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Why do large organizations tend to have larger ratios of clerical and administrative support staff? Why are they typically more formalized than small organizations?

Why do you think organizations feel pressure to grow?

Look through several recent issues of a business magazine such as Fortune, BusinessWeek, or Fast Company and find examples of two companies that are using approaches to busting bureaucracy. Discuss the techniques these companies are applying.

Government organizations often seem more bureaucratic than for-profit organizations. Could this partly be the result of the type of control used in government organizations? Explain.

Numerous large financial institutions, including Lehman Brothers and Merrill Lynch, experienced significant decline or dissolution in recent years. Which of the three causes of organizational decline seems to apply most clearly to these firms?

Do you think a “no growth” philosophy of management should be taught in business schools? Discuss.

Week 17 Revision, terms and final test





A) As organizations evolve through the four stages of the life cycle, changes take place in structure, control systems, innovation, and goals. Identify 4 stages for the company that you analyze. Provide timing, specific features, refer the features to the characteristics from the table (Organizational characteristics during the life cycle)describe what actions have been taken for further development.


B) Most companies experience significant decline or dissolution. Identify one example of this trend in the company that you analyze. Which of the three causes of organizational decline described above seems to apply most clearly to your example? Explain why. What has been done by the management of the company to avoid final, “no choice” stage?


TERMS for the final test.

Globalization Ethical scrutiny Diversity   Organization Value creation External environment Transaction costs Division of labor   Formalization Specialization Hierarchy of authority Centralization Professionalism Personnel ratios Organizational technology The organization’s goals and strategy Organizational culture Organizational structure Organizational design Organizational change     Efficiency Effectiveness Stakeholder approach A stakeholder   The mechanistic model The organic model   Organizational goal Strategic intent The mission Competitive advantage Company’s core competence   Operative goals Goal approach Resource – based approach Internal process approach Balanced scorecard Vertical Information Sharing Horizontal Information Sharing Functional Design Divisional Design Geographic Design   Matrix Structure Horizontal Structure Hybrid Structure   Organizational Environment Domain Task environment Environment uncertainty Environment complexity Differentiation Integration Business ecosystem Extended enterprise Core business