MGT 3301 Chapter 07 Study Guide

According to Charles Perrow, the routineness of technology is determined by task A) volatility. B) analyzability. C) performance. D) commitment.

B) analyzability.

Advanced Software Defense Systems sells a variety of products to protect against spyware, malware, viruses, and other dangers to computer users. Operating primarily from its website, it serves a range of clients, from large companies with full service package to individual users. This is an example of A) B2B commerce. B) e-commerce. C) a B2B marketplace. D) an e-commerce marketplace.

B) e-commerce.

Organizations can keep their hierarchy flat by A) decreasing the span of control. B) increasing the number of levels of management. C) decentralizing authority. D) centralizing authority.

C) decentralizing authority.

An organization whose members are linked by computers, email, computer-aided design systems, videoconferencing, and cloud-based software is a ________ organization. A) tall B) complex C) flat D) boundaryless

D) boundaryless

The Pizza Man implemented job design by A) having the food servers wear uniforms. B) buying a new vehicle for the food delivery people. C) increasing the chef's annual salary to reflect the skills required by the job. D) combining the jobs of chef and food server into a single job description

D) combining the jobs of chef and food server into a single job description

The job characteristics model explains how managers can make jobs more interesting and motivating. True or False

true

Karabo wants to start a graphic design company that will have employees who are highly skilled at using complex computer programs. For this type of company, Karabo would most likely want to A) give upper-level managers the responsibility for most client-related decisions but handle corporate decisions himself. B) make sure that all design decisions are run by him before they are implemented by employees. C) give lower-level managers and the graphic designers the authority to make important decisions. D) give graphic designers the ability to make decisions, but insist that they get approval from upper management.,

C) give lower-level managers and the graphic designers the authority to make important decisions.

Eduardo works a salesperson at a prescription drug store; Marietta works as a doctor, helping people who suffer from malignant diseases. Marietta most likely has A) a low degree of feedback. B) less autonomy. C) less skill variety. D) higher task significance.

D) higher task significance.

In which mechanism do senior managers provide members of a cross-functional team with relevant information from other teams and divisions? A) liaison roles and departments B) task forces C) functional forces D) integrating roles and departments

D) integrating roles and departments

Which of the following is a characteristic of a stable external environment? A) an inflexible structure B) constant change C) decentralized authority D) low uncertainty

D) low uncertainty

When designing an organization, if managers are grouped both by function and by product at the same time, the organizational structure being used is the ________ structure. A) market B) geographic C) functional D) matrix

D) matrix

George is an order taker at a restaurant; Audrey is a sales executive who is given the authority to choose the prospective customers she will visit on personal sales calls. Audrey has A) less autonomy. B) less task significance. C) less task identity. D) more autonomy.

D) more autonomy.

Describe job enlargement and given an example. What is its significance in an organization?

Job enlargement is increasing the number of different tasks in a given job by changing the division of labor. For example, in a Mexican restaurant, a waiter, in addition to serving food, could be given the responsibility of preparing simpler dishes, such a guacamole, for customers. The idea behind job enlargement is that increasing the range of tasks performed by a worker will reduce boredom and fatigue and may increase motivation to perform at a high level, increasing both the quantity and the quality of goods and services provided.

Too much decentralization has disadvantages for an organization because it can lead to a lack of communication among functions or divisions. True or False

true

Team members in a market structure are known as two-boss employees. True or False

false

State the differences between a line and staff manager. Give an example of each.

A line manager is someone in the direct line or chain of command who has formal authority over people and resources at lower levels. For example, the manager of a marketing department reports to a top manager, such as a vice-president, and also has authority over many people in his or her department. A staff manager is someone responsible for managing a specialist function. For example, a staff manager could be in charge of communications for a company. As such, this person could report directly to the CEO and not have managers above or below her or him. A staff manager, therefore, is not in the direct line or chain of command.

Define strategic alliance and network structure and give an example of each. Also, discuss their usage.

A strategic alliance is a formal agreement that commits two or more companies to exchange or share their resources in order to produce and market a product. Strategic alliances are formed because the companies share similar interests and believe they can benefit from cooperating. For example, a soft drink company could form a strategic alliance with a movie theater chain. As part of this agreement, the movie theater chain would agree to sell only soft drinks made by the allied company. Also, the theater chain provides an exclusive outlet for the soft drink company's product. Over time, these companies work closely with their suppliers to improve the efficiency and effectiveness of the inputs so that the final product produced is of higher quality and very often can be produced at lower cost. A network structure is a series of global strategic alliances that one or several organizations create with suppliers, manufacturers, and/or distributors to produce and market a product. For example, a U.S.-based automobile company could create global strategic alliances with a supplier in China, a manufacturer in Malaysia, and a distributor in the United Kingdom. Network structures allow an organization to manage its global value chain in order to find new ways to reduce costs and increase the quality of products—without incurring the high costs of operating a complex organizational structure (such as the costs of employing many managers).

