ORGANIZATION THEORY

CHAPTER 1
Theory:
• Theory is basically an explanation!
• It explains relationships between different phenomena (individuals, events,
groups, companies, etc.).
• Why and how something happens?
• What happens? Where and when it happens? Who is responsible?
• Theory provides predictions and creates expectations.
• Theories are helpful to understand our experiences
• Each theory is a framework of ideas and thoughts.
• Theory arranges our approach to certain issues
Importance of theory:
• Theory is everything for a scholarly work!
• Academics challenges existing theories, or improve them, or they create new theories.
• Practitioners use academic theories as a valuable source.
• They also have their own informal theories out of their experiences.
• “There is nothing as practical as a good theory” (Kurt Lewin 1943)

Different forms of explanations

From weak to strong:
• Hunch (Starts by observation)
• Hypothesis (Forms by a verified observation)
• Theory (Established by a falsification attempt)
• Law (Not being challenged by an alternative theory)

What is organization?
• To organize means to coordinate a group of people and make arrangements
• “forming a whole of interdependent parts”
• Organizations are deliberately designed orders with a purpose.
• An organization is a managed system.
• Management involves planning, coordinating, directing, controlling.
• An organization is different than a market order.
• How?
• Organizations are operated with an environmental structure, possible a market
structure
• For profit vs. non-profit
Importance of organization:
• Success comes with good organization as humans are often individually helpless.
 • Military, political, and business leaders rely on excellent organization.
• “Chinggis Khan's organized units were based on the principle of ten. He organized
his people into units of ten, a hundred, a thousand, and ten thousand.”
• “Believing that conventional management had stifled innovation, Jobs laid off the
general managers of all the business units (in a single day), put the entire company
under one P&L, and combined the disparate functional departments of the
business units into one functional organization.”

Importance of business organizations:

 Bring together resources to achieve desired goals and outcomes
 Produce goods and services efficiently
 Facilitate innovation
 Use modern manufacturing and information technologies
 Adapt to and influence a changing environment
 Create value for owners, customers and employees
 Accommodate ongoing challenges of diversity, ethics,
and the motivation and coordination of employees
What is organization theory?
• “Organizational theory is the study of the behaviour and nature of organizations and
their environments” (Miner 2005, p.4).
• It involves psychological, sociological and economic concerns for organizations.
• It identifies different ways of organizing.
• Formalization, Specialization, Hierarchical relations, Vertical vs. horizontal,
Centralization
• Compare an organization with anarchy.
• Are organizations often similar to dictatorships? Why or why not?

The practicality of organization theory:

• It helps to build an organizational system (structure of task and authority relationships)
• Decision-making rules and roles
• Hierarchical responsibilities
• Routines and processes
• It helps to design and change organizations.
• It helps to establish an appropriate organizational culture.

Some organization theories:

• Classical approaches, e.g.:
• Taylor’s scientific management: Seeing people as a part of engineering
problem of efficiency
 • Weber’s bureaucratic organization: Using formal procedures to regulate
administration of people
• Modern approaches, e.g.:
• Bounded Rationality: Focusing on managerial decision-making capabilities
and boundedly rational actions
• Ecosystem approaches: Seeing an organization as a part of larger ecosystem

Current challenges in organizations:

 Globalization
 Ethics and Social Responsibility
 Speed of Responsiveness
 The Digital Workplace
 Diversity

CHAPTER 2
Images of organization:
• Organization as machines: Control and standardization
• Organization as organism: Adaptation
• Organization as brain: Information processing
 • Organization as culture: Values and rituals
• Organization as political: Power, interests and conflicts
• Organization as psychic prisons: Repression
• Organization as flux and transformation: Complexity
• Organization as instruments of domination: Exploitation

- Open system thinking pays attention to the (open) boundary between the
organization and its context.
- Closed system design focuses exclusively upon the organization without
consideration of its dependence upon or capacity to influence elements comprising its context.
Boundary-spanning roles link and coordinate an organization with key elements
in the external environment.
Organization configuration

Why organizations need middle managers?

