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Chapter 6 – Organizational Structure and Design
CHAPTER ORGANIZATIONAL
6 STRUCTURE AND
DESIGN
LEARNING OUTCOMES
After reading this chapter students should be able to:
1. Describe 6 key elements in organizational design.
2. Identify the contingency factors that favor the mechanistic model or the organic model.
3. Compare and contrast traditional and contemporary organizational designs.
4. Discuss the design challenges faced by today’s organizations.
Management Myth
MYTH: Bureaucracies are inefficient.
TRUTH: Bureaucratic organizations are still alive and well and continue to dominate most
medium-sized and large organization.
SUMMARY
This chapter discusses the key concepts and their components and how managers create a
structured environment where employees can work efficiently and effectively. Once the
organization’s goals, plans, and strategies are in place, managers must develop a structure that
will best facilitate the attainment of those goals.
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Copyright ©2015 Pearson Education, Inc.
I. WHAT ARE THE SIX KEY ELEMENTS IN ORGANIZATIONAL DESIGN?
Learning Catalytics Question: Instructor Directions and Follow-Up
Question Question Answer/Response For the Instructor

Type
Word What are the six Options: work Use this at the start of class to aid
Cloud key elements in specialization, students' recall of the six key elements of
organizational departmentalization, organizational design.
design? authority,
responsibility and
power, span of
control,
centralization and
decentralization,
and formalization
A. Introduction
1. Organization design decisions are typically made by senior managers.
2. Organization design applies to any type of organization.
3. Formulated by management writers such as Henri Fayol and Max Weber in the
early 1900s.
4. These principles still provide valuable insights into designing effective and
efficient organizations.
B. What Is Work Specialization?
1. Work specialization is dividing work activities into separate jobs tasks.
a) Individuals specialize in doing part of an activity.
b) Work specialization makes efficient use of the diversity of skills that workers
hold.
2. Some tasks require highly developed skills; others lower skill levels.
3. Excessive work specialization or human diseconomies, can lead to boredom,
fatigue, stress, low productivity, poor quality, increased absenteeism, and high
turnover. (See Exhibit 6-1.)
4. Today's view is that specialization is an important organizing mechanism for
employee efficiency, but it is important to recognize the economies work
specialization can provide as well as its limitations.
C. What Is Departmentalization?
1. Departmentalization is when common work activities are grouped back together so
work gets done in a coordinated and integrated way.
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2. There are five common forms of departmentalization (see Exhibit 6-2).

a) Functional Groups - employees based on work performed (e.g., engineering,
accounting, information systems, human resources)
b) Product Groups - employees based on major product areas in the corporation
(e.g., women’s footwear, men’s footwear, and apparel and accessories)
c) Customer Groups - employees based on customers’ problems and needs (e.g.,

wholesale, retail, government)
d) Geographic Groups - employees based on location served (e.g., North, South,

Midwest, East)
e) Process Groups - employees based on the basis of work or customer flow (e.g.,
testing, payment)
3. With today's focus on the customer, many companies are using cross-functional
teams, which are teams made up of individuals from various departments and that
cross traditional departmental lines.
D. What are Authority and Responsibility?
1. The chain of command is the continuous line of authority that extends from upper
organizational levels to the lowest and clarifies who reports to whom.
2. An employee who has to report to two or more bosses might have to cope with
conflicting demands or priorities.
3. Authority refers to the rights inherent in a managerial position, to give orders and
expect the orders to be obeyed.
4. Each management position has specific inherent rights that incumbents acquire
from the position’s rank or title.
a) Authority is related to one’s position and ignores personal characteristics.
5. When managers delegate authority, they must allocate commensurate
responsibility.
a) When employees are given rights, they assume a corresponding obligation to
perform and should be held accountable for that performance.
b) Allocating authority without responsibility creates opportunities for abuse.
c) No one should be held responsible for something over which he or she has no
authority.
6. What are the different types of authority relationships?
a) The early management writers distinguished between two forms of authority.
(1) Line authority entitles a manager to direct the work of an employee.
(a) It is the employer-employee authority relationship that extends from
top to bottom.
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(b) See Exhibit 6-3.

(c) A line manager has the right to direct the work of employees and make
certain decisions without consulting anyone.
(d) Sometimes the term “line” is used to differentiate line managers from
staff managers.
(e) Line emphasizes managers whose organizational function contributes
directly to the achievement of organizational objectives (e.g.,
production and sales).
(2) Staff managers have staff authority (e.g., human resources and payroll).
(a) A manager’s function is classified as line or staff based on the
organization’s objectives.
(b) As organizations get larger and more complex, line managers find that
they do not have the time, expertise, or resources to get their jobs done
effectively.
(c) They create staff authority functions to support, assist, advice, and
generally reduce some of their informational burdens.
(d) Exhibit 6-4 illustrates line and staff authority.
7. What is Unity of Command?
a) The chain of command is the continuous line of authority that extends from
upper organizational levels to the lowest and clarifies who reports to whom.
b) An employee who has to report to two or more bosses might have to cope with
conflicting demands or priorities.
c) Therefore, the early management writers argued that an employee should have
only one superior (Unity of command).
d) If the chain of command had to be violated, early management writers always
explicitly designated that there be a clear separation of activities and a
supervisor responsible for each.
e) The unity of command concept was logical when organizations were
comparatively simple.
f) There are instances today when strict adherence to the unity of command
creates a degree of inflexibility that hinders an organization’s performance.
8. How does the contemporary view of authority and responsibility differ from the
historical view?
a) The early management writers assumed that the rights inherent in one’s formal
position in an organization were the sole source of influence.
b) This might have been true 30 or 60 years ago.
c) It is now recognized that you do not have to be a manager to have power, and
that power is not perfectly correlated with one’s level in the organization.
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d) Authority is but one element in the larger concept of power.

