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Exam 11: Organizational Design

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Question 1

True/False

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An organizational chart, in general, provides ten major pieces of information about an organization's structure.

A) True
B) False

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False

Question 2

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Lynette Ivey and Everett Frank are employees of Catalina Classics, a publishing firm. Both have experience in editing romance fiction. Both require editorial assistance and computer typesetting. If the two are grouped together based on these facts, the company is using __________.

A) network design
B) product design
C) virtual design
D) functional design

E) A) and B)
F) A) and C)

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Question 3

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Starbucks' organizational design __________.

In a mechanistic system, decision making tends to be decentralized.

There are three types of technological interdependence: pooled, sequential, and reciprocal.

At Home Depot, combining the Southeastern and Mid-Atlantic regions to form a new region is an example of __________.

According to the "Chapter 11 Preview," Home Depot must continue to open new stores in order to maintain their financial performance.

Home Depot has been unable to find a new formula that will enable them to continue the large-scale growth that they experienced in the 1990s.

An organization's technology has a significant impact on its organization design because different types of technologies generate various types of technological interdependence.

Centralization is an approach that requires managers to decide what to delegate, to select workers carefully, and to formulate adequate controls.

Describe how Starbucks uses its strategic action competency to develop its organizational design.

Antwan Payne is a manager of the marketing department of Paradise Time Share Condominiums. Payne's subordinate, Chadwick Wolff, is having trouble locating information on the demographics of timeshare buyers. Payne asks Wolff to do the report for him because he doesn't know how to do it. Payne tells Wolff to check some trade magazines. Wolff is following the __________ principle for improving delegation of authority.

Many organizations, like Wells Fargo Bank, are flattening their structures by increasing the number of management layers between the CEO and front-line employees.

Coordination is usually difficult across product lines because employees tend to focus on goals for their particular product, rather than on broader company goals.

Conflicts over product priorities are a potential pitfall of the functional design.

Each time Home Depot acquired a competitor or created a new store __________.

An emphasis on geographical design makes it possible to benefit from facilities and equipment for production being located in multiple locations, which maximizes flexibility.

All of the following are advantages of functional design except __________.

How did Home Depot originally organize itself for growth?

Trinidad Wolff is a computer programmer with a large data processing company. Wolff spends much of his day working as a team with Meghan Kincaid, who is a computer engineer who specializes in computer hardware design. Wolff and Kincaid have authority to make system-wide design decisions and their work as a team facilitates problem solving. Wolff and Kincaid work in a(n) ___________ organization.