Technical Core
The technical core includes people who do the basic work of the organization. This part actually
produces the product and service outputs of the organization. This is where the primary transformation
from inputs to outputs takes place. The technical core is the production department in a manufacturing
firm, the teachers and classes in a university, and the medical activities in a hospital.
Technical Support
The technical support function helps the organization adapt to the environment. Technical support
employees such as engineers, researchers, and information technology professionals scan the
environment for problems, opportunities, and technological developments. Technical support is
responsible for creating innovations in the technical core, helping the organization change and adapt.
Administrative Support
The administrative support function is responsible for the smooth operation and upkeep of the
organization, including its physical and human elements. This includes human resource activities such
as recruiting and hiring, establishing compensation and benefits, and employee training and
development, as well as maintenance activities such as cleaning of buildings and service and repair of
machines.
Management
Management is a distinct function, responsible for directing and coordinating other parts of the
organization. Top management provides direction, planning, strategy, goals, and policies for the entire
organization or major divisions. Middle management is responsible for implementation and
coordination at the departmental level. In traditional organizations, middle managers are responsible
for mediating between top management and the technical core, such as implementing rules and
passing information up and down the hierarchy.

Metrics to evaluate structure:

 Efficiency refers to the amount of resources used to achieve the organization’s goals.
 Effectiveness refers to the degree to which an organization achieves its goals.
 Stakeholder Approach – balancing the needs of groups in and outside of the
organization that has a stake in the organization’s performance.
Historical perspectives:
 Efficiency is Everything
– Scientific Management: Pioneered by Frederick Winslow Taylor
 How to Get Organized
– Bureaucracy (Weber) and administrative principles (Fayol)
– Contributed to Bureaucratic Organizations
 What about People?
– Hawthorne Studies
 Don’t Forget the Context
– Contingency: there must be a ‘goodness of fit’
 between ‘structural’ and ‘contextual’
dimensions.

Taylor’s scientific management:

• Standardization of work processes and increased productivity by close monitoring
with incentives and punishments
• Clear division of labor
• Selection, training and compensation in a meritocratic way
• Advantages: Increased productivity and consistency
• Disadvantages: Alienation, harsh atmosphere, dehumanization

Weber’s bureaucracy:
• Traditional authority based on customs, kinship and social relationships: The problem
of favoritism
• Formal authority based on rules: Rational meritocracy established by legitimate
authority
• Advantages: Efficiency and discipline
• Problems: Red tape (too much paperwork) and ‘iron cage’ (limited freedom)

Modern perspectives:
 Chaos theory suggests that relationships in complex systems are nonlinear and made
up of numerous interconnections and divergent choices.
 “This is world full of uncertainty, characterized by surprise, rapid change and
confusion. Managers can’t measure, predict or control in traditional ways the
unfolding drama inside or outside the organization.” P.37
 Learning Organization is based on equality, open information, little hierarchy and a
culture that encourages adaptability and participation.
 “The learning organization is, in principle, based on equality, open informa-
tion, little hierarchy and a culture that encourages adaptability and
participation, enabling ideas to bubble up from anywhere that can help the
organization seize opportunities and handle crises. In a learning organization,
the essential value is problem solving, as opposed to the traditional
organization designed for predictable outcomes.” P.37
 Managers are often reluctant to release their control.

Discussion
• What kind of an organization would you like to work? Why?
• What kind of an organization would you like to manage? Why?
CHAPTER 3: STRATEGY AND ORGANIZATION DESIGN
What is strategy?
• It is a plan for interacting with the competitive environment. Managers must select
specific strategy and design options in order to achieve official and operative goals
within its competitive environment.
Business Strategy
 Business strategy aims at competitive advantage: Increased market share, increased
profitability
 It aims at business goals and mission of the company
 Three competitive strategies
(1) Low cost leadership: this strategy tries to increase market share by emphasizing
low cost compared to competitors (e.g. Ryanair).
(2) Differentiation: organizations attempt to distinguish their products or services
from others in the industry (e.g. Rolex watches).
(3) Focus: focused low cost and focused differentiation. The organization concentrates
on a specific regional market or buyer group (e.g. Puma).
Consider:
• Apple vs Garmin Watches.
• THY vs Pegagus Airlines
• Migros vs A101
• Nike vs Kinetix
MILES AND SNOW’S STRATEGY TYPOLOGY: HOW TO EXPLOIT EXTERNAL
ENVIRONMENT
• The prospector: Innovate, take risks,
seek out new opportunities and grow
(e.g., Getir, Arçelik)
• Learning, risk-taking, innovation
• The defender: Stability or even
retrenchment. (e.g., Vestel)
• Efficiency and tight cost-control
• The analyzer: Maintain a stable business
while innovating on the periphery. (e.g.,
Sony and IBM)
• Balances efficiency with learning
• The reactor: Responding to
environmental threats and opportunities
in an ad hoc fashion (e.g., McDonalds)
• Reacting to current needs

HOW TO GIVE AND ASSESS STRATEGIC DIRECTION?

