Exam 11: Designing Organizational Structure

Electronic Arts Canada produces popular sports and action video games.Its Vancouver studio is famous for its informal atmosphere and employee amenities.There is a division of labour,but the work is not standardized.There are few formal rules and little direct supervision.EA's structure is best described as ________.

A(n)________ organization is able to change rapidly as needs require.

The acceptance theory of authority states that subordinates are willing to accept the authority of a manager if the order does not conflict with their personal beliefs.

Assigning designers,production workers,and salespeople to a common work group to develop a new product is called a ________ team.

Grouping activities on the basis of production flow is called ________ departmentalization.

Eric the Redd (Scenario) Eric Redd graduated from college and was hired by a Canadian corporation that manufactures parts for the automotive industry. Eric noticed that the employees on the assembly line seemed bored and their motivation was low. Eric's boss decided to reorganize the workers' jobs to try to increase productivity. Eric enjoys his work assignment in the engineering department but hopes to be promoted to a management position within the next few years. -The assembly line jobs are changed to allow each worker to perform more tasks so they don't get bored as quickly.This results in a reduction in ________.

In face of environmental uncertainty,organizations need the security of a mechanistic structure.

The acceptance theory of authority states that it is the right of the manager to expect employees to accept his/her authority.

When decisions tend to be made at lower levels in an organization,the organization is said to be decentralized.

In which of the following organizational structures is empowerment most crucial?

Eric the Redd (Scenario) Eric Redd graduated from college and was hired by a Canadian corporation that manufactures parts for the automotive industry. Eric noticed that the employees on the assembly line seemed bored and their motivation was low. Eric's boss decided to reorganize the workers' jobs to try to increase productivity. Eric enjoys his work assignment in the engineering department but hopes to be promoted to a management position within the next few years. -Although Eric's job gives him the right to delegate work to others,if the work performance is unsatisfactory,it is Eric who will have to explain and justify the outcome to his superiors.This is called ________.

All other things unchanged,the narrower the span of control,the more efficient the organization is.

A mechanistic organization is characterized by rigid departmentalization,a clear chain of command,and high formalization.

Eric the Redd (Scenario) Eric Redd graduated from college and was hired by a Canadian corporation that manufactures parts for the automotive industry. Eric noticed that the employees on the assembly line seemed bored and their motivation was low. Eric's boss decided to reorganize the workers' jobs to try to increase productivity. Eric enjoys his work assignment in the engineering department but hopes to be promoted to a management position within the next few years. -In less than two years,Eric is promoted to a management position with five subordinates reporting directly to him.This is an example of which of the following?

Restructuring at Prairie Farm Equipment (Scenario) Jim Johnson is the CEO of Prairie Farm Equipment Corp, a major Canadian manufacturer. Prairie has been in business for more than 110 years and has been very profitable. Today, the company has a tall structure with formalized communication channels and rigid hierarchical relationships. All major decisions are made by Mr. Johnson. This arrangement has worked well until recently, when the company began to encounter some major global competition. Foreign companies have begun to export new, lower-priced products into the Canadian market. At the same time, foreign markets appear to be opening their doors to more Canadian products. A few days ago, one of the vice-presidents presented some exciting news about a major market opportunity overseas. Several managers were now working on an international expansion proposal to be presented at the next board meeting. As the company's strategy was beginning to change, Mr. Johnson realized that its structure would also need to change. But change how? The company was very large and used routine technology to produce its products. What should he do? -Which of the following contingency factors is having the biggest impact on the need for structural changes at Prairie?

Which type of structure tends to work best with an innovation strategy?

Pierre has just been promoted to line manager in the manufacturing plant.Which of the following should automatically accompany his new title of manager?

The matrix structure "weaves together"" elements of which two forms of departmentalization?

In a learning organization,it is important to have managers to control and direct the flow of information.

In order to make the most efficient use of work specialization,employees should be assigned tasks where they would perform near their optimum skill level.