Chapter 7 (Designing Organizational Structures)

What is an unbroken line of authority that links all employees in an organization and shows who reports to whom?

chain of command

What is associated with two underlying principles: unity of command, and scalar principle

chain of command

By dividing employees and resources along divisional lines, the organization will be flexible and responsive to ______________because each unit is small and tuned in to its environment

change

What means a joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose and that are typically greater than what any of the individuals or departments could achieve working alone?

collaboration

People, facilities, and other resources representing a(n) ____________ are grouped into a single department

common function

The following list describes the factors that are associated with less supervisor involvement and thus larger spans of __________: 1) Work performed by subordinates is stable and routine. 2) Subordinates perform similar work tasks. 3) Subordinates are concentrated in a single location. 4) Subordinates are highly trained and need little direction in performing tasks. 5) Rules and procedures defining task activities are available. 6) Support systems and personnel are available for the manager. 7) Little time is required in nonsupervisory activities, such as coordination with other departments or planning. 8) Managers' personal preferences and styles favor a large span. .

control

Without effective_____________ systems, no structure is complete.

coordinating

What refers to the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments.

coordination

Without _________________, a company's left hand will not act in concert with the right, causing problems and conflicts

coordination

______________ is the outcome of information and cooperation

coordination

__________________ is carried out through a web of ongoing positive relationships rather than because of formal coordination roles or mechanisms.

coordination

_____________is required regardless of whether the organization has a functional, divisional, or team structure

coordination

This team is similar to a task force except that it works with continuing rather than temporary problems and might exist for several years

cross functional

A ______________________ may make different work demands on members than do their department managers, and members who participate in more than one team must resolve these conflicts

cross functional team

The functional structure with ______________ and project managers provides greater coordination and flexibility than the pure functional structure

cross functional teams

The primary difference between divisional and functional structures is that in a _______________, the chain of command from each function converges lower in the hierarchy.

divisional structure

When a huge organization produces products for different markets, the ___________________ works because each division is an autonomous business

divisional structure

With a __________________, also called an M-form (multidivisional) or a decentralized form, separate divisions can be organized with responsibility for individual products, services, product groups, major projects or programs, divisions, businesses, or profit centers

divisional structure

A __________________ can be thought of as departmentalization by organizational resources because each type of functional activity—accounting, HR, engineering, and manufacturing—represents specific resources for performing the organization's task

functional structure

With goals of innovation and a rapidly changing environment, however, the organization tends to be much looser, free-flowing, and adaptive, using an ____________ system where is more horizontal, and decision-making authority is decentralized.

organic

Strategy defines what to do;_______________ defines how to do it

organization

With ________________Authority is pushed down to lower levels, and front-line employees are often given the freedom to make decisions and take action on their own. Team members may share or rotate team leadership

permanent teams

With _________________ the Emphasis is on horizontal communication and information sharing because representatives from all functions are coordinating their work and skills to complete a specific organizational task.

permanent teams

______________are groups of employees who are organized in a way similar to a formal department.

permanent teams

In a variety of industries, vertically integrated, hierarchical organizations are giving way to loosely interconnected groups of companies with __________________

permeable boundaries

Rather than shifting entire functions to contractors, this "_____________" approach allows people to shift only certain tedious and time-consuming tasks to be handled by the outsourcing partner while they focus on higher-value work

personal outsourcing

The distinctive feature of the_________________ position is that the person is not a member of one of the departments being coordinated

project manager

What is a person who is responsible for coordinating the activities of several departments for the completion of a specific project

project manager

_________________might also have titles such as product manager, integrator, program manager, or process owner

project manager

_______________are located outside the departments and have responsibility for coordinating several departments to achieve desired project outcomes

project managers

In an organization with a high level of __________________, people share information freely across departmental boundaries, and people interact on a continuous basis to share knowledge and solve problems.

relational coordination

The highest level of horizontal coordination is ________

relational coordination

To build_________________ into the fabric of the organization, managers invest in training people in the skills needed to interact with one another and resolve cross-departmental conflicts based on shared goals rather than emphasizing goals of their separate departments

relational coordination

What refers to "frequent, timely, problem-solving communication carried out through [employee] relationships of shared goals, shared knowledge, and mutual respect?

relational coordination

_________________ isn't a structural device or mechanism such as a project manager, but rather is part of the very fabric and culture of the organization

relational coordination

refers to frequent horizontal coordination and communication carried out through ongoing relationships of shared goals, shared knowledge, and mutual respect.

relational coordination

What is is the duty to perform the task or activity as assigned?