9. How do authority and power differ?
a) Authority and power are frequently confused.
b) Authority is a right, the legitimacy of which is based on the authority figure’s
position in the organization.
(1) Authority goes with the job.
c) Power refers to an individual’s capacity to influence decisions.
(1) Authority is part of the larger concept of power.
(2) Exhibit 6-5 visually depicts the difference.
d) Power is a three-dimensional concept.
(1) It includes not only the functional and hierarchical dimensions but also
centrality.
(2) While authority is defined by one’s vertical position in the hierarchy, power is
made up of both one’s vertical position and one’s distance from the
organization’s power core, or center.
e) Think of the cone in Exhibit 6-5 as an organization.
(1) The closer you are to the power core, the more influence you have on
decisions.
(2) The existence of a power core is the only difference between A and B in
Exhibit 6-5.
f) The cone analogy explicitly acknowledges two facts:
(1) The higher one moves in an organization (an increase in authority), the closer
one moves to the power core.
(2) It is not necessary to have authority in order to wield power because one can
move horizontally inward toward the power core without moving up.
(a) Example, administrative assistants, “powerful” as gatekeepers with
little authority.
(3) Low-ranking employees with contacts in high places might be close to the
power core.
(4) So, too, are employees with scarce and important skills.
(a) The lowly production engineer with twenty years of experience might
be the only one in the firm who knows the inner workings of all the old
production machinery.
g) Power can come from different areas.
(1) John French and Bertram Raven have identified five sources, or bases, of
power.
(a) See Exhibit 6-6.
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(b) Coercive power -based on fear; Reward power - based on the ability
to distribute something that others value; Legitimate power - based on
one’s position in the formal hierarchy; Expert power - based on one’s
expertise, special skill, or knowledge; Referent power -based on
identification with a person who has desirable resources.
E. What is Span of Control?
1. How many employees can a manager efficiently and effectively direct?
2. This question received a great deal of attention from early management writers.
3. There was no consensus on a specific number but early writers favored small spans
of less than six to maintain close control.
4. Level in the organization is a contingency variable.
a) Top managers need a smaller span than do middle managers, and middle
managers require a smaller span than do supervisors.
5. There is some change in theories about effective spans of control.
6. Many organizations are increasing their spans of control.
7. The span of control is increasingly being determined by contingency variables.
a) The more training and experience employees have, the less direct supervision
needed.
8. Other contingency variables should also be considered; similarity of employee
tasks, the task complexity, the physical proximity of employees, the degree of
standardization, the sophistication of the organization’s management information
system, the strength of the organization’s value system, the preferred managing
style of the manager, etc.
A Question of Ethics
A small percentage of companies are revealing to employees details about everything from
financials to staff performance reviews. Advocates of this approach say it is a good way to build
trust and allow employees to see how they are making contributions to the company. Critics say
open management can be expensive and time consuming. As work becomes more collaborative
the sharing of details may become inevitable.
Questions for students to consider:

• What ethical issues they see in the case?
• What are the implications for (a) managers and (b) employees?
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F. How Do Centralization and Decentralization Differ?

1. Centralization is a function of how much decision-making authority is pushed
down to lower levels in the organization.
2. Centralization-decentralization is a degree phenomenon.
3. By that, we mean that no organization is completely centralized or completely
decentralized.
4. Early management writers felt that centralization in an organization depended on
the situation.
a) Their objective was the optimum and efficient use of employees.
b) Traditional organizations were structured in a pyramid, with power and
authority concentrated near the top of the organization.
c) Given this structure, historically, centralized decisions were the most
prominent.
5. Organizations today are more complex and are responding to dynamic changes.
a) Many managers believe that decisions need to be made by those closest to the
problem.
6. Today, managers often choose the amount of centralization or decentralization that
will allow them to best implement their decisions and achieve organizational goals.
7. One of the central themes of empowering employees was to delegate to them the
authority to make decisions on those things that affect their work.
a) That’s the issue of decentralization at work.
b) It doesn’t imply that senior management no longer makes decisions.
G. What is Formalization?
1. Formalization refers to how standardized an organization’s jobs are and the extent
to which employee behavior is guided by rules and procedures.
2. Early management writers expected organizations to be fairly formalized, as
formalization went hand-in-hand with bureaucratic-style organizations.
3. Today, organizations rely less on strict rules and standardization to guide and
regulate employee behavior.
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II. WHAT CONTINGENCY VARIABLES AFFECT STRUCTURAL CHOICE?
Learning Catalytics Question: Instructor Directions and Follow-Up
Question Question Answer/Response For the Instructor

Type
Region Families are There is no correct Use the structure of the college/university
organizations that answer. to explain how organizations function.
function best when
roles and
responsibilities are
clearly defined.
Was your family
more mechanistic
or organic?
A. Introduction
1. The most appropriate structure to use will depend on contingency factors.
2. The more popular contingency variables are strategy, size, technology, and
environment.
B. How Is a Mechanistic Organization Different from an Organic Organization?
1. Exhibit 6-7 describes two organizational forms.
2. The mechanistic organization (or bureaucracy) was the natural result of combining
the six elements of structure.
a) The chain-of-command principle ensured the existence of a formal hierarchy of
authority.
b) Keeping the span of control small created tall, impersonal structures.
(1) Top management increasingly imposed rules and regulations.
c) The high degree of work specialization created simple, routine, and
standardized jobs.
d) Departmentalization increased impersonality and the need for multiple layers
of management.
3. The organic form is a highly adaptive form that is a direct contrast to the
mechanistic one.
a) The organic organization’s loose structure allows it to change rapidly as needs
require.
(1) Employees tend to be professionals who are technically proficient and trained
to handle diverse problems.
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(2) They need very few formal rules and little direct supervision.
b) The organic organization is low in centralization.
4. When each of these two models is appropriate depends on several contingency
variables.
C. How Does Strategy Affect Structure?
1. An organization’s structure should facilitate goal achievement.
a) Strategy and structure should be closely linked.
b) Certain structural designs work best with different organizational strategies.
2. Accordingly, organizational structure should follow strategy. If management
makes a significant change in strategy, it needs to modify its structure as well.
D. How Does Size Affect Structure?
1. There is historical evidence that an organization’s size significantly affects its
structure.
2. Large organizations—employing 2,000 or more employees—tend to have more
work specialization, horizontal and vertical differentiation, and rules and
regulations than do small organizations.
3. The relationship is not linear; the impact of size becomes less important as an
organization expands.
a) Example, once an organization has around 2,000 employees, it is already fairly
mechanistic—an additional 500 employees will not have much effect.
b) Adding 500 employees to an organization that has only 300 members is likely
to result in a shift toward a more mechanistic structure.
E. How Does Technology Affect Structure?
1. Every organization uses some form of technology to convert its inputs into outputs.
2. To attain its objectives, the organization uses equipment, materials, knowledge,
and experienced individuals and puts them together into certain types and patterns
of activities.
a) For example, your tablet or smartphone has a standardized assembly line.
b) For example, your resume is custom design and print.
c) For example, your bottle of Ibuprofen was manufactured using a continuous
flow production line by the pharmaceutical company.
From the Past to the Present
Joan Woodward (British scholar) found that distinct relationships exist between size of
production runs and the structure of the firm. The effectiveness of organizations was related to
“fit” between technology and structure. Most studies focused on the processes or methods that
transform inputs into outputs and how they differ by their degree of routine.
Three categories, representing three distinct technologies, had increasing levels of complexity
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and sophistication. Unit production described the production of items in units or small batches.
Mass production described large batch manufacturing. The most technically complex group,
process production, included continuous-process production. The more routine the technology,
the more standardized and mechanistic the structure can be. Organizations with more non-routine
technology are more likely to have organic structures. See Exhibit 6-8.
Discuss This:
• Why is (a) mechanistic structure more appropriate for an organization with routine
technology and (b) organic structure more appropriate for an organization with
nonroutine technology?
• Does Woodward’s framework still apply to today’s organizations? Why or why not?
F. How Does Environment Affect Structure?
1. Mechanistic organizations are most effective in stable environments.
2. Organic organizations are best matched with dynamic and uncertain environments.
3. The environment-structure relationship is why so many managers have
restructured their organizations to be lean, fast, and flexible.
III. WHAT ARE SOME COMMON ORGANIZATIONAL DESIGNS?

