Organizational Theory, Design, and Change, 7e (Jones) Chapter 5 Designing Organizational Structure: Authority and Control
1) The shape of an organization, depicted by its organizational chart, determines how effectively the organization's decision-making and communication systems work. nswer! T"#$ %age "ef! 1&1 ifficulty! $asy (! *-1 &) +hen each employee performs only a small part of a total task, identifying the employees individual contribution to the task becomes easy. nswer! ($ %age "ef! 1&& ifficulty! $asy (! *-1 ) s the number of levels in its managerial hierarchy increases, it becomes difficult for the organization to control its members. nswer! ($ %age "ef! 1&& ifficulty! $asy (! *-1 /) n organization organization in which the hierarchy has many levels relative to the size of the organization is known as an organic organization. nswer! ($ %age "ef! 1&& ifficulty! $asy (! *-1 *) tall organization has fewer managers to direct and control employees activities than a flat organization with the same number of employees. nswer! ($ %age "ef! 1& ifficulty! $asy (! *-1 0) "esearch suggests that the increase in the size of the managerial component in an organization is less than proportional than proportional to the increase in size of the organization as it grows. nswer! T"#$ %age "ef! 1& ifficulty! $asy (! *-1
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) 2ost organizations have a pyramid-like structure with fewer and fewer managers at each level up in the hierarchy. hierarchy. nswer! T"#$ %age "ef! 1& ifficulty! $asy (! *-1 3) s the number of levels in the hierarchy increases, the relative difference in the authority possessed by managers at each level decreases. nswer! T"#$ %age "ef! 1&0 ifficulty! $asy (! *-& 4) 2anagers of a flat organization possess relatively less authority and responsibility than those of a tall organization. nswer! ($ %age "ef! 1&0 ifficulty! $asy (! *-& 15) flat organization has fewer managers and hierarchical levels than a tall organization. nswer! T"#$ %age "ef! 1&0 ifficulty! $asy (! *-& 11) The greater the number of managers the lower the bureaucratic co sts. nswer! ($ %age "ef! 1&0 ifficulty! 2oderate (! *-& 1&) The greater the number of hierarchical levels in an organization, the lower the bureaucratic costs. nswer! ($ %age "ef! 1&0 ifficulty! 2oderate (! *-& 1) n organization organization with a tall structure will also e6perience fewer communication, motivation, and cost problems than a flat organization. nswer! ($ %age "ef! 1& ifficulty! $asy (! *-&
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1/) %arkinson's law states that 7+ork 7+ork e6pands so as to fill the time available.7 nswer! T"#$ %age "ef! 1& ifficulty! $asy (! *-& 1*) ccording to the principle of minimum chain of command, an organization should choose the minimum number of hierarchical levels consistent with its goals and the environment in which it operates. nswer! T"#$ %age "ef! 1& ifficulty! $asy (! *-& 10) manager8s span of control includes subordinates he or she supervises directly and subordinates that he or she supervises indirectly 9by supervising their direct boss). nswer! ($ %age "ef! 1&4 ifficulty! 2oderate (! *-& 1) :f the span of control of each e ach manager increases as the number of employee8s increases, then the number of managers or hierarchical levels do es not increase in proportion to increases in the number of employees. nswer! T"#$ %age "ef! 1&4 ifficulty! $asy (! *-& 13) +hen subordinates tasks are comple6 and dissimilar, a manager8s span of control needs to be wide. nswer! ($ %age "ef! 15 ifficulty! $asy (! *-& 14) ;orizontal differentiation leads to the emergence of specialized subunits
&5) :f tasks are routine and similar so that all subordinates perform the same task, then the span of control should be small. nswer! ($ %age "ef! 15 ifficulty! 2oderate (! *-& &1) manager's ability to supervise and control subordinates' behavior directly is limited by two factors! the comple6ity and the interrelatedness of subordinates' tasks. nswer! T"#$ %age "ef! 15 ifficulty! $asy (! *-1 &&) n increase in the horizontal differentiation leads to an increase in the vertical differentiation. nswer! T"#$ %age "ef! 1& ifficulty! $asy (! *-& &) tandardization makes it easier to increase span of control. nswer! T"#$ %age "ef! 1 ifficulty! $asy (! *- &/) ecentralization enables even a relatively tall structure to be more fle6ible in its responses to changes in the e6ternal environment. nswer! T"#$ %age "ef! 1 ifficulty! $asy (! *- &*) ecentralization does not eliminate the need for many hierarchical levels in a large and comple6 organization. nswer! T"#$ %age "ef! 1 ifficulty! $asy (! *- &0) ccording to +eber, +eber, rational-legal authority emerges due to =ualities that a person possess, such as charisma or wealth. nswer! ($ %age "ef! 1* ifficulty! 2oderate (! *- /