responsibility

_______________ tend to have more flexible horizontal structures.

service technologies

Generally, when supervisors must be closely involved with subordinates, the span should be what

small

What is a type of manufacturing technology that involves the production of goods in batches of one or a few products designed to customer specifications.?

small-batch production

The average _______________ used in an organization determines whether the structure is tall or flat.

span of control

What sometimes called the span of control, and is the characteristic of structure determines how closely a supervisor can monitor subordinates

span of management

With too much ________________, employees are isolated and do only a single, boring job.

specialization

A fundamental principle is that work can be performed more efficiently if employees are allowed to What?

specialize

Goals of efficiency and a ___________ environment are associated with a mechanistic system.

stable

strategic goals of cost efficiency occur in more _____________environments

stable

What is narrower than line authority and includes the right to advise, recommend, and counsel in the staff specialists' area of expertise

staff authority

What have an advisory relationship with line departments and typically include marketing, labor relations, research, accounting, and HR?

staff departments

What include all those that provide specialized skills in support of line departments

staff departments

which factor creates top down pressure for an organizations structure?

strategic needs

Vertical function, divisional, matrix, team-based, and virtual network are the 5 approaches to what?

structural design

The terms mechanistic and organic can be used to explain _______________ to strategy and the environment

structural responses

What is a temporary team or committee designed to solve a problem involving several department?

task force

______________members represent their departments and share information that enables coordination

task force

Probably the most widespread trend in departmentalization in recent years has been the implementation of _____________concepts

team

A disadvantage of the_________________Employees may be enthusiastic about team participation, but they may also experience conflicts and dual loyalties.

team approach

Another big advantage of the ______________is the morale boost

team approach

The ________________ breaks down barriers across departments and improves coordination and cooperation

team approach

The vertical chain of command is a powerful means of control, but passing all decisions up the hierarchy takes too long and keeps responsibility at the top. The ________________ gives managers a way to delegate authority, push responsibility to lower levels, and be more flexible and responsive in a complex and competitive global environment.

team approach

_____________ know one another's problems and compromise rather than blindly pursuing their own goal

team members

_____________often do not see the big picture of the corporation and may make decisions that are good for their group, but bad for the organization as a whole.

team members

Manufacturing technologies differ in terms of what

technical complexity

What refers to the degree to which complex machinery is involved in the production process to the exclusion of people.

technical complexity

The ______________ oversees both the product and functional chains of command. His or her responsibility is to maintain a power balance between the two sides of the matrix

top leader

The _______________ is responsible for the entire matrix

top leader

goals of innovation and flexibility occur in more ______________environments

uncertain

One reason for the growing use of teams and networks is that many managers recognize the limits of traditional ______________ in a fast-shifting environment

vertical organization structure

The following are several important features of what? 1) Work Specialization 2) Chain of Command 3) Span of Management 4) Centralization and Decentralization 5) Departmentalization

vertical structure

Without a(n)_____________, people in a large, global firm wouldn't know what to do.

vertical structure

Large teams of staff specialists and administrators are not needed in a(n) ___________________

virtual network structure

One of the major disadvantages of a(n)___________________ is lack of hands-on control.

virtual network structure

The _______________ is perhaps the leanest of all organization forms because little supervision is required

virtual network structure

The biggest advantages to a___________________ are flexibility and competitiveness on a global scale.

virtual network structure

The following are disadvantages of what? Lack of control; weak boundaries Greater demands on managers Weaker employee loyalty

virtual network structure

The in the ___________________organization may be viewed as a central hub surrounded by a network of outside specialists, sometimes spread all over the world

virtual network structure

the following are advantages of what? Can draw on expertise worldwide Highly flexible and responsive Reduced overhead costs

virtual network structure

what means that the firm subcontracts most of its major functions to separate companies and coordinates their activities from a small organization at headquarters

virtual network structure

A CEO involved in a major internal transformation may need a _____________span of control to stay on top of what is happening all across the organization.

wider

People who are new to their positions typically want a ___________ span of control to help them evaluate their executives and learn about more aspects of the business

wider

What is believed to relieve the burden on top managers, make greater use of employees' skills and abilities, ensure that decisions are made close to the action by well-informed people, and permit more rapid response to external changes

Decentralization

The following are advantages of ______________ Fast response; flexibility in an unstable environment Fosters concern for customer needs Excellent coordination across functional departments

Divisional structure

_______________ including finance, marketing, and so forth are centralized and operate as their own vertical units, as well as supporting the horizontal divisions

Functional departments

The following are disadvantages of _________________: Poor communication across functional departments Slow response to external changes; lagging innovation Decisions concentrated at the top of hierarchy, creating delay

Functional structure

The following are the advantages of _________________: Efficient use of resources; economies of scale In-depth skill specialization and development Top manager direction and control

Functional structure

The following are advantages of _____________________ More efficient use of resources than a single hierarchy Flexibility, adaptability to a changing environment Interdisciplinary cooperation; expertise available to all divisions

Matrix structure

(1)the set of formal tasks assigned to individuals and departments; (2)formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managers' control; and (3)the design of systems to ensure effective coordination of employees across departments. This describes the definition of what?

