Exam 13: Organizational Structure

The grouping of jobs by common tasks is termed departmentalization.

Increase in the number of rules and regulations results in increased formalization.

SCENARIO 13-4 After extensively researching both traditional and new design options for organizational structures, you have decided that one of the designs developed since the early 1980s is probably the most appropriate for your newly formed organization. You wish to outsource many of the functions that are usually performed internally.You have chosen to operate your business as a

The mechanistic model and the organic model are at opposite extremes on a continuum.

Decentralized organizations tend to allow low-level personnel to make discretionary decisions.

Work specialization, when overutilized, results in employee boredom, stress and absenteeism.

SCENARIO 13-1 You are developing a training manual that will assist managers in designing an appropriate organizational structure for new organizations.You have included information and references for all of the key questions that managers need to answer. The degree to which rules and regulations are used to direct employees and managers in their work is termed

There is fairly strong evidence linking work specialization to increased job satisfaction.

A review of the research indicates that there is no evidence to support a relationship between span of control and employee performance.

Mike is frustrated because it seems that every decision that he wants to make has to be approved by his boss' boss.Thus, it can be said that his organization is highly decentralized.

The assumption underlying customer departmentalization is that customers in each department have a common set of problems or needs.

Donna works in sales for an office supplies firm that has separate retail, wholesale, and government departments.This is known as departmentalization by

Using examples, define and describe the advantages and disadvantages of the boundaryless organization.

Changes in corporate strategy precede and lead to

Joshua feels confused because he answers to his own boss as well as to another boss who is in charge of one of the company's main products.He is likely working in a matrix structure.

Which of the following is consistent with a simple structure

Daniella is frustrated after working for her new company for a few weeks.It is clear to her that, unlike her past employer, upper management makes the decisions affecting her work.This is an example of

Justin's company is very progressive as it is a continually evolving network of independent companies.It is likely that he is working for a virtual organization.

Norma's company is keen to expand into the Australian market, but does not plan to do so until other companies have proved the viability of the Australian market.This company is likely following an imitation strategy.

An organization that tightly controls costs, refrains from incurring unnecessary innovation or marketing expenses, and cuts prices in selling a basic product pursues a cost-minimization strategy.