&) :n a bureaucracy, obedience is owed to a person because of the level of authority and responsibility associated with the organizational position the person occupies. nswer! T"#$ %age "ef! 1* ifficulty! $asy (! *-/ &3) +eber's +eber's first principle indicates that choices affecting the design of an organization's hierarchy should be based on the needs of the task, not on the needs of the person performing the task. nswer! T"#$ %age "ef! 1* ifficulty! $asy (! *-/ &4) ccording to +eber's +eber's third principle of bureaucratic structure, a role's task responsibility and decision-making authority and its relationship to other roles in the organization should be clearly specified. nswer! T"#$ %age "ef! 1* ifficulty! $asy (! *-/ 5) "ole ambiguity occurs when two or more people have different views of what ano ther person should do and, as a result, make conflicting demands on the person. nswer! ($ %age "ef! 10 ifficulty! $asy (! *-/ 1) "ole conflict occurs when a person's tasks or authority are not clearly defined and the person becomes afraid to act on or take responsibility for anything. nswer! ($ %age "ef! 10 ifficulty! $asy (! *-/ &) The primary advantage of a bureaucracy b ureaucracy is that it lays out the ground rules for designing an organizational hierarchy that efficiently controls interactions between organizational levels. nswer! T"#$ %age "ef! 1 ifficulty! $asy (! *-/
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) :n a bureaucratic organization, individuals can be held accountable for what they do, and such accountability reduces the transaction costs. nswer! T"#$ %age "ef! 13 ifficulty! $asy (! *-/ /) >ontingent workers are employees who belong to self-managed teams. nswer! ($ %age "ef! 1/& ifficulty! $asy (! *-* *) >ontingent workers do not receive indirect benefits such as health insurance or pensions. nswer! T"#$ %age "ef! 1/& ifficulty! $asy (! *-* 0) n organization organization in which the hierarchy has many levels relative to the size of the organization is a9n) ???????? organization. ) tall @) flat >) decentralized ) organic nswer! %age "ef! 1&& ifficulty! $asy (! *-1 ) +hich of the following is most likely to be done by an organization to improve its ability to control its members and influence their behaviorA ) increase the use of self-managed team @) increase employee empowerment >) increase the number of levels in its managerial hierarchy ) increase the e6tent of decentralization nswer! > %age "ef! 1&& ifficulty! $asy (! *-1
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3) +hich of the following statements is true regarding direct supervisionA ) irect supervision allows managers to ensure that subordinate are not h iding any crucial information. @) The method of direct supervision is more effective in flat rather than tall organizations. >) irect supervision is not suitable for on-the-Bob task learning. ) The method of direct supervision is more effective in organic rather than in inorganic structure. nswer! %age "ef! 1&& ifficulty! $asy (! *-1 4) +hich of the following statements is most likely to be true regarding a tall organizationA ) tall organization has few levels in its hierarchy relative to its size. @) Cenerally organizations with less than 1555 employees have tall structures. >) tall organization has more managers to direct and control employees' activities than does a flat organization with the same number of employees. ) The taller an organization, the more decentralized are its operations. nswer! > %age "ef! 1& ifficulty! $asy (! *-1 /5) s an organization grows, grows, ????????. ) an increase in the number of managers is more than proportional to the increase in size @) an increase in the number of managers is less than proportional to the increase in size >) an increase in the number of managers is proportional to the increase in size ) the number of managers remains constant nswer! @ %age "ef! 1& ifficulty! $asy (! *-1 /1) +hich of the following statements is true regarding organizational o rganizational structureA ) s the number of levels in the hierarchy increases, the relative difference in the authority possessed by managers at each level increases. @) 2ost organizations have the same number of managers at all levels in the organization. >) s the number of hierarchical levels increases, the number of communication problems decreases. ) 2ost organizations have a pyramid-like structure and fewer and fewer manage rs at each level up in the hierarchy. hierarchy. nswer! %age "ef! 1& ifficulty! 2oderate (! *-1
