Chapter 15: Organizational Design, Effectiveness, and Innovation

What is the cornerstone of a company's decision about the most appropriate design?

strategy

What characteristics need to be aligned for an organization to maximize performance?

strategy and structure employees' human and social capital human resource practices and policies

Which of the following is the visual representation of a company's critical objectives and the crucial relationships among them that drive organizational performance?

strategy map

An open-office plan results in which of the following?

stress due to overstimulation lack of privacy limited ability to focus due to distractions

What tips are recommended for success in the business world?

Adopt a learning or mastery goal orientation. Establish goals at work that account for the four perspectives in the balanced scorecard. Try to arrange an office environment suited to your work style.

Which of these characterize a virtual structure?

Companies using the virtual structure give the illusion that employees work together physically. Its members rely on e-mail and other forms of information technology to communicate. The concept was an outgrowth of 1990s information technology.

True or false: A visual representation of a company's critical objectives and the crucial relationships among them is known as a organizational measurement map.

False Reason: It is known as a strategy map.

True or false: Employees grouped by geographic region are in a functional structure.

False Reason: Employees in a regional grouping are in a divisional structure.

To the casual observer, the term (Blank) (Blank) means a family tree-like pattern of boxes and lines posted on workplace walls.

Field 1: organization or organizational Field 2: chart or charts

The general idea behind (Blank) (Blank) is that firms are more successful and effective when their structure supports the execution of corporate strategies.

Field 1: organizational Field 2: design

What are among the most important lessons for managers?

Help your organization learn. Foster innovation. Discuss office design with your team.

Which statements are true about a horizontal structure?

It tends to focus on work processes. Teams are created to work on common projects. Each process consists of every task and responsibility needed to meet the customer's needs.

Organizations with rigid bureaucracies, strict rules, narrowly defined tasks and top-down communication are called

Mechanistic organizations

(Blank) firms are more likely to open boundaries between organizations or use a horizontal design.

Organic

Which of these statements describe an organization's strategy?

Organizational design must be developed in tandem with establishing strategy. It is the cornerstone of the organization's decision about the most appropriate design. Setting a corporate strategy requires an organization to decide how it will compete.

Which of these statements are true and will help you enact positive change in your business and personal life?

Social and human capital are important to innovation. In terms of organizational design, person-organization fit is important. It is important to learn from any failures.

Select the four basic dimensions of organizational structure.

Spans of control Division of labor Hierarchy of authority Line and staff positions

What is the technology called that tracks current sales data, issues with quality, employee turnover, as well as other forms of aggregated real-time corporate data?

a dashboard

What are the three characteristics that all organizations share?

a structure that serves as a fingerprint the idea that innovation is crucial to remain in business the goal of being effective

What is needed across internal characteristics for organizations to achieve higher performance?

alignment

Select resources needed to support innovation.

appropriate resources necessary human capital right culture and climate required structure and process

What should you use as a framework for setting goals for your team?

balanced scorecard

What translates a company's strategy and vision into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system?

balanced scorecard

Through innovation, an organization makes money by doing what?

connecting to the customer

Organizations that are structured to fit the demands of the situation are said to follow the (Blank) approach to organization design.

contingency

Organizations that are structured to fit the demands of the situation are said to follow the ________ approach to organization design.

contingency

Managers who take into account strategy and goals, market uncertainty, decision-making processes, size, and technology are considering ______ about organization design.

contingency factors

When employees are segregated into organization groups based on similar products or services, customers or clients or geographic regions the firm is said to have a (Blank) structure.

divisional

A balanced scorecard examines an organization from which perspectives?

financial learning and growth customer

What individual characteristics are positively associated with innovation?

foreign work creativity intrinsic motivation

An organization that groups all of its marketers in one department, its finance people in another, and product designers in another is which type of organizational structure?

functional

The structure that groups people according to the business functions they perform is called

functional structure

Mechanistic organizations typically have a (Blank) culture and organizational design.

hierarchical

In a (Blank) structure, teams or work groups, either temporary or permanent, are created to improve collaboration and work on common projects.

horizontal

Developing employee characteristics, such as creativity or intrinsic motivation, to drive innovation is an example of utilizing

human capital.

A focus on existing customers and optimizing existing product/services for them specifically is called

improvement innovation

A focus on existing customers and optimizing existing product/services for them specifically is called:

improvement innovation

Organizations learn by using which independent subprocesses?

information acquisition knowledge integration information distribution

If a company spends time and money encouraging its employees to find better ways to do their jobs, what is the organization promoting?

innovation

The creation of something new that makes money is called an

innovation

What is a key driver of long-term organizational performance?

innovation

What type of system acts as a coherent set of interdependent processes and structures that dictates how the company searches for novel problems and solutions?

innovation

When you fit with your organization, what results are likely?

job satisfaction enhanced performance engagement

A(n) (Blank) organization is one that proactively creates, acquires and transfers knowledge and that changes its behavior on the basis of new knowledge and insights.

learning

The structure that combines a vertical structure with an equally strong horizontal overlay is a called a(n)

matrix structure.

What resources are needed to develop innovation?

money knowledge people

A(n) (Blank) system organization depends on constant interaction with the environment for survival.

open

Determining how great a role the environment plays on an organization determines its status as a(n)

open or closed system.

What type of office design do companies use to improve cooperative behavior and camaraderie as well as achieve cost reductions?

open-office design

A firm with flexible networks of multitalented individuals who perform a variety of tasks is called:

organic

A system of consciously coordinated activities or forces of two or more persons is called a(n)

organization

The phrase "consciously coordinated" is key to the definition of a(n)

organization

The structure of accountability and responsibility used to develop and implement strategies, and the human resource practices and information and business processes that activate those structures is called:

organizational design

The extent to which your personality and values match the culture and climate in your work organization is called ______ fit.

person-organization

Which of the following, managed by a dashboard, is crucial for evidence-based management?

real-world data

What are the key contingency factors to consider when making decisions about organization design?

size technology market uncertainty strategy and goals

A matrix structure combines:

vertical and horizontal structures

A (Blank) structure is one whose members are geographically apart using information technology to appear as a unified organization to customers.

virtual