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Chapter 7- Designing Organizational Structure Questions & Answers(GRADED A+) $14.99   Add to cart

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Chapter 7- Designing Organizational Structure Questions & Answers(GRADED A+)

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Organizing - ANSWERthe process by which managers establish the structure of working relationships among employees to allow them to achieve organizational goals efficiently and effectively Organizational Design - ANSWERthe process by which managers create a specific type of organizational structu...

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Chapter 7- Designing Organizational
Structure Questions &
Answers(GRADED A+)

Organizing - ANSWERthe process by which managers establish the structure of working relationships
among employees to allow them to achieve organizational goals efficiently and effectively



Organizational Design - ANSWERthe process by which managers create a specific type of
organizational structure and culture so a company can operate in the most efficient and effective way




Organizing Structure - ANSWERthe formal system of task and job reporting relationships that
determines how employees use resources to achieve organizational goal



Contingency Theory - ANSWERManagers design organizational structures to fit the factors or
circumstances that are affecting the company the most/ causing the most uncertainty.



End: There is no one best way to design an organization



Factors Affecting Organizational Structure - ANSWER1. The nature of the organizational environment



2. The type of strategy the organization pursues



3. The technology the organization uses



4. The characteristics of the organization's human resources



Organic (Flexible) Organizational Structure - ANSWER"Flexible Structure with Innovative Culture"



Organizing choices...

1. Decentralize authority

,2. Empower lower-level employees to make important operating decisions

3. Encourage values and norms that emphasize change and innovation



Determining Factors:

1. Environment: changing/ uncertain

2: Strategy: Differentiation/ Diversification

3. Tech: Advanced

4. HR: skilled labor force, high collaboration in groups and teams



Job Design & the result - ANSWERThe process by which managers decide how to divide tasks into
specific jobs



Result: Division of labor or job simplification



Flexible Structure Advantages - ANSWER1. Faster decision making/ communication

2. Easier to obtain resources

3. Empowered Employees who internalize strong professional values/ norms of behavior as part of
their training



Strategies for Flexibility (Organic Orgs.) - ANSWERBusiness Level-



1. Differentiation Strategy:



Managers can develop new or innovative products quickly—an activity that requires extensive
cooperation among functions or departments.



EX: A candy company may differentiate their candy by improving the taste or using healthier
ingredients.



Corporate Level-



2. Diversification:

, Managers can design a flexible structure to provide sufficient coordination among the different
business divisions



EX: Entering into new businesses on its own by merging with another company or by acquiring a
company operating in another field or service sector.



Mechanistic Organizational Structure - ANSWER"Formal Structure with Conservative Norms"



Organizing choices...



1. Bring stability/ formality to the organizational structure

2. Establish values/ norms that emphasize obedience and being a team player.

3. Decisions are made within a clearly defined hierarchy of authority, and use detailed rules,
standard operating procedures (SOPs), and restrictive norms to guide and govern employees'
activities



Determining Factors:

1. Environment: Stable/ certain environments with ready available resources

2. Strategy: Low-Cost, Vertical Integration

3. Tech: simple

4.HR: low-skilled labor



Strategy for Mechanistic Organization - ANSWERBusiness Level-



1. Low-Cost Strategy: gives managers greater control over the activities of an organization's various
departments.



EX:a low-cost strategy that is aimed at driving down costs in all functions



Corporate Level-



2. Vertical Integration Strategy:

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