/&) n organization organization that has few levels in its hierarchy relative to its size is known as a ???????? organization. ) tall @) flat >) formalized ) standardized nswer! @ %age "ef! 1& ifficulty! $asy (! *-1 /) "esearch evidence suggests that an organization with ,555 employees is most likely to have ???????? levels in its hierarchy. hierarchy. ) five @) si6 >) seven ) nine nswer! > %age "ef! 1& ifficulty! $asy (! *-1 //) s the number of hierarchical levels increases, ????????. ) the degree of formalization decreases @) the possibility that the information will be distorted decreases >) the degree of decentralization increases ) communication problems get progressively worse nswer! %age "ef! 1&* ifficulty! 2oderate (! *-& /*) s ????????, the relative difference in the authority possessed by managers at each level in the organizational hierarchy decreases. ) the number of shareholders of an organization decreases @) the number of levels in the hierarchy increases >) the total number of employees in the organization decreases ) the degree of centralization of the organizational structure increases nswer! @ %age "ef! 1&0 ifficulty! $asy (! *-&
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/0) +hich of the following statements is true regarding a flat organizationA ) flat organization has more managers manage rs than a tall organization. @) The flatter the organization, the less motivated are the employees. >) 2anagers of a flat organization possess relatively more authority than those of a tall organization. ) flat flat organization has more hierarchical levels than a tall organization. organization. nswer! > %age "ef! 1&0 ifficulty! $asy (! *-& /) dding more managers to a company is most likely to result in ???? ????. ) increase in the degree of centralization @) flattening of the organizational structure >) higher bureaucratic costs ) decrease in the number of hierarchical levels nswer! > %age "ef! 1&0 ifficulty! 2oderate (! *-& /3) +hich of the following is most likely to increase the bureaucratic costsA ) changing the organization structure from functional to divisional @) decreasing the number of managers >) increasing the number of hierarchical levels ) decreasing the level of standardization nswer! > %age "ef! 1&0 ifficulty! 2oderate (! *-& /4) +hich of the following observations made by %arkinson led to the development of the %arkinson's lawA ) division of labor increases efficiency. efficiency. @) s the number of levels in the hierarchy increases, the =uality of the communication improves. >) The use of flat organization structure improves the motivation of the employees. ) 2anagers seek to increase the number of their subordinates. nswer! %age "ef! 1& ifficulty! $asy (! *-&
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*5) The ???????? states that work e6pands e6pan ds to fill the time available. ) %arkinson's law @) principle of the minimum chain of command >) Cissel doctrine ) @radford's law nswer! %age "ef! 1& ifficulty! $asy (! *-& *1) ccording to the principle of minimum chain of command, ?????? ??. ) managers seek to increase the number nu mber of their subordinates so as to improve their status in the organization @) an organization should be kept as flat as possible >) the use of functional organizational structure improves the speed of decision-making ) an increase in the number of hierarchical levels leads to an increase in the bureaucratic costs nswer! @ %age "ef! 1& ifficulty! 2oderate (! *-& *&) ccording to the principle of ????????, an organization should choose the minimum number of hierarchical levels consistent with its goals and the environment in which it operates. ) economies of scope @) minimum chain of command >) unity of direction ) horizontal differentiation nswer! @ %age "ef! 1& ifficulty! $asy (! *-& *) s compared to a tall organization, an organization with a flat structure is most likely to e6perience ????????. ) more communication problems @) fewer motivation problems >) fewer benefits of economies of scope ) higher bureaucratic costs nswer! @ %age "ef! 1& ifficulty! 2oderate (! *-&
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*/) "ose supervises :ris, who in turn supervises Diolet and aisy. Diolet Diolet has four subordinates and aisy has si6. +hich of the following options represents the ac curate spans of control for each of these supervisorsA ) "ose 1, :ris &, Diolet Diolet /, aisy 0 @) "ose 1, :ris 1&, Diolet Diolet /, aisy 0 >) "ose 1, :ris &, Diolet Diolet /, aisy 0 ) "ose , :ris 1&, Diolet Diolet /, aisy 0 nswer! > %age "ef! 1&4 ifficulty! $asy (! *-& **) +hich of the following terms refers to the number of subordinates a manager directly supervisesA ) span of control @) chain of authority >) degree of standardization ) level of centralization nswer! %age "ef! 1&4 ifficulty! $asy (! *-& *0) +hich of the following is one of the ways in which an organization can avoid becoming too tall yet maintain effective control of its workforceA ) encouraging upward communication but discouraging downward communication @) conducting 05 degrees appraisal of the employees >) increasing its managers' span of control ) increasing the number of levels in the hierarchy nswer! > %age "ef! 1&4 ifficulty! 2oderate (! *-& *) +hich of the following is most likely to happen if the span of control is too wideA ) The speed of decision-making will increase. @) The number of managers at the higher levels in the hierarchy will be more than the number of managers at the lower levels in the hierarchy. hierarchy. >) The division of labor will be too low. ) ubordinates will shirk responsibility. nswer! %age "ef! 15 ifficulty! $asy (! *-&
