of organizational structure is characterized by a clear line of authority and reporting within the organization?
Which type of organizational structure is characterized by a clear line of authority and reporting within the organization?
Which type of organizational structure is most suitable for small companies and start-ups?
Which type of organizational structure is most suitable for small companies and start-ups?
Which type of organizational structure is viewed as agiler and more decentralized than other structures?
Which type of organizational structure is viewed as agiler and more decentralized than other structures?
Which type of organizational structure allows for independent operational flow and minimizes the risk of one company's failure affecting the others?
Which type of organizational structure allows for independent operational flow and minimizes the risk of one company's failure affecting the others?
What is a disadvantage of the network organizational structure?
What is a disadvantage of the network organizational structure?
Which organizational structure type is characterized by a unified structure and effective communication?
Which organizational structure type is characterized by a unified structure and effective communication?
What is an advantage of the team-based organizational structure?
What is an advantage of the team-based organizational structure?
Which principle of the classical theory argues that the production of a commodity splits into various divisions of manufacturing?
Which principle of the classical theory argues that the production of a commodity splits into various divisions of manufacturing?
Which theory focuses on the emotional and psychological components of peoples' behavior in an organization?
Which theory focuses on the emotional and psychological components of peoples' behavior in an organization?
Which type of organizational structure allows employees to be in-depth specialists as they are more likely to have niche positions?
Which type of organizational structure allows employees to be in-depth specialists as they are more likely to have niche positions?
According to the contingency theory, who makes the most valuable or impactful choices in an organization?
According to the contingency theory, who makes the most valuable or impactful choices in an organization?
Which of the following is NOT one of the four key elements of an organization's structure according to Edgar Schein?
Which of the following is NOT one of the four key elements of an organization's structure according to Edgar Schein?
Which of the following is an advantage of globalization in the manufacturing industry?
Which of the following is an advantage of globalization in the manufacturing industry?
What is a potential disadvantage of specialization in the workplace?
What is a potential disadvantage of specialization in the workplace?
Which of the following is a common characteristic of team-based organizations in a fast-changing industry environment?
Which of the following is a common characteristic of team-based organizations in a fast-changing industry environment?
Which type of organizational structure has a narrow span of control?
Which type of organizational structure has a narrow span of control?
Which one of the following is a disadvantage of the team-based organizational structure?
Which one of the following is a disadvantage of the team-based organizational structure?
What determines the formal reporting lines in an organization?
What determines the formal reporting lines in an organization?
What is a potential disadvantage of specialization in the workplace?
What is a potential disadvantage of specialization in the workplace?
Study Notes
Organizational Theory
- Organizational theory is a field of study that examines how organizations function and how they can be improved.
Goals of Organizational Theory
- Economists, business analysts, and academic researchers studying organizational theory aim to understand:
- How organizations work.
- How to improve organizational efficiency and effectiveness.
- How to manage and motivate employees.
- How to design effective organizational structures.
Classical Theory
- Classical theory focuses on the structure, processes, and functions of organizations.
- Division of labor is a primary aspect addressed by classical theory.
- Scientific Management argues that the production of a commodity splits into various divisions of manufacturing.
Human Relations Theory
- Human relations theory focuses on the emotional and psychological components of people's behavior in an organization.
Open Systems Theory
- Open systems theory considers interactions between people within an organization and the surrounding environment.
Contingency Theory
- Contingency theory argues that the most valuable or impactful choices in an organization are made by individuals at the top who can best assess the situation and make decisions based on the context.
Organizational Structures
- Functional structure groups employees based on the function they provide.
- Divisional structure groups employees based on product lines, services, customer segments, or geographic locations.
- Matrix structure combines functional and divisional structures.
- Team-based structure relies on self-directed teams to make decisions and complete work.
- Network structure relies on open communication and reliable partners, both internal and external.
- Line structure has a clear line of authority and reporting within the organization.
Key elements of an organization's structure according to Edgar Schein
- Common purpose: Defines the organization's mission and goals.
- Coordination of effort: Focuses on how individuals and departments work together.
- Division of labor: How work is divided and assigned to different individuals or groups.
- Hierarchy of authority: Determines the reporting lines within an organization.
Impacting Factors
- Globalization can impact the stability and security of an organization.
- Technological advancements can impact the efficiency and effectiveness of an organization.
Advantages and Disadvantages of Organizational Structures
-
Functional Structure
- Advantages: Allows for specialization, efficiency, and cost-effectiveness.
- Disadvantages: Can lead to poor communication and collaboration between departments.
-
Divisional Structure
- Advantages: Flexible and adaptable to changing market conditions, promotes innovation, and improves communication within divisions.
- Disadvantages: Can lead to duplicated efforts, increased costs, and potential conflicts between divisions.
-
Matrix Structure
- Advantages: Facilitates information sharing, promotes collaboration, and encourages innovative solutions.
- Disadvantages: Can create confusion regarding roles, responsibilities, and priorities.
-
Team-Based Structure
- Advantages: Improves communication and collaboration, fosters teamwork, and increases employee motivation.
- Disadvantages: Can lead to groupthink, conflict, and difficulty in managing team dynamics.
-
Network Structure
- Advantages: Increases flexibility, efficiency, and responsiveness, allows for rapid innovation.
- Disadvantages: Requires open communication, reliable partners, and effective coordination across multiple organizations.
-
Line Structure
- Advantages: Simple, cost effective, clear chain of command.
- Disadvantages: Can be inflexible and result in slow decision-making.
Span of Control
- Narrow span of control occurs when a manager has a small number of direct reports.
- Wide span of control occurs when a manager has a large number of direct reports.
Specialization
- Specialization enables employees to be in-depth specialists; however, it can lead to boredom, tunnel vision, and difficulty in adapting to changes in the work environment.
- Globalization allows businesses to access cheaper labor and materials outside the local market, which can increase manufacturing efficiency and lower production costs.
Team-Based Organizations in a Globalized Industry
- Team-based organizations can be particularly beneficial in fast-changing industry environments because of their ability to adapt quickly to market changes.
- However, managing teamwork across countries and cultures can be challenging and may involve communication difficulties, cultural differences, and time zone variations.
Communication and Management
- Managers play a crucial role in communicating an organization's common purpose.
- They help to create a shared vision and inspire employees to work towards the same goals.
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Description
Test your knowledge on globalization and its impact on manufacturing companies. Explore the benefits of communication and cooperation between employees and suppliers worldwide in the production of high-quality goods while keeping costs low.