• Check the
external
(rivalry) and
internal
environment
• Check
resources
• Check core
competencies
• Check what
you want to
achieve

Purpose

 Mission: It describes the organization’s vision, its shared values and beliefs and its
reason for being.
  It sometimes called the official goals,
 A mission statement communicates to internal and external stakeholders.
OFFICIAL AND OPERATIVE GOALS
 The Importance of Goals
 Official goals and mission statements describe a value system for the organization.
They legitimize the organization
 Operative goals (short-run performance goals) related to key tasks of the
organization. They are more explicit and comparatively well defined. Operative goals
serve several purposes:
• Employee direction and motivation
• Decision guidelines
• Standards of performance

ORGANIZATION DESIGN
 Organization design is used to implement goals and strategy and thereby influences
the prospects of success.
 Organization design is not always a highly rational process which involves careful
calculation and proceeds smoothly through a serious of stages. In fact, the design of
organization is political process in which established routines and vested interests are
challenged and defended.
 Example: Facebook and Meta
ASSESSING ORGANIZATIONAL EFFECTIVENESS
• Effectiveness: Whether the organization realizes its goals
• Efficiency: Ratio of inputs to outputs
• Balanced Scorecard: Balances traditional financial measures with critical operational
measures
• A balanced scorecard contains four major focal areas:
• financial performance,
• customer service,
• internal business processes,
• the organization’s capacity for learning and growth
 Team discussion: Mezzaluna vs. McDonalds
• Discussion questions:
1. In terms of Porter’s strategies, how would you define these 2 companies’ strategies
(low cost-differentiation)? Why?
2. How are they different? Their customers and target segments? Their goals? Their
values? Their quality of products and services? Their operations? Preparation of
meals? Prices?

CHAPTER 4: Organizational Structure

Three components of organizational structure
 Vertical aspect of organizing
1. Formal Reporting Relationships including the number of levels and the span of
control.
2. Grouping of Individuals into departments and of departments into the total
organization
 Horizontal aspect of organizing
3. Design of Systems to ensure effective communication, coordination and integration
of efforts

Information-Processing Perspective on Structure

 Traditional organization vs. Learning organization
- Traditional organization design emphasizes vertical communication and control.
- Learning organization which emphasizes communication and collaboration
 Centralized vs. Decentralized decision making
- Centralized authority focused on top level decision-making
- Decentralized authority focused on shared tasks and decisions
Vertical Information Linkages
 Vertical linkages coordinate activities between the top and the bottom of the
organization
 Hierarchical referral are the vertical lines which identify the chain of command
 Rules and Plans
- Rules enabling employees to be coordinated
- Plans provides standing information for employees.
 Vertical information systems is a strategy for increasing vertical information capacity.
It includes reports,
computer-based communication and written
information

Horizontal Information Linkages

 Horizontal linkage refers to the amount of communication and coordinate activities
across organizational departments.
 Information Systems enable information exchange throughout the organization
 Direct Contact is a higher level of horizontal linkage (i.e. liaison role)
 Task Forces is a temporary committee composed of representative from each
department involved.
 Full-Time Integrator responsible for coordination.
 Teams is the strongest horizontal linkage.
Project manager as the integrator

Three keys indicators of organization design

1. Required work activities
2. Reporting relationships
3. Departmental grouping options
- Functional grouping
- Divisional grouping
- Multifocused grouping
- Horizontal grouping
- Virtual network grouping
Departmental Grouping Options
Matrix Structure
 Conditions for Matrix:
- Condition 1: Share resources across the organization
- Condition 2: Two or more critical outputs required: products and technical
knowledge
- Condition 3: Environment is complex and uncertain
 Two variations of matrix structure
- functional matrix
- product matrix
 A dual-authority structure can help to ensure a
balance between vertical and horizontal aspects of organizations.
Horizontal Structure
 Organization around core processes:
- Structure is created around cross-functional core processes rather than tasks, functions
or geography. Thus, boundaries between departments are obliterated.
• Self-directed teams are the basis of organization design and performance
• Process owners are responsible for entire process
• People on the team are given authority for decisions
• Can increase organization’s flexibility
• Customers drive the horizontal corporation.
• The culture promotes openness, trust and collaboration.
Virtual networks
 It extends the concept of horizontal coordination and collaboration beyond the
boundaries of the organization
 Most common strategy is outsourcing
- Contract out certain tasks/functions
 Virtual or modular structures subcontract most of its major functions to separate
companies
 The virtual network organization serves as a central hub with contracted experts
Hybrid solutions
 Organizations often use a hybrid structure that combines characteristics of various
structure approaches tailored to specific needs
 One common type is the combination of the functional and divisional structures.
 Often used in rapidly changing environments
 Greater flexibility