An organization's hierarchy of authority is also known as its A) chain of command. B) span of control. C) task-flow command. D) matrix of control.

A) chain of command.

According to ________ theory, managers should choose a structure that fits the circumstances affecting their organization the most. A) contingency B) design C) agency D) equity

A) contingency

Fern Motor Co. brings together senior managers from its marketing, R—D, manufacturing, accounting, and finance departments to work together as a team to design a new type of sport utility vehicle. In this scenario, Fern Motor Co. creates a A) cross-functional team. B) vertically integrated team. C) mass-production team. D) standing committee.

A) cross-functional team.

Allocating authority in an organization, which gives lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources, is an example of A) decentralization of authority. B) a high span of control. C) centralization of authority. D) maximum chain of command.

A) decentralization of authority.

The process by which managers decide how to divide into specific jobs the tasks that have to be performed to provide customers with goods and services is known as job A) design. B) delegation. C) organization. D) policy.

A) design.

PlayBall Enterprises produces baseball mitts in the United States, including the ones used in the major leagues. Baseball teams around the world usually want to use the same mitts as the major league teams in America. As a result, the managers of PlayBall have decided to use a ________ structure. A) global product B) customer C) global geographic D) global transitional

A) global product

An organizational structure becomes taller when it A) grows in size and the hierarchy of authority lengthens. B) maintains its original size and the hierarchy remains constant. C) hires more employees while keeping the same number of managers. D) expands its product base but maintains its staff size.

A) grows in size and the hierarchy of authority lengthens.

94) Both e-commerce and business-to-customer (B2C) commerce involve the use of technology and the Internet; the difference is that e-commerce A) involves trade between companies and between companies and individual customers, whereas B2C commerce only involves trades between companies and individual customers. B) is exclusively related to the marketing of wholesale products, whereas B2C commerce involves the sale of both wholesale and retail products. C) only involves trade between companies and individual customers, whereas B2C commerce involves trades between companies and individual customers, as well as trade between companies. D) encompasses the sale of both wholesale and retail products, whereas B2C commerce involves only the sale of retail products.

A) involves trade between companies and between companies and individual customers, whereas B2C commerce only involves trades between companies and individual customers.

The kitchen workers at Joe's Coffee Shop and Bakery report directly to Zara, the kitchen manager. Zara is a ________ manager. A) line B) product C) staff D) task force,

A) line

Managers are able to be responsive to the needs of their customers and maintain flexibility in making decisions regarding customers' changing needs with a ________ structure. A) market B) geographic C) functional D) matrix

A) market

What structure do organizations adopt when they organize divisions according to the type of customers they focus on? A) market B) geographic C) product D) functional

A) market

The major goals of the manufacturing function are to keep costs under control and A) prepare products on schedule. B) keep employees happy. C) develop new products. D) use the latest production methods.

A) prepare products on schedule.

Business-to-business (B2B) commerce increases profitability because it A) reduces operating costs and may improve overall quality. B) allows companies to make use of technology and the Internet. C) reduces the number of companies in the supply chain and may improve overall quality. D) allows companies to market their products directly to end users.

A) reduces operating costs and may improve overall quality.

Organizational ________ is the formal system of task and job reporting relationships that determines how employees use resources to achieve organizational goals. A) structure B) strategy C) mission D) policy

A) structure

Explain briefly the two factors that make technology routine or complicated, according to Charles Perrow.

According to Charles Perrow, the two factors that determine how complicated or nonroutine technology is are as follows: task variety and task analyzability. Task variety is the number of new or unexpected problems or situations that a person or function encounters in performing tasks or jobs. Task analyzability is the degree to which programmed solutions are available to people or functions to solve the problems they encounter. Nonroutine or complicated technologies are characterized by high task variety and low task analyzability; this means that many varied problems occur and that solving these problems requires significant nonprogrammed decision making. In contrast, routine technologies are characterized by low task variety and high task analyzability; this means that the problems encountered do not vary much and are easily resolved through programmed decision making.;

According to the job characteristics model, list and define the characteristics that determine how motivating the job is. Give an example for each.

