Management 3301- Test Prep Questions Chapter 7: organization structure and Design

8. The functional chimneys problem occurs when people in different functions _________. (a) fail to communicate with one another (b) try to help each other work with customers (c) spend too much time coordinating decisions (d) focus on products rather than functions

(a) fail to communicate with one another

4. When an organization chart shows that Vice President of marketing, finance, manufacturing, and purchasing all report to the president, top management is using ____________ structure. (a) functional (b) matrix (c) network (d) product

(a) functional

14. Workers following a compressed workweek schedule often work 40 hours in _________ days. (a) 3 1⁄2 (b) 4 (c) 5 (d) a flexible schedule of

(b) 4

1. The main purpose of organizing as a management function is to _________. (a) make sure that results match plans (b) arrange people and resources to accomplish work (c) create enthusiasm for the needed work (d) link strategies with operational plans

(b) arrange people and resources to accomplish work

3. Rumors and resistance to change are potential disadvantages often associated with _________. (a) virtual organizations (b) informal structures (c) functional chimneys (d) cross-functional teams

(b) informal structures

5. The "two-boss" system of reporting relationships is both a potential source of problems and one of the key aspects of _________ structures. (a) functional (b) matrix (c) network (d) product

(b) matrix

7. An organization using a _________ structure should expect that more problems will be solved at lower levels and that top managers will have more time free to engage in strategic thinking. (a) virtual (b) matrix (c) functional (d) product

(b) matrix

12. The bureaucratic organization described by Max Weber is similar to the _________ organization described by Burns and Stalker. (a) adaptive (b) mechanistic (c) organic (d) horizontal

(b) mechanistic

10. A "tall" organization will likely have _________ spans of control than a "flat" organization with the same number of members. (a) wider (b) narrower (c) more ambiguous (d) less centralized

(b) narrower

11. If a student in one of your course groups volunteers to gather information for a case analysis and the other members tell him to go ahead and choose the information sources he believes are most important, the group is giving this student _________ to fulfill the agreed-upon task. (a) responsibility (b) accountability (c) authority (d) values

(c) authority

6. A manufacturing business with a functional structure has recently acquired two other businesses with very different product lines. The president of the combined company might consider using a _________ structure to allow a better focus on the unique needs of each product area. (a) virtual (b) team (c) divisional (d) network

(c) divisonal

15. Which alternative work schedule is identified by Working Mother magazine as being used by all companies on its list of "100 Best Employers for Working Moms"? (a) Telecommuting (b) Job sharing (c) Flexible hours (d) Part-time

(c) flexible hours

9. An organization that employs just a few "core" or essential full-time employees and outsources a lot of the remaining work shows signs of using a _________ structure. (a) functional (b) divisional (c) network (d) team

(c) network

13. Which organization design would likely be a good fit for a dynamic and changing external environment? (a) Vertical (b) Centralized (c) Organic (d) Mechanistic

(c) organic

2. An organization chart is most useful for _________. (a) mapping informal structures (b) eliminating functional chimneys (c) showing designated supervisory relationships (d) describing the shadow organization

(c) showing designated supervisory relationships

20. Imagine you are a consultant to your university or college president. The assignment is: Make this organization more efficient without sacrificing its educational goals. Although the president doesn't realize it, you are a specialist in network structures. You are going to suggest building a network organization, and your ideas are going to be radical and provocative. Questions: What would be the core of the network—is it the faculty members, who teach the various courses, or is it the administration, which provides the infrastructure that students and faculty use in the learning experience? What might be out- sourced—grounds and facilities maintenance, food services, security, recreation programs, even registration? What types of alliances might prove beneficial—student recruiting, faculty, even facilities?

A network structure often involves one organization "contract- ing out" aspects of its operations to other organizations that specialize in these aspects. The example used in the text was of a company that contracted out its mailroom services. Through the formation of networks of contracts, the organization is reduced to a core of essential employees whose expertise is concentrated in the primary business areas. The contracts are monitored and maintained in the network to allow the overall operations of the organization to continue even though they are not directly accomplished by full-time employees. There are many possibilities for doing something similar in a university. In one model, the core staff would be the faculty. They would be supported by a few administrators who managed contracts with outsourcing firms for things such as facilities mainte- nance, mail, technology support, lawn maintenance, food ser- vices, housing services, and even things like development, registrar, and student affairs. Another model would have the administrators forming a small core staff who contract out for all this and, in addition, for faculty who would be hired "as needed" and on contracts for specific assignments.

19. Why is an organic design likely to be quicker and more flexible in adapting to changes than a mechanistic design?

An organic design tends to be quicker and more flexible be- cause it is very strong in lateral communication and empower- ment. People at all levels are talking to one another and inter- acting as they gather and process information and solve problems. They don't wait for the vertical structure and "bosses" to do these things for them. This means that as the environ- ment changes, they are more likely to be on top of things quickly. It also means that when problems are complex and dif- ficult to solve, they will work with multiple people in various parts of the organization to best deal with them.

16. Why should an organization chart be trusted "only so far"?

An organization chart depicts the formal structure of the orga- nization. This is the official picture of the way things are sup- posed to be. However, the likelihood is that an organization chart quickly becomes out of date in today's dynamic environ- ments. So one issue is whether or not the chart one is viewing actually depicts the current official structure. Second, there is a lot more to the way things work in organizations than what is shown in the organization chart. People are involved in a vari- ety of informal networks that create an informal structure. It operates as a shadow lying above or behind the formal struc- ture and also influences operations. Both the formal structure and informal structure must be understood; at best, an organi- zation chart helps with understanding the formal one.

18. How does a matrix structure combine functional and divisional forms?

The matrix structure is organized in a traditional functional fashion in the vertical dimension. For example, a business might have marketing, human resources, finance, and manu- facturing functions. On the horizontal dimension, however, it is organized divisionally in a product or project fashion, with a manager heading up each special product or project. Members from the functional departments are assigned to permanent cross-functional teams for each product or project. They report vertically to their functional bosses and horizontally to their product/project bosses. This two-boss system is the heart of the matrix organization.

17. In what ways can informal structures be good for organizations?

There are two major ways that informal structures can be good for organizations. First, they can help get work done efficiently and well. When people know one another in informal relation- ships, they can and often do use these relationships as part of their jobs. Sometimes an informal contact makes it a lot easier to get something done or learn how to do something than the for- mal linkages displayed on an organization chart. Second, being part of informal groups is an important source of potential need satisfaction. Being in an informal network or group can satisfy needs in ways that one's job can't sometimes and can add con- siderably to the potential satisfactions of the work experience.