MGMT 443 – Midterm Exam Questions with Verified Answers
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Course
Mgmt
Institution
Mgmt
Organizations - Answer-Are complex social systems linked to an external environment and directed to a specific goal
Organizations are Social Systems: - Answer-- This explains how businesses operate:
*Business orgs are fundamentally social (made up of people)
* People can be motivated or dem...
MGMT 443 – Midterm Exam Questions
with Verified Answers
Organizations - Answer-Are complex social systems linked to an external environment
and directed to a specific goal
Organizations are Social Systems: - Answer-- This explains how businesses operate:
*Business orgs are fundamentally social (made up of people)
* People can be motivated or demotivated
* People are the main vessels of how the orgs operate
Organizations are Complex Systems: - Answer-- This explains how businesses operate:
+Complex systems since they're elements that interact w/each other and not easy to
predict
Galbraith's Star Model of Org Design - composed of 5 elements - Answer-1. Strategy
(Necessary Org Capabilities): what are the capabilities that this company needs to be
successful for goals
2. Structure: how people are grouped together and how will depts
communicate/coordinate with each other
3. Processes: how the decisions are made, how the work flows between different
roles/depts
4. People: the skills that we need to attract or select people/what people are we letting
go
5. Rewards: what is the compensation structure/what behaviors are we rewarding
- From this model, they must all be in alignment and supportive of the orgs strategy
- Orgs will modify their strategy but fail to adapt other elements of the design to the new
strategy, losing alignment
Org's Mission - Answer-overall goal (official goals) - communicates to stakeholders what
the company is trying to achieve, what it stands for, & bestows legitimacy to the org
Operating Goals - Answer-specific to the actual procedures of the orgs. Operating goals
explain more specifically what the org is actually trying to do.
Strategy - Answer-is the company's plan for success (for attaining its goals). Requires
understanding the firm's strengths in relation to the conditions established by the
external environment.
Capabilities - Answer-Are unique, integrated combination of skills, processes, & human
abilities ... created & housed w/in an org. Help orgs execute their strategy through
implementation of appropriate design choices. Different strategies require different
capabilities.
, Cost-leadership strategies - Answer-provide value to customers at lower cost than
competitors
differentiation strategy - Answer-A strategy an organization uses to build competitive
advantage by being unique in its industry or market segment along one or more
dimensions.
Structural Dimensions: Formalization - Answer-amount of written doc in a business
including procedures, job descriptions, regulations, policy manuals, code of ethics, etc.
- measured in # of doc pages
Structural Dimensions: Division of Labor - Answer-degree to which tasks are subdivided
into separate jobs (specialization)
- in firms w/low division of labor, employees perform a wide variety of tasks in their jobs
Structural Dimension: Hierarchy of Authority - Answer-describes who reports to whom in
the org
- flat orgs have very few levels of hierarchy
- "span of control" refers to the average # of employees that report to a manager
Structural Dimensions: Complexity - Answer-- orgs have vertical complexity when they
are tall (when they have many layers of hierarchy)
- horizontal complexity is the # of depts of occupational specialities that exist
horizontally in the org
Structural Dimensions: Centralization - Answer-refers to the hierarchical level where
decisions are made
- centralized orgs typically make decisions at top
- decentralized orgs delegate decision making
Outcomes of structural dimensions - Answer-Organizations with lower levels of
formalization tend to have more motivated and satisfied employees and higher levels of
innovation
Mechanistic Orgs - Answer-centralized decision making & formal, standardized control
systems
- complex structure, high degree of formulation, & high degree of centralization
Organic Orgs - Answer-flexible workplace w/horizontal mode of communication (flat,
decentralized)
- low levels of formalization, specialization, & standardization
Symptoms of Structural Deficiency - Answer-1. Absence of collaboration/coordination
between units
2. poor or delayed decision making
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