Chapter 7 Organizational Design MGR 220
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Questions and Answers

What is the primary focus of organizational structure?

  • Managing external relationships
  • Developing marketing strategies
  • Coordinating and motivating organizational members (correct)
  • Monitoring financial performance

    • What is the purpose of an organization chart?

  • Track customer satisfaction levels
  • Analyze market trends
  • Evaluate employee performance
  • Reflect the working relationships among employees (correct)

    • What does organizational structure primarily address?

  • Customer demographics
  • Employee personal preferences
  • External market competition
  • Task and reporting relationships (correct)

    • Which structure involves placing distinct product lines in self-contained divisions with divisional managers responsible for business-level strategy?

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

    Which job characteristic is not outlined in the Job Characteristics Model by Hackman and Oldham?

    <p>Authority</p> Signup and view all the answers

    Which organizational decision typically follows task allocation?

    <p>Grouping jobs into functions and divisions</p> Signup and view all the answers

    What is the main difference between a matrix structure and a product team structure?

    <p>Matrix structure involves dual reporting relationships, while product team structure has employees permanently assigned to a cross-functional team.</p> Signup and view all the answers

    What is the purpose of a cross-functional team in a product team structure?

    <p>To perform organizational tasks with managers from different departments.</p> Signup and view all the answers

    What is the impact of nonroutine technologies on organizational structure?

    <p>They favor flexible structures due to high task variety and low task analyzability</p> Signup and view all the answers

    What does the term 'span of control' refer to in an organizational context?

    <p>The number of subordinates that report directly to a manager.</p> Signup and view all the answers

    What is the impact of job enrichment on employee involvement and productivity?

    <p>It increases employee involvement and productivity</p> Signup and view all the answers

    How does a strategic alliance differ from a B2B network structure?

    <p>A strategic alliance involves sharing resources with a foreign company, while a B2B network links organizations to global suppliers using IT.</p> Signup and view all the answers

    How does the organizational environment's uncertainty and rate of change influence organizational structure?

    <p>It drives the need for more flexible structures and entrepreneurial cultures</p> Signup and view all the answers

    What is the purpose of a boundaryless organization?

    <p>To link members using technology and reduce face-to-face interactions.</p> Signup and view all the answers

    What is the role of a staff manager in an organization?

    <p>To manage a specialist function, such as finance or marketing.</p> Signup and view all the answers

    What is the top-down change approach?

    <p>A fast, revolutionary approach to change in which top managers identify what needs to be changed, decide what to do, and then move quickly to implement changes throughout the organization</p> Signup and view all the answers

    What is the role of functional managers in goal setting?

    <p>Functional managers set goals for each individual worker that allows the function to achieve its goals</p> Signup and view all the answers

    What is the primary focus of entrepreneurs?

    <p>Mobilization of resources to take advantage of an opportunity to provide customers with new or improved goods and services</p> Signup and view all the answers

    What is the impact of nonroutine technologies on organizational structure?

    <p>Nonroutine technologies often lead to flatter organizational structures with decentralized decision-making</p> Signup and view all the answers

    What is the purpose of an organization chart?

    <p>To illustrate the structure of the organization, including hierarchy and relationships between positions</p> Signup and view all the answers

    How does a boundaryless organization differ from a traditional organization?

    <p>A boundaryless organization seeks to eliminate the chain of command and have fluid, interconnected teams, while traditional organizations have rigid hierarchies</p> Signup and view all the answers

    What is the impact of job enrichment on employee involvement and productivity?

    <p>Job enrichment increases employee involvement and productivity by adding tasks that require more skill and responsibility</p> Signup and view all the answers

    What is the primary purpose of benchmarking in organizational management?

    <p>To compare and improve organizational performance</p> Signup and view all the answers

    What is the primary function of feedforward control in management?

    <p>To anticipate problems before they arise</p> Signup and view all the answers

    In the context of management control systems, what does clan control rely on to influence individuals and groups?

    <p>Shared values, norms, and standards of behavior</p> Signup and view all the answers

    What is the primary purpose of the balanced scorecard as a management control system?

    <p>Assess overall organizational performance using multiple perspectives</p> Signup and view all the answers

    Which measure assesses an organization's ability to pay off short-term creditors without selling inventory?

    <p>Quick ratio</p> Signup and view all the answers

    What is the primary characteristic of bureaucratic control in management?

    <p>Comprehensive systems of rules and standard operating procedures</p> Signup and view all the answers

    How does organizational learning contribute to organizational change?

    <p>By increasing members' abilities to understand and respond to changing conditions</p> Signup and view all the answers

    What does the operating budget primarily serve as in organizational management?

    <p>The blueprint for allocating and using resources to achieve organizational goals</p> Signup and view all the answers

    Study Notes

    Organizational Design: Key Factors and Considerations

    • Organizational design is the process through which managers make specific organizing choices resulting in a particular organizational structure.
    • Contingency theory suggests that managers design organizational structures to fit the factors or circumstances affecting the company and causing the most uncertainty.
    • Four important determinants of organizational structure or culture include the organizational environment, strategy, technology, and human resources.
    • The organizational environment's uncertainty and rate of change drive the need for more flexible structures and entrepreneurial cultures.
    • Different strategies call for different organizational structures and cultures, such as differentiation and low-cost strategies.
    • Technology complexity determines the need for a flexible or formal structure, with routine technology favoring formal structures.
    • Nonroutine technologies are characterized by high task variety and low task analyzability, while routine technologies have low task variety and high task analyzability.
    • A highly skilled workforce and the use of teams favor flexible, decentralized structures and professional cultures.
    • Job design involves job simplification, enlargement, and enrichment, impacting division of labor, efficiency, and motivation.
    • Enlarging jobs reduces boredom and increases motivation, while enriching jobs increases employee involvement and productivity.
    • By enriching employees' jobs, managers expect increased employee involvement and productivity.
    • Job enrichment allows employees to experiment, develop new skills, and monitor their own performance.

    Management Control Systems and Organizational Change

    • Benchmarking is the process of monitoring and regulating organizational performance to achieve goals.
    • Operating budgets are the blueprint for allocating and using resources to achieve organizational goals.
    • Control systems provide formal target setting, monitoring, evaluation, and feedback for organizational strategy and structure.
    • Clan control is exerted on individuals and groups in an organization by shared values, norms, and standards of behavior.
    • Organizational learning helps increase organizational members' abilities to understand and respond to changing conditions.
    • Feedforward control allows managers to anticipate problems before they arise.
    • Inert culture leads to values and norms that fail to motivate or inspire employees.
    • Management control systems include measures such as return on investment, output control, and inventory turnover.
    • The balanced scorecard is a management control system that assesses overall organizational performance using financial, customer service, and internal business processes.
    • Quick ratio measures the ability to pay off short-term creditors without selling inventory.
    • Bureaucratic control involves comprehensive systems of rules and standard operating procedures.
    • Cyber Tech Career College is a post-secondary training institution established in March 1999.

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    Description

    Test your knowledge of organizational design with this quiz covering key factors and considerations. Explore how organizational structures are influenced by the environment, strategy, technology, and human resources, and learn about the impact of job design on efficiency and motivation.

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