Contingency theory
• Appropriateness of an organizational structure depends on contingencies in their
environment
• Two organizational contingencies: Organizational size and task contingency
• E.g. small organizations and innovative tasks do not require strong
bureaucracy
• Structure should fit with needs, demands, and objectives.

Application of Structural Design

 Each type of structure is applied in different situations and is intended to meet
different needs.
 Structural alignment aligns structure with organizational goal
 Symptoms of Structural Deficiency:
• Decision making is delayed or lacking quality
• Organization does not respond innovatively to a changing environment
• Employee performance declines, goals are not being meet
• Too much conflict

The Organizational Structure of Innovation: How Toyota, Procter & Gamble, etc…
 • Decision-making by innovation teams rather than by top management
• Integration of R&D into the Business Units
• Co-location of teams and departments
• Central innovation funds
• External interface for open innovation
• Merger & Acquisition Department

Silos
• Isolation and lack of information flow between department.
• Silos cause inefficiencies
• Poor customer experiences
• Internal unfamiliarity
• Us vs them mentality
• Disenfranchised Employees
• Task duplication

How to get rid of silos?

• Unify the business under one vision: Common goals
• Clear plans: Increasing transparency
• Collaborations and train one another
• Incentives: Reward cross-department thinking
• Encourage socialization: Fun activities and playfulness

How to scale a flat organization?

• Flat organization: Minimal hierarchy, self-management and empowerment
• Growth and its need of authority stifle flat organization!
• Organic modular design: Autonomous teams
• Coordination through enabling mechanisms: Articulating objectives
• Transparency: Control by transparency
• Knowledge sharing by AI: Guide by information
• Agile learning: Culture tolerating failure
• The promotion of a living story: Integrate with values

CHAPTER 8:
Manufacturing and Service Technologies
Structuring attends to the core technology:
 • Technology: “Technology here refers to the work processes, techniques, machines and
actions used to transform organizational inputs (materials, information, ideas) into
outputs (products and services). “
• Core technology: Directly related to the company vision
• Non-core technology: Indirectly related

Manufacturing company

Organizing manufacturing
 Technical complexity refers to the extent of mechanization of the manufacturing
process.
- High technical complexity means most of the work is performed by machines.
- Low technical complexity means workers play a larger role in the production
process.
 Wookward’s scale of technical complexity
- Group I: Small-batch and unit production
- Group II: Large-batch and mass production
- Group III: Continuous-process production
Mechanistic: Written rules and procedures, strong hierarchy, centralized decision-making
Organic: Unwritten rules and procedures, weak hierarchy, decentralized decision-making

Organic vs. mechanic

 Organic and mechanistic management systems
- Successful small-batch and continuous process organizations tended to have more
organic structure.
- Successful mass-production organizations had comparatively mechanistic structures.
 Effectiveness is contingent upon an alignment of strategy, structure, and technology.
 Failing to adopt a new technology or failing to realign
strategy can lead to poor performance.

Flexible Manufacturing Systems

 Flexible manufacturing systems (FMS) links together manufacturing components
that previously stood alone.
 Mass customization is one effective response to the dilemma of globalization.
 FMS is typically the result of three subcomponents:
- Computer-aided design (CAD)
- Computer-aided manufacturing (CAM)
- Integrated Information Network
 FMS means that new products can be designed and prototypes without human hands

FMS and performance

  FMS allows for mass customization, with each specific product tailored to customer
specification.
- The high-level use of FMS has been referred to as computer-aided craftsmanship.
 FMS allows:
- Efficient machine utilization
- Labour productivity increases
- Scrap rates decrease
- Increased productivity
- Increased customer satisfaction

Lean manufacturing
 Lean manufacturing uses highly trained employees at every stage of production
process.
- The heart of lean manufacturing is not machines or software, but people.
 Lean manufacturing requires changes in organizational system.
- e.g. decision-making and management process culture
 Incorporates technological elements
 Paved the way for mass customization
- Using mass-production technology to quickly and
cost-effectively assemble individual goods for
customers
  Interdependence among departments dictates the amount of communication and
coordination required in design.

