BA 350 PRACTICE TIPS UPDATED QUESTIONS AND
ANSWERS GRADED A+
✔✔Matrix structure: - ✔✔A structure that creates dual lines of authority and combines
functional and product departmentalization
• Gains advantages of functional and product departmentalization while avoiding their
weaknesses.
• Facilitates coordination of complex and interdependent activities.
• Breaks down unity-of-command concept, functional and departmental managers:
"Who do I report to?"
✔✔Virtual Organization: - ✔✔A small, core organization that outsources major business
functions; highly centralized, little or no departmentalization;
Concepts:
o Provides maximum flexibility while concentrating on what the organization does best.
o Disadvantage is reduced control over key activities and assets of the business.
✔✔Boundary-less organization: - ✔✔An organization that seeks to eliminate the chain
of command, have limitless spans of control, and replace departments with empowered
teams; T-form Concepts:
o -Eliminate vertical (hierarchical- minimize status and rank) and horizontal
(departmental- replace functional with cross-functional teams ) internal boundaries.
o -When fully operational, breaks down geographic barriers
o -Breakdown external barriers to customers and suppliers through strategic alliances
✔✔Mechanistic Model: - ✔✔"synonymous with Bureaucracy"
A structure characterized by:
• Extensive departmentalization
• High formalization
• Limited information network (Clear chain of command)
• Centralization
• High Specialization
• Narrow spans of control
✔✔Organic Model: - ✔✔Similar to a Boundaryless organization; A structure
characterized by:
• Using cross-hierarchical and cross-functional teams
• Flat (Decentralization)
• Wide spans of control
• Low formalization
• Possesses comprehensive information network (free flow of info.)
• Relies on participative decision making
, ✔✔The Strategy-Structure Relationship - ✔✔o Innovation strategy: A strategy that
emphasizes the introduction of major new products and services (Structure: Organic
[loose structure, low specialization, low formalization, decentralized])
o Cost-minimization Strategy: A strategy that emphasizes tight cost controls, avoidance
of unnecessary innovation or marketing expense, and price cutting (Structure:
Mechanistic [Tight control, extensive work specialization, high formalization, high
centralization])
o Imitation Strategy: A strategy that seeks to move into new products or new markets
only after their viability has been proven (Structure: Both, mix of loose and tight
properties.
✔✔Size: - ✔✔Organizations that have more than 2,000 employees generally are more
specialized, and more departmentalization (More people=more mechanistic)
✔✔Technology: - ✔✔The way in which an organization transfers its inputs into outputs
(every company has at least one technology they use)
• Routine technologies are associated with tall, departmentalized structures and
formalization in organizations
• Non-routine technologies are associated with delegated decision authority.
✔✔Environment: - ✔✔Institutions or forces outside an organization that potentially
affect the organization's performance. (Dynamic environments [Organic Model] create
more uncertainty than static environments [Mechanistic Model])
dimensions:
Capacity (degree to which environment can support growth)
• Volatility (degree on instability in environment)
• Complexity (degree of heterogeneity and concentration among environmental
elements)
✔✔Selection practices(HR): - ✔✔o Interviews
o Written Tests
o Performance-Simulation Tests
✔✔Interviews: - ✔✔• →Are the most frequently used selection tool.
• Should be structured to ensure against distortion due to interviewers' biases.
• Are best for assessing conscientiousness, interpersonal skills, and person-
organization fit of the applicant.
✔✔Written Tests: - ✔✔• Renewed employer interest in using written tests for selection
• Tests must show validated connection to job-related performance requirements.
ANSWERS GRADED A+
✔✔Matrix structure: - ✔✔A structure that creates dual lines of authority and combines
functional and product departmentalization
• Gains advantages of functional and product departmentalization while avoiding their
weaknesses.
• Facilitates coordination of complex and interdependent activities.
• Breaks down unity-of-command concept, functional and departmental managers:
"Who do I report to?"
✔✔Virtual Organization: - ✔✔A small, core organization that outsources major business
functions; highly centralized, little or no departmentalization;
Concepts:
o Provides maximum flexibility while concentrating on what the organization does best.
o Disadvantage is reduced control over key activities and assets of the business.
✔✔Boundary-less organization: - ✔✔An organization that seeks to eliminate the chain
of command, have limitless spans of control, and replace departments with empowered
teams; T-form Concepts:
o -Eliminate vertical (hierarchical- minimize status and rank) and horizontal
(departmental- replace functional with cross-functional teams ) internal boundaries.
o -When fully operational, breaks down geographic barriers
o -Breakdown external barriers to customers and suppliers through strategic alliances
✔✔Mechanistic Model: - ✔✔"synonymous with Bureaucracy"
A structure characterized by:
• Extensive departmentalization
• High formalization
• Limited information network (Clear chain of command)
• Centralization
• High Specialization
• Narrow spans of control
✔✔Organic Model: - ✔✔Similar to a Boundaryless organization; A structure
characterized by:
• Using cross-hierarchical and cross-functional teams
• Flat (Decentralization)
• Wide spans of control
• Low formalization
• Possesses comprehensive information network (free flow of info.)
• Relies on participative decision making
, ✔✔The Strategy-Structure Relationship - ✔✔o Innovation strategy: A strategy that
emphasizes the introduction of major new products and services (Structure: Organic
[loose structure, low specialization, low formalization, decentralized])
o Cost-minimization Strategy: A strategy that emphasizes tight cost controls, avoidance
of unnecessary innovation or marketing expense, and price cutting (Structure:
Mechanistic [Tight control, extensive work specialization, high formalization, high
centralization])
o Imitation Strategy: A strategy that seeks to move into new products or new markets
only after their viability has been proven (Structure: Both, mix of loose and tight
properties.
✔✔Size: - ✔✔Organizations that have more than 2,000 employees generally are more
specialized, and more departmentalization (More people=more mechanistic)
✔✔Technology: - ✔✔The way in which an organization transfers its inputs into outputs
(every company has at least one technology they use)
• Routine technologies are associated with tall, departmentalized structures and
formalization in organizations
• Non-routine technologies are associated with delegated decision authority.
✔✔Environment: - ✔✔Institutions or forces outside an organization that potentially
affect the organization's performance. (Dynamic environments [Organic Model] create
more uncertainty than static environments [Mechanistic Model])
dimensions:
Capacity (degree to which environment can support growth)
• Volatility (degree on instability in environment)
• Complexity (degree of heterogeneity and concentration among environmental
elements)
✔✔Selection practices(HR): - ✔✔o Interviews
o Written Tests
o Performance-Simulation Tests
✔✔Interviews: - ✔✔• →Are the most frequently used selection tool.
• Should be structured to ensure against distortion due to interviewers' biases.
• Are best for assessing conscientiousness, interpersonal skills, and person-
organization fit of the applicant.
✔✔Written Tests: - ✔✔• Renewed employer interest in using written tests for selection
• Tests must show validated connection to job-related performance requirements.