A. The main designs are simple, functional and divisional.
1. See Exhibit 6-9.
B. What Is a Simple Structure?
1. Most organizations start as an entrepreneurial venture with a simple structure.
2. There is low departmentalization, wide spans of control, authority centralized in a
single person, and little formalization.
3. The simple structure is most widely used in smaller businesses.
4. The strengths of the simple structure are that it is fast, flexible, and inexpensive to
maintain, and accountability is clear.
5. Major weaknesses.
a) It is effective only in small organizations.
b) It becomes increasingly inadequate as an organization grows; its few policies
or rules to guide operations and its high centralization result in information
overload at the top.
c) As size increases, decision making becomes slower and can eventually stop.
d) It is risky since everything depends on one person.
C. What is the functional structure?
1. Many organizations do not remain simple structures because structural
contingency factors dictate it.
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2. As the number of employees rises, informal work rules of the simple structure give
way to more formal rules.
3. Rules and regulations are implemented; departments are created, and levels of
management are added to coordinate the activities of departmental people.
4. At this point, a bureaucracy is formed.
5. Two of the most popular bureaucratic design options are called the functional and
divisional structures.
6. Why do companies implement functional structures?
a) The functional structure merely expands the functional orientation.
b) The strength of the functional structure lies in work specialization.
(1) Economies of scale, minimizes duplication of personnel and equipment,
makes employees comfortable and satisfied.
c) The weakness of the functional structure is that the organization frequently
loses sight of its best interests in the pursuit of functional goals.
D. What is the divisional structure?
1. An organization design made up of self-contained units or divisions.

2. Health care giant Johnson & Johnson, for example, has three divisions:
pharmaceuticals, medical devices and diagnostics, and consumer products.
3. The chief advantage of the divisional structure is that it focuses on results.
a) Division managers have full responsibility for a product or service.
b) It also frees the headquarters from concern with day-to-day operating details.
4. The major disadvantage is duplication of activities and resources.
a) The duplication of functions increases the organization’s costs and reduces
efficiency.
E. What Contemporary Organizational Designs Can Managers Use?
1. See Exhibit 6-10 for the three contemporary organization designs.
a) Team structure is when the entire organization consists of work groups or
teams.
b) Team members have the authority to make decisions that affect them, because
there is no rigid chain of command.
c) Companies such as Amazon, Boeing, Hewlett-Packard, Louis Vuitton,
Motorola, and Xerox extensively use employee teams to improve productivity.
d) In these teams, Employees must be trained to work on teams, receive cross-
functional skills training, and be compensated accordingly.
2. The matrix structure assigns specialists from different functional departments to
work on projects led by a project manager.
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a) Exhibit 6-11 illustrates the matrix structure of a firm.

b) The unique characteristic of the matrix is that employees in this structure have
at least two bosses, a dual chain of command: their functional departmental
manager and their product or project managers.
c) Project managers have authority over the functional members who are part of
that manager’s team.
d) Authority is shared between the two managers.
(1) Typically, the project manager is given authority over project employees
relative to the project’s goals.
(2) Decisions such as promotions, salary recommendations, and annual reviews
remain the functional manager’s responsibility.
e) To work effectively, project, and functional managers must communicate and
coordinate.
f) The primary strength of the matrix is that it can facilitate coordination of a
multiple set of complex and interdependent projects while still retaining the
economies that result from keeping functional specialists grouped together.
g) The major disadvantages of the matrix are in the confusion it creates and its
propensity to foster power struggles.
3. Project structure - is when employees continuously work on projects.
a) Tends to be more flexible
b) The major advantages of that are that employees can be deployed rapidly to
respond to environmental changes, no ridged hierarchical structure to slow
down decision-making, managers serve as facilitators, mentors, and coaches to
eliminate or minimize organizational obstacles.
c) The two major disadvantages of the project structure are the complexity of
assigning people to projects and the inevitable task and personality conflicts
that arise.
4. What is a boundaryless Organization?
a) A boundaryless organization, coined by former GE CEO, Jack Welch, is not
defined or limited by boundaries or categories imposed by traditional
structures.
b) It blurs the historical boundaries surrounding an organization by increasing its
interdependence with its environment.
c) There are two types of boundaries:
(1) Internal—the horizontal ones imposed by work specialization and
departmentalization and the vertical ones that separate employees into
organizational levels and hierarchies.
(2) External—the boundaries that separate the organization from its customers,
suppliers, and other stakeholders.
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5. A virtual organization consists of a small core of full-time employees and outside

specialists temporarily hired as needed to work on projects.
6. A network organization - is one that uses its own employees to do some work
activities and networks of outside suppliers to provide other needed product
components or work processes. Also called a modular organization by
manufacturing firms.
Technology and the Manager’s Job - The Changing World of Work
It is almost cliché to say that technology has had a dramatic impact on how people work. Mobile
communication and technology has allowed organizations to stay connected. Hand-held devices,
cellular phones, webcams, etc. allow employees to work virtually. Information technology
continues to grow and become an integral part of the way business is conducted. However, one
challenges caused by some the high level of integrated technology is security. Software and other
disabling devices have helped in this arena and many companies are developing creative
applications for their workforce.
Discuss This:
• What benefits do you see with being able to do work anywhere, anytime? (Think in terms of
benefits for an organization and for its human resources.)
• What other issues, besides security, do you see with being able to do work anywhere,
anytime? (Again, think about this for an organization and for its employees.)
IV. WHAT ARE TODAY'S ORGANIZATIONAL DESIGN CHALLENGES?
A. How Do You Keep Employees Connected?
1. Choosing a design that will best support and facilitate employees doing their work
efficiently and effectively, creates challenges.
2. A major structural design challenge for managers is finding a way to keep widely
dispersed and mobile employees connected to the organization.
B. How Do Global Differences Affect Organizational Structure?
1. Researchers have concluded that the structures and strategies of organizations

worldwide are similar, “while the behavior within them is maintaining its cultural
uniqueness.”
2. When designing or changing structure, managers may need to think about the
cultural implications of certain design elements, such as rules and bureaucratic
mechanisms.
C. How Do You Build a Learning Organization?
1. Building a learning organization is a mindset in which the learning organization

has developed the capacity to continuously adapt and change because all members
take an active role in identifying and resolving work-related issues.
6-125
2. Employees are practicing knowledge management.

