Exam 1

Chapter One Review Questions

1. Describe the functional organizational structure. Why do you think this structure is so widely used?

It is the most commonly used organizational structure, which divides functional organizational structure into functions and departments. Each of these departments will be responsible for specific tasks or activities. Each department handles one aspect of the product or service provided: information technology, marketing, development, research, etc. Top management is responsible for coordinating the efforts of each unit and meshing them together into a cohesive whole. The structure is widely used because it evolved from the concept of high specialization, high control framework of manufacturing organization turned towards high efficient.

2. What is the silo effect? Why does it exist? What problems does it create? How can an organization reduce or eliminate the silo effect?

The Silo Effect refers to a lack of information flowing between groups or parts of an organization. On a farm, silos prevent different grains from mixing. In an organization, the Silo Effect limits the interactions between members of different branches of the company, thus leading to reduced productivity.

management does not believe there to be enough benefit from sharing information, and because information might not be useful to personnel in other systems. The problem it can cause is that people are working independently and can become at odds with each other because a cross function nature is not working. If an organization reduces or eliminates the silos effect, this fosters innovation and increases productivity by unlocking the information needed for collaboration. Different members will start to gets feedback that allows an easier way to carry out a new procedure, everybody involved in the implementation benefits

3. What is a business process? Why is adopting a process view of organizations essential to becoming a successful manager?

A...