Ch. 7 BA3305

network organization

A collection of independent, mostly single-function firms that collaborate on a good or service.

mechanistic organization

A form of organization that seeks to maximize internal efficiency.

strategic alliance

A formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals.

broker

A person who assembles and coordinates participants in a network.

specialization

A process in which different individuals and units perform different tasks.

continuous process

A process that is highly automated and has a continuous production flow.

ISO 9001

A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of producers and consumers.

unity-of-command principle

A structure in which each worker reports to one boss, who in turn reports to one boss.

just-in-time (JIT)

A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed.

coordination by plan

Interdependent units are required to meet deadlines and objectives that contribute to a common goal.

In the context of the vertical structure of a firm, which of the following is true of delegation?

It entails getting work done through others.

In the context of the horizontal structure of a firm, which of the following is true of line departments?

They make things, sell things, or provide customer service.

Which of the following is a disadvantage of a matrix organization?

Too much democracy can lead to not enough action.

coordination by mutual adjustment

Units interact with one another to make accommodations in order to achieve flexible coordination.

line departments

Units that deal directly with the organization's primary goods and services.

staff departments

Units that support line departments. standardization Establishing common routines and procedures that apply uniformly to everyone.

In the context of organizational integration, _____ allows interdependent units to modify and adapt their actions as long as they meet the deadlines and targets required for working with others.

coordination by plan

A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process as they are needed is known as:

just-in-time.

formalization

The presence of rules and regulations governing how people in the organization interact.

coordination

The procedures that link the various parts of an organization for the purpose of achieving the organization's overall mission.

mass customization

The production of varied, individually customized products at the low cost of standardized, mass-produced products.

organization chart

The reporting structure and division of labor in an organization.

technology

The systematic application of scientific knowledge to a new product, process, or service.

differentiation

An aspect of the organization's internal environment created by job specialization and the division of labor.

total quality management (TQM)

An integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high-quality goods and services.

lean manufacturing

An operation that strives to achieve the highest possible productivity and total quality, cost- effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.

matrix organization

An organization composed of dual reporting relationships in which some managers report to two superiors—a functional manager and a divisional manager.

centralized organization

An organization in which high- level executives make most decisions and pass them down to lower levels for implementation.

decentralized organization

An organization in which lower-level managers make important decisions.

high-involvement organization

An organization in which top management ensures that there is consensus about the direction in which the business is heading.

learning organization

An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.

organic structure

An organizational form that emphasizes flexibility.

functional organization

Departmentalization around specialized activities such as production, marketing, and human resources.

divisional organization

Departmentalization that groups units around products, customers, or geographic regions.

_____ found that organizations in a complex, dynamic environment developed a high degree of differentiation to cope with the challenges.

Lawrence and Lorsch

Which of the following is true of a network organization?

Managers within the organization interact closely with members outside it.

Which of the following is a characteristic of a mechanistic organization?

Obedience to authority as an expression of commitment

Which of the following is one of the strategies that managers can use to cope with high uncertainty and heavy information demands in today's environments?

Reduce the need for information.

departmentalization

Subdividing an organization into smaller subunits.

In which of the following conditions should the optimal span of control be wide?

Subordinates prefer autonomy to close supervisory control.

large batch

Technologies that produce goods and services in high volume.

small batch

Technologies that produce goods and services in low volume.

modular network

Temporary arrangements among partners that can be assembled and reassembled to adapt to the environment; also called virtual network.

responsibility

The assignment of a task that an employee is supposed to carry out.

division of labor

The assignment of different tasks to different people or groups.

delegation

The assignment of new or additional responsibilities to a subordinate.

integration

The degree to which differentiated work units work together and coordinate their efforts.

Which of the following is a disadvantage of the product approach to departmentalization?

The duplication of effort is expensive.

accountability

The expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance.

authority

The legitimate right to make decisions and to tell other people what to do.

span of control

The number of subordinates who report directly to an executive or supervisor.

In a(n) _____ organization, managers encourage employees to work more as teammates than as subordinates who take orders from the boss.

organic

Alonzo is an entrepreneur who specializes in processing techniques for high-end photography enthusiasts. In his organization, there are few rules and formal procedures, and the staff tends to make their own decisions. Alonzo's operation is best described as a:

small batch organization.

In the context of the horizontal structure of a firm, research, legal, accounting, and human resources departments are examples of _____ departments.

staff