Case Activity: Chapter 07: Designing Organization Structure

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When Ryan Smith started Modern-Shed, he considered the idea of having an organization with "an accounting position, an organizing position, and a person who answers the phone." But he rejected that ___ structure because: A. He wanted a company where decision making would be more centralized B. His sales fluctuated, and he wasn't certain he could keep all of those people employed C. He wanted his company to have a taller organizational structure D. He didn't like the idea of people doing multiple jobs

functional B. His sales fluctuated, and he wasn't certain he could keep all of those people employed

Scott, the sales and marketing manager, says that Modern-Shed is insulated from what's going on in the general marketplace. Part of the reason for this is Modern-Shed's structure. By using a ___ structure, Modern-Shed is able to: A. Bring positions in-house so work can be more closely monitored and controlled B. Easily expand and contract the company without assuming increased financial risk C. Manufacture standardized products that can be sold at lower prices D. Create dual lines of authority throughout the organization that respond to marketplace changes

virtual network B. Easily expand and contract the company without assuming increased financial risk

Modern-Shed has 12 to 14 knowledge workers who perform the company's core activities from its Seattle office. Modern-Shed outsources other activities to external companies, which to do fabrication, help organize trade shows, and perform marketing duties. Modern-Shed has a ____ structure that allows it to: A. Coordinate work projects across functions and products B. Maintain the flexibility it needs to meet customer demands C. Maintain high levels of control over the way its products are sold and fabricated D. Create a maximally efficient organization through work specialization

virtual network B. Maintain the flexibility it needs to meet customer demands

What are the disadvantages of Modern-Shed's current organizational structure? Check all that apply. A. After three years, subcontractors will automatically become part of the Modern-Shed organization. B. The employees who are putting up the structures may not feel a sense of loyalty to Modern-Shed. C. Ryan may find it difficult to maintain control over how his sheds are sold and installed. D. External companies have access to proprietary information about Modern-Shed products.

A. After three years, subcontractors will automatically become part of the Modern-Shed organization. B. The employees who are putting up the structures may not feel a sense of loyalty to Modern-Shed. C. Ryan may find it difficult to maintain control over how his sheds are sold and installed. D. External companies have access to proprietary information about Modern-Shed products.

Under what conditions would it make sense for Modern-Shed to have the kind of structure that has "an accounting position, an organizing position, and a person who answers the phone"? Check all that apply. A. If the company decided to bring staff functions in-house B. If the company decided to improve coordination across all of the organizations involved in getting its products to consumers C. If the company decided to focus on a niche market D. If the company decided to sell standardized products at the lowest possible cost

A. If the company decided to bring staff functions in-house B. If the company decided to improve coordination across all of the organizations involved in getting its products to consumers D. If the company decided to sell standardized products at the lowest possible cost

Under what conditions is the current organizational structure of Modern-Shed most likely to be effective? Check all that apply. A. In times of crisis, when everyone needs to follow a single leader B. When following a differentiation strategy for the business C. When following a low-cost leadership strategy for the business D. When the economic environment is turbulent and uncertain

A. In times of crisis, when everyone needs to follow a single leader B. When following a differentiation strategy for the business D. When the economic environment is turbulent and uncertain