Technology and job design

  Technology impacts job design and organization design.
 Job Design includes the assignment of goals and tasks to be accomplished by
employees.
- Job Rotation
- Job Simplification
- Job Enrichment
- Job Enlargement
 Sociotechnical systems approach recognizes the interaction of technical and human
elements in effective job design.
- The goal of the sociotechnical system approach is
to design the organization for joint optimization.

CHAPTER 10: Organizational Size, Life Cycle and Decline

Organization Size: Is Bigger Better?
  Pressures for Growth
- Companies in all industries strive for growth to acquire the size and resources needed
to compete globally
- Scale is crucial to economic health in marketing-intensive companies
 Dilemmas of Large Size
- Large organizations are able to get back to business more quickly following a
disaster. They are standardized, mechanistic and complex
- Small companies are flexible and can be responsive. They often have a flat structure
and a more organic,
free-flowing management style.
- Big-company/Small-company hybrid

Size and Structural Control

 Organization size is an important variable that influence structural design and
methods of control.
 Formalization refers to rules, procedures, and written documentation.
  Centralization refers to level of hierarchy with authority to make decisions. Larger
organizations permit greater decentralization.
 Personnel Ratios – clerical and professional support staff ratios.

Bureaucracy worked for the industrial age

The system does not necessarily work for today’s challenges
Today bureaucracy leads to inefficiency
Organizations are creating temporary structures to respond to crisis.

Useful for increasing control and reducing corruption!

Life Cycle of organizations

• Entrepreneurial stage emphasize on creating a product or service and surviving in the
marketplace.
• Crisis: Need for leadership
• Collectively stage , organizations begin to develop clear goals and direction.
 • Crisis: Need for delegation
• Formalization stage involves the installation and use of rules, procedures and control
systems.
• Crisis: Too much red tape
• Elaboration stage focuses upon on collaboration and teamwork
• Crisis: Need for revitalization

 Organizations evolve through the stages of the life-cycle.

 Larger organizations usually adopt bureaucratic characteristics.
Organizational Decline and Downsizing
 The decrease of an organization’s resources is caused by:
• Organizational atrophy: Degeneration leading to inefficiencies
• Vulnerability: Weaknesses in response to changes
• Environmental decline or competition: Reduced support and emergence of
new rivals
• Downsizing is often a remedy to temporary decline.
• It refers to intentionally reducing the size of a company’s workforce

Downsizing implementation
 Downsizing has become a common practice in corporations.
 Massive downsizing has often not achieved the intended benefits and in some cases
has significantly harmed the organization.
 Techniques that can help smooth the downsizing process:
1) Communicate more, not less
2) Provide assistance to displaced workers
3) Help the survivors thrive

CHAPTER 1:
1-) An organization can be understood primarily by understanding the people who make it up.
ANSWER: Disagree. An organization has distinct characteristics that are independent of the nature of
the people who make it up. All the people could be replaced over time while an organization’s
structural and contextual dimensions would remain similar.

2-) The primary role of managers in business organizations is to achieve maximum effi ciency.
ANSWER: Disagree. Effi ciency is important, but organizations must respond to a variety of
stakeholders, who may want different things from the organization. Managers strive for both effi
ciency and effectiveness in trying to meet the needs and interests of stakeholders. Effectiveness is
often considered more important than effi ciency.

3-) A CEO’s top priority is to make sure the organization is designed correctly.
ANSWER: Agree. Top managers have many responsibilities, but one of the most important is making
sure the organization is designed correctly. Organization design organizes and focuses people’s work
and shapes their response to customers and other stakeholders. Managers consider both structural and
contextual dimensions as well as make sure the various parts of the organization work together to
achieve important goals.

Middle management serves an important function in a company's organizational structure.

These managers deal with individual employees and customers and serve as a buffer between
top-level management and everyone else.

4-) What is the difference between formalization and specialization? Do you think an organization
high on one dimension would also be high on the other? Discuss.