Organization structure

___________,which means farming out certain activities, such as manufacturing or credit processing, has become a significant trend

Outsourcing

When managers have _____________for task outcomes but little authority, the job is possible but difficult.

Responsibility

What is a communication relationship; staff specialists advise managers in technical areas

Staff authority

The following are advantages of what? Reduced barriers among departments; increased compromise Shorter response time; quicker decisions Better morale; enthusiasm from employee involvement

Team structure

The following are disadvantages of what? Dual loyalties and conflict Time and resources spent on meetings Unplanned decentralization

Team structure

What argues that a manager has authority only if subordinates choose to accept his or her commands. If subordinates refuse to obey because the order is outside their zone of acceptance, a manager's authority disappears

acceptance theory of authority

What is the mechanism through which authority and responsibility are brought into alignment

accountability

What means that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command?

accountability

Great coordination exists within divisions; however, coordination _____________divisions is often poor.

across

The chain of command illustrates the _____________structure of the organization

authority

What is distinguished by the following three characteristics? 1)It is vested in organizational positions, not people. Managers have [this] because of the positions they hold, and other people in the same positions would have the same [this]. 2) It flows down the vertical hierarchy. Positions at the top of the hierarchy are vested with more formal [this] than are positions at the bottom. 3) is accepted by subordinates. Although [this] flows from the top down, subordinates comply because they believe that managers have a legitimate right to issue orders

authority

When managers have ______________exceeding responsibility, they may become tyrants, using authority to achieve frivolous outcomes

authority

what is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes

authority

What means that decision authority is located near the top of the organization?

centralization

In times of crisis or risk of company failure, authority may be _______________at the top.

centralize

most large school systems are highly_____________

centralized

Studies demonstrate that business performance is strongly influenced by how well the company's structure is aligned with its strategic intent and the needs of the environment, so managers strive to pick strategies and structures that are _____________

congruent

what involves mechanization of the entire workflow and nonstop production, such as in chemical plants or petroleum refineries.?

continuous process production

Innovations such as cross-functional teams, task forces, and project managers work within the vertical structure but provide a means to increase horizontal communication and__________________

cooperation

A frequent use of ___________________ is for change projects, such as new product or service innovation. Team members typically still report to their functional departments, but they also report to the team, one member of whom may be the leader.

cross functional teams

One approach to using teams in organizations is through ________________, which consist of employees from various functional departments who are responsible to meet as a team and resolve mutual problems

cross functional teams

________________ can provide needed horizontal coordination to complement an existing divisional or functional structure.

cross functional teams

Greater change and uncertainty in the environment are usually associated with _________________

decentralization

What decision authority is pushed downward to lower organization levels?

decentralization

the team approach may cause too much.

decentralization

Most organizations today encourage managers to _____________authority to the lowest possible level to provide maximum flexibility to meet customer needs and adapt to shifts in the environment

delegate

______________decision making to lower-level managers and employees can be highly motivating and improve speed, flexibility, and creativity

delegating

What is the process that managers use to transfer authority and responsibility to positions below them in the hierarchy.?

delegation

The most recent approach to __________________ extends the idea of horizontal coordination and collaboration beyond the boundaries of the organization

departmentalization

What is the basis for grouping positions into departments and departments into the total organization?

departmentalization

The main difference between the 5 approaches to structural design is the way in which employees are and to whom they report

departmentalized

The ________________ structure promotes differentiation because each division can focus on specific products and customers, although divisions tend to be larger and less flexible than small teams.

divisional

In a _____________________, divisions are created as self-contained units, with separate functional departments for each division.

divisional structure

In a(n)_________________, differences of opinion among R&D, marketing, manufacturing, and finance would be resolved at the divisional level rather than by the president

divisional structure

In contrast to the functional approach, in which people are grouped by common skills and resources, the ______________ occurs when departments are grouped together based on similar organizational outputs

divisional structure

The ______________ is also sometimes called a product structure, program structure, or self-contained unit structure. Each of these terms means essentially the same thing: Diverse departments are brought together to produce a single organizational output, whether it is a product, a program, or service to a single customer.

