Exam 4: Basic Challenges of Organizational Design

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Write a brief note on how organizations balance centralization and decentralization.

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The ideal situation for an organization is a balance between centralization and decentralization of authority so that middle and lower managers who are at the scene of the action are allowed to make important decisions, and top managers' primary responsibility becomes managing long-term strategic decision-making. The result is a good balance between long-term strategy making and short-term flexibility and innovation as lower-level managers respond quickly to problems and changes in the environment as they occur.

________ is the power to hold people accountable for their actions and to make decisions about how to invest and use organizational resources.

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D

Top managers should make all the decisions if an organization faces a rapidly changing environment.

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Which of the following integrating mechanisms involves creating a permanent committee to promote coordination within an organization?

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Tasks associated with a role are clearly defined in a mechanistic structure.

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Which of the following refers to the compromise that emerges when decision-making and coordination are evolutionary processes and people use their judgment to address a problem?

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________ refers to a situation where the authority to make important decisions is retained by managers at the top of the hierarchy.

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Which of the following is an adaptive function?

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________ involves choices about distributing authority within an organization.

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Integration is the way in which a company allocates people and resources to organizational tasks.

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Differentiation is the process of establishing and controlling the division of labor in an organization.

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Norms are formalized rules of behavior within an organization.

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A(n) ________ is a classification of people in an organization according to authority and rank.

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________ is a management approach in which the design of an organization's structure is tailored to the sources of uncertainty facing an organization.

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Rate-busters are employees who ________.

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Division of labor and differentiation are high in a complex organization.

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Compare and contrast mechanistic structures and organic structures.

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________ structures promote flexibility, so people initiate change and can adapt quickly to changing conditions.

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________ is the process of coordinating various tasks, functions, and divisions to work together and not be at cross-purposes.

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Managers meet in temporary committees to coordinate cross-functional activities in some cases. This is an example of using a(n) ________ to integrate activities.

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