Daft Chapter 3

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1. chain of the vertical line of authority that clarifies 12. Geographic An organizational structure in which
command who reports to whom throughout the Structure each region of a country or area of the
organization world is served by a self-contained
division.
2. Collaboration means a joint effort between people
from two or more departments to 13. hierarchical Problems are referred up the hierarchy
produce outcomes that meet a common Referral for more senior managers to reconcile
goal or shared purpose and that are
14. Horizontal employees are organized around core
greater than what any of the individuals
Grouping work processes, the end-to-end work,
or departments could achieve alone
information, and material flows that
3. Committees and disagree - the point of a cross- provide value directly to customers
task forces whose functional committee and task forces is
15. Horizontal refers to communication and
members are to share information to coordinate their
linkage coordination horizontally across
from different departmental activities. Meeting talking,
organizational departments
departments are and disagreeing are the work of the
often worthless committee. These groups should not try 16. Horizontal organizes employees around core
for getting things to "get things done" in the sense of being Structure process.
done. efficient. 17. Information enables managers or frontline workers
4. Departmental affects employees because they share a Systems throughout the organization to routinely
grouping common supervisor and common exchange information about problems,
resources, are jointly responsible for opportunities, activities or decisions.
performance, and tend to identify and 18. Liaison Role a manager or team member is held
collaborate with one another formally accountable for
5. Divisional means people are organized according communicating and coordinating with
Grouping to what the organization produces. other groups

6. divisional also called M-form or a decentralized 19. Matrix Structure combines functional and divisional
structure form, separate divisions can be approaches to emphasize project or
organized with responsibility for program teams
individual products, services, product 20. multifocused a grouping in which the organization
groups, major projects or programs, grouping embraces two or more structural
divisions, businesses or profit centers. grouping alternatives simultaneously,
7. economy of scale a proportionate saving in costs gained often called matrix or hybrid
by an increased level of production. 21. Organizational the organizational chart
8. Full-time Located outside departments and structure is
integrator coordinates several departments. Jobs reflected in:
types include: Project manager, program 22. Outsourcing? Contracting with an outside company to
manager, project manager, brand provide a service or product instead of
manager providing it from within the organization.
9. Functional places together employees who perform 23. A popular form of - false, a small number of firms have
grouping similar functions or work processes or organizing is to tried this approach with some success,
who bring similar knowledge and skills have employees but a typical organization needs to
to bear work on what structure its work activities, positions
10. functional matrix The functional bosses have primary they want in and departments in a way that ensures
authority and the project or product whatever work is accomplished and coordinated
managers simply coordinate product department they to meet organizational goals. Many
activities. choose so that managers try to give some
motivation and consideration to employee choices as a
11. Functional also called a U-form (unitary structure),
enthusiasm stay way to keep enthusiasm high
Structure activities are grouped together by
high?
common function from the bottom to the
top of the organization. 24. Product Matrix project/product managers have primary
authority and functional managers
simply assign technical personnel to
projects and provide advisory expertise
as needed.
25. Reengineering fundamental rethinking and radical redesign
of business processes to achieve dramatic
improvements in critical measures of
performance, such as cost, quality, service,
and speed
34.
26. Relational refers to frequent horizontal coordination
Coordination and communication carried out through
ongoing relationships of shared goals,
shared knowledge, and mutual respect
35.
27. Reporting Chain of Command
relationships
are often
called?
28. Strengths of a - Promotes flexibility and rapid response to 36.
Horizontal changes in customer needs
structure? - Directs attention of everyone toward the
production and delivery of value to the
customer
37.
- Each employee has a broader view of
organizational goals
- Promotes a focus on teamwork and
collaboration 38.
- Improves quality of life for employees by
offering them the opportunity to share
responsibility, make decisions, and be
accountable for outcomes
29. Strengths of a - Enables even small organizations to
virtual obtain talent and resources worldwide
network - Gives a company immediate scale and
structure? reach without huge investments in factories,
equipment or distribution facilities
- Enables the organization to be highly
flexible and responsive to changing needs 39.