divisional structure

The ___________________encourages decentralization

divisional structure

The following are disadvantages of ______________ Duplication of resources across divisions Less technical depth and specialization Poor coordination across divisions

divisional structure

The ______________ violates the unity-of-command concept described earlier in this chapter, but that is necessary to give equal emphasis to both functional and divisional lines of authority

dual authority structure

A ____________________ has a wide span, is horizontally dispersed, and has fewer hierarchical levels.

flat structure

The set of _____________ tasks and ____________reporting relationships provides a framework for vertical control of the organization

formal

Coordination across _______________ is better because employees are grouped together in a single location and committed to one product line

functional departments

An advantage of ____________________ is that Grouping employees by common task permits economies of scale and efficient resource use.

functional structure

In a _______________, all R&D engineers are grouped together and work on all products, in a divisional structure, separate R&D departments are created within each division.

functional structure

In a _______________, also called a U-form (unitary structure), activities are grouped together by common function from the bottom to the top of the organization

functional structure

In a _______________, people within a department communicate primarily with others in the same department to coordinate work and accomplish tasks or implement decisions that are passed down the hierarchy

functional structure

In which structural design do rules and procedures typically govern the duties and responsibilities of each employee, and employees at lower hierarchical levels accept the right of those higher in the hierarchy to make decisions and issue orders

functional structure

Information flows up and down the vertical hierarchy, and the chain of command converges at the top of the organization in which of the 5 approaches to structural design?

functional structure

The ______________ groups positions into departments based on similar skills, expertise, work activities, and resource use

functional structure

The primary disadvantages of _________________reflect barriers that exist across departments. Because people are separated into distinct departments, communication and coordination across functions are often poor, causing a slow response to environmental changes. Innovation and change require involvement of several departments. Another problem is that decisions involving more than one department may pile up at the top of the organization and be delayed.

functional structure

In a _______________based structure, all functions in a specific country or region report to the same division manager.

geographic

In a(n)________________based structure the structure focuses company activities on local market conditions

geographic

An alternative for assigning divisional responsibility is to group company activities by _________________ or customer group

geographic region

Another major disadvantage to _____________________ is duplication of resources and the high cost of running separate divisions.

geographic structure

The organization loses efficiency and economies of scale in which structure?

geographic structure

Large nonprofit organizations such as the National Council of YMCAs, Habitat for Humanity International, and the Girl Scouts of the USA also frequently use a type of________________, with a central headquarters and semiautonomous local units

geographical structure

Centralization and decentralization pertain to the ______________level at which decisions are made

hierarchical

Having too many _________________ levels and narrow spans of control is a common structural problem for organizations

hierarchical

Because the focus of reengineering is on _______________workflows rather than function, reengineering generally leads to a shift away from a strong vertical structure to one emphasizing stronger horizontal coordination

horizontal

Small batch and continuous process technologies are associated with a more flexible _______________ structure

horizontal

The flexible ______________structure enables organizations to differentiate themselves and respond quickly to the demands of a shifting environment but at the expense of efficient resource use.

horizontal

In today's environment, an organization's vertical structure often needs to be balanced with strong _________________ to achieve peak performance

horizontal mechanisms

When supervisors need little involvement with subordinates, it can be what

large

Most _________________ have separate divisions that perform different tasks, use different technologies, or serve different customers

large corporations

what means that people in management positions have the formal authority to direct and control immediate subordinates

line authority

In a software company, ____________ make and sell the product.

line departments

What perform tasks that reflect the organization's primary goal and mission?

line departments

what is characterized by long production runs to manufacture a large volume of products with the same specifications.

mass production

What combines aspects of both functional and divisional structures simultaneously, in the same part of the organization?

matrix approach

the _________________is the product or functional boss, who is responsible for one side of the matrix.

matrix boss

The success of the matrix structure depends on the abilities of people in key ______________

matrix roles

A major problem with the ______________ is the confusion and frustration caused by the dual chain of command

matrix structure

One unique feature of the ____________is that it has dual lines of authority

matrix structure

The ______________ can be highly effective in a complex, rapidly changing environment in which the organization needs to be flexible, innovative, and adaptable.

matrix structure

The _______________ also can generate a high level of conflict because it pits divisional against functional goals in a domestic structure, or product line versus country goals in a global structure

matrix structure

The _________________, therefore, supports a formal chain of command for both functional (vertical) and divisional (horizontal) relationships. As a result of this dual structure, some employees actually report to two supervisors simultaneously.

