Exam 5: Organizational Structure and Design

Refer to the Scenario below to answer the questions that follow. Alberta Gold Energy Corporation (Scenario) Alberta Gold Energy Corporation (AGEC)began as a relatively small oil company.However,through the years it has grown to become an international corporation.Its founder and president,Joe Polanski,reflects on how the company's structure has evolved over the years. -Joe Polanski decided to purchase an oil-drilling supply company in another country.The purchase was classified as related diversification,but distance and the differences in the product line suggested that it should continue to be operated as a separate company.AGEC was now organized under two separate business units and therefore had a ________ structure.

When cosmetics maker Estée Lauder organized its structure around its major brands and operated each as a separate company,it was using product departmentalization.

An organic organization tends to be flexible and have few formal rules.

A simple organizational structure is characterized by ________.

An organization that divides its sales responsibilities into Ontario,Quebec,the Maritimes,and Western Canada is using ________ departmentalization.

Strategy,size,technology,and the degree of uncertainty in the environment together make up what are called ________.

The trend in recent years has been toward ________ spans of control to help reduce costs and speed up decision making.

Work specialization continues to be an important organizing mechanism and a source of ever-increasing productivity.

________ is the obligation or expectation to perform an assigned duty.

Johnson & Johnson makes many well-known brands including Band-Aids,Tylenol,and ACUVUE contact lenses.Their structure is organized under three sectors: consumer health,medical devices,and pharmaceuticals.They use ________ departmentalization.

Assigning designers,production workers,and salespeople to a common work group to develop a new product is called a ________ team.

Horizontal boundaries separate employees by the amount of power they have in an organization.

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

Refer to the Scenario below to answer the questions that follow. Alberta Gold Energy Corporation (Scenario) Alberta Gold Energy Corporation (AGEC)began as a relatively small oil company.However,through the years it has grown to become an international corporation.Its founder and president,Joe Polanski,reflects on how the company's structure has evolved over the years. -The original entrepreneurial venture consisted only of Mr.Polanski and a few employees.It was an informal organization,and everyone reported to Mr.Polanski.This is best described as a ________ structure.

An online wine retailer sells and ships hundreds of wines to customers all over the world with a payroll of only six employees.What kind of organizational structure does it most likely have?

Under which of the following circumstances should an organization use more centralization?

Large public corporations must employ departmentalization by function because it is mandated in the corporate charter.

The many rules and policies designed to standardize jobs relates most closely to which of the following elements of structure?

Refer to the Scenario below to answer the question that follows. Departmentalization at Art & Craft Depot (Scenario) John is president of a chain of stores called Art & Craft Depot.He is aware that the structure of his organization must change in order to compete more effectively in today's global marketplace.However,he is not sure which structure would work best for his company.His company is currently organized under the following departments: accounting,human resources,sales,purchasing,and distribution.However,there are other choices available.He has considered reorganizing around their primary product groups: silk flowers,art supplies,craft supplies,pottery,and fabric.However,equally important are the different types of clients they serve,including homemakers,artists,interior decorators,industrial display contractors,and art schools.The business is growing,and they now have stores in six provinces across Canada.Furthermore,his customers seldom shop for just one type of item.For example,a customer who buys flowers will frequently purchase a vase and other supplies that are required to create a full floral arrangement.This means that individual customers often shop in several merchandise areas of the store. -If Art & Craft Depot organized its structure based on homemakers,artists,interior decorators,industrial display contractors,and art schools,it would be using ________ departmentalization.

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