A ________ structure is a flat organization with one person as the central decision-making figure.
- functional
- product
- client-based
- simple
- matrix
A simple structure is a flat organization with one person as the central decision-making figure; it is not large enough to have a high degree of formalization and will only have very basic differences in work specialization.
Decision Making: The process of generating and choosing from a set of alternatives to solve a problem.
The most common kind of restructuring in recent years has been a "flattening" of the organization.
The most common kind of restructuring in recent years has been a "flattening" of the organization.
Restructuring: The process of changing an organization’s structure.
A ________ structure makes perfect sense for a small organization because employees can come and go with no major ripple effects on the organization.
- bureaucratic
- matrix
- multi-divisional
- simple
- geo-demographic
A simple structure makes perfect sense for a small organization because employees can come and go with no major ripple effects on the organization.
Simple Structures: An organizational form that features one person as the central decision-making figure.
What is the primary reason for simple structures being perhaps the most common form of organizational design?
- There are more small organizations than large ones.
- Employees can come and go with no major ripple effects on the organization.
- Changes in specialization lead to less confusion about how exactly employees are supposed to do their jobs.
- Employees feel less emotionally attached to the firm.
- Approval for decisions need not be authorized at every step of the hierarchy.
Simple structures are perhaps the most common form of organizational design, primarily because there are more small organizations than large ones.
Organizational Design: The process of creating, selecting, or changing the structure of an organization.
Which of the following examples illustrates a client structure?
- Ayden's Printing has 18 employees that all report to Ayden.
- Motor Monster has a pistons division, a manifold division, and a gasket division.
- Stone Farms has a restaurant division, a supermarket division, and a festival division.
- BG Limited has a Pacific Northwest division, a Midwest division, and a Northeast Division.
- Lighting Landing has a marketing department, a lending department, and a warranty department.
When organizations have a number of very large customers or groups of customers that all act in a similar way, they might organize their businesses around serving those customers. This is called a client structure.
Client Structure: An organizational form in which employees are organized around serving customers.
Which of the following examples illustrates a functional structure?
- Linda's Pet Grooming has eight employees that all report to Linda.
- Rio Riffic has a hydraulics division, a PVC division, and a fixtures division.
- AB Aeronautics has a private division, a commercial division, and a government division.
- BG Limited has a Pacific Northwest division, a Midwest division, and a Northeast Division.
- Handy Homes has a financial department, a production department, and a sales department.
A functional structure groups employees by the functions they perform for the organization.
Functional Structure: An organizational form in which employees are grouped by the functions they perform for the organization.
Mazie heads Grass Roots Diversified, a company that started making garden rakes in Oregon and has now diversified into a huge range of areas totally unrelated to gardening. Grass Roots has become impossible to run under its current configuration. How should Mazie redesign the organization?
- create complete business units in Oregon, Kansas, and Alabama
- group business units by rakes, furniture, shelving, and kitchen goods
- group employees by accounting, marketing, design, production, and so on
- structure business units according to the technology used to create products
- organize the business units around serving the government, gardening stores, and kitchen stores
Product structures group business units around different products that the company produces. Product structures make sense when firms diversify to the point that the products they sell are so different that managing them becomes overwhelming.
Groupthink: Behaviors that support conformity and team harmony at the expense of other team priorities.
________ structures are perhaps the most common form of organizational design.
- Simple
- Functional
- Client-based
- Product
- Matrix
Simple structures are perhaps the most common form of organizational design.
Organizational Design: The process of creating, selecting, or changing the structure of an organization.
The method by which an organization transforms its inputs into outputs refers to its
- structure.
- technology.
- specialization.
- quality.
- projects.
An organization's technology is the method by which it transforms inputs into outputs.
Technology: The method by which an organization transforms inputs to outputs.
One element of a firm's environment is
- work specialization.
- chain of command.
- decentralization.
- formalization.
- customers.
Customers are an element of a firm's environment.
Customer Service Culture: A specific culture type focused on service quality.
Stately Crafters is a custom manufacturer of hand-crafted furniture. The company has 101 locations throughout the country and relies on decentralized decision making to meet the needs of the dynamic environment and customer needs. Which of the following approaches to organizational design is likely to be appropriate for Stately Crafters?
- matrix
- global
- simple
- organic
- mechanistic
A differentiation strategy often hinges on adjusting to changing environments quickly, which often makes an organic structure more appropriate.
Decision Making: The process of generating and choosing from a set of alternatives to solve a problem.
SB Stationary is the low-cost producer of one type of standard notepad. Given that it operates in a fairly stable environment, the company focuses on making its product as efficiently as possible. Which of the following approaches to organizational design is likely to be appropriate for SB Stationary?
- multi-divisional
- mechanistic
- organic
- global
- matrix
Low-cost producers rely on selling products at the lowest possible cost. To do this well, they have to focus on being as efficient as they can be. Such companies are more likely to take a mechanistic approach to organizational design.
Organizational Design: The process of creating, selecting, or changing the structure of an organization.