tendencies by which the largest organizations are becoming larger to gain a competitive advantage - Answer-Bureaucratic Control, Centralized decisions, Narrow spans (tall hierarchies), High proportions of middle managers, and Formalization (mechanistic structure)
advantages of large organization...
mgmt 443 final exam questions and answers 2024 202
tendencies by which the largest organizations are
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MGMT 443 Final Exam Questions and
Answers 2024-2025
tendencies by which the largest organizations are becoming larger to gain a competitive
advantage - Answer-Bureaucratic Control, Centralized decisions, Narrow spans (tall
hierarchies), High proportions of middle managers, and Formalization (mechanistic
structure)
advantages of large organizations - Answer-Ecs. of scale, Less vulnerable to
economic downturns, Access to resources, and Can take greater risks
disadvantages of large organizations - Answer-Rigid to changes in the environment,
Less adaptive to customer needs, Lower empowerment and innovation, and More
specialized, less flexible jobs
four stages of organizational growth and maturity - Answer-entrepreneurial stage,
collectivity stage, formalization stage, and elaboration stage
entrepreneurial stage - Answer-When an organization is born, the emphasis is on
creating a product or service and surviving in the marketplace. The founders are
entrepreneurs, and they devote their full energies to the technical activities of production
and marketing. The organization is informal and non-bureaucratic. The hours of work
are long. Control is based on the owners' personal supervision. Growth is from a
creative new product or service.
crisis of entrepreneurial stage - Answer-Need for leadership. As the organization starts
to grow, the larger number of employees causes problems. The creative and technically
oriented owners are confronted with management issues, but they may prefer to focus
their energies on making and selling the product or inventing new products and
services. At this time of crisis, entrepreneurs must either adjust the structure of the
organization to accommodate continued growth or else bring in strong managers who
can do so.
collectivity stage - Answer-Employees identify with the mission of the organization and
spend long hours helping the organization suc-ceed. Members feel part of a collective.
Communication and control are mostly informal, although a few formal systems begin to
appear.
Crisis of collectivity stage - Answer-If the new management has been successful, lower-
level employees gradually find themselves restricted by the strong top-down leadership.
Lower-level managers begin to acquire confidence in their own functional areas and
want more discretion. An autonomy crisis occurs when top managers, who were
successful because of their strong leadership and vision, do not want to give up
responsibility. Top managers want to make sure that all parts of the organization are
, coordinated and pulling together. The organization needs to find mechanisms to control
and coordinate departments without direct supervision from the top.
formalization stage - Answer-involves the installation and use of rules, procedures, and
control systems. In the formalization stage, communication is less frequent and more
formal, and more likely to follow the hierarchy of authority. Engineers, human resource
specialists, and other staff may be added. Top management becomes concerned with
issues such as strategy and planning and leaves the operations of the firm to middle
management. Product groups or other decentralized units may be formed to improve
coordination. Incentive systems based on profits may be implemented to ensure that
managers work toward what is best for the overall company.
Crisis of formalization stage - Answer-Too much red tape. At this point in the
organization's development, the proliferation of systems and programs may begin to
strangle middle-level executives. The organization seems bureaucratized. Middle
management may resent the intrusion of staff. Innovation may be restricted. The
organization seems too large and complex to be managed through formal programs.
Elaboration Stage - Answer-The solution to the red tape crisis is a new sense of
collaboration and teamwork. Throughout the organization, managers develop skills for
confronting problems and working together. Bureaucracy may have reached its limit.
Social control and self-discipline reduce the need for additional formal controls.
Managers learn to work within the bureaucracy without adding to it. Formal systems
may be simplified and replaced by manager teams and task forces. To achieve
collaboration, teams are often formed across functions or divisions of the company. The
organization may also be split into multiple divisions to maintain a small-company
philosophy.
Crisis of elaboration stage - Answer-Need for revitalization. After the organization
reaches maturity, it may enter periods of temporary decline. A need for renewal may
occur every 10 to 20 years. The organization shifts out of alignment with the
environment or perhaps becomes slow moving and over-bureaucratized, so it must go
through a stage of streamlining and innovation. Top managers are often replaced during
this period.
how the growth of an organizational size affects the organizational structure - Answer-
formalization, centralization and personnel ratio
formalization and org size - Answer-The reason is that large organizations rely on rules,
procedures, and paperwork to achieve standardization and control across their large
numbers of employees and departments, whereas top managers can use personal
observation to control a small organization.
centralization and org size - Answer-As an organization grows larger and has more
people and departments, decisions cannot be passed to the top because senior
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