Exam 10: Organizational Design

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A simple organizational structure is characterized by __________.

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The structure of Jumbo Transport Corporation is divided into four product groups: aircraft, rail, marine, and recreational vehicles. Jumbo has a __________ structure.

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The trend in recent years has been toward smaller spans of control, which are consistent with managers' efforts to reduce costs and increase flexibility.

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explain centralization, decentralization, and employee empowerment. How do experts in organizational design view these concepts in today's workplace?

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Which one of Fayol's 14 principles of management helps preserve the concept of a continuous line of authority?

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Refer to the scenario below to answer the following questions. Organizational Design at Custom Leather (Scenario) Lacey has been hired as a consultant for XYZ Consulting. Her first assignment is to work with one of XYZ's newest clients, Custom Leather, Ltd., a manufacturer of high-end leather furniture. Custom Leather was founded more than a decade ago with the idea that great-looking, comfortable leather furniture could be custom made and delivered to customers in 30 days. Traditionally, retailers stocked leather sofas to satisfy customers' desire to receive new furniture fast, which resulted in limited colour choices and styles. Traditional sofa manufacturers produced their products in large batches on standardized assembly lines. In contrast, Custom Leather offers 13 different styles in more than 70 different colours through a select group of retail outlets. Each sofa is built to the customer's individual requirements and is shipped within two to three weeks. However, the emergence of a new manufacturing technology has enabled some of the traditional competitors to offer greater customization, thereby reducing some of Custom Leather's competitive advantage. As a result, Custom Leather's president, Miles Standish, is considering several changes to their current work processes and organizational structure. -Many of Custom Leather's 75 employees are highly skilled and experienced artisans. While there is a division of labour, the jobs of most production workers are not highly standardized. Management has found that employees take great pride in their craft, thus requiring minimal formal rules and little direct supervision. These traits are most typical of a(n) __________ organization.

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list the three common traditional organizational designs. Describe the characteristics that are commonly associated with each.

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Refer to the scenario below to answer the following questions. 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 100 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?

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An organic organization is low in centralization.

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The purpose of organizing is to arrange and structure work to accomplish organizational goals.

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The matrix structure violates the classical organizing principle of __________.

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Traditional organizational designs include the simple structure, the functional structure, and the divisional structure.

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