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*3) :t is more difficult to increase the span of control when ? ???????. ) tasks are routine or similar @) tasks are highly interrelated >) the structure of the organization is highly decentralized ) the organization operates in a stable e5nvironment nswer! @ %age "ef! 15 ifficulty! $asy (! *-& *4) #nder which of the following situations is it easier to increase the span of controlA ) The tasks are routine. @) The tasks are comple6. >) The tasks are highly interrelated. ) The tasks need to be performed by highly skilled professionals. nswer! %age "ef! 15 ifficulty! $asy (! *-& 05) manager associated with which wh ich of the following entities is most likely to have the widest span of controlA ) a plant that produces hammers @) a science lab that does comple6 genetic research >) a plant that manufactures airplanes ) an "E department in a drug manufacturing company nswer! %age "ef! 15 ifficulty! $asy (! *-& 01) +hen there are limits on the usefulness of direct, personal supervision by managers, organizations have to find other ways to control their activities. :n such a situations, which of the following, typically, typically, is the first step taken by the organizationsA ) decreasing the level of standardization @) increasing the level of horizontal differentiation >) increasing the division of labor ) increasing the span of control nswer! @ %age "ef! 15 ifficulty! 2oderate (! *-
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0&) +hich of the following functions will most likely have the tallest hierarchyA ) 2anufacturing @) ales >) "E ) ccounting nswer! %age "ef! 11 ifficulty! $asy (! *- 0) #sually, #sually, ales has a relatively ???????? hierarchy because supervisors use ????????. ) flatF centralization @) flatF standardization >) tallF centralization ) tallF standardization nswer! @ %age "ef! 11 ifficulty! $asy (! *- 0/) +hich of the following factors is most likely to increase vertical differentiation within an organization because it leads to the creation of many subunit hierarchies within the organizationA ) increasing level of formalization @) increasing employee empowerment >) increasing horizontal differentiation differentiation ) increasing upward communication but decreasing downward communication nswer! > %age "ef! 1& ifficulty! 2oderate (! *- 0*) s the hierarchy of an organization becomes taller, ????????. ) the number of managers decreases drastically @) the process of coordination gets simplified >) the comple6ity of the organization's specific environment increases ) managers begin to spend more and more time monitoring and supervising their subordinates nswer! %age "ef! 1& ifficulty! $asy (! *-
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00) +hen authority is ????????, the authority to make significant decisions is delegated to people throughout the hierarchy, hierarchy, not concentrated at the top. ) standardized @) formalized >) decentralized ) differentiated nswer! > %age "ef! 1& ifficulty! $asy (! *- 0) +hich of the following is the most direct effect of decentralizationA ) the time re=uired to make decisions increases @) the fle6ibility of the organization decreases >) the specific environment of the organization gets stabilized ) the monitoring burden on top managers manag ers is reduced nswer! %age "ef! 1& ifficulty! $asy (! *- 03) +hich of the following actions most likely enables even a relatively tall structure to be more fle6ible in its responses to changes in the e6ternal environmentA ) promoting downward communication and discouraging upward communication @) increasing the specialization and division of labor >) increasing vertical differentiation ) decentralizing authority nswer! %age "ef! 1 ifficulty! 2oderate (! *- 04) +hich of the following is most likely to be the effect of standardizationA ) The actions of the employees become predictable. @) 2anagers span of control decreases. >) The number of levels in the hierarchy increases. ) The need for division of labor decreases. nswer! %age "ef! 1 ifficulty! 2oderate (! *-