a) Continually acquiring and sharing new knowledge.
b) Willing to apply that knowledge in making decisions or performing their work.
3. According to some organizational design theorists, an organization’s ability to
learn and to apply that learning may be the only sustainable source of competitive
advantage.
See Exhibit 6-12 for characteristics of a learning organization.
a) Members share information and collaborate on work activities throughout the
entire organization.
b) Minimize or eliminate existing structural and physical boundaries.
(1) Employees are free to work together and to collaborate.
(2) Teams tend to be an important feature of the structural design.
(3) Managers serve as facilitators, supporters, and advocates.
c) For a learning organization to "learn" information is shared openly, in a timely
manner, and as accurately as possible.
d) Leadership creates a shared vision for the organization’s future and keeps
organizational members working toward that vision.
(1) Leaders should support and encourage the collaborative environment.
e) A learning organization’s culture is one in which everyone agrees on a shared
vision and everyone recognizes the inherent interrelationships among the
organization’s processes, activities, functions, and external environment.
f) There is a strong sense of community, caring for each other, and trust.
(1) Employees feel free to openly communicate, share, experiment, and learn
without fear of criticism or punishment.
g) Organizational culture is an important aspect of being a learning organization.
A learning organization’s culture is one in which everyone agrees on a shared
vision and everyone recognizes the inherent interrelationships among the
organization’s processes, activities, functions, and external environment.
D. How Can Managers Design Efficient and Effective Flexible Work Arrangements?
1. As organizations adapt their structural designs to fit a diverse workforce, growing

competition, customer demands and new technology, we see more of them adopting
flexible working arrangements.
2. Such arrangements not only exploit the power of technology, but give organizations
the flexibility to deploy employees when and where needed.
3. Telecommuting is a work arrangement in which employees work at home and are

linked to the workplace by their computer.
6-126
a) Telecommuting provides the company a way to grow without having to incur

any additional fixed costs such as office buildings, equipment, or parking lots.
b) Some companies view the arrangement as a way to combat high gas prices and
to attract talented employees who want more freedom and control.
c) Some managers are reluctant to have their employees become “laptop hobos”
wasting time surfing the Internet or playing online games instead of working.
d) Employees often express concerns about being isolated.
e) Managing the telecommuters then becomes a matter of keeping employees

feeling like they’re connected and engaged, a topic we delve into at the end of
the chapter as we look at today’s organizational design challenges.
4.Compressed workweek, which is a workweek where employees work longer hours

per day but fewer days per week.
a) Flextime (also known as flexible work hours), which is a scheduling system in

which employees are required to work a specific number of hours a week but
are free to vary those hours within certain limits.
b) Job sharing—the practice of having two or more people split a full-time job.
5. Contingent Workers are temporary, freelance, or contract workers whose

employment is contingent upon demand for their services.
a) As organizations eliminate full-time jobs through downsizing and other means

of organizational restructuring, they often rely on a contingent workforce to fill
in as needed.
b) One of the main issues businesses face with their contingent workers,
especially those who are independent contractors or freelancers, is classifying
who actually qualifies as one.
REVIEW AND APPLICATIONS

CHAPTER SUMMARY
1 Describe six key elements in organizational design. The first element, work
specialization, refers to dividing work activities into separate job tasks. The
second, departmentalization, is how jobs are grouped together, which can be one
of five types: functional, product, customer, geographic, or process. The third—
authority, responsibility, and power—all have to do with getting work done in an
organization. Authority refers to the rights inherent in a managerial position to
give orders and expect those orders to be obeyed. Responsibility refers to the
obligation to perform when authority has been delegated. Power is the capacity of
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an individual to influence decisions and is not the same as authority. The fourth,
span of control, refers to the number of employees a manager can efficiently and
effectively manage. The fifth, centralization and decentralization, deals with
where the majority of decisions are made—at upper organizational levels or
pushed down to lower-level managers. The sixth, formalization, describes how
standardized an organization’s jobs are and the extent to which employees’
behavior is guided by rules and procedures.
2 Identify the contingency factors that favor the mechanistic model or the
organic model. A mechanistic organizational design is quite bureaucratic
whereas an organic organizational design is more fluid and flexible. The strategy-
determines structure factor says that as organizational strategies move from single
product to product diversification, the structure will move from organic to
mechanistic. As an organization’s size increases, so does the need for a more
mechanistic structure. The more non-routine the technology, the more organic a
structure should be. Finally, stable environments are better matched with
mechanistic structures, but dynamic ones fit better with organic structures.
3 Compare and contrast traditional and contemporary organizational designs.
Traditional structural designs include simple, functional, and divisional. A simple
structure is one with low departmentalization, wide spans of control, authority
centralized in a single person, and little formalization. A functional structure is
one that groups similar or related occupational specialties together. A divisional
structure is one made up of separate business units or divisions. Contemporary
structural designs include team-based structures (the entire organization is made
up of work teams); matrix and project structures (where employees work on
projects for short periods of time or continuously); and boundaryless
organizations (where the structural design is free of imposed boundaries). A
boundaryless organization can either be a virtual or a network organization.
4 Discuss the design challenges faced by today’s organizations. One design
challenge lies in keeping employees connected, which can be accomplished
through using information technology. Another challenge is understanding the
global differences that affect organizational structure. Although structures and
strategies of organizations worldwide are similar, the behavior within them
differs, which can influence certain design elements. Another challenge is
designing a structure around the mind-set of being a learning organization.
Finally, managers are looking for organizational designs with efficient and
effective flexible work arrangements. They’re using options such as
telecommuting, compressed workweeks, flextime, job sharing, and contingent
workers.
DISCUSSION QUESTIONS
6-1 Describe what is meant by the term organizational design.
Answer: Once decisions regarding corporate strategies are made, an effective structure must
be implemented to facilitate the attainment of those goals. When managers develop or change
the organization’s structure, they are engaging in organization design. Organization design
6-128
decisions are typically made by senior managers. Organization design applies to any type of
organization.
6-2 Discuss the traditional and contemporary views of each of the six key elements of
organizational design.
Answer: Traditionally, work specialization was viewed as a way to divide work activities
into separate job tasks. Today’s view is that it is an important organizing mechanism but it
can lead to problems. The chain of command and its companion concepts—authority,
responsibility, and unity of command—were viewed as important ways of maintaining
control in organizations. The contemporary view is that they are less relevant in today’s
organizations. The traditional view of span of control was that managers should directly
supervise no more than five to six individuals. The contemporary view is that the span of
control depends on the skills and abilities of the manager and the employees and on the
characteristics of the situation.
6-3 Can an organization’s structure be changed quickly? Why or why not? Should it be
changed quickly? Why or why not?
Answer: No, it takes time and a lot of planning and communication. Cultures usually evolve
based initially on the founder's values. Whether or not it should be changed quickly is
dependent upon the competition, its efficiency and success and its financial viability. A
boundaryless organization provides the flexibility and fluid structure that facilitates quick
movements to capitalize on opportunities. An organic structure versus a bureaucracy could
adapt more quickly to changes.
6-4 “An organization can have no structure.” Do you agree or disagree with this statement?
Explain.
Answer: A boundaryless or virtual organization is not without structure, structure is
minimized but not eliminated. There is always some degree of reporting relations, some type
of division of labor, some need for the management of processes, etc. Boundaryless
organizations are not merely flatter organizations. They attempt to eliminate vertical,
horizontal, and inter-organizational barriers.
6-5 Contrast mechanistic and organic organizations.
Answer: A mechanistic organization is a rigid and tightly controlled structure. An organic