matrix structure

The ___________________ makes efficient use of HR because specialists can be transferred from one division to another

matrix structure

The conflict and frequent meetings generated by the _________allow new issues to be raised and resolved

matrix structure

The following are disadvantages of what? Frustration and confusion from a dual chain of command High conflict between two sides of the matrix Many meetings; more discussion than action

matrix structure

The functional hierarchy of authority runs vertically, and the divisional hierarchy of authority runs horizontally in which structure

matrix structure

The two lines of authority of the _____________are geographic and product

matrix structure

The vertical structure of the __________________ provides traditional control within functional departments, and the horizontal structure provides coordination across departments

matrix structure

This problem leads to the third disadvantage of the : time lost to meetings and discussions devoted to resolving this conflict

matrix structure

Which structure evolved as a way to improve horizontal coordination and information sharing?

matrix structure

the ________________ provides excellent coordination simultaneously for each geographic region and each product line

matrix structure

Which type of organization typically has a rigid, vertical, centralized structure, with most decisions made at the top where the organization is highly specialized and characterized by rules, procedures, and a clear hierarchy of authority

mechanistic

A CEO who must spend a lot of time interacting directly with customers, partners, or regulators as part of his or her job will need a ______________span of control, allocating more responsibility to direct reports and freeing up more time for external activities

narrower

A _______________ may have only two or three levels of hierarchy, compared with ten or more in traditional organizations.

network organization

A(n)__________________ can draw on resources and expertise worldwide to achieve the best quality and price and can sell its products and services worldwide

network organization

The ______________ can redefine itself continually to fit new product and market opportunities

network organization

Some organizations take this______________to the extreme to create an innovative structure.

networking approach

technology and work processes are examples of what?

operational needs

which factor creates bottom up pressure for an organizations structure?

operational needs

What is the deployment of organizational resources to achieve strategic goals. The deployment of resources is reflected in the organization's division of labor into specific departments and jobs, formal lines of authority, and mechanisms for coordinating diverse organization tasks

organization

The characteristics of vertical structure are portrayed in the __________________, which is the visual representation of an organization's structure

organization chart

With ________________ Each team brings together employees from all functional areas focused on a specific task or project, such as parts supply and logistics for an automobile plant.

permanent teams

The ______________ is drawn to one side of the chart to indicate authority over the project, but not over the people assigned to it.

product manager

_________________set budget goals, marketing targets, and strategies and obtain the cooperation from advertising, production, and sales personnel needed for implementing product strategy.

product managers

Companies also use ____________ to increase coordination

project managers

What refers to the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed?

reengineering

What is the flip side of the authority coin?

responsibility

What refers to a clearly defined line of authority in the organization that includes all employees?

scalar command

Examples of _________________ include banks, hotels, and law firms.

service firms

What is characterized by intangible outputs and direct contact between employees and customers.

service technology

Many lean organizations today have a _____________ as high as 30, 40, and even higher

span of management

The _____________ is the number of employees reporting to a supervisor

span of management

environmental conditions, strategic direction, and organizational goals are examples of what?

strategic needs

The amount of centralization or decentralization should fit the firm's_____________

strategy

Strategic and operational needs are the two factors affecting an organizations __________________

structure

A __________________has an overall narrow span and more hierarchical levels

tall structure

The _________________ also enables the organization to adapt more quickly to customer requests and environmental changes and speeds decision making because decisions need not go to the top of the hierarchy for approval

team concept

With a(n) ______________, the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization's goals

team-based structure

Unless the organization truly needs _____________to coordinate complex projects and adapt to the environment, it will lose production efficiency with them

teams

Which views of organization design recommended a span of management of about 7 to 10 subordinates per manager

traditional

___________,those who report to two supervisors simultaneously, must resolve conflicting demands from the matrix bosses.

two boss employees

_________________ must work with senior managers to reach joint decisions. They need excellent human relations skills with which to confront managers and resolve conflicts

two boss employees

a tighter ________________structure is appropriate for mass production.

vertical

The functional structure is a strong__________________

vertical design

The ________________structure uses task specialization and a strict chain of command to gain efficient use of scarce resources, but it does not enable the organization to be flexible or innovative

vertical functional

The idea behind the __________________ is that a company can concentrate on what it does best and contract out other activities to companies with distinctive competence in those specific areas, which enables a company to do more with less

virtual network structure

What is sometimes called division of labor, is the degree to which organizational tasks are subdivided into separate jobs?

work specialization