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5) tandardization ????????. ) enables a manager to increase his or her span of control @) makes it necessary to increase the number of levels in the hierarchy >) increases the need for direct supervision ) can be used only in a highly centralized organization nswer! %age "ef! 1 ifficulty! 2oderate (! *- 1) +hich of the following terms refers to a form of organizational structure in which people can be held accountable for their actions because they are re=uired to act in accordance with wellspecified and agreed-upon rules and standard operating proceduresA ) an organic organization @) a bureaucracy >) a matri6 organization ) an autocracy nswer! @ %age "ef! 1/ ifficulty! $asy (! *- &) ????????, a Cerman sociologist, developed bureaucratic organizing principles that underlie effective organizational structure. ) rederick ;erzberg @) braham 2aslow >) 2a6 +eber ) aniel @ell nswer! > %age "ef! 1/ ifficulty! $asy (! *-/ ) +eber's +eber's bureaucratic model is based on ???????? authority. ) traditional @) elected >) rational-legal ) charismatic nswer! > %age "ef! 1/ ifficulty! $asy (! *-/
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/) +hich of the following is one of +eber's bureaucratic principlesA ) tall organization should use a decentralized organizational structure and narrow span of control. @) :n order to decrease environmental comple6ity, an organization should centralize its operations. >) rganizational roles are held on the basis of technical competence. ) $mployees should be allowed to participate in decision-making. nswer! > %age "ef! 1/ ifficulty! 2oderate (! *-/ *) +ith reference to +eber's +eber's principles of bureaucratic structure, which of the following terms refers to the authority a person possesses because of his or her position in an organizationA ) rational-legal authority @) transactional authority >) charismatic authority ) transformational authority nswer! %age "ef! 1* ifficulty! $asy (! *-/ 0) ccording to +eber's +eber's principles of bureaucratic structure, the authority a person possesses results from ????????. ) the person's social status @) the position of the person in the organization >) the educational =ualification of the person ) the person's charisma nswer! @ %age "ef! 1* ifficulty! $asy (! *-/ ) +hich of the following statements is true according to +eber's +eber's principles of bureaucratic structureA ) >lassroom training should be given to all the employees to improve their theoretical knowledge. @) :n a stable environment, an organization o rganization should use a centralized organizational structure with narrow spans of control. >) role's task responsibility and decision-making au thority should be clearly specified. ) 05 degrees appraisal should be conducted for all the employees at a t least twice a year. nswer! > %age "ef! 1* ifficulty! 2oderate (! *-/ 10
3) "ole ???????? occurs when two or more people have different views of what another person should do, and as a result, make opposing demands on the person. ) conflict @) divergence >) contravention ) ambiguity nswer! %age "ef! 10 ifficulty! $asy (! *-/ 4) Goe, an accountant, works for Gack and Gudy. Gack told Goe to use the straight-line method for calculating depreciation, and Gudy told Goe to use the double-declining-balance method to compute depreciation. Goe is e6periencing a role ????????. ) divergence @) ambiguity >) conflict ) contravention nswer! > %age "ef! 10 ifficulty! 2oderate (! *-/ 35) "ole ???????? occurs when a person's tasks or authority are not clearly defined and the person becomes afraid to act on or take authority for anything. ) conflict @) ambiguity >) struggle ) divergence nswer! @ %age "ef! 10 ifficulty! $asy (! *-/ 31) @ob and my are simply instructed to attract new clients, but are not given specific guidelines regarding how to accomplish this goal. @ecause they work for a conservative company, company, they are afraid to take risks. @ob and my are e6periencing a role ????? ???. ) ambiguity @) conflict >) divergence ) contravention nswer! %age "ef! 10 ifficulty! 2oderate (! *-/
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3&) +hich of the following characteristics of an organization is recommended by +eber's principles of bureaucratic structureA ) loosely defined roles @) a small span of control >) use of standard operating procedures ) decentralization nswer! > %age "ef! 10 ifficulty! $asy (! *-/ 3) +hich of the following types of organizations is most likely to be characterized by clearly defined roles, decision-making authority, rules, and standard operating proceduresA ) an organic organization @) a bureaucratic organization >) a flat organization ) a vertically differentiated organization nswer! @ %age "ef! 10 ifficulty! $asy (! *-/ 3/) +eber's principles can help a >$ with his or her responsibility for ????????. ) selecting the top-management team @) designing the organizational hierarchy >) allocating resources to divisions ) determining the goals of an organization nswer! @ %age "ef! 1 ifficulty! 2oderate (! *-/ 3*) @ureaucracy ????????. ) hinders integration within the organization @) increases transaction costs >) separates the position from the person ) hinders a company8s ability to compete in the marketplace against other organizations for scarce resources nswer! > %age "ef! 13 ifficulty! 2oderate (! *-/