- Reduces administrative overhead costs
30. Task force a temporary team or committee formed to
solve a specific short-term problem
involving several departments. Each
member represents the interest of a
department or division and can carry
information from the meeting back to that
department.
31. Tasks forces Task forces are an effective horizontal
temporary or linkage device for temporary issues
40.
permanent?
32. Teams groups of two or more people who interact
and influence each other, are mutually
accountable for achieving common goals
associated with organizational objectives,
and perceive themselves as a social entity
within an organization
33. vertical increasing vertical information capacity,
information includes periodic reports, written
system information and computer-based
communication distributed to managers.
Vertical used to coordinate activities between the
Linkages top and bottom of an organization and are
designed primarily for control of the
organization
Virtual with this grouping the organization is a
Network loosely connected cluster of separate
Grouping components that are electronically
connected for the sharing of information
and completion of tasks
virtual network the organization subcontracts most of its
structure major functions to separate companies and
coordinates their activities from a small
headquarters organization
virtual teams teams that use computer technology to tie
together physically dispersed members in
order to achieve a common goal
Weaknesses of - Determine core processes is difficult and
Horizontal time consuming
Structure? - Requires changes in the culture, job
design, management philosophy, and
information and reward systems.
- Traditional Managers may balk when they
have to give up power and authority
- Requires significant training of employees
to work effectively in a horizontal team
environment
- Can limit in-depth skill development
Weaknesses of - Managers do not have hands on control
Virtual over many activities and employees,
Network - Requires a great deal of time to manage
Structure relationships and potential conflicts with
contract partners
- There is a risk of organizational failure if a
partner fails to deliver or goes out of
business
- Employee loyalty and corporate culture
might be weak because employees feel
they can be replaced by contract services
what are some - Product Structure
other common - Strategic Business Unit Structure
names for a
divisional
structure?
41. What are the - Suited to fast change in unstable 47. What are the types - Departmental Grouping
Strengths for a environment of Departmental - Functional Grouping
divisional - Leads to customer satisfaction because Grouping Options? - Divisional Grouping
structure? product responsibility and contact point - Multifocused Grouping
are clear - Horizontal Grouping
- Involves high coordination across - Virtual Network Grouping
functions
48. What are the - Eliminates economies of scale in
- Allows units to adapt to differences in
Weaknesses for functional departments
products, regions, customers
divisional structure? - Leads to poor coordination across
- Best in large organizations with several
product lines
products
- Eliminates in- depth competence
- Decentralizes decision making
and technical specialization
42. What are the - Achieves coordination necessary to - Makes integration and
Strengths of a meet dual demands from customers standardization across product lines
Matrix - Flexible sharing of human resources difficult
organization? across products
49. What are the - Causes participants to experience
- Suited to complex decisions and
weaknesses of a dual authority, which can be
frequent changes in unstable
matrix organization? frustrating and confusing
environment
- Means participants need good
- Provides opportunity for both
interpersonal skills and extensive
functional and product skill
training
development
- Is time consuming, involves frequent
- Best in medium-sized organizations
meetings and conflict- resolution
with multiple products
sessions
43. What are the - Allows economies of scale within - Will not work unless participants
strengths of functional departments understand it and adopt collegial
Functional - Enables in-depth knowledge and skill rather than vertical- type relationships
Structure? development -Requires great effort to maintain
- Enables organization to accomplish power
functional goals
50. What are the - Slow response time to environmental
- Is best with only one or a few products
weaknesses of changes
44. What are the - Organization structure designates Functional - May cause decisions to pile on top;
three formal reporting relationships Structure? hierarchy overload
components - Organization structure identifies the - Leads to poor horizontal
define grouping together of individuals into coordination
organizational departments and of departments into the - Results in less innovation
structure? total organization - Involves restricted view or
-Organization structure includes the organizational goals
design of systems to ensure effective
communication, coordination, and
integration of efforts across departments
45. What are the - Pressure exists to share scarce
three conditions resources across product lines.
for the Matrix - Environmental pressure exists for two
structure? or more critical outputs, such as for in-
depth technical knowledge and frequent
new products.
- The environmental domain of the
organization is both complex and
uncertain
46. What are the two - Functional Grouping
most common - Divisional Grouping
approaches to
structural design?