According to the job characteristics model of J. R. Hackman and G. R. Oldham, every job has five characteristics that determine how motivating the job is. They are as follows: Skill variety: The extent to which a job requires that an employee use a wide range of different skills, abilities, or knowledge Task identity: The extent to which a job requires that a worker perform all the tasks necessary to complete the job, from the beginning to the end of the production process. For example, a person composing music for a film is often allowed to work on an assignment from the beginning of the composition to the orchestration of the piece. Task significance: The degree to which a worker feels his or her job is meaningful because of its effect on people inside the organization, such as coworkers, or on people outside the organization, such as customers. For instance, a person developing an inexpensive, nutritional food could find meaning if this food is eventually used to help starving people in various countries. Autonomy: The degree to which a job gives an employee the freedom and discretion needed to schedule different tasks and decide how to carry them out. For example, a designer for an advertising campaign could be given extensive freedom to schedule different tasks and decide how to carry them out. Feedback: The extent to which actually doing a job provides a worker with clear and direct information about how well he or she has performed the job. For example, a baseball player will receive immediate feedback from the crowd if he or she makes an error or hits a homerun.

Explain the contemporary state of management information systems, with a focus on artificial intelligence and expert systems, enterprise resource planning systems, and e-commerce. Demonstrate, using examples, how e-commerce works, with reference to B2B and B2C commerce, as well as B2B marketplaces.

Answers should demonstrate an understanding of contemporary management information systems. An answer might note that artificial intelligence in the form of software programs variously known as software agents, softbots, or knowbots can be used to perform simple managerial tasks such as sorting through reams of data or incoming email messages to look for important ones. Expert systems, the most advanced management information systems available, incorporate artificial intelligence in their design. An expert system is a system that utilizes human knowledge embedded in computer software to solve problems that ordinarily require human expertise. Enterprise resource planning (ERP) systems are multimodule application software packages that allow a company to link and coordinate the entire set of functional activities and operations necessary to move products from the initial design stage to the final customer stage. E-commerce is trade that takes place between companies and between companies and individual customers using technology and the Internet. Business-to-business (B2B) commerce is trade that takes place between companies using technology and the Internet to link and coordinate the value chains of different companies. The goal of B2B commerce is to increase the profitability of making and selling goods and services. Through the use of technology, B2B commerce increases profitability because it allows companies to reduce operating costs and may improve overall quality. A principal B2B software application is B2B marketplaces, which are Internet-based online trading platforms set up in many industries to connect buyers and sellers. To participate in a B2B marketplace, companies adopt a common software standard that allows them to search for and share information with each other. The companies can work together over time to reduce costs or improve quality. Business-to-customer (B2C) commerce is trade that takes place between a company and individual customers using technology and the Internet.

Explain the problems present in tall organizations.

As a hierarchy becomes taller, problems may result that make the organization's structure less flexible and slow managers' response to changes in the organizational environment. Communication problems may arise when an organization has many levels in the hierarchy. It can take a long time for the decisions and orders of upper-level managers to reach managers further down in the hierarchy, and it can take a long time for top managers to learn how well their decisions worked. Feeling out of touch, top managers may want to verify that lower-level managers are following orders and may require written confirmation from them. Middle managers, who know they will be held strictly accountable for their actions, start devoting too much time to the process of making decisions to improve their chances of being right. They might even try to avoid responsibility by making top managers decide what actions to take. Another communication problem that can result is the distortion of commands and messages being transmitted up and down the hierarchy, which causes managers at different levels to interpret what is happening differently. Distortion of orders and messages can be accidental, occurring because different managers interpret messages from their own narrow, functional perspectives. Or distortion can be intentional, occurring because managers low in the hierarchy decide to interpret information in a way that increases their own personal advantage. Another problem with tall hierarchies is that they usually indicate that an organization is employing many managers, and managers are expensive. Managerial salaries, benefits, offices, and secretaries are a huge expense for organizations.

The relative authority that each manager in the organization has from the CEO down to the lowest-level manager is called the A) span of control. B) chain of command. C) corporate ladder. D) unity of direction.

B) chain of command.

An organization that allows its employees to behave in a flexible way, even as the organization grows and becomes taller, is utilizing A) managing as a rule. B) decentralizing authority. C) decreasing the span of control. D) decreasing autonomy.

B) decentralizing authority.

The extent to which a job gives the worker direct and clear information about how well the worker is performing the job is known as A) task identity. B) feedback. C) autonomy. D) task significance.

B) feedback.

The organizational design in which employees are correctly referred to as two-boss employees is a ________ structure. A) product B) matrix C) geographic D) functional

B) matrix

Which of the following allows an organization to manage its global value chain and to find new ways to reduce costs while increasing the quality of products? A) coordinating mechanisms B) network structures C) integration devices D) functional alliances

B) network structures

SAV, Inc., started out just making hair dryers. However, as the company expanded, it produced automobiles, life insurance, and furniture. Considering this, the CEO has decided to change from a functional structure to a ________ structure. A) geographic B) product C) market D) hierarchical

B) product

Riku is a project manager who has 15 employees reporting directly to him. Those 15 employees represent Riku's A) unity of command. B) span of control. C) chain of command. D) unity of direction.

B) span of control.

