Designing Organization Structure

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Question 1
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 The deployment of organizational resources to achieve strategic goals refers to organizing.

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Question 2
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 Organizing defines what to do, while strategy defines how to do it.

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Question 3
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 The organizing process leads to the creation of organization structure, which defines how tasks are divided and resources deployed.

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Question 4
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 An organizational chart shows lines of informal communication and who has the most power in an organization.

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Question 5
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 Despite the apparent advantages of specialization, many organizations are moving away from this principle.

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Question 6
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 Unity of command refers to a clearly defined line of authority in the organization that includes all employees.

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Question 7
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 Authority is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.

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Question 8
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 The duty to perform the task or activity an employee has been assigned is called accountability.

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Question 9
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 Most organizations today discourage managers to delegate authority to the lower levels given the challenges to meet customer needs and adapt to the environment.

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Question 10
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 The acceptance theory of authority argues that a manager has authority because subordinates do not have a choice in choosing to accept his or her commands.

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Question 11
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 Line departments perform tasks that reflect the organization's primary goal and mission.

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Question 12
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 The right to advise, recommend, and counsel in the staff specialists' area of expertise is included in staff authority.

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Question 13
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 The number of employees reporting to a supervisor is his or her span of management.

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Question 14
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 Traditional views of organization design recommend a span of management of about 7 to 10 subordinates per manager.

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Question 15
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 Not having enough hierarchical levels and wide spans of control is a common structural problem for organizations.

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Question 16
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 The trend in recent years has been toward narrower spans of control as a way to facilitate delegation.

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Question 17
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 A tall structure is a management structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels.

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Question 18
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 Certainty in the environment is usually associated with decentralization.

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Question 19
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 The basis for grouping positions into departments and departments into the total organization is referred to as departmentalization.

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Question 20
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 For companies to operate effectively, the amount of centralization or decentralization should fit the firm's strategy.

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