Org. Theory and Design: Chapter 5 (MC)

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What does the contingency approach to organizational design emphasize?

Strict control over employee behavior

Adherence to rigid structures and rules

Personal competence and expertise (correct)

Excessive bureaucracy and hierarchy

According to the contingency theory, how should an organization design its internal structure?

To respond to various contingencies in the external environment (correct)

To establish a rigid and inflexible structure

To eliminate all sources of uncertainty

To centralize decision-making power

What do Paul Lawrence and Jay Lorsch believe has a direct effect on the extent of differentiation inside an organization?

Strength of forces in the general and specific environments (correct)

Length of time the organization has been established

Corporate social responsibility initiatives

Number of employees in the organization

What does an organization do to improve its ability to control and motivate employees, according to the text?

Increases the number of managers and levels in the managerial hierarchy Signup and view all the answers

What does the emergence of an organization's hierarchy indicate?

Difficulty in coordinating and motivating employees effectively Signup and view all the answers

What is emphasized in an organic structure according to the text?

Personal competence, expertise, and freedom to act innovatively Signup and view all the answers

What is empowerment in the context of the text?

The process of giving employees authority to make decisions and be responsible for outcomes Signup and view all the answers

What is the role of self-managed teams as described in the text?

To lead themselves and ensure the team accomplishes its goals Signup and view all the answers

What is the primary advantage of employing contingent workers according to the text?

They cost less to employ and can be let go easily when their services are no longer needed Signup and view all the answers

What is the impact of increasing use of IT on organizational authority and team usage?

It leads to decentralization of authority and increased use of teams Signup and view all the answers

What is a significant disadvantage of employing contingent workers according to the text?

Coordination and motivation problems may arise due to lack of incentives for high performance Signup and view all the answers

What characterizes cross-functional teams as described in the text?

Formal work groups of employees from different functions empowered to direct and coordinate value-creation activities Signup and view all the answers

What is the primary advantage of a bureaucracy?

Efficient control over interactions between organizational levels Signup and view all the answers

According to Max Weber's principles for designing a hierarchy, what should be the basis for holding organizational roles?

Technical competence Signup and view all the answers

What is the concept of rational-legal authority based on?

A person's position in an organization Signup and view all the answers

What do the first two principles of bureaucracy establish as the basic component of bureaucratic structure?

Organizational role Signup and view all the answers

According to the text, what is the foundation for organizational effectiveness in terms of role responsibility and decision-making authority?

A clear and consistent pattern of vertical and horizontal differentiation Signup and view all the answers

What does a bureaucracy's hierarchical organization aim to control?

Veritcal authority relationships Signup and view all the answers

What is one of the advantages of having rules, standard operating procedures, and norms in an organization?

Clarifying people's expectations about one another and preventing misunderstandings Signup and view all the answers

What does it mean when administrative acts, decisions, and rules are formulated and put in writing?

They become official guides to the way the organization works Signup and view all the answers

What system allows managers to monitor progress toward achieving goals by evaluating subordinates on their ability to achieve specific organizational goals or performance standards?

Management by objectives (MBO) Signup and view all the answers

What may disrupt informal norms that make an organization work when altering the formal structure?

Altering the formal structure Signup and view all the answers

What do many organizations implement to evaluate subordinates' behavior and allow managers to monitor progress toward achieving goals?

Management by objectives (MBO) Signup and view all the answers

What do managers need to consider when making any organizational changes, according to the text?

Effect of formal structure on informal organization Signup and view all the answers

What is the purpose of increasing personal supervision in an organization?

To motivate employees and promote effective behaviors Signup and view all the answers

What defines a tall organization?

An organization with many levels relative to its size Signup and view all the answers

According to Parkinson, what controls the growth in the number of managers and hierarchical levels?

The principle of minimum chain of command Signup and view all the answers

What is the ideal number of hierarchical levels according to the principle of minimum chain of command?

The flatter the better Signup and view all the answers

How can an organization maintain effective control of its workforce without becoming too tall?

By increasing horizontal differentiation Signup and view all the answers

What does horizontal differentiation lead to within an organization?

Increased vertical differentiation Signup and view all the answers

What does decentralization enable in a relatively tall structure?

More flexibility in responding to changes in the external environment Signup and view all the answers

How do managers gain control over employees in an organization?

By standardizing employees' behavior to make their actions predictable Signup and view all the answers

What is the main challenge for a manager with a narrow span of control?

Interrelatedness of subordinates' tasks Signup and view all the answers

What is the purpose of standardization in an organization?

To substitute for direct supervision Signup and view all the answers