Globalization and Manufacturing
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Questions and Answers

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?

  • 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?

  • 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?

    <p>Division of labor</p> Signup and view all the answers

    Which theory focuses on the emotional and psychological components of peoples' behavior in an organization?

    <p>Neo-classical theory</p> Signup and view all the answers

    Which theory considers interactions between people within an organization and the surrounding environment?

    <p>Modern theory</p> Signup and view all the answers

    According to the contingency theory, who makes the most valuable or impactful choices in an organization?

    <p>Employees working at higher levels</p> Signup and view all the answers

    Which structure allows employees to be in-depth specialists as they are more likely to have niche positions?

    <p>Hierarchical Structure</p> Signup and view all the answers

    Which structure may result in confusion regarding roles, responsibilities, and priorities?

    <p>Matrix Structure</p> Signup and view all the answers

    Which structure fosters better communication and collaboration between team members?

    <p>Horizontal/Flat Structure</p> Signup and view all the answers

    Which structure relies on open communication and reliable partners, both internal and external?

    <p>Network Structure</p> Signup and view all the answers

    Which factor can impact the stability and security of an organization?

    <p>Legal consideration</p> Signup and view all the answers

    Which organizational structure type groups employees based on the function they provide?

    <p>Hierarchical Structure</p> Signup and view all the answers

    Which type of organizational structure is the most popular?

    <p>Hierarchical Structure</p> Signup and view all the answers

    What does open systems theory argue about an organization's environment?

    <p>It influences the organization's leadership strategies</p> Signup and view all the answers

    Which type of organizational structure has a narrow span of control?

    <p>Tall structure</p> Signup and view all the answers

    What is a trade-off of specialization?

    <p>Agility of workforce</p> Signup and view all the answers

    What determines the formal reporting lines in an organization?

    <p>Hierarchy of authority</p> Signup and view all the answers

    Which type of organizational structure has no managers?

    <p>Flat structure</p> Signup and view all the answers

    Which of the following is NOT one of the four key elements of an organization's structure according to Edgar Schein?

    <p>Hierarchy of authority</p> Signup and view all the answers

    What is the benefit of specialization in the workplace?

    <p>It increases efficiency</p> Signup and view all the answers

    What is a potential disadvantage of team-based organizations in a globalized industry?

    <p>Personality conflicts</p> Signup and view all the answers

    What is the role of managers in communicating an organization's common purpose?

    <p>To communicate the organization's direction</p> Signup and view all the answers

    Which one of the following is a disadvantage of the divisional organizational structure?

    <p>It can lead to operational inefficiencies from separating specialized functions</p> Signup and view all the answers

    Which one of the following is a characteristic of the line organizational structure?

    <p>It is the simplest method of administration and is easy to understand and manage</p> Signup and view all the answers

    Which one of the following is a disadvantage of the team-based organizational structure?

    <p>It can create a culture of favoritism based on relationships or friendship</p> Signup and view all the answers

    Which one of the following is an advantage of the network organizational structure?

    <p>It promotes healthy competition, innovation, and collaboration</p> Signup and view all the answers

    Which of the following is NOT a primary aspect addressed by classical theory in organizational theory?

    <p>Importance of employee motivation</p> Signup and view all the answers

    What do economists, business analysts, and academic researchers studying organizational theory aim to understand?

    <p>All of the above</p> Signup and view all the answers

    Which of the following is a characteristic of the line organizational structure?

    <p>Narrow span of control</p> Signup and view all the answers

    Which type of organizational structure groups employees based on their geographic location?

    <p>Hierarchical Structure</p> Signup and view all the answers

    Which factor can have a great impact on a business's ability to grow and remain successful?

    <p>Economic conditions</p> Signup and view all the answers

    Which organizational structure type is characterized by employees having one clear supervisor?

    <p>Hierarchical Structure</p> Signup and view all the answers

    Which type of organizational structure is the most popular?

    <p>Hierarchical Structure</p> Signup and view all the answers

    Which type of organizational structure allows employees to use their skills in different roles?

    <p>Matrix Structure</p> Signup and view all the answers

    Which type of organizational structure is characterized by a clear line of authority and reporting within the organization?

    <p>Line Structure</p> Signup and view all the answers

    Which type of organizational structure is most suitable for small companies and start-ups?

    <p>Horizontal/Flat Structure</p> Signup and view all the answers

    Which type of organizational structure is viewed as agiler and more decentralized than other structures?

    <p>Network Structure</p> Signup and view all the answers

    Which type of organizational structure allows for independent operational flow and minimizes the risk of one company's failure affecting the others?

    <p>Divisional organizational structure</p> Signup and view all the answers

    What is a disadvantage of the network organizational structure?

    <p>Breaching of confidential information</p> Signup and view all the answers

    Which organizational structure type is characterized by a unified structure and effective communication?

    <p>Line organizational structure</p> Signup and view all the answers

    What is an advantage of the team-based organizational structure?

    <p>Reinforcement of problem-solving and teamwork</p> Signup and view all the answers

    Which principle of the classical theory argues that the production of a commodity splits into various divisions of manufacturing?

    <p>Division of labor</p> Signup and view all the answers

    Which theory focuses on the emotional and psychological components of peoples' behavior in an organization?

    <p>Neo-classical theory</p> Signup and view all the answers

    Which type of organizational structure allows employees to be in-depth specialists as they are more likely to have niche positions?

    <p>Functional organizational structure</p> Signup and view all the answers

    According to the contingency theory, who makes the most valuable or impactful choices in an organization?

    <p>Employees working at higher levels</p> Signup and view all the answers

    Which of the following is NOT one of the four key elements of an organization's structure according to Edgar Schein?

    <p>Hierarchy of authority</p> Signup and view all the answers

    Which of the following is an advantage of globalization in the manufacturing industry?

    <p>Improved communication between employees</p> Signup and view all the answers

    What is a potential disadvantage of specialization in the workplace?

    <p>Difficulty finding and training people for specific tasks</p> Signup and view all the answers

    Which of the following is a common characteristic of team-based organizations in a fast-changing industry environment?

    <p>Flexibility in adapting to a fast-changing environment</p> Signup and view all the answers

    Which type of organizational structure has a narrow span of control?

    <p>Tall structure</p> Signup and view all the answers

    Which one of the following is a disadvantage of the team-based organizational structure?

    <p>Less opportunity for job improvements</p> Signup and view all the answers

    What determines the formal reporting lines in an organization?

    <p>Hierarchy of authority</p> Signup and view all the answers

    What is a potential disadvantage of specialization in the workplace?

    <p>Reduced employee job satisfaction</p> Signup and view all the answers

    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.

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