The extent to which a job requires a worker to perform all of the tasks that are required to complete the job is known as A) skill variety. B) task identity. C) task significance. D) feedback.

B) task identity.

Which of the following is the series of global strategic alliances that an organization creates with suppliers, manufacturers, and distributors to produce and market a product? A) global structure B) complex network C) B2B network structure D) communications network,

C) B2B network structure

The degree to which programmed solutions are available to people or functions to solve the problems they encounter is task A) uncertainty. B) stability. C) analyzability. D) creativity.

C) analyzability.

Organizational ________ is the process by which managers create an organizational structure and culture that helps a company operate in the most efficient and effective way. A) strategy B) policy C) design D) tactics

C) design

Carlos, a manager, redesigns the job of Dani, a subordinate, so that she has more responsibility over her job. This is the process of job A) enlargement. B) simplification. C) enrichment. D) reduction.

C) enrichment.

Employees organized according to a matrix structure are grouped by A) functions and by experience. B) product and by geographic location. C) functions and by product. D) geographic location.

C) functions and by product.

CoreSol Ltd. implements a liaison role by A) creating a team that includes employees from three departments (marketing, engineering, and production) to manage a product to the launch stage. B) having a representative in each of three departments (marketing, engineering, and production) meet to discuss the launching of a new product. C) giving one manager in each of three departments (marketing, engineering, and production) the responsibility of coordinating with each other to brainstorm new product ideas. D) providing a team consisting of members of three departments (marketing, engineering, and production) with status reports from senior managers of other departments.

C) giving one manager in each of three departments (marketing, engineering, and production) the responsibility of coordinating with each other to brainstorm new product ideas.

When managers pursue a multidomestic strategy, they most likely use a ________ strategy. A) market B) customer C) global geographic D) global transitional

C) global geographic

Juliette has been hired as a business consultant for ChocoChip, Inc., a company that specializes in making chocolate chip cookies. The success of ChocoChip has created a problem for the company's CEO, Andrew. The demand for ChocoChip's cookies has increased significantly worldwide. As a result, the company has established cookie factories in various countries, which are doing fairly well but need customized attention for each country. Also, because of this expansion, the functional structure of the company has developed problems with communication between divisions. Andrew wants Juliette's advice on how the company should accommodate its expansion. Juliette most likely suggests that ChocoChip set up a A) matrix structure and form temporary cross-functional teams. B) global market structure and form a centralized and bureaucratic hierarchy. C) global geographic structure and form strategic alliances with suppliers in various nations. D) product structure and form special, temporary tasks forces to deal with various challenges.

C) global geographic structure and form strategic alliances with suppliers in various nations.

The process by which managers establish the structure of working relationships among the workers of the organization is known as A) planning. B) leading. C) organizing. D) controlling.

C) organizing.

To participate in B2B marketplaces, companies have to adopt a common A) software standard so that they can meet international requirements. B) set of ethical standards so that they can do business fairly and equitably. C) software standard so that they can search for and share information with each other. D) set of ethical standards so that they can keep out unfair competitors.

C) software standard so that they can search for and share information with each other.

A formal agreement that commits two or more companies to exchange or share their resources in order to produce and market a product is known as a(n) ________ alliance. A) outsourcing B) task force C) strategic D) market structure

C) strategic

Mr. Peterson reads an article in the newspaper about one of his students who has been appointed CEO of a multinational corporation. At this moment, Mr. Peterson is experiencing A) autonomy. B) task identity. C) task significance. D) skill variety.

C) task significance.

Digistar, Inc., is a large corporation that produces a wide variety of products and services. As a result, it is a tall organization with a product structure. Employees are only expected to report to a single boss. Even so, communications between various functions in a division has become a problem. Because of this, it often takes a long time to bring new products to market, which is a severe handicap in highly competitive areas, such as printers. To expedite the process of bringing new printers into the market, Digistar should form a A) boundaryless structure between the design division and marketing division of the company. B) liaison relationship between the design and marketing section of the printer division. C) team consisting of managers from the design, manufacturing, and marketing sections of the printer division. D) task force consisting of managers from the design, manufacturing, and marketing divisions of the company.

C) team consisting of managers from the design, manufacturing, and marketing sections of the printer division.

At ABC Electronics, the person in charge of advertising is a staff manager, who reports to A) the stockholders. B) a manager in the direct chain of command. C) the CEO. D) a co-manager in the division.

C) the CEO.

Managers should design flexible structures, characterized by decentralized authority and empowered employees, for their organization when its A) environment is stable. B) technology is simple. C) workforce is highly skilled. D) strategy is well understood.

C) workforce is highly skilled.

To speed up the communication from the top managers down to the lower-level employees and vice versa, a CEO would most likely A) reorganize the chain of command, thereby decreasing the flatness of the company. B) expand the chain of command, thereby increasing the tallness of the company. C) centralize the company, thereby changing it from a flat organization to a tall organization. D) decentralize the company, thereby changing it from a tall organization to a flat organization.