organization is highly adaptive and flexible. See Exhibit 6-7 for additional differences.
6-6 Explain the contingency factors that affect organizational design.
Answer: An organization’s structure should support the strategy. If the strategy changes the
structure also should change. An organization’s size can affect its structure up to a certain
point. Once an organization reaches a certain size (usually around 2,000 employees), it’s
fairly mechanistic. An organization’s technology can affect its structure. An organic structure
is most effective with unit production and process production technology. A mechanistic
structure is most effective with mass production technology. The more uncertain an
organization’s environment, the more it needs the flexibility of an organic design.
6-129
6-7 With the availability of advanced information technology that allows an organization’s
work to be done anywhere at any time, is organizing still an important managerial
function? Why or why not?
Answer: Although an organization’s work may be done anywhere at any time, organizing
remains a vital managerial function because the work that must be accomplished still must be
divided, grouped, and coordinated. Regardless of where employees work, there are basic
managerial functions that must be served, such as scheduling of work, setting goals, and
maintaining employee morale.
6-8 Researchers are now saying that efforts to simplify work tasks actually have negative
results for both companies and their employees. Do you agree? Why or why not?
Answer: Student responses may vary based on their respective opinion. Simplifying tasks
may result in monotony and boredom, even turnover. The 21st century workforce is smarter,
more independent, better educated and more trustworthy employees, so they will demand
more challenging work. They will work with more individual authority and less direct
supervision.
6-9 The boundaryless organization has the potential to create a major shift in the way we
work. Do you agree or disagree with this statement? Explain.
Answer: Students’ responses to this will vary with most students focusing on the topics of
flexibility at work. Some organizations that adopt a boundaryless design also implement
flextime and flexplace work arrangements for their employees. This question could serve as
an interesting springboard for a class debate. Students could break into teams, with each team
taking the opposite position in the debate. Give students an opportunity to discuss their
strategy as a team before presenting their viewpoints to the class.
6-10 Draw an organization chart of an organization with which you’re familiar (where
you work, a student organization to which you belong, your college or university, etc.).
Be very careful in showing the departments (or groups) and especially be careful to get
the chain of command correct. Be prepared to share your chart with the class.
Answer: Student answers will depend on the organization that they choose.
Management Skill Builder: Increasing Your Power

One of the more difficult aspects of power is acquiring it. For managers, the more power they
have the more effective they are at influencing others. What can one do to develop power? In this
section students will learn about their power orientation in relation to Machiavellianism.
Students will also practice skills based on French and Raven’s Five Bases of power.
Teaching Tips:
Personal Insights
When most people hear the name Machiavelli they automatically associate it with
something negative. The Machiavellianism personality inventory is much the same way.
High-Machs are described as likely to manipulate more, win more, are persuaded less,
6-130
and persuade others more than do low-Machs. But historians emphasize that several of
Machiavelli’s ideas on leadership have been taken out of context, such as “it is better to
be feared, than loved.” When discussing this assessment with students ask if some of
these traits are necessary for management. Take for example, question 8, “There is no
excuse for lying to someone else.” Discuss with students if it is acceptable for managers
to not disclose the entire truth in certain situations.
Skill Basics
This section reviews seven sources of power.
• Coercive
• Reward
• Authority
• Information
• Expert
• Reward
• Charismatic
Skill Application
Margaret, like most employees, engaged in impression management to strengthen her
position and power base in the organization. By volunteering to undertake the project, she
is putting herself out in front of other employees in the hopes that this will give her added
leverage in the future. According to the case, Margaret has also increased her expert
power by becoming knowledgeable and taking addition training in areas important to the
organization. Is there anything she should have done differently? Most students will point
out that blaming the delay on someone else was not ethical (if it didn’t happen).
However, this is a common tactic in impression management so that employees will not
lose face. Be prepared for students to complain that there isn’t enough information
regarding how she built a power base to evaluate her skill. Brainstorm with students what
things she should do, specifically in this type of business, to build a power base.
Skill Practice
6-20 What can you do to improve your Mach score? Create a specific one-year plan to
implement a program that will lead to an improved score.
6-21 Identify someone—a boss, coworker, friend, parent, sibling, significant other—
with whom you would like to increase your power. Determine what tactic(s) might work,
then cautiously practice your tactic(s).
Experiential Exercise
Ontario Electronics Ltd.
To: Claude Fortier, Special Assistant to the President
From: Ian Campbell, President
Subject: Learning Organizations
It is important for organizations to be responsive to customer and marketplace needs. One of the
6-131
approaches discussed is becoming a learning organization. Recent information convinced him