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30) +hich of the following is a potential disadvantage of a bureaucratic structureA ) stagnation @) role conflict >) lack of standard operating procedures ) role ambiguity nswer! %age "ef! 13 ifficulty! $asy (! *-/ 3) :n the case of a bureaucracy, if managers fail to control the development of the organizational hierarchy properly then the organization is most likely to become ????????. ) fle6ible @) decentralized >) unresponsive to the needs of customers ) very flat nswer! > %age "ef! 14 ifficulty! $asy (! *-/ 33) +hich of the following is one of the important trends that is accelerating as the result of advances in :TA ) conducting classroom training for newly hired employees @) using self-managed teams >) using a highly centralized organizational structure ) using a tall organizational hierarchy with several levels nswer! @ %age "ef! 1/1 ifficulty! 2oderate (! *-* 34) ???????? teams are formal work groups consisting of people who are Bointly responsible for ensuring that the team accomplishes its goals and who are empowered to lead themselves. ) Transitory @) >ontingent >) elf-managed ) Transactional nswer! > %age "ef! 1/& ifficulty! $asy (! *-/
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45) ???????? is the process of o f giving employees throughout the organization the authority to make important decisions and to be responsible for their outcomes. ) $mpowerment @) Dalue engineering >) perant conditioning ) "eciprocal logrolling nswer! %age "ef! 1/& ifficulty! $asy (! *-* 41) +hich of the following statements is true regarding contingent workersA ) >ontingent workers are highly useful in developing core competences. @) >ontingent workers receive indirect benefits such as health insurance or pensions. >) >oordinating and motivating contingent workers is difficult. ) >ontingent workers increase operating costs. nswer! > %age "ef! 1/& ifficulty! 2oderate (! *-* 4&) ???????? teams are work groups consisting of people from different work areas who are empowered to direct and coordinate different proBects. ) >ontingent @) Transactional >) >ross-functional ) Transitory nswer! > %age "ef! 1/& ifficulty! $asy (! *-* 4) +hat are the two things that an organization can do to improve its ability to controlA nswer! n organization can do two things to improve its ability ability to control
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4/) iscuss the significance of direct supervision. nswer! irect supervision allows allows managers to shape and influence influence the behavior of subordinates as they work face to face in the pursuit of a company's goals. irect supervision is a vital method of control because managers can continually =uestion, probe, and consult with subordinates about problems or new issues they are facing to get a better understanding of the situation. :t also ensures that subordinates are performing their work effectively and not hiding any information that could cause problems down the line. %ersonal control also creates greater opportunity for on-the-Bob task learning to occur and competences to develop, as well as greater opportunities to prevent free-riding or shirking. 2oreover, when managers personally supervise subordinates, they lead by e6ample and in this way can help subordinates develop and increase their personal management skills. %age "ef! 1&& ifficulty! 2oderate (! *-1 4*) +hat is the maBor difference between a tall organization and a flat organizationA nswer! tall tall organization is an organization organization in which the hierarchy has many levels relative to the size of the organization. +hereas, a flat organization is an organization that has few levels in its hierarchy relative to its size. %age "ef! 1&&-1& ifficulty! $asy (! *-1 40) +hat are the various problems with tall hierarchiesA nswer! The various problems with tall hierarchies are! 1. >ommunication problems! s the chain of command lengthens, communication between managers at the top and bottom of the hierarchy takes longer. decision-making slows, and the slowdown hurts the performance of organizations that need to respond =uickly to customers' needs or the actions of competitors. &. 2otivation problems! s the number of levels in the hierarchy increases, the relative difference in the authority possessed by managers at each level decreases, as does their area of responsibility. responsibility. This leads to lower levels of motivation. . @ureaucratic costs! The greater the number of managers and hierarchical levels, the greater the bureaucratic costs