D) decentralize the company, thereby changing it from a tall organization to a flat organization.

Increasing workers' responsibility and involvement in their jobs in order to increase their interest in the quality of their output is a strategy known as job A) expansion. B) enlargement. C) development. D) enrichment.

D) enrichment.

Which of the following structures groups together people who perform similar jobs? A) divisional B) transitional C) organic D) functional

D) functional

Jake has been hired by Praltiz Inc., an IT firm, to perform an integrating role by A) determining which threats in the external environment should be taken most seriously. B) conducting an in-house study to determine which departments can be trimmed. C) advising the manager of the marketing department on how to appeal to teenage consumers. D) increasing coordination between the marketing and research departments to achieve performance gains.

D) increasing coordination between the marketing and research departments to achieve performance gains.

Business-to-business (B2B) commerce is best defined as trade that takes place between companies using technology and the Internet for the purpose of A) meeting the demands of various companies along the supply chain. B) enabling companies to gain a competitive advantage. C) consolidating functions into as few companies as possible along the value chain. D) linking and coordinating the value chains of different companies.

D) linking and coordinating the value chains of different companies.

The greater the level of uncertainty in the organization's environment, the A) less likely managers are to design a structure and a culture that are innovative. B) less likely managers are to design a structure and a culture that change quickly. C) more likely managers are to design an organizational structure that is formal and controlling. D) more likely managers are to design a structure and a culture that are flexible.

D) more likely managers are to design a structure and a culture that are flexible.

Jekyll, Ltd., one of the leading shoe manufacturers, enters into a contract with Blinx—a foreign manufacturer—to only manufacture its shoes. In this scenario, Jekyll is following a(n) ________ strategy. A) franchising B) licensing C) green field venturing D) outsourcing

D) outsourcing

If a company has a stable external environment and resources are easily available, then the human resource manager for this company would most likely want to A) encourage managers to empower lower-level employees. B) allow managers to make their own guidelines. C) set up flexible norm guides. D) set up detailed standard operating procedures (SOPs).

D) set up detailed standard operating procedures (SOPs).

The extent to which a job requires a worker to use a wide range of knowledge and abilities is known as A) task identity. B) task significance. C) autonomy. D) skill variety.

D) skill variety.

The number of subordinates who report directly to a manager is known as the manager's A) unity of command. B) hierarchy of authority. C) chain of command. D) span of control.

D) span of control.

A team of managers from different functions or divisions is temporarily formed to solve a specific, mutual problem. This is known as a A) standing committee. B) confederate committee. C) functional force. D) task force.

D) task force.

The degree to which a manager feels that his or her job is "meaningful" because of the way in which the job affects other people is known as A) skill variety. B) feedback. C) autonomy. D) task significance.

D) task significance.

The goal of job enlargement is to increase A) the quantity of work assigned and thus reduce manpower. B) both the scope of a job and salaries. C) quality assurance measures, thereby reducing mistakes. D) the range of tasks and thus reduce boredom.,

D) the range of tasks and thus reduce boredom.

The number of new or unexpected problems or situations that a person or function encounters in performing tasks or jobs is task A) volatility. B) predictability. C) analyzability. D) variety.

D) variety.

Describe the matrix structure and the concept of the "two-boss employees."

In a matrix structure, managers group people and resources in two ways simultaneously: by function and by product. Employees are grouped by functions to allow them to learn from one another and become more skilled and productive. In addition, employees are grouped into product teams in which members of different functions work together to develop a specific product. Each person in a product team reports to two managers: A functional boss, who assigns individuals to a team and evaluates their performance from a functional perspective The boss of the product team, who evaluates their performance on the team Thus, team members are known as two-boss employees.

Discuss four ways in which a manager could redesign the job of a subordinate to enrich that subordinate's job. Give an example for each way.

Job enrichment is increasing the degree of responsibility a worker has over a job in one of the following ways: A manager can empower the subordinate to find a better way of doing his or her job. For example, a subordinate could be allowed to work at home more to allow him or her to focus on a certain task and avoid the distractions of working in an office. .A manager can encourage the subordinate to develop new skills that could be used in the job. For example, a sales clerk could be encouraged to attend a seminar to improve interpersonal skills to help the clerk interact with customers, .A manager can give the subordinate the responsibility to decide how to react to unexpected situations. For example, a librarian could be allowed to use his or her best judgement when dealing with difficult patrons instead of following formal guidelines. .A manager can allow the subordinate to monitor and to measure his or her own job performance. For instance, a computer programmer could be allowed to measure the effectiveness of his or her programming by observing people using it. The idea behind job enrichment is that increasing workers' responsibility increases their involvement in their jobs and thus increases their interest in the quality of the goods they make or the services they provide.