that his company’s future may well depend on how well we’re able to “learn.”
Ian would like you to find some current information on learning organizations.
Teaching Tip: There are two good books that I would suggest for student:
1. Senge, P.M. 1990. The Fifth Discipline. London: Century Business
2. Argyris, C. 1999. On Organizational Learning. 2nd Ed. Oxford: Blackwell
Publishing
Students should also be encouraged to use their library’s on-line database to search
articles for the learning organization. Students may find summaries of Senge’s ideas on
some internet sites of companies that specialize in organizational development
Case Application 1: A New Kind of Structure
Discussion Questions
6-22 Describe and evaluate what Pfizer is doing with its PfizerWorks.
Pfizer has outsourced menial tasks to another company allowing employees to focus on
the most important parts of their job. According to the case this seems to be working
great and Pfizer employees are pleased with the outcomes.
6-23 What structural implications – good and bad – does this approach have? (Think
in terms of the six organizational design elements.)
Work specialization – the case clearly shows how the outsourcing of menial tasks is
allowing employees to focus more on the specific jobs they were hired to do that they
have expertise in rather than spending time on less important tasks.
Departmentalization – Does not really apply here.
Authority and responsibility – Authority does not seem to be altered in this case but the
responsibilities or each employee may be different now since they can shift some of the
work-load to the outsourcing firm.
Span of control – this may different because manager may be able to widen their span of
control with since they may have more time to focus on the support/management aspects
of their jobs as opposed to spending that time competing reports, etc.
Centralization/decentralization – the case seems to demonstrate some decentralization
where individual employees make decisions about what work they want to outsource or
not.
Formalization – The case describes evidence of low formalization because employees can
chose what work to outsource so they have more control of how and when work gets
done.
6-24 Do you think this arrangement would work for other types of organizations? Why
or why not? What types of organizations might it also work for?
6-132
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author comes near a stray one, 513;
distribution of, ib.
Elizabeth, Queen; her letter to the rajah of Achin, 449, note.
Eugene Sue, describes Rahden Saleh, 38.
Exquisite, an Eastern, described, 42.
F.
Feest Kakian, a revel of the head-hunters, 210.
Fever, Batavia, described, 39.
Fishes; large one caught at Limbi, 332;
Ophiocephalus striatus, 354;
Anabas scandens, ib.;
Anguilla Elphinstonei, ib.
Fishing, boats used by Malays, 52;
Malay mode of, 329.
Floris described, 111;
cannibals of, ib.
Flying-fish, 106;
can fly during a calm, 122.
Forest, home in a tropical, 261;
nature’s highway through, 263.
Fountain, “youth’s radiant,” quoted from Moore, 297.
Fringilla oryzivora, the rice-bird, 80.
G.
Gallus bankiva, 60, 61;
other species of, 60.
Galunggong, Mount; eruption of, 75, 76;
compared with the Tenger Mountains, 77.
Gambang, of Java, 190.
Gambling, Malay vice of, 61.
Geology, of Timur, near Kupang, 119, 120;
of the Banda group, 241;
of Amboina, 247;
of Buru, 263, 293;
of Bachian, 299;
of the Minahassa, 376;
of Gorontalo, 379;
of Buton, 381;
of a cliff at Tapanuli Bay, 441;
of the Padang plateau, 477;
of the cliffs of Bencoolen Bay, 489, 490;
of the region near Tebing Tingi, 508;
of the region of the upper Limatang, 522;
of Banca, 534.
Gillibanta, passed, 187.
Gilolo, west coast of, 310;
Alfura of, 311;
“the bloodhounds” of, ib.
Goitre, prevalent in the interior of Sumatra, 416;
probable cause of, ib.
Gold-mines in Celebes, 379;
geological age of, ib.;
mines in Sumatra, 404-406;
distribution of, 406;
ornaments of, 431, 432;
mode of obtaining, 432.
Gomuti palm, fibres of, 360;
made into a rope, 370;
tuak or wine of, 371.
Goram, situation of, 243.
Gorontalo, bay of, 377;
country and tribes near, 378.
Gresik, village of, 56.
Gunong Api, of Sapi Strait, 106, 107;
of Banda, 214-219;
author ascends, 228;
description of, 228-234;
account of eruptions of, 237;
the one near Wetta, 245;
of Banda compared to Ternate, 317.
H.
Haruku, one of the Uliassers, 178;
north coast of, 182;
population and description of, ib.
Head-hunters, of Ceram, 203;
clothing, 203, 204;
dance of, ib.;
of Sawai Bay, 205, 206.
Hinduism, history of, 62.
Hitu, a part of Amboina, 130;
remarkable appearance of hills on, 131;
excursion along the coast of, 141.
Horse, author thrown from a, 341;
of Sumatra, 409.
Hospital, at Batavia, 39.
Houtman, commander of first Dutch fleet to the East, 24;
arrives at Ternate, 307.
Hukom, Biza, Kadua, Tua, and Kachil, meaning of, 338.
Hunting in the tropics, 139.
I.
Ice, used in the East, 31;
whence brought, and where manufactured, 31.
Inkfish, an Octopus, author dines on, 172.
J.
Java, Sea, 19;
meaning of the word, 21;
described by Ludovico Barthema, 23;
compared with Cuba, 77-79;
description of, 77, 78;
population of, 78;
imports and exports, 79;
forests, ib.;
fauna, 79-81;
flora, 81-89;
separated from Sumatra and Bali, 93, 94.
Jewels, from the heads of wild boars, 151;
Rumphius’s account of, 152.
Jukes, Mr., cited on the geology of Sandal-wood Island, 112;
Timur, 119.
Junghuhn, Dr., cited, 52, 53, 109.
K.
Kampong, a, described, 132.
Kayéli, bay of, 256;
village of, 257;
description of, 269;
history of, 270;
a threatening fleet arrives off, 283.
Kayu-puti, trees and oil described, 282, 283;
distribution of, 283.
Kema, village of, 323;
great python killed near, 334.
Ki, some account of the group, 243.
Kissa, described, 125.
Klings, whence their name, 63;
early voyages of, to the archipelago, 405.
Kloff, Captain; describes the natives of Kissa, 125.
Korinchi, reformers of, 471.
Kubus, the tribe of, described, 533.
Kupang, village of, 113;
bay of, ib.;
population of, 114;
oranges of, ib.
L.
Ladangs, native gardens, 264.
Lepers, author visits a village of, 343;
description of the, 343-346;
description of the disease, 345.
Leper-leper, a native boat, 165;
dangerous voyage in, 165, 166.
Letti, described, 125.
Limatang, river of, 518, 520, 521;
author descends, 521-533.
Limbi, an island near Kema, 324;
author visits for Babirusa, 324-332.
Living, Eastern mode of, 32.
Lombok, the, described, 264.
Lombok, island of, separated from Bali, 93;
fauna of, 94;
flora, ib.
Lontar, one of the Banda Islands, 214;
shores of, 219;
author visits it, 223-227;
beautiful nutmeg-groves of, 225.
Lotus, fragrant, 358;
land of, by Tennyson, 366.
Lubus, tribe of, 411;
habits, 419.
M.
Macassar, harbor of, 100;
praus of, 100, 101;
city of, 103-105;
tombs of princes near, 105.
Madura, a low island, 55;
Strait of, 56;
cattle of, 60;
south coast of, 71;
whence its name, ib.;
coffee-trees on, 72;
manufacture of salt on, 72.
Magellan, Ferdinand, his discovery of the Spice Islands, 305-
307.
Maize, history of, 265-267.
Makian, island of, described, 299;
eruptions of, 299, 300.
Malabrathrum, a gum, 62.
Malay, first sight of, 18;
language of, 20;
physical characteristics of, 33, 34;
passion for gambling, ib.;
are mostly Mohammedans, ib.;
language affected by the Portuguese, 122;
speak many dialects, 162, 163;
migrations of, from Gilolo, 313.
Mango, tree and fruit described, 89, 90, 148.
Mangostin, described, 88, 89.
Manindyu, lake of, 397;
crater of, 399, 401;
village of, ib.
Marco Polo, his account of Java, 21.
Marriage, feast at Kayéli, 274;
Mohammedan laws in regard to, 275;
at Amboina, 275-278;
Malay ideas of, 279.
Matabella, situation of group, 243;
Wallace’s description of, ib.
Menado, village of, 342;
bay of, 346, 351;
Tua, an island, 346.
Menangkabau, kingdom of, 394;
former capitals of, 468;
history of, 469-474;
arts in, 472, 473.
Minahassa; the most beautiful spot on the globe, 316;
mode of travelling in, 335;
population of, and area, 339;
cataract in, 356;
mud-wells and hot springs in, 358-364;
