Exam 15: Foundations of Organization Structure
A virtual organization lacks flexibility.
False
A(n) ________ model is generally synonymous with the bureaucracy in that it has highly standardized processes for work, high formalization, and more managerial hierarchy.
A
Explain the advantages and disadvantages of a virtual organization.
Typically, a virtual organization is a small, core organization that outsources its major business functions. The major advantage of the virtual organization is its flexibility, which allows individuals with an innovative idea and little money to successfully compete against larger, more established organizations. Virtual organizations also save a great deal of money by eliminating permanent offices and hierarchical roles. Virtual organizations' drawbacks have become increasingly clear as their popularity has grown. They are in a state of perpetual flux and reorganization, which means roles, goals, and responsibilities are unclear, setting the stage for political behavior. Cultural alignment and shared goals can be lost because of the low degree of interaction among members. Team members who are geographically dispersed and communicate infrequently find it difficult to share information and knowledge, which can limit innovation and slow response time.
You have learned about the traditional and new design options for organizational structures. You have decided that one of the designs developed during the last decade or two is probably the most appropriate for your newly formed organization.
-You have recently started your business with a small capital investment. Your business needs a very high degree of flexibility so that you can quickly respond to environmental changes and you are also interested in minimizing costs. Which of the following types of organizations is best suitable for your business?
Proctor & Gamble has separate departments for Tide, Pampers, Charmin, and Pringles. This is an example of departmentalization by ________.
You are the CEO of Achilles Incorporation. You have decided to hire other organizations to perform many of the basic functions of your business. You have hired an accounting firm to keep your records, a recruiting firm to handle human resource functions, and a computer firm to handle all records. To keep costs down, you are looking for other areas in which to outsource operations. You have chosen to operate your business as a ________.
The more scarce, dynamic, and complex the environment, the more organic a structure should be.
Gordon is a new divisional manager at AskSocrates.com. In reorganizing his division, he must make some decisions regarding the span of control for management within his division.
-While observing the departments in his division, Gordon notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly sized spans of control. Which of the following statements is most likely to be true regarding the high-performing managers?
The major advantage of a virtual organization is its ________.
________ refers to the degree to which jobs within the organization are standardized.
The simple structure is characterized by a high degree of departmentalization and narrow span of control.
For much of the first half of the twentieth century, managers viewed work specialization as ________.
Which of the following is a method that companies can use to break down cultural barriers in the global market?
A(n) ________ model is a structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.
The matrix structure reduces the possibility of power struggles.
What is the difference between a mechanistic model and an organic model of organizational structure?
A bureaucracy is characterized by decentralized authority and wider spans of control.
Which of the following is most likely to be a characteristic of an organization pursuing a cost-minimization strategy?
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