Exam 9: Organisational Structure and Design

Organizational design is the organization's formal framework by which job tasks are divided, grouped, and coordinated.

list and explain the six key elements in designing an organization's structure.

Woodward's findings support that there is "one best way" to organize a manufacturing firm.

An online Arabic sweets retailer that sells and ships sweets to customers all over the world and has a payroll of six employees, is likely to have which kind of organizational structure?

Some organizational theorists go so far as to say that an organization's ability to ___________ may be the only sustainable source of competitive advantage.

Custom Leather (Scenario) Lamia has been hired as a consultant for XYZ Consulting. Her first assignment is to work with one of XYZ's newest clients, Custom Leather, Inc., a manufacturer of high- end leather furniture. Custom Leather was founded over a decade ago with the idea that great looking, comfortable leather furniture could be custom made and delivered to customers in 30 days. Traditionally, retailers stock leather sofas to satisfy the desire to receive new furniture fast-limiting the choice of colors and style for the consumer. In stark contrast, Custom Leather offers 13 different styles in over 70 different colors-from rich, deep browns to bright, sunflower; sleek, silver grays and bright, ruby red-through a select group of retail outlets. Each piece is built to the customer's individual requirements and is shipped within 2- 3 weeks. However, the emergence of a new manufacturing technology has enabled a few, traditionally mass- production competitors to offer greater customization, minimizing some of Custom Leather's competitive advantage. As a result, Custom Leather is considering sweeping changes to current work processes and organizational structure. -Masoud is considering doubling the size of his workforce in conjunction with expanding the number of retail outlets that carry Custom Leather products. Lamia tells him that he should expect the organization to become more__________ as a result of this change.

General Hospital (Scenario) Maha is a registered nurse in charge of a new unit at her hospital. She would like to have a more laid back approach in dealing with her new staff, but the hospital demands that there be strict hierarchical levels and that all decisions must be signed off by Maha. Sometimes this drives Maha crazy-the constant filling out of forms, and so forth. She also feels that the numerous levels of hierarchy are unnecessary and place barriers between herself and her staff. She isn't sure why things have to be so "organized" and is thinking about speaking with her boss in an attempt to change her unit so that it has more flexibility and fewer rules. -Maha is required to sign off on all decisions, suggesting the hospital has what kind of decision- making authority?

Which one of Fayol's 14 principles of management helps preserve the concept of a continuous line of authority?

Internal boundaries are boundaries that separate the organization from its customers, suppliers, and other stakeholders.

Which statement accurately defines work specialization?

Several years after the retirement of Mr. Jamal, management at JOC decided to sell off its oil exploration and drilling supply holdings, and instead focus on the more profitable distribution end of the business. In conjunction with this decision, management decided to outsource most of its non core functions, such as accounting, payroll, and human resources. These moves are consistent with what type of contemporary organizational design?

An organic organization would likely be very flexible.

The relationship between organizational size and structure tends to be linear.

Why is keeping employees connected a major structural design challenge for managers?

Black Gold (Scenario) Jamal Oil Corporation (JOC) began as a relatively small oil company. However, through the years it has grown to become an international corporation. -A sharp rise in oil prices helped JOC expand. Jamal concluded that it was impractical and inefficient for all decisions to continue flowing through his office. He granted his key subordinates the authority and responsibility to manage others within their areas of specialty. This organizational structure is best described as__________ a structure.

describe a learning organization. What structural aspects does a learning organization need?

The line of authority that extends from the upper levels of management to the lowest levels of the organization is called the__________ .

What factor influences the amount of decentralization an organization uses?

Employee empowerment is a crucial aspect of team structure because there is no line of managerial authority from top to bottom.

It is critical for members in a virtual organization to collaborate on work activities throughout the entire organization.