5-) What does contingency mean? What are the implications of contingency theory for managers?
Contingency means that something depends on other factors. In the context of management,
contingency theory means that there is no one-size-fits-all approach to management. The best way to
manage depends on the specific situation.
The implications of contingency theory for managers are:
Managers need to be flexible and adaptable. They need to be able to change their management style
depending on the situation. Managers need to be able to identify the key contingency factors that are
affecting the situation. These factors may include the organization's environment, the organization's
structure, and the employees themselves.nManagers need to choose the management approach that is
most likely to be effective in the given situation.
Here are some examples of contingency theory in action:
A manager might use a more directive approach to managing a new employee who is still learning the
ropes.
A manager might use a more participative approach to managing a team of experienced employees
who are working on a complex project.
A manager might use a more decentralized approach to managing a global organization with
operations in different countries.
Contingency theory is a valuable framework for managers because it helps them to understand that
there is no one-size-fits-all approach to management. By being flexible and adaptable, managers can
choose the management approach that is most likely to be effective in the given situation.

6-) What are the primary differences between an organization designed for efficient performance and
one designed for learning and change? Which type of organization do you think would be easier to
manage? Discuss.

The primary differences between an organization designed for efficient performance and one designed
for learning and change are as follows:

Organization designed for efficient performance:

Structure: Centralized, bureaucratic structure

Tasks: Highly specialized tasks
Systems: Rigid rules and procedures
Culture: Closed, competitive culture
Strategy: Focus on incremental improvement

Organization designed for learning and change:

Structure: Decentralized, organic structure

Tasks: Broad, cross-functional tasks
Systems: Flexible rules and procedures
Culture: Open, collaborative culture
Strategy: Focus on innovation and transformation

An organization designed for efficient performance is easier to manage in the short term. This is
because the centralized structure, rigid rules, and specialized tasks make it easy to control and
coordinate the organization's activities. However, this type of organization can be less effective in the
long term, especially in a rapidly changing environment. This is because the rigid structure and rules
can stifle creativity and innovation.
7-) What are some differences one might expect among stakeholder expectations for a nonprofit
organization versus a for-profit business? Do you think nonprofit managers have to pay more attention
to stakeholders than do business managers? Discuss.
There are some key differences one might expect among stakeholder expectations for a nonprofit
organization versus a for-profit business.
Nonprofit organizations are typically expected to:
Fulfill their mission and objectives. This is the primary expectation of all stakeholders, including
donors, volunteers, clients, and the public.
Be transparent and accountable. Nonprofit organizations are often entrusted with public funds, so they
are expected to be transparent about how they use those funds and to be accountable for their results.
Be efficient and effective. Nonprofit organizations are expected to use their resources wisely and to
achieve their goals effectively.
Make a positive impact on society. This is the ultimate goal of all nonprofit organizations.

For-profit businesses are typically expected to:

Generate profits for shareholders. This is the primary expectation of shareholders, who are the owners
of the business.
Comply with all applicable laws and regulations. Businesses have a legal obligation to comply with
laws and regulations, such as those related to environmental protection, labor standards, and consumer
protection.
Be ethical and responsible. Businesses are expected to conduct themselves in an ethical and
responsible manner, taking into account the interests of all stakeholders, including employees,
customers, suppliers, and the community.
In general, nonprofit managers have to pay more attention to stakeholders than do business managers.
This is because nonprofit organizations are typically more dependent on stakeholders for funding and
support. Additionally, nonprofit organizations have a social mission, so they are more accountable to
the public.
CHAPTER 2:
1-) Discuss the role of top management in setting organizational direction.
2-) How might a company’s goals for employee development be related to its goals for innovation
and change? To goals for productivity? Can you discuss ways these types of goals might conflict in an
organization?

3-) Discuss the similarities and differences in the strategies described in Porter’s competitive
strategies and Miles and Snow’s typology.
4-) Do you believe mission statements and official goal statements provide an organization with
genuine legitimacy in the external environment? Discuss.
CHAPTER 3:
1-) What is the definition of organization structure? Does organization structure appear on the
organization chart? Explain.
2-) When is a functional structure preferable to a divisional structure?
3-) What is the difference between a task force and a team? Between liaison role and integrating
role? Which of these provides the greatest amount of horizontal coordination?
4-) What conditions usually have to be present before an organization should adopt a matrix
structure?
5-) What types of organizational activities do you think are most likely to be outsourced? What types
are least likely?
CHAPTER 4:
1-)