OB-13

An organizational chart mainly illustrates which type of coordinating mechanism?

• Formal hierarchy

• Informal communication

• Standardization of skills

• Standardization of output

Standardizing work through job descriptions and procedures:

• is a form of coordination.

• is more common when the work is complex and ambiguous.

• tends to reduce quality and consistency

• is unnecessary in large organizations.

A wider span of control is possible where:

• employees manage themselves rather than being coordinated through close supervision.

• the company has a high degree of formalization and operates in a complex environment.

• the organization has few employees and a tall hierarchy.

• all of these conditions exist.

Candoo Ltd. will soon flatten its hierarchy by removing two of the five layers of management. If the number of employees in the organization remains constant, which of the following must also occur?

• It must adopt a matrix form of departmentalization.

• It must widen the span of control

• It must rely more on direct supervision than standardization to coordinate the resulting structure

• It must centralize decision making.

Which form of departmentalization organizes employees around specific skills or other resources?

• Divisional structure

• Functional structure

• Simple structure

• Matrix structure

All of the following describe potential problems associated with a functional structure, EXCEPT?

• It tends to increase dysfunctional conflict across work units.

• It requires higher levels of interdependence than simple or divisionalized forms, thereby increasing potentially dysfunctional conflict.

• It is more difficult to directly supervise employees within each department.

• Employees are less likely to develop a broader understanding of the business.

A divisionalized structure works best where the organization:

• has few employees.

• operates in one market with one product and one client group.

• wants to assign the most power to executives responsible for technical expertise in the organization.

• is expanding into several distinct product and/or client groups.

Team-based organizations rely extensively on:

• hourly wages and generous employee benefits.

• self-directed work teams

• supervisors as the main source of direction and control.

• a tall hierarchy.

A network structure:

• operates within a larger organization with a divisionalized structure.

• offers the flexibility to realign its structure with changing environmental requirements.

• is a variation of a divisionalized structure.

• is none of these.

For which type of environment should organizations adopt an organic structure?

• Munificent environments

• Dynamic environments

• Stable environments

• Simple environments