MGMT 3000 Exam questions and
answers graded A+
Organizational Design - ANS✅✅The formal systems, levers, and decisions an organization adopts
or employs in pursuit of its strategy.
Organizational design decisions - ANS✅✅How will jobs be divided and how much much autonomy
will be allowed throughout the organization?
Should jobs be formalized, structured, and standardized?
Should the company focus on customers, geographic regions, product categories, or functions?
Division of Labor - ANS✅✅The manner in which work in a firm is divided among employees
Vertical Specialization - ANS✅✅How much an employee creates, executes, and administers
activities in a certain area of the firm
Horizontal Specialization - ANS✅✅The breadth of activities that are performed in a certain job
Organizers - ANS✅✅Believe control is necessary for organizational design to ensure jobs are
performed satisfactory and efficiently
Mechanistic Organization - ANS✅✅authority is centralized, tasks and rules are clearly specified,
and employees are closely supervised
Bureaucratic Approach - ANS✅✅Extreme form of organizational control where systems are highly
formalized and characterized by extensive procedures (not suited for creative environments)
Behaviorists - ANS✅✅Those who support a more open organizational structure where roles and
responsibilities are loosely defined (human relations mgmt)
Organic Organization - ANS✅✅authority is decentralized, there are fewer rules and procedures,
and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks
,Clan Approach - ANS✅✅A type of organizational control that includes self-supervising teams that
are responsible for a set of tasks (holocracy)
Organizational Structure - ANS✅✅The pattern of organizational roles, relationships, and
procedures that enable coordinated action among employees.
Functions of an Organization - ANS✅✅Defines the roles of the labor force, coordinates activities
between members, and identifies the borders of the firm and external relationships
Three types of organizational structures - ANS✅✅Functional, divisional, matrix
Functional Structure - ANS✅✅Organizes a firm in terms of the main activities that need to be
performed (production, marketing, sales, and accounting)
Divisional Structure - ANS✅✅When a company organizes around customer, product, or geography
(allows for greater accountability but can create silos)
Matrix Structure - ANS✅✅Both divisional and functional managers have equal authority in the
organization (A sales rep is part of sales department and reports to sales manager in department)
Network Structure - ANS✅✅"Knowledge Workers" are organized to work as individual
contributors or to be a part of a work cluster that provides a certain expertise for the organization
(consulting firm)
Functional Structure features - ANS✅✅Resource efficiency: Excellent
Responsiveness: Poor
Adaptability: Poor
Accountability: Good
Best in which environment: Stable, small businesses, businesses with limited products or services
Divisional Structure features - ANS✅✅Resource efficiency: Poor
Responsiveness: Moderate
Adaptability: Good
Accountability: Excellent
, Best in which environment: Heterogeneous, high uncertainty
Matrix Structure features - ANS✅✅Resource efficiency: Moderate
Responsiveness: Good
Adaptability: Moderate
Accountability: Poor
Best in which environment: Complex
Network Structure features - ANS✅✅Resource efficiency: Good
Responsiveness: Excellent
Adaptability: Excellent
Accountability: Moderate
Best in which environment: Volatile
Decision Rights - ANS✅✅Rights that include initiating, approving, implementing, and controlling
various types of strategic or tactical decisions.
Delegation - ANS✅✅The process by which managers transfer decision rights to individual
employees
Centralized Organization - ANS✅✅An organizational structure characterized by formal structures
that control employee behavior by concentrating decisions in a top-down, hierarchical fashion
Decentralized Organization - ANS✅✅An organizational structure where key decisions are made at
all levels of the firm, not mandated from the top
Silos - ANS✅✅A functional or divisional unit that operates by its own rules and guidelines and does
not openly share information with other units
Mutual Adaptation - ANS✅✅The process by which firms import the nature of their overarching
industrial environment and adopt their organization in response to evolving contextual factors.
answers graded A+
Organizational Design - ANS✅✅The formal systems, levers, and decisions an organization adopts
or employs in pursuit of its strategy.
Organizational design decisions - ANS✅✅How will jobs be divided and how much much autonomy
will be allowed throughout the organization?
Should jobs be formalized, structured, and standardized?
Should the company focus on customers, geographic regions, product categories, or functions?
Division of Labor - ANS✅✅The manner in which work in a firm is divided among employees
Vertical Specialization - ANS✅✅How much an employee creates, executes, and administers
activities in a certain area of the firm
Horizontal Specialization - ANS✅✅The breadth of activities that are performed in a certain job
Organizers - ANS✅✅Believe control is necessary for organizational design to ensure jobs are
performed satisfactory and efficiently
Mechanistic Organization - ANS✅✅authority is centralized, tasks and rules are clearly specified,
and employees are closely supervised
Bureaucratic Approach - ANS✅✅Extreme form of organizational control where systems are highly
formalized and characterized by extensive procedures (not suited for creative environments)
Behaviorists - ANS✅✅Those who support a more open organizational structure where roles and
responsibilities are loosely defined (human relations mgmt)
Organic Organization - ANS✅✅authority is decentralized, there are fewer rules and procedures,
and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks
,Clan Approach - ANS✅✅A type of organizational control that includes self-supervising teams that
are responsible for a set of tasks (holocracy)
Organizational Structure - ANS✅✅The pattern of organizational roles, relationships, and
procedures that enable coordinated action among employees.
Functions of an Organization - ANS✅✅Defines the roles of the labor force, coordinates activities
between members, and identifies the borders of the firm and external relationships
Three types of organizational structures - ANS✅✅Functional, divisional, matrix
Functional Structure - ANS✅✅Organizes a firm in terms of the main activities that need to be
performed (production, marketing, sales, and accounting)
Divisional Structure - ANS✅✅When a company organizes around customer, product, or geography
(allows for greater accountability but can create silos)
Matrix Structure - ANS✅✅Both divisional and functional managers have equal authority in the
organization (A sales rep is part of sales department and reports to sales manager in department)
Network Structure - ANS✅✅"Knowledge Workers" are organized to work as individual
contributors or to be a part of a work cluster that provides a certain expertise for the organization
(consulting firm)
Functional Structure features - ANS✅✅Resource efficiency: Excellent
Responsiveness: Poor
Adaptability: Poor
Accountability: Good
Best in which environment: Stable, small businesses, businesses with limited products or services
Divisional Structure features - ANS✅✅Resource efficiency: Poor
Responsiveness: Moderate
Adaptability: Good
Accountability: Excellent
, Best in which environment: Heterogeneous, high uncertainty
Matrix Structure features - ANS✅✅Resource efficiency: Moderate
Responsiveness: Good
Adaptability: Moderate
Accountability: Poor
Best in which environment: Complex
Network Structure features - ANS✅✅Resource efficiency: Good
Responsiveness: Excellent
Adaptability: Excellent
Accountability: Moderate
Best in which environment: Volatile
Decision Rights - ANS✅✅Rights that include initiating, approving, implementing, and controlling
various types of strategic or tactical decisions.
Delegation - ANS✅✅The process by which managers transfer decision rights to individual
employees
Centralized Organization - ANS✅✅An organizational structure characterized by formal structures
that control employee behavior by concentrating decisions in a top-down, hierarchical fashion
Decentralized Organization - ANS✅✅An organizational structure where key decisions are made at
all levels of the firm, not mandated from the top
Silos - ANS✅✅A functional or divisional unit that operates by its own rules and guidelines and does
not openly share information with other units
Mutual Adaptation - ANS✅✅The process by which firms import the nature of their overarching
industrial environment and adopt their organization in response to evolving contextual factors.