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4) iscuss the %arkinson's law problem. nswer! %arkinson argued that growth growth in the number of managers and hierarchical levels is controlled by two principles! 91) 7n official wants to multiply subordinates, not rivals,7 and 9&) 7fficials make work for one another.7 2anagers value their rank, grade, or status in the hierarchy. 2anagers seek to increase the number of their subordinates. :n turn, these subordinates realize the status advantages of having subordinates, so they try to increase the number of their subordinates, causing the hierarchy to become taller and taller. taller. s the number of levels increases, increases, managers must spend more of their time monitoring and controlling the actions and b ehaviors of their subordinates and thus create unnecessary work for themselves. %age "ef! 1& ifficulty! 2oderate (! *-& 43) +hat is the principle of minimum chain of commandA nswer! ccording to the principle of minimum chain of command, an organization organization should choose the minimum number of hierarchical levels consistent with its goals and the environment in which it operates. :n other words, an organization should be kept as flat as possible, and top managers should be evaluated for their ability to monitor and control its activities with the fewest managers possible. %age "ef! 1& ifficulty! $asy (! *-& 44) efine span of control. +hat are the various factors that affect the span of controlA nswer! The number of subordinates a manager directly directly manages is known as span of control. %erhaps the single most important factor limiting the managerial span of co ntrol is the inability to e6ercise ade=uate supervision over the activities of subordinates as they grow in number. "esearch has shown that an arithmetic increase in the number of subordinates is accompanied by an e6ponential increase in the number n umber of subordinate relationships that a manager has to supervise. +hen subordinates' tasks are comple6 and dissimilar, a manager's span of control needs to be small. :f tasks are routine and similar so that all subordinates perform the same task, the span of control can be widened. 2anagers supervising subordinates who perform highly comple6, interrelated tasks have a much narrower span of control than managers supervising workers who perform separate, relatively routine tasks. %age "ef! 1&4-15 ifficulty! 2oderate (! *-&
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155) iscuss the significance of decentralization. nswer! s the hierarchy becomes taller taller and the number of managers increases, increases, communication and coordination problems grow. 2anagers begin to spend more and more time monitoring and supervising their subordinates and less time planning and goal setting, and organizational effectiveness suffers. suffers. ne solution to this problem is to decentralize a uthority because now less direct managerial supervision is needed. +hen authority is decentralized, the authority to make significant decisions is delegated to people throughout the hierarchy, hierarchy, not concentrated at a t the top. The delegation of authority to lower-level managers reduces the monitoring burden on top managers and reduces the need for 7managers to monitor managers.7 %age "ef! 1& ifficulty! 2oderate (! *- 151) (ist the si6 bureaucratic principles developed by 2a6 +eber. +eber. nswer! The si6 bureaucratic principles developed by 2a6 +eber +eber are! %rinciple ne! bureaucracy is founded on the concept of rational-legal authority. %rinciple Two! Two! rganizational roles are held on the basis of technical competence. %rinciple Three! role's task responsibility and decision-making authority and its relationship to other roles should be clearly specified. %rinciple our! The organization of roles in a bureaucracy is such that each lower office in the hierarchy is under the control and supervision of a higher office. %rinciple ive! "ules, standard operating procedures, and norms should be used to control the behavior and the relationship between roles in an organization. %rinciple i6! dministrative dministrative acts, decisions, and rules should be formulated and put in writing. %age "ef! 1/ ifficulty! 2oderate (! *-/ 15&) +hat is management by obBectivesA nswer! 2anagement by obBectives 92@) is is a system of evaluating subordinates on their ability to achieve specific organizational goals or performance standards and to meet operating budgets. 2ost organizations make some use of 2@ because it is pointless pointless to establish goals and then fail to evaluate whether or not they are being achieved. 2@ involves three specific steps! tep 1! pecific goals and obBectives are established at each level of the organization. tep &! 2anagers and their subordinates together determine the subordinates' goals. tep ! 2anagers and their subordinates periodically review the subordinates' progress toward meeting goals. %age "ef! 14 ifficulty! $asy (! *-/
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