Org. Theory and Design: Chapter 4 (True/False)

In a highly centralized authority structure, important decisions are made by managers at all levels in the hierarchy.

Decentralization promotes flexibility and responsiveness by allowing lower-level managers to make on-the-spot decisions.

Formalization implies decentralization of authority within an organization.

Organic structures are designed to induce people to behave in predictable, accountable ways.

The contingency approach to organizational design tailors the structure of an organization to the sources of uncertainty it faces.

In an organic structure, norms and values emphasize personal competence, expertise, and the freedom to act in innovative ways.

Keiretsu can be seen as a mechanism for achieving the benefits of a formal linkage mechanism without incurring its costs. (True/False)

Franchising is the process of moving a value creation activity that was performed inside an organization to outside where it is done by another company. (True/False)

Outsourcing refers to a business authorized to sell a company’s products in a certain area. (True/False)

Differentiation is the process by which an organization allocates people and resources to organizational tasks and establishes the task and authority relationships that allow the organization to achieve its goals. (True/False)

Vertical differentiation refers to the way an organization groups organizational tasks into roles and roles into subunits (functions and divisions). (True/False)

Horizontal differentiation refers to the way an organization designs its hierarchy of authority and creates reporting relationships to link organizational roles and subunits. (True/False)

Integrating role is a full-time position established specifically to improve communication between divisions. (True/False)

An integrating department is a temporary committee set up to handle a specific problem. (True/False)

Managers facing the challenge of deciding how and how much to differentiate and integrate must only carefully guide the process of differentiation to build the core competences. (True/False)

Support functions facilitate an organization’s control of its relations with its environment and its stakeholders. (True/False)