Organizational Change Chapter 3

Questions and Answers

What is one main advantage of departmentalization by product?

Increased accountability for product performance (correct)

Reduced operational costs

Easier coordination between departments

Greater employee satisfaction

In a matrix structure, which of the following is a key characteristic?

Clear hierarchical levels are maintained

Employees report to a single manager only

Project objectives are prioritized over departmental goals (correct)

Limited collaboration between departments

Which factor is NOT considered a determinant of organizational structure?

Technology used by the organization

Organizational goals

Employee age demographics (correct)

Environmental factors

Which organizational form is characterized by flexibility and decentralized decision-making?

Network organization Signup and view all the answers

In the context of organizational change, what is a system of forces and forms?

A dynamic interaction between various organizational elements Signup and view all the answers

What is a potential limitation of traditional bureaucratic structures?

Slow decision-making processes Signup and view all the answers

Perrow’s technology classification primarily aims to determine which aspect of organizations?

Appropriate designs for organizational structures Signup and view all the answers

Which characteristic is least likely to be associated with project-based organizations?

Strong emphasis on long-term strategic planning Signup and view all the answers

Study Notes

Organizational Design, Structure and Change

Emphasizes the need for effective organizational design to adapt to changing environments and achieve strategic goals.
Introduces key concepts of departmentalization, outlining methods such as departmentalization by product.

Departmentalization by Product

The BB Company example illustrates a structure organized around specific products, enhancing focus and accountability.

Matrix Structure

Depicts an organizational structure combining functional and project-based approaches.
Encourages flexibility and improved communication across departments through dual reporting relationships.

Evolution of Organizational Structures

Progression from traditional bureaucratic structures to more dynamic forms like matrix, project, and network organizations.
Highlights adaptability as a crucial factor in modern organizational success.

Types of Networks

Various common types of organizational networks are identified, emphasizing connectivity and collaboration.
Actor networks demonstrate interdependent roles and influence among various stakeholders within an organization.

Determinants of Organizational Structure

Several factors influence organizational structure including size, strategy, technology, and environment.
Understanding these determinants helps in designing effective organizational frameworks.

System of Forces and Forms

Organizational design is shaped by various forces (e.g., market pressures, technology) and forms (e.g., hierarchy, team-based).
A comprehensive understanding of these dynamics allows organizations to respond appropriately to change.

Perrow’s Technology Classification

Refers to a framework categorizing organizations based on the technology they use, impacting the complexity and nature of their structure.
Recognizes the relationship between technology, organizational design, and operational effectiveness.

Description

Explore the key concepts from Chapter 3 of Organizational Change, Sixth Edition, focusing on organizational design, structure, and change. This chapter covers how organizations adapt and reorganize to meet new challenges, emphasizing the importance of departmentalization by product.