Briefly discuss liaison roles, task forces, and cross-functional teams.

Liaison roles, task forces, and cross-functional teams are integrating mechanisms available to managers to increase communication and coordination. Liaison roles: Managers can increase coordination among functions and divisions by establishing liaison roles. When the volume of contacts between two functions increases, one way to improve coordination is to give one manager in each function or division the responsibility for coordinating with the other. Coordinating is part of the liaison's full-time job. Furthermore, liaison roles provide a way of transmitting information across an organization, which is important in large organizations whose employees may know no one outside their immediate function or division. Task forces: When more than two functions or divisions share many common problems, a more complex integrating mechanism, a task force, may be appropriate. One manager from each relevant function or division is assigned to a task force that meets to solve a specific, mutual problem. Members are responsible for reporting to their departments on the issues addressed and the solutions recommended. Task forces are temporary; they may meet on a regular basis or only a few times. When the problem or issue is solved, the members return to their normal roles in their departments or are assigned to other task forces. Typically, task force members also perform many of their normal duties while serving on the task force. Cross-functional teams: To address recurring problems effectively, such as the need to develop new products or find new kinds of customers, managers are increasingly using permanent integrating mechanisms such as cross-functional teams. These teams assume long-term responsibility for all aspects of developing and making the product.

Explain the forms of divisional structure and the organization of divisions under it. Give an example for each type of division.

Most managers of large organizations choose a divisional structure and create a series of business units to produce a specific kind of product for a specific kind of customer. Each division is a collection of functions or departments that work together to produce the product. The goal behind the change to a divisional structure is to create smaller, more manageable units within the organization. There are three forms of divisional structure:1. When managers organize divisions according to the type of good or service they provide, they adopt a product structure. For example, a food company could organize divisions by breakfast cereals, baked goods, condiments, and cheeses.2. When managers organize divisions according to the area of the country or world they operate in, they adopt a geographic structure. For example, a soft drink company that distributes its product worldwide could organize its division by geographic region, such as Europe, Central Asia, East Asia, South America, and so on. 3. When managers organize divisions according to the type of customer they focus on, they adopt a market structure. For example, a computer company could have distinct groups of customers, each with different needs. As a result, such a company might organize divisions according to home use, small businesses, and large businesses.

Explain how boundaryless organizations operate.

The ability of managers to develop a network structure to produce or provide the goods and services customers want, rather than create a complex organizational structure to do so, has led many researchers and consultants to popularize the idea of a boundaryless organization. Such an organization is composed of people linked by technology—computers, email, computer-aided design systems, videoconferencing, and cloud-based software—who may rarely, if ever, see one another face-to-face. People are utilized when their services are needed, much as in a matrix structure, but they are not formal members of an organization; they are functional experts who form an alliance with an organization, fulfill their contractual obligations, and then move on to the next project.

Identify the four factors that are important determinants of an organizational structure.

The four factors that are important determinants of the type of an organizational structure or organizing method managers select are as follows: The nature of the organizational environment. The type of strategy the organization pursues. The technology (and particularly information technology) the organization uses. The characteristics of the organization's human resources.

Discuss the advantages and disadvantages of the functional structure of organization.

The functional structure is an organizational structure composed of all the departments that an organization requires to produce its goods or services. The advantages and disadvantages to grouping jobs according to function are as follows: Advantages First, when people who perform similar jobs are grouped together, they can learn from observing one another and thus become more specialized and can perform at a higher level. Second, when people who perform similar jobs are grouped together, it is easier for managers to monitor and evaluate their performance. Finally, managers appreciate functional structure because it allows them to create the set of functions they need in order to scan and monitor the competitive environment and obtain information about the way it is changing. Disadvantages First, managers in different functions may find it more difficult to communicate and coordinate with one another when they are responsible for several different kinds of products, especially as the organization grows both domestically and internationally. Second, functional managers may become so preoccupied with supervising their own specific departments and achieving their departmental goals that they lose sight of organizational goals.

Discuss the advantages and disadvantages of "decentralization" in organizational design.

