2023: WK 12

Dylan has been working as a physical therapist in Health Body for the last year. His boss, Mandy, runs the practice. Mandy has recently hired a practice manager, but she still asks Dylan to take on certain clients with whom she has been working for a long time. The appointments she books for him sometimes clash with appointments that are booked through the practice manager. Dylan is not sure what to do in such cases. This is a broken _________.

• chain of command

• authority

• unity of command

• span of control

Answer explanation

The unity-of-command concept says that a person should have one and only one superior to whom he or she is directly responsible.

If you are a CEO setting up a team structure in your organisation, you are trying to achieve which of the following?

• Regulate barriers between the company and its customers

• Reduce competition and organisational politics

• Eliminate vertical and horizontal boundaries

• Compete against a matrix organisation

Answer explanation

Team structures try to eliminate vertical and horizontal boundaries and break down external barriers between the company and its customers and suppliers.

Which of the following organisational designs is typically mechanistic?

• Bureaucracy

• Team

• Simple

• Matrix

Answer explanation

The mechanistic model is synonymous with bureaucracy.

Jane has worked for five years in a professional organisation that focuses on high specialisation, and her productivity is expected to be high. Should her manager continue to keep Jane in her work role for another five years?

• Yes, tenure highly rewards good performance in a professional organisation.

• No, Jane is likely to become bored, fatigued, and stressed if she continues to stay in her position.

• Yes, Jane will greatly enjoy performing tasks she is skilled in and familiar with, and her productivity and job satisfaction will stay high.

• No, Jane will leave the company for another position as the average length of tenure is now three to five years in any job, position or company.

Answer explanation

Negative behavioural outcomes from high specialisation are most likely to surface in professional jobs occupied by individuals with high needs for diversity and personal growth. Over time their job satisfaction will be lower. Jane is likely to become bored, fatigued, and stressed if she continues to stay in her position.

Katy is a customer service representative and often develops unique plans to appease disgruntled customers so that her organisation can keep their business. Which best describes Katy's job?

• Low formalisation

• Low departmentalisation

• High formalisation

• High departmentalisation

Answer explanation

Katy's job has low formalisation.

Max works in an advertising agency where there are frequent power struggles, fights between managers regarding who gets the best employees assigned to their projects, and ambiguity about who reports to whom. What is the organisational design of the advertising agency?

• Virtual

• Simple structure

• Bureaucracy

• Matrix

Answer explanation

The advertising agency has a matrix organisational design.

Network and modular organisations are also known as _______.

• Virtual structures

• Team structures

• Downsized organisations

• Departmentalised organisations

Answer explanation

Network or modular organisations (small, core organisation that outsources major business functions) are also known as virtual structures.

Sandy works for an electronic manufacturer that plans to downsize its workforce. Before conducting any lay-offs, the manufacturer offers voluntary early retirement programs and severance packages to its employees. What downsizing strategy is the manufacturer utilising?

• Participation

• Communication

• Assistance

• Investment

Answer explanation

The manufacturer is utilising the participation downsizing strategy.

Providing severance pay and job search assistance to employees following a lay-off is an example of ________.

• The communication downsizing strategy

• The investment downsizing strategy

• An effective downsizing strategy

• An ineffective downsizing strategy

Answer explanation

Providing severance, extended healthcare benefits and job search assistance to employees following a lay-off is an example of an effective downsizing strategy.

Clean Company manufactures generic shampoo and soap that are sold at prices that are much lower than what consumers pay for name brands. The company does everything it can to keep its manufacturing costs low. What strategy is Clean Company using?

• Innovation strategy

• Imitation strategy

• Technology strategy

• Cost-minimisation strategy

Answer explanation

Clean Company is using the cost-minimisation strategy, emphasising tight expense controls and price cutting.