Chapter 11: Managing Organization Design

Communication flows downward and information may be viewed with suspicion by subordinates.

System 1

Decision making is decentralized.

System 2

Mega Consulting is an example of a ___________________________ organization.

learning

Which of the following is the best example of a company using a bureaucratic model of organization design?

Creativity is terrific, but sometimes creativity can go too far. Izzy's Ice Cream is known for its unusual flavors, but last week, the employees came up with something they called Mud. Sure, it was just chocolate ice cream, but Izzy had to tell his workers, "No naming ice cream after dirt or anything else people would not want to eat!"

Dropbox's organizational structure includes marketing, legal, product, customer success, and human resources departments. This functional structure is appropriate because It ensures the structure can meet the needs of the organization as it grows Dropbox offers only one product line: cloud storage and related services: cloud storage Dropbox services customers around the world It ensures that decision making is centralized

Dropbox offers only one product line: cloud storage and related services: cloud storage

As a result of this structure, which of the following are you likely to observe? Check all that apply. A mechanistic organizational structure Employees with greater job skills and knowledge Employees finding creative solutions to job-related challenges A company committed to continuous improvement

Employees with greater job skills and knowledge Employees finding creative solutions to job-related challenges A company committed to continuous improvement

Goal-setting is decentralized and encourages group participation.

System 2

Subordinates feel free to discuss job problems with superiors.

System 2

Professor Hackman was commenting on the effect of a deviant in a long-standing work team. Step back and consider whether a deviant might have a similar effect in the team organization, which does not have long-term or permanent teams. According to Hackman, a deviant may help a group consider __________________________ , but if the deviant has a strong personality and limits the input of others, the problem of _________________________may arise.

alternative solutions; minority domination

Cisco Systems uses a differentiation strategy. They offer their customers the latest in routers and switches. Cisco products may cost a bit more, but customers believe they are worth every penny. If you were a consultant hired to advise Cisco Systems, you would suggest that it have __________________________ structure. a mechanistic an organic

an organic

As an organization becomes more organic, its decision making becomes ___________________________ . It is also true that, as an organization becomes more mechanistic, its decision making becomes _____________________ .

decentralized; centralized

Dropbox's organizational structure includes marketing, legal, product, customer success, and human resources departments. This ____________________ structure is appropriate because matrix functional conglomerate divisional

functional

According to the case study, which of the following factors is somewhat unpredictable in the environment in which Grendene competes? Export regulations Manufacturing processes Competitors Fashion trends

Fashion trends

One difficulty in comparing Bolin and Härenstam's research with Burns and Stalker's earlier study is that Bolin and Härenstam: Included only modern industries, such as high technology companies Included only companies that were based on a postbureaucratic model Included only companies that were based on a bureaucratic model Focused on industries, not the turbulence or stability of the environment

Focused on industries, not the turbulence or stability of the environment

The H-form design can best be described as a ______________________________________ bureaucratic design.

holding company

A principle of organization design is that organization design facilitates the ____________________________. development of investment capital implementation of strategies hiring of staff satisfaction of employees

implementation of strategies

Based on the case study, what is the core technology used to manufacture Melissa brand shoes? Mold manufacturing Shoe shipping Shoe style design Sales forecasting

Mold manufacturing

Zappos uses a human resource strategy strategy. Zappos, an online retailer, prides itself on its excellence in customer service. Its leadership believes that a focus on human resources is key to achieving a competitive advantage in service quality. Its corporate-level strategy is that of the single-product strategy. If you were a consultant hired to advise Zappos, you would suggest that it have _____________________________ structure. divisional matrix functional

functional

When employees report to both a product and a functional manager, they are most likely working in a company with a _____________________________________________.

matrix design

ModernShed is a company that provides custom-designed shed kits. The company has no employees. Instead, functions are performed by contract workers on an as-needed basis. ModernShed can be classified as a _____________________ organization.

virtual

What must be kept in mind as a guiding principle during the organization redesign? It should reflect today's most popular management philosophies more than the ideas of organization stakeholders. It should have deep roots in the history of the organization since while strategies change, the organization design should not. It should take into account all six building blocks of organizations and how they relate to each other. It should conform closely to a universal model of organization design, since variances from a pure model are essentially defects.

It should take into account all six building blocks of organizations and how they relate to each other.

Which of the following reasons would you give to support your recommendation to Cisco Systems? Check all that apply. Narrower spans of management and centralized decision making offer improved product control. Vertical communication flows ensure that decisions are standardized throughout the company. Shorter chains of command and horizontal communication allow for increased innovation. Decentralized decision making allows for greater flexibility in meeting customer needs.

Shorter chains of command and horizontal communication allow for increased innovation. Decentralized decision making allows for greater flexibility in meeting customer needs.

What are the disadvantages of Dropbox's current organizational structure? The functional tasks required by Dropbox are homogeneous, regardless of customer type. The sales department can easily allocate new business development opportunities across the available sales staff. The functional structure may not be sufficient to meet the needs of multiple office locations. Top managers can easily assess the operational efficiency of each functional department.

The functional structure may not be sufficient to meet the needs of multiple office locations.

The XYZ Corporation has a distinct division of labor, consistent rules, and a clear hierarchy. Managers maintain distance between themselves and subordinates, and promotions are awarded based on technical expertise. These are all hallmarks of __________________________________________. a job characteristics approach pooled interdependence a bureaucracy sequential interdependence

a bureaucracy

Which of the following are disadvantages of bureaucratic organizations? Check all that apply. Employment based on expertise leads to more efficient operations. Making exceptions to rules for individual situations may be difficult. The structure may seem less personal to employees and customers. Human processes may not receive adequate attention

Making exceptions to rules for individual situations may be difficult. The structure may seem less personal to employees and customers. Human processes may not receive adequate attention

Which of the following statements best summarizes why structuring an organization is such a challenging objective? Design decisions tend to be political in nature. The structure of an organization is a low-priority decision. The optimal design depends upon many factors.

The optimal design depends upon many factors.

Which of the following reasons would you give to support your recommendation to Zappos? Functional designs are best suited for online businesses. The functional design organizes all other functions as secondary to the human resource function. The single-product strategy can be simply organized by function.

The single-product strategy can be simply organized by function.