Recall the current challenges that are affecting organizational design [MEMO] - Answer-Globalization - allows for markets, technologies, and organizations to be increasingly interconnected
Intense competition - creates an extremely complex and competitive environment (low price tends to win)
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MGMT 443 Exam Study Guide Questions
and Answers
Recall the current challenges that are affecting organizational design [MEMO] - Answer-
Globalization - allows for markets, technologies, and organizations to be increasingly
interconnected
Intense competition - creates an extremely complex and competitive environment (low
price tends to win)
Ethics and the Green movement - pressure to hold employees to high ethical and
professional standards. Green movement you want to avoid doing anything that can
negatively impact the environment (key word: sustainability)
Speed and responsiveness- challenge is to respond quickly and decisively to
environmental changes, org crises, and or shifting customer expectations. "Speed of
development contributes to new product success"
Social Business and Data- digital revolution, facilitating collaboration and
communication
Recall the definitions of the different dimensions of organization design as well as the
contingency factors that affect organizational design (pages 18-21) [MEMO] - Answer-
All are interdependent: Structural dimensions: Labels to describe the internal
characteristics of the org
Formalization- pertains to the amount of written docs in an org i.e procedures, job
descriptions, regulations
Specialization- degree in which org tasks are subdivided into separate jobs (key word:
division of labor)
Hierarchy of authority- who reports to whom, (key word: span of control)
Complexity- # of distinct departments or activities within an org
Centralization- refers to the hierarchical level of whom makes the decisions
Contingency factors:
(Contingency-One thing depends on other things.) - Answer-Contingency factors:
Encompass larger elements that influence structural dimensions
Size- typically measured by # of employees. Can be measured as a whole or specific
components
, Organizational technology- tools, techniques, and actions used to transform inputs into
outputs
The environment- all elements outside the boundaries of the org
Orgs goal and strategy- define the purpose and competitive techniques that set it apart
from others
Org Culture- underlying set of values, key beliefs, understandings, and norms shared by
employees
Understand how the dimensions of organizational design vary between a mechanistic
and an organic structure [UNDR] - Answer-Mechanistic:
The organization is characterized by machine-like standard rules, procedures and a
clear hierarchy of authority.
Organizations are highly formalized and are also centralized, with most decisions made
at the top.
Organic:
The organization is much looser, free-flowing and adaptive. Rules and regulations often
are not written down or,
if written down, are flexibly applied. People may have to find their own way through the
system to figure out
what to do. Hierarchy of authority is looser and not clear cut. Decision making authority
is decentralized.
Understand how contingency factors affect the development of a mechanistic or an
organic structure [UNDR - Answer-Mechanistic:
Large size
Efficient Strategy
Stable Environment
Rigid Culture
Manufacturing Technology
Organic:
Small size
Innovation strategy
Changing Environment
Changes can include: economy, competition, regulatory
Adaptive Culture
Service Technology
Recall the main advantages and disadvantages of high and low levels of each
dimension of organizational design (e.g.: on motivation, innovation, individual-level
efficiency, decision- making efficiency, depth of knowledge, sense of empowerment,
etc.). - Answer-Formalization
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