Alfura of, 365;
most charming view in, 369;
products of, 370, 375;
graves of the aborigines of, 373;
Christianity and education in, 375;
geology of, 376.
Mitarra; small island near Ternate, 317.
Mohammedan religion, first converts to, 51;
at Gresik, 56;
jealousy, 159;
requires the shaving of the head, 273;
filing the teeth, 274.
Moluccas, history of the, 146;
population and how divided, 195;
Catholicism in, 307, 308;
Christianity introduced, 308;
of what islands composed, 309.
Monkeys, of Sumatra and Java, 408, 409;
large troops of, 410;
sagacity of, 478;
a flock of, 509.
Monsoons, calms during the changing of, 16;
name whence derived, 44;
east and west, ib.;
rainy, 45;
sky thick in the eastern, 120;
eastern at Amboina, Ceram, Buru, and New Guinea, 128,
129;
western boundary of, 486.
Mosque, Mohammedan, in Samarang, 50.
Mount, Ungarung, 45;
Slamat, ib.;
Sumbing, 46;
Prau, residence of the gods, 46-48;
Japura, 48;
Tenger, 73;
Bromo, 74;
Tomboro, eruption of, 108-110;
Tompasso, 357;
Singalang, 393;
Mérapi, ib.;
Ophir, 404;
Seret Mérapi, 420, 422;
Lubu Rajah, 423;
Sago, 461-468;
Talang, 480;
Ulu Musi, 499;
Dempo, 516.
Mud-wells, in the Minahassa, 359-364.
Müller, Dr. S., ascended Gunong Api of Banda in 1828, 236.
Musa paradisiaca, the banana-tree, 85;
textilis, 340.
N.
Natal, port of, 453.
Nautilus, shells of, purchased at Kupang, 119;
said to be common on Rotti, ib.;
those secured at Amboina, 134, 135.
Navigating mud-flats, 57.
Nusalaut, name whence derived, 178;
author visits, 187;
surrounded by a platform of coral, 187;
natives of, in ancient costume, ib.;
description and population of, 188.
Nutmeg-tree, when found, 215;
gathered by the natives, 216;
description of tree and fruit, 222;
mode of curing the fruit, 222, 223.
O.
Orangbai, an, described, 136.
Orang-utan, habits of, 408, 409.
Ophir, whence the gold of, 405.
Opium, mode of selling and smoking, 279-282;
history of, 280.
P.
Padang, city of, 385;
Panjang, 392;
Sidempuan, 423.
Padangsche Bovenlanden, or Padang plateau, 390;
native houses in, 393;
dress of the natives of, 394;
author travels in, Chap. XV.;
geology of, 477.
Paddy, described, 66.
Pagi Islands; natives of, and their habits, 482, 483.
Palembang, author arrives at, 529;
description and history of, 530, 531;
mosque of, 531;
Lama, 532.
Pandanus, a screw-pine, 84.
Papandayang, Mount, eruption of, 74, 75.
Papaw, tree and fruit described, 85.
Papua, natives of, 311, 312;
taxes levied on, 314;
author thinks of going to, 315.
Pasuma, plateau and people of, 516-519.
Pedatis, described, 68.
Pepper, an article of trade, 446-448;
distribution of and native names for, 447, 448.
Periplus of the Erythræan Sea, 62.
Pigafetta, his account of birds of paradise, 244;
account of the Philippines, 308.
Pinã-cloth, how made, 143.
Pine-apples, introduction and history of, 142.
Piper betel, leaves of, chewed by the Malays, 181.
Pirates, in the Moluccas, 318;
from China, ib.;
from Mindanao, 319;
Malays escape from, 320;
a surprise of, ib.;
praus of, 321;
a challenge from, ib.;
Dutch cruise for, 322.
Plough, kind used by Malays, 36;
mode of using, 36, 37.
Pompelmus, a gigantic orange, 19.
Ponies, Javanese, 65.
Post-coaches of Java, 64.
Pumice-stone, great quantities of, 110.
Python, one seen near Kema, 333;
stories concerning, 333-336;
author presented with one, 537;
it escapes, 539;
author has a deadly struggle with, 541.
R.
Raffles, Sir Stamford, history of, 488.
Railroads in Java, 49.
Rambutan, described, 89.
Ranjaus, 86.
Rattan, kinds of, 511;
how gathered, 511, 512.
Reef, first coral, visited, 123;
author’s boat strikes on one, 183;
waves breaking on a, 199.
Reinwardt, Professor, cited, 53;
ascended Gunong Api of Banda, in 1821, 236;
predicts an eruption, 312.
Rejangs, customs and laws, 496-498.
Reynst, Gerard, arrival at Banda, 236.
Rhinoceros, native pits for, 495;
Rice, manner of gathering in Java, 66.
Rivers; Musi and its valley, 499;
Inem, 521, 522.
Roads, post, in Java, 64.
Roma, described, 126.
Roses, abundance of, in the Minahassa, 352, 366.
Rotti, island of, 116;
people of, ib.
Ruma négri, a public house, 355;
beautiful one, 366.
Ruma, Satan, or Devil’s Dwelling, author visits, 437-442.
Rumphius; his “Rariteit Kamer” referred to by Linnæus, 13;
grave of, 260;
sketch of life of, 251.
S.
Saccharum, sinensis, 69;
officinarum, ib.;
violaceum, ib.
Sacrifice, human, 117.
Saleh, Rahden, palace of, 37, 38;
manners and acquirements of, 38;
described by Eugene Sue, ib.
Salt, manufacture in Madura, 72;
Java, 72, 73;
Borneo and Philippines, 73;
quantity of, ib.;
prices of, 73, note.
Samarang, arrive at, 45;
described, 48.
Sambal, described, 32.
Sandal-wood Island, description of, 113;
horses of, ib.
Sandy Sea, the, 74.
Saparua, name whence derived, 178;
island described, 184;
history, ib.;
town of, 184, 185;
bay of, 186.
Sapi, described, 60.
Sarong, description of the, 18, 34.
Sawai bay, people of, 205.
Sawas, described, 66;
fertility of, 67.
Schneider, Dr., cited, 120, 247.
Schools, in the Spice Islands, 193;
how supported, ib.;
welcome to the Resident, 194;
classes of, 195.
Sclater, Mr., cited, 94.
Semao, island of, 113.
Sequiera, first brings Portuguese into Eastern Archipelago, 23.
Shells, collecting, at Kupang, 117-119;
Trochus marmoratus, 175;
Strombus latissimus, 176;
Scalaria preciosa, 185;
Cypræa moneta, 186;
best place in the Spice Islands to gather, 198;
harp, ib.;
Mitra episcopalis and papalis, 199;
Tridacna gigas, found on hills, 248;
Auricula in Ceram, 255;
Rostellaria rectirostris, ib.
Siboga, author comes to the village of, 434;
country about, 435 et seq.;
coal near, 436.
Singapore, history and description of, 536.
Sinkara, lake of, 476;
kampong, ib.
Siri, Malay name for the Piper betel, 181.
Snakes, swimming, 14.
Springs, Damma, 126;
in Java, 127;
hot, in the Minahassa, 360-364.
Strait, Sunda, 13-19;
Sapi, passed through, 106-108.
Styrax benzoin, described, 63.
Sugar-cane, kinds of, 69;
history of, 69, 70.
Sugar-Loaf Island, passed, 121.
Sulphur, from volcanoes, 53.
Sumatra, grand mountains of, 43;
author travels in, 384-532;
Dutch army in, 456;
Hinduism in, 471;
Mohammedanism in, 471;
unimproved areas in, 502;
true source of the wealth of, 505.
Sumbawa, seen, 107;
Mount Tomboro in, 108.
Sundanese, a language of Java, 25.
Surabaya; business of, 56;
shipping at, ib.;
harbor of, 57;
situation of, ib.;
population of, ib.;
dock-yard, 58;
machine-shops, ib.;
artillery works, 59;
streets of, 60.
Surakarta, residence of Javanese princes, 26.
Surf, on south coast of Ceram, 208;
revolt in, 257.
T.
Tandu, a, described, 49.
Tanjong O, feared by the natives, 200;
Flasco, beautiful sunset seen at, 377.
Tapanuli, bay of, 434, 436;
geology of a cliff near, 441;
natives that come to the bay of, 448.
Teak, durability of, and different purposes used for, 59;
abundant in Java, 79;
Telegraph-lines in Java and Sumatra, 65.
Tenger Mountains, seen, 73;
Sandy Sea in, 74;
Bromo in, ib.;
compared with the Bandas, 241.
Ternate, island and village of, described, 300, 303, 304;
history and account of the eruptions of, 300-309;
the prince of, and his territory, 309, 310;
trade of, 315;
author experiences four earthquakes at, in four days, 316;
houses of foreigners at, 317.
Tidore, peak and village of, 312, 313;
prince of, 313.
Tifa; a kind of drum, 137;
discordant sounds of, 179;
mode of beating, 180.
Tigers, ravages of, 413;
native traps for, 491;
natives destroyed, 503, 504;
fight with a bear, 510;
abundance of, 513-517.
Timur, different races on, 115;
southeast monsoon in, ib.;
northwestern coast of, 121.
Timur-laut, described, 127;
natives of, at Banda, 218.
Tin, distribution of, 535.
Tobacco, history of, 265, 266.
Tondano, lake of, 367, 368;
village of, 368;
Klabat, mantled with clouds, 369;
tragedy occurred near, 372.
Trees.—
Upas, 54;
Antiaris toxicaria, 54, 55;
anchar, 55;
Artocarpus incisa, and integrifolia, 92, 93;
Carophyllus aromaticus, the clove, 153;
Palmyra palm, 222;
Borassus flabelliformis, ib.;
Myristica moschata, the nutmeg, ib.;
Tectona grandis, the teak, 267.
Tripang, described, 101-103.
U.
Uliassers described, 178.
V.

