Org. Theory and Design: Chapter 5 (MC)

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What does the contingency approach to organizational design emphasize?

Personal competence and expertise

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

To respond to various contingencies in the external environment

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

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

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

Difficulty in coordinating and motivating employees effectively

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

Personal competence, expertise, and freedom to act innovatively

What is empowerment in the context of the text?

The process of giving employees authority to make decisions and be responsible for outcomes

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

To lead themselves and ensure the team accomplishes its goals

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

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

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

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

What is the primary advantage of a bureaucracy?

Efficient control over interactions between organizational levels

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

Technical competence

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

A person's position in an organization

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

Organizational role

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

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

Veritcal authority relationships

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

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

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)

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

Altering the formal structure

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

Management by objectives (MBO)

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

Effect of formal structure on informal organization

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

To motivate employees and promote effective behaviors

What defines a tall organization?

An organization with many levels relative to its size

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

The principle of minimum chain of command

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

The flatter the better

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

By increasing horizontal differentiation

What does horizontal differentiation lead to within an organization?

Increased vertical differentiation

What does decentralization enable in a relatively tall structure?

More flexibility in responding to changes in the external environment

How do managers gain control over employees in an organization?

By standardizing employees' behavior to make their actions predictable

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

Interrelatedness of subordinates' tasks

What is the purpose of standardization in an organization?

To substitute for direct supervision

Test your knowledge of the principles of bureaucracy and bureaucratic structure, as developed by Max Weber. Explore the foundational concepts of rational-legal authority, hierarchy design, and decision-making control.

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