Chapter 7 MGT3013
What are the advantages of a virtual network organizational structure?
Can draw on expertise worldwide Highly flexible and responsive Reduced overhead costs
What are the two types of teams used in a team-based approach to organizational design?
Cross-functional teams Permanent teams
What are the disadvantages of a team-based approach to organizational design?
Dual loyalties and conflict Time and resources spent on meetings Unplanned decentralization
What are the disadvantages of a divisional organizational structure?
Duplication of resources across divisions Less technical depth and specialization Poor coordination across divisions
What are the advantages of a functional organizational structure?
Efficient use of resources; economies of scale In-depth skill specialization and development Top manager direction and control
What are the advantages of a divisional organizational structure?
Fast response, flexibility in unstable environment Fosters concern for customer needs Excellent coordination across functional departments
What are the disadvantages of the matrix approach to the organizational design?
Frustration and confusion from dual chain of command High conflict between two sides of the matrix Many meetings, more discussion than action
What factors influence the choice between centralization and decentralization in organization design?
Greater change and uncertainty in the environment are usually associated with decentralization. The amount of centralization or decentralization should fit the firm's strategy. In times of crisis or risk of company failure, authority may be centralized at the top.
What are the characteristics of service technology?
Intangible output. The output of a service firm is intangible. Services are perishable and, unlike physical products, cannot be stored in inventory. The service is either consumed immediately or lost forever. Direct contact with customers. Employees and customers interact directly to provide and purchase the service. Production and consumption are simultaneous.
What are the disadvantages of a virtual network organizational structure?
Lack of control; weak boundaries Greater demands on managers Weaker employee loyalty
What are the advantages of the matrix approach to organizational design?
More efficient use of resources than single hierarchy Flexibility, adaptability to changing environment Interdisciplinary cooperation, expertise available to all divisions
What are the disadvantages of a functional organizational structure?
Poor communication across functional departments Slow response to external changes; lagging innovation Decisions concentrated at top of hierarchy, creating delay
What are the advantages of a team-based approach to organizational design?
Reduced barriers among departments, increased compromise Shorter response time, quicker decisions Better morale, enthusiasm from employee involvement
What are the three types of manufacturing technology?
Small-batch production firms produce goods in batches of one or a few products designed to customer specification. Mass production technology is distinguished by standardized production runs. In continuous process production, the entire workflow is mechanized in a sophisticated and complex form of production technology. Because the process runs continuously, it has no starting and stopping.
The matrix structure has "two-boss employees." What is the difference between a matrix boss and a top leader in this structure?
The matrix boss is the product or functional boss, who is responsible for one side of the matrix. The top leader is responsible for the entire matrix. The top leader oversees both the product and functional chains of command.
What is the primary difference between a divisional and a functional organizational structure?
The primary difference between divisional and functional structures is that in a divisional structure, the chain of command from each function converges lower in the hierarchy.
What factors are associated with a larger span of control?
Work performed by subordinates is stable and routine. Subordinates perform similar work tasks. Subordinates are concentrated in a single location. Subordinates are highly trained and need little direction in performing tasks. Rules and procedures defining task activities are available. Support systems and personnel are available for the manager. Little time is required in nonsupervisory activities, such as coordination with other departments or planning. Managers' personal preferences and styles favor a large span.
What does a project manager do?
a person who is responsible for coordinating the activities of several departments for the completion of a specific project.
What is a task force?
a temporary team or committee designed to solve a problem involving several departments.
What are the characteristics of a functional organizational structure?
activities are grouped together by common function from the bottom to the top of the organization. groups positions into departments based on similar skills, expertise, work activities, and resource use.
What are the characteristics of a divisional organizational structure?
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.
What is the chain of command?
an unbroken line of authority that links all employees in an organization and shows who reports to whom.
What are the characteristics of the matrix approach to organizational design?
combines aspects of both functional and divisional structures simultaneously, in the same part of the organization. evolved as a way to improve horizontal coordination and information sharing. One unique feature of the matrix approach is that it has dual lines of authority (violates unity of command principle).
What is a Cross-functional team?
consist of employees from various functional departments who are responsible to meet as a team and resolve mutual problems
What is centralization?
decision authority is located near the top of the organization.
What is decentralization?
decision authority is pushed downward to lower organization levels.
What are the five basic approaches to departmentalization (grouping positions into departments and departments into the total organization)?
functional divisional matrix team-based virtual
What is a permanent team?
groups of employees who are organized in a way similar to a formal department
What is the span of control with a flat organization structure?
has a wide span, is horizontally dispersed, and has fewer hierarchical levels.
What is staff authority?
is narrower and includes the right to advise, recommend, and counsel in the staff specialists' area of expertise.
What is collaboration?
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.
What is unity of command?
means that each employee is held accountable to only one supervisor.
What are the characteristics of the virtual network organizational structure?
means that the firm subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization. The organization may be viewed as a central hub surrounded by a network of outside specialists, sometimes spread all over the world.
What are the characteristics of the team-based approach to organizational design?
organization design 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. With a team-based structure, the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization's goals.
What is the span of control with a tall organization structure?
overall narrow span and more hierarchical levels.
what is line authority?
people in management positions have formal authority to direct and control immediate subordinates.
What is the scalar principle?
refers to a clearly defined line of authority in the organization that includes all employees.
What is relational coordination?
refers to frequent, timely, problem-solving communication carried out through employee relationships of shared goals, shared knowledge, and mutual respect.
What is coordination?
refers to the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments.
What is work specialization (also known as division of labor)?
the degree to which organizational tasks are subdivided into separate jobs.
What is the definition of organizing?
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.
What is responsibility?
the duty to perform the task or activity as assigned.
What is Authority?
the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.
What is authority and what are its three distinguishing characteristics?
the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes. Authority is vested in organizational positions, not people. Authority flows down the vertical hierarchy. Authority is accepted by subordinates.
What is the span of management?
the number of employees reporting to a supervisor. Sometimes called the span of control, this characteristic of structure determines how closely a supervisor can monitor subordinates.
What is accountability?
the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.
What is delegation?
the process managers use to transfer authority and responsibility to positions below them in the hierarchy.
What is the definition of organization structure?
the set of formal tasks assigned to individuals and departments formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managers' control the design of systems to ensure effective coordination of employees across departments
What is an organization chart?
the visual representation of an organization's structure.