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Essential Concepts and Applications

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Fundamentals of Management Essential Concepts and

Fundamentals of Management Essential Concepts and

Fundamentals of Management Essential Concepts and

Fundamentals of Management 10th Edition Robbins

Fundamentals of Management Canadian 8th Edition Robbins

Management Fundamentals Concepts Applications and Skill

Fundamentals of Management 8th Edition Robbins Test

I. WHAT ARE THE SIX KEY ELEMENTS IN ORGANIZATIONAL DESIGN?

Learning Catalytics Question: Instructor Directions and Follow-Up

Question Question Answer/Response For the Instructor

2. There are five common forms of departmentalization (see Exhibit 6-2).

c) Customer Groups - employees based on customers’ problems and needs (e.g.,

d) Geographic Groups - employees based on location served (e.g., North, South,

(b) See Exhibit 6-3.

d) Authority is but one element in the larger concept of power.

Questions for students to consider:

F. How Do Centralization and Decentralization Differ?

II. WHAT CONTINGENCY VARIABLES AFFECT STRUCTURAL CHOICE?

Learning Catalytics Question: Instructor Directions and Follow-Up

Question Question Answer/Response For the Instructor

III. WHAT ARE SOME COMMON ORGANIZATIONAL DESIGNS?

1. An organization design made up of self-contained units or divisions.

a) Exhibit 6-11 illustrates the matrix structure of a firm.

5. A virtual organization consists of a small core of full-time employees and outside

IV. WHAT ARE TODAY'S ORGANIZATIONAL DESIGN CHALLENGES?

A. How Do You Keep Employees Connected?

1. Researchers have concluded that the structures and strategies of organizations

1. Building a learning organization is a mindset in which the learning organization

2. Employees are practicing knowledge management.

1. As organizations adapt their structural designs to fit a diverse workforce, growing

3. Telecommuting is a work arrangement in which employees work at home and are

a) Telecommuting provides the company a way to grow without having to incur

d) Employees often express concerns about being isolated.

e) Managing the telecommuters then becomes a matter of keeping employees

4.Compressed workweek, which is a workweek where employees work longer hours

a) Flextime (also known as flexible work hours), which is a scheduling system in

5. Contingent Workers are temporary, freelance, or contract workers whose

a) As organizations eliminate full-time jobs through downsizing and other means

REVIEW AND APPLICATIONS

Answer: A mechanistic organization is a rigid and tightly controlled structure. An organic

6-6 Explain the contingency factors that affect organizational design.

Management Skill Builder: Increasing Your Power

approaches discussed is becoming a learning organization. Recent information convinced him

Case Application 1: A New Kind of Structure

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