When focusing on decentralization, managers at higher levels give lower-level employees the responsibility of making important decisions and only manage by exception; thus, the problems of slow and distorted communication are kept to a minimum. Moreover, fewer managers are needed because their role is not to make decisions but to act as coach and facilitator and to help other employees make the best decisions. In addition, when decision-making authority is low in the organization and near the customer, employees are better able to recognize and respond to customer needs. Decentralizing authority allows an organization and its employees to behave in a flexible way even as the organization grows and becomes taller. However, too much decentralization has certain disadvantages. If divisions, functions, or teams are given too much decision-making authority, they may begin to pursue their own goals at the expense of organizational goals. Also, too much decentralization can result in a lack of communication among functions or divisions; this prevents the synergies that result from cooperation from ever materializing, and organizational performance suffers.;

The "chain of command" of an organization is the hierarchy of authority for that organization. True or False

true

Alkyl, Ltd., designs shoes using computer-aided design, and they electronically store all new product information, including manufacturing instructions. When the designers have finished their work, they electronically transmit all the blueprints for the new products to Southeast Asian suppliers and manufacturers with which Alkyl has formed strategic alliances. Instructions for the design of a new sole are sent to a supplier in India and instructions for the leather uppers are sent to a supplier in Bhutan. Also, Alkyl has formed a strategic alliance with distributor in Taiwan. By doing this, Alkyl is implementing a A) B2B network structure. B) decentralized. C) vertically integrated. D) diversified product.,

A) B2B network structure.

The units of Effron, Ltd., are grouped such that the functions that work together to produce a product are grouped together. This is an example of a(n) ________ structure. A) divisional B) transitional C) organic D) functional

A) divisional

Freya is dissatisfied with her work as an office supply clerk for a large telecommunications company. She explains her feelings about her work to the human resource manager, who gives her an aptitude test. Based on this test, the satisfaction Freya gets from her job and how she views her job depend largely on how what she does impacts other people. Considering this, what job should the human resource manager recommend Freya get training for and pursue? A) a job as a computer programmer who designs software for autistic children B) a position as a salesperson with the ability to plan her own schedule C) a job as a graphic designer who often works on a project from beginning to end D) a position as a marketing researcher, which requires a variety of skills

A) a job as a computer programmer who designs software for autistic children

Because he has high autonomy, Santiago coaxes his manager to A) allow him work at home, where he can work during any time of the day. B) give him a variety of jobs that require a wide skill set. C) let him focus on one assignment at a time. D) give him more input on how his work affects customers.

A) allow him work at home, where he can work during any time of the day.

The degree to which a job allows the worker to schedule the tasks of the job and to decide how to carry out these tasks is known as A) autonomy. B) task identity. C) task significance. D) skill variety.

A) autonomy.

At Cosmeto & Co., Ignas, a marketing specialist, usually works with other marketers. However, he has recently been assigned to a team to develop a new kind of shampoo. Cosmeto has a complex organizational structure, and the team developing the new shampoo has members who specialize in a variety of functions for the company, including research and design, production, and packaging. Ignas and these other members will rotate in and out of the shampoo team as their specific tasks are completed. Ignas has to report to A) both the marketing manager and the personal care product manager. B) Angelique, the CEO of Cosmeto, but only while the shampoo is being marketed. C) the geographic distribution manager, who will help Ignas determine a target market. D) to either the marketing manager or the chemical formula manager.,

A) both the marketing manager and the personal care product manager.

Natasha sets up a publishing company, which uses freelance editors, writers, and marketers located in various areas of the United States. Even though these people never see each other face-to-face, the company runs efficiently. Natasha accomplished this by creating a A) boundaryless organization. B) strategic alliance. C) B2B network structure. D) tall organization.

A) boundaryless organization.

Which of the following structures is an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer? A) divisional B) transitional C) organic D) functional

A) divisional

An organizational structure consisting of all the departments within the company that are needed to produce its goods or services is a ________ structure. A) functional B) geographic C) divisional D) product

A) functional

BorderCrossings Delivery Corporation organizes its managers according to the different regions of the world in which the managers work. This is an example of a ________ structure. A) geographic B) customer C) product D) matrix

A) geographic

How does the product team structure differ from the matrix structure? A) It allows dual reporting relationships. B) It permanently assigns employees to cross-functional teams. C) It focuses on designing and marketing quality products. D) It allows team members to work with other teams.

B) It permanently assigns employees to cross-functional teams.

RideOn, Inc., is an automobile company that has strategic alliances with two entities: a supplier in India and a manufacturer in South Africa. RideOn's vehicles are known for being of good quality, but they are more expensive than the average person can afford. The company would like to further reduce its costs so that it can pass those savings on to the end consumer. To do this RideOn would most likely A) set up a liaison relationship between the South African manufacturer and a distributor in China. B) form a strategic alliance with a distributor in China. C) form a joint venture with the supplier in India. D) create a boundaryless structure with the manufacturer in South Africa.

B) form a strategic alliance with a distributor in China.

Chico'sPizza established a basic division of labor among "chefs" and "food servers" in which chefs perform all tasks involved in actual cooking, and food servers carry out all tasks involved in giving food to the customers. Chico's Pizza implemented A) a matrix structure. B) job design. C) a divisional structure. D) a product structure.

B) job design.

A manager increases the number of tasks that a subordinate has to do in order to make the job more interesting for the subordinate. This is known as A) job simplification. B) job enlargement. C) job enrichment. D) task identity.

