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36 Cards in this Set
- Front
- Back
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a) The tendency towards formalization and regulation increases with increasing variability of tasks
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(not correct)
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b) The power of headquartes in decentralized, divisional corporations is re atively ow because the divisions have full responsibility
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(not ok: typical tasks of holding: decision on investments, i.e. cash allocation: portfolio management: replacement of managers)
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c) Organizational Differentiation is compensating organizational Integration
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(not ok: vice versa: integration is compensating differentiation)
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d) The higher the work specialization, the higher the productivity will be
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(not ok: there are diseconomies of specialization: curve!: film modern times : shrinking concentration (low quality): increasing absentism: high turnover: shrinking motivation (boredom, fatigue, stress): increased dependencies: if one worker drops out, whole production process is failing: increased cost of coordination)
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e) A company which is organized along more than one differentiation criterium has a matrix organization
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(false: this is only correct, when more than one criterium appears on the same hierarchical level and is combined with dual authority)
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f) A divisional organization fits best to a one-product company
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(not ok)
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g) In divisional organizations there is a risk of overloading top management
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(not correct: this is a disadvantage of functional organizations)
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h) Functional organizations are especially helpful when you want to install a results-based performance management system
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(not ok: this is much easier in divisional orgs, because financial data can be used as KPI)
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i) The one-line principle of chain of command implies that each boss has just one direct subordinate
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(false: its vice versa)
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j) Geographical differentiation makes sense in case of large CAGE-distance between the countries a company is active in
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(correct)
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k) Chain of command is an instrument of organizational integration. It is the line of authority extending from upper organizational levels to the lowest level and clarifies who reports to whom
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(correct)
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l) MBO is coordination though planning
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(correct)
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m) Stories about the founder of an organization can be means of cultural coordination
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(correct: Theo Albrecht example)
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n) The higher the span of control (second aspect of chain of command), the flatter the organization is
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(correct)
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o) The integration mechanisms of delegation and centralization are the same
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(correct: centralization is the degree to which decision responsibility is concentrated at upper levels of the organization)
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p) Successful delegation requires a fit between responsibility, task, and competencies
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(correct: see slide on principle of organizational congruency)
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q) The functional organization is follows the differentiation-logic of Artenteilung
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(correct, it is a subform of Artenteilung: Verrichtungorientierung)
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r) Project teams are temporary and secondary forms of organizational integration
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(correct)
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2. What forms of “organization” do you know?
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(a) functional (organization along functions such as operations, finance, personnel, marketing, sales) b) divisional (organization along businesses such as pharmaceuticals, consumer health, crop science, animal health), c) regional (organization along regional units such as EMEA (Europe, Middle East, Africa), DACH (Deutschland, Austria, Schweiz), NAM (North America)), d) customer (organization along types of customers, such as retail accounts, wholesale accounts, government accounts))
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3. When does a divisional organization make sense?
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(makes the more sense, the more unrelated products exist and the more unrelated markets are served. Example: strongly diversified conglomerates such as ThyssenKrupp. Reason: the more unrelated the businesses are, the less synergies across businesses could be gained via a worldwide functional organisation)
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4. Why does a divisional organization make sense mentioned above?
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(a) overload of top avoided: top of hierarchy can concentrate on financial steering instead of concrete management of all the diverse products and markets served, b) higher data transparency regarding market position, profit, trends etc. on business level and thus: risk of inefficient capital allocation via undercover cross-subsidization of businesses avoided. This makes especially external observers such as investors happy (see. Segmentberichterstattung), c) higher motivation because performance based management can be installed company- wide by using standardized KPIs such as “value added”. Higher motivation due to high autonomy, responsibility, and identification, d) portfolio management easier to handle (i.e. buying and selling of businesses) because they are treated as separate, self-sufficient units
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5. What are typical opportunities for synergies even in diversified conglomerates?
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(e.g. tasks such as: legal, controlling, accounting, human resources, finance)
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6. What could be an organizational solution in order to avoid that the fields of synergies are ignored?
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(create staff units (Stabsstellen), attached to top of hierarchy which are responsible for controlling, finance, legal etc.)
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7. Since staff-units do not have any formal authority along the chain of command how can they nevertheless become effective?
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(a) via “Richtlinienkompetenz” (e.g. Controlling receives Planungshoheit, i.e. defines how planning- and controlling cycle works, what data have to be delivered etc.), b) via service center concept, i.e. the staff units are offering their work as service to the rest of the organization with concrete prices. Rest of organization can decide to make use of the services or not (e.g. internal consulting department).
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8. Where in an organization do we usually find a regional structure
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(sales)
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9. How is a matrix defined? What is the idea behind the matrix and what are the disadvantages?
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(a) definition: give two criteria of differentiation the same “importance”. E.g. create an organization along functions and regions simultaneously so that for instance the head of R&D of Pfizer Germany GmbH has two bosses: head of Pfizer Europe (regional dimension) and head of R&D Europe). b) idea: in decision making both perspectives, the regional as well as the functional are considered. Critical decisions are productively discussed and the best solution may win, c) disadvantage: prolongued decision making and overload of hierarchy: unproduktiver Kampf um Zuständigkeiten.)
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10. What is a business process?
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(a sequence of activities taking place within an organization with a clear starting point and a clear endpoint, e.g. a) order process (Auftragsabwicklung), b) process of offering (Angebotserstellungsprozess), c) sourcing process (Beschaffungsprozess))
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11. How can we measure the “performance” of an organization?
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(a) deconstruct the organization into processes and b) check time, quality, and cost of these processes, c) compare time quality, and cost over time or with benchmarks)
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12. What is a “process organization”
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(basically an organization within which responsibilities are arranged around processes (so called “process owners” are responsible for processes) this can be done in three forms (see slide 31): (1) pure process organization: organization is exclusively structured along processes, e.g. process of offering, order process and so on. (2) matrix process organization: organization along functions and processes simultaneously, (3) organization is not changed, e.g. remains functional and processes are just made transparent how they currently are.)
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13. When does it make sense to create a pure process organization with process owners and teams responsible for complete processes?
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(this makes sense for repetitive routine tasks in administration (e.g. check of credit inquiries of customers). Reason: in these cases work specialization is not that important.)
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14. How could an HR-Department, organized around “Verrichtungen” look like?
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(Personalbeschaffung, Aus- und Fortbildung, Personalabrechnung, soziale Dienste (Altersversorgung, werksärztlicher Dienst)).
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How could an HR Department, organized around “Objekte” look like?
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(Referent Führungskräfte: Referent Tarifangestellte, Referent Ausbildungswesen usw.)
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15. Please name typical criteria you would check when comparing two alternative organization charts of a company.
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(e.g.: are there duplications of activities which could be avoided?, is there a high risk of inefficient and time consuming conflict?, is the Top of the organization overburdened with work?, is it easy to define quantitative performance criteria?, is time needed for decision making very long?, etc.)
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16. The hidden logic of organizational differentiation are specialization advantages. But, how exactly can we explain those advantages?
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(learning effects: no misunderstandings regarding task and responsibility: easier onboarding of new employees: just low qualification level required)
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17. Shareholder-Value management triggers divisional organizational structures. Can you imagine why?
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(keep separate businesses separate: separate cost of capital: no inefficient cross subsidizing: parts easy to sell)
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18. What are the disadvantages of formalization (i.e. define standardized working procedures, document them and ask employees to exactly follow the procedures?
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(a) risk of overorganization: b) lack of flexibility, or: high workload for permenantly keeping the procedures up to date, c) motivation and creativity of employees decreases
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