Exam 5: Basic Organization Designs

An organization with employees over 2,000 in number will typically have a very organic organizational structure.

Application of Bases of Power Jerri is confused. She thought that once she had the title of manager, everyone would listen to her and accept her authority and power. However, she has noticed other employees that seem to have power. Whenever someone has a question about the computer system, they always go to Helen who actually established the current system they are using. Usually Helen can get things up and running quicker than going to the support staff for help. Then there is Joe who has a remarkable amount of charm and charisma. He seems to have a power based simply upon him. Then there is Jill, her secretary, who has a power entirely of her own. Jill turns in the timecards weekly, and Jerri has seen her more than once override the time clock and clock somebody in earlier than they actually arrived or clock out for them when the employee left work early. When Jerri questioned her about it, Jill just laughed and said that they had been doing it for years and the time all averaged out. The company allowed no overtime so any extra time spent after work was not compensated. Jerri sometimes wonders if she has any power at all. -Jerri's success as a manager depends on acquiring and appropriately utilizing

The unique characteristic of the matrix structure is that employees have only one boss.

When five differing workers each do one specific job preparing a Big Mac at McDonald's, they are engaging in

Application of Departmentalization John is aware that the structure of his organization must change in order to compete more effectively in today's global market. However, he is not sure which structure would work best for his company. His company is currently organized around an accounting, human resource, sales, purchasing, and manufacturing departments. However, there are other choices available. He has considered reorganizing around their primary products, which are frames, silk flowers, dried flowers, art supplies, craft supplies, and material. However, equally important are the differing clientele they serve, who are homemakers that do arts/crafts, interior decorators, large institutions, and professional consultants. Since the business is growing, they now have stores across the United States primarily in the Northwest, Midwest, South, and Southwest areas. Plus, his customers seldom shop for just one type of item. Frequently they purchase not only the flowers, but also the vases and other supplies that are needed in order to complete the arrangement, which means oftentimes shopping in most of the areas in the store. -Which of the following departmental structures would be used if the grouping were based on the areas served in the United States?

_________is a type of departmentation that could be called a "two- boss" system, because each worker responds to directives from two supervisors from different units or departments.

List five types of departmentalization that are available.

The process of _________involves making decisions about how specialized jobs should be allocated, the rules to guide employees' behaviors, and at what level decisions are to be made.

Environment is a major influence on structure.

_________s not an advantage of the matrix structure.

Many organizations are increasing their span of control.

A purchasing department may be created because the hospital administrator cannot effectively handle all purchasing. What type of position authority has been created?

Three basic approaches to departmentalization are by:

_________is a characteristic of the matrix organizational structure.

Organizational structure should always _________organizational strategy.

_________is the type of authority held by an information systems manager who primarily renders technical advise to the corporation.

Application of Organizational Structure Jim Johnson is the CEO of a major manufacturer of farming equipment. His company has been in business for the last 100 years and has been very profitable. The company is very formal and tall with formalized communication channels and rigid hierarchical relationships. Mr. Johnson makes all major decisions. This has worked very well until lately. It has begun to have some major global competition. Companies overseas are bringing new products into the United States at a lower price. Furthermore, just yesterday, the new vice- president had mentioned that he felt that there was a major market overseas for the company's products. As its strategy was beginning to change, Mr. Johnson also realized its structure too would need to change, but to what? The company was large and, prior to these changes, the technology utilized, while extensive, had been very routine. What is he to do? -What qualifies the company to be a mechanistic structure?

No one should be held responsible for something over which he or she has no authority.

A manager who organizes his or her plant by separating engineering, accounting, human resources, and purchasing is using _________departmentalization.

The rights inherent in a managerial position to give orders and expect them to be obeyed is known as