REVIEW AND APPLICATIONS
CHAPTER SUMMARY
6-1 Describe six key elements in organizational design. The first element, work
specialization, refers to dividing work activities into separate job tasks. The second,
departmentalization, is how jobs are grouped together, which can be one of five types:
functional, product, customer, geographic, or process. The third— authority,
6-2 Identify the contingency factors that favor the mechanistic model or the organic
model of organizational design. A mechanistic organizational design is quite
bureaucratic whereas an organic organizational design is more fluid and flexible. The
6-3 Compare and contrast traditional and contemporary organizational designs. Traditional
structural designs include simple, functional, and divisional. A simple structure is one
with low departmentalization, wide spans of control, authority centralized in a single
person, and little formalization. A functional structure is one that groups similar or related
6-4 Discuss the design challenges faced by today’s organizations. One design challenge
lies in keeping employees connected, which can be accomplished through using
information technology. Another challenge is understanding the global differences that
DISCUSSION QUESTIONS
6-1 Describe what is meant by the term organization design.
Answer: Once decisions regarding corporate strategies are made, an effective structure must
be implemented to facilitate the attainment of those goals. When managers develop or change
6-2 Describe the traditional and contemporary views of each of the six key elements of
organizational design.
Answer: Traditionally, work specialization was viewed as a way to divide work activities
into separate job tasks. Today’s view is that it is an important organizing mechanism but it
6-3 Can an organization’s structure be changed quickly? Why or why not? Should it be
changed quickly? Why or why not?
6-4 “An organization can have no structure.” Do you agree or disagree with this statement?
Explain.
Answer: A boundaryless or virtual organization is not without structure – structure is
minimized but not eliminated. There is always some degree of reporting relations, some type
6-5 Contrast mechanistic and organic organizations.
6-6 Explain the contingency factors that affect organizational design.
Answer: An organization’s structure should support the strategy. If the strategy changes, the
structure should also change. An organization’s size can affect its structure up to a certain
6-7 With the availability of information technology that allows employees to work
anywhere at any time, is organizing still an important managerial function? Why or why
not?
Answer: Although an organization’s work may be done anywhere at any time, organizing
6-8 Researchers are now saying that efforts to simplify work tasks actually have negative
results for both companies and their employees. Do you agree? Why or why not?
Answer: Student responses may vary based on their respective opinion. Simplifying tasks
6-9 “The boundaryless organization has the potential to create a major shift in the way we
work.” Do you agree or disagree with this statement? Explain.
Answer: Student responses to this will vary, with most students focusing on the topics of
flexibility at work. Some organizations that adopt a boundaryless design also implement
6-10 Draw an organization chart of an organization with which you’re familiar (where you
work, a student organization to which you belong, your college or university, etc.). Be very
careful in showing the departments (or groups) and especially be careful to get the chain of
command correct. Be prepared to share your chart with the class.
MyManagementLab
Students can find the following assisted-graded writing questions at mymanagementlab.com.
Answers to these questions are graded against rubrics in the MyLab.
6-11 It’s stated in the chapter that contemporary organization design should be lean, flexible, and
innovative. What are the implications of those requirements?
6-12 If organizing is about getting work done efficiently and effectively, what organizing
challenges might lower-level managers have to address? (Hint: Think in terms of the six key
elements of organization design.)
Management Skill Builder: Increasing Your Power
Managerial jobs come with the power of authority. But sometimes that authority isn’t enough to
Personal Inventory Assessment: Gaining Power and Influence
As you saw in this chapter, power is an important component of an organization’s structure. Use
this PIA to identify ways that you gain power and influence.
Skill Basics
This section reviews seven sources of power:
Coercive
Reward
Authority
Information
Expert
Referent
Charismatic
Practicing the Skill
Margaret is a supervisor in the online sales division of a large clothing retailer. She has
let it be known that she is devoted to the firm and plans to build her career there.
Margaret is hard-working and reliable, has volunteered for extra projects, has taken
in-house development courses, and joined a committee dedicated to improving employee
safety on the job. She undertook an assignment to research ergonomic office furniture for
the head of the department and gave up several lunch hours to consult with the head of
human resources about her report. Margaret filed the report late, but she explained the
delay by saying that her assistant lost several pages that she had to redraft over the
weekend. The report was well received, and several of Margaret’s colleagues think she
should be promoted when the next opening arises.
Evaluate Margaret’s skill in building a power base. What actions has she taken that are
helpful to her in reaching her goal? Is there anything she should have done differently?
Experiential Exercise
Ontario Electronics Ltd.
To: Claude Fortier, Special Assistant to the President
From: Ian Campbell, President
Subject: Learning Organizations
It is important for organizations to be responsive to customer and marketplace needs. One of the
approaches discussed is becoming a learning organization. Recent information convinced him
that his company’s future may well depend on how well we’re able to “learn.”
Ian would like you to find some current information on learning organizations.
Teaching Tip: There are two good books that I would suggest for students:
1. Senge, P.M. 1990. The Fifth Discipline. London: Century Business
2. Argyris, C. 1999. On Organizational Learning. 2nd Ed. Oxford: Blackwell
Publishing
Students should also be encouraged to use their library’s online database to search articles
for the learning organization. Students may find summaries of Senge’s ideas on some
Internet sites of companies that specialize in organizational development.
Case Application 1: You Work Where?
Discussion Questions
6-14 Evaluate Yahoo!’s new work initiative. Did it have to be an “all or nothing” proposition?
Discuss.
6-15 What can managers and organizations do to help employees who work from home be
efficient and effective?
6-16 Take the three main concerns—productivity, innovation, and collaboration. From the
perspective of management, how do you think flexible arrangements stack up? How about from
the employee’s perspective?
6-18 Is being able to work remotely important to you? Why or why not?
Case Application 2: Lift Off
Discussion Questions
6-19 Would you call NASA a learning organization? Why or why not?
6-21 How does complexity affect structural choice?
6-22 Using Exhibit 6-12, what suggestions would you make to managers at NASA about being
a learning organization?
Case Application 3: A New Kind of Structure
Discussion Questions
6-23 Describe and evaluate what Pfizer is doing with its PfizerWorks.
Pfizer has outsourced menial tasks to another company allowing employees to focus on
6-24 What structural implications—good and bad—does this approach have? (Think in terms of the
six organizational design elements.)
6-25 Do you think this arrangement would work for other types of organizations? Why or why not?
What types of organizations might it also work for?
6-26 What role do you think organizational structure plays in an organization’s efficiency and
effectiveness? Explain.