B) job enlargement.

Which of the following is often known as an ad hoc committee? A) a functional team B) a cross-functional team C) a task force D) managers with integrating roles

C) a task force

What is the main problem with the matrix structure's dual reporting relationship? A) tracking responsibilities B) tasks are more complex C) conflicting demands can arise D) deciding which job will finish faster

C) conflicting demands can arise

At Xen, Ltd., each product line is managed within a division. In each of these divisions, the division manager is responsible for A) giving each employee in the division a large amount of autonomy. B) devising a corporate-level plan with the managers of other divisions. C) creating a separate business-level strategy for its division. D) making sure each job in the division has high skill variety.

C) creating a separate business-level strategy for its division.

Tot Beverages forms a B2B network structure by A) entering into an agreement with a company in Brazil that allows the Brazilian company to manufacture and market Tot Beverages to the Brazilian market. B) purchasing its domestic bottle supplier, foreign syrup producer, and domestic distributor in order to gain more control over every stage of the value chain. C) creating a series of agreements with its supplier in Brazil, manufacturer in Mexico, and distributor in the United States to produce and market Zing Col. D) purchasing a domestic clothing store, a Swiss pharmaceutical company, and an English movie production company.

C) creating a series of agreements with its supplier in Brazil, manufacturer in Mexico, and distributor in the United States to produce and market Zing Col.

When different managers from different functional areas are brought together to work on an organizational task, they are known as a(n) ________ team. A) functional B) co-dependent C) cross-functional D) independent

C) cross-functional

In the design of an organization, another name for "market structure" is "________ structure." A) product B) geographic C) customer D) functional

C) customer

Organizing tools that managers use to increase communication among functions and divisions are known as ________ mechanisms. A) expansion B) interaction C) integrating D) synchronizing

C) integrating

The idea that an organization's hierarchy should be designed with as few levels of authority as are necessary to use the organization's resources in an efficient and effective manner falls under which of the following principles? A) integration B) allocation C) minimum chain of command D) consolidation of command

C) minimum chain of command

The nature of an organization's human resources is an important determinant of the organization's structure. True or False

true

Which of the following explains Hackman and Oldham's theory of how the job characteristics model affects three critical psychological states? A) The more employees are given work responsibility, the more frustrated they become because they know that they will never get additional remuneration for it. B) The more employees feel that they are responsible for work outcomes and how it affects their positions in the company, the less motivating their work becomes. C) The more employees feel that they are being used efficiently by the company, the more their expectation of better compensation and higher position increases. D) The more employees feel that they are responsible for work outcomes and for knowing how those outcomes affect others, the more motivating their work becomes.

D) The more employees feel that they are responsible for work outcomes and for knowing how those outcomes affect others, the more motivating their work becomes.

Explain the importance of good communication in order for an organization to gain a competitive advantage.

In order for an organization to gain a competitive advantage, managers must strive to increase efficiency, quality, responsiveness to customers, and innovation. Good communication is essential for attaining each of these four goals and thus is a necessity for gaining a competitive advantage. Managers can increase efficiency by updating the production process to take advantage of new and more efficient technologies and by training workers to operate the new technologies and expand their skills. Similarly, improving quality hinges on effective communication. Managers need to communicate to all members of an organization the meaning and importance of high quality and the routes to attaining it. Good communication can also help to increase responsiveness to customers. When the organizational members who are closest to customers are empowered to communicate customers' needs and desires to managers, managers are better able to respond to these needs. Innovation, which often takes place in cross-functional teams, also requires effective communication.

Briefly explain organizational structure, organizational design, and contingency theory.

Organizational structure is the formal system of task and job reporting relationships that determines how employees use resources to achieve organizational goals. Organizational design is the process by which managers make specific organizing choices about tasks and job relationships that result in the construction of a particular organizational structure. According to contingency theory, managers design organizational structures to fit the factors or circumstances that are affecting the company the most and causing them the most uncertainty. Thus, there is no one best way to design an organization. Design reflects each organization's specific situation, and researchers have argued that in some situations stable, mechanistic structures may be most appropriate while in others flexible, organic structures might be the most effective.

A business-to-business (B2B) network is a company-specific virtual information system that allows workers to share their knowledge and expertise and find others to help solve ongoing problems. True or False

false

A differentiation strategy aimed at increasing the customer's perception of an organization's services usually succeeds even with an inflexible structure. True or False

false

The degree to which a job design gives a worker the freedom to schedule his or her tasks and to decide how to carry them out is known as the task identity. True or False

false

The more complex an organization, the less important the use of cross-functional teams becomes to the organization. True or False

false

When managers organize divisions according to the types of customer to whom they market their products, they are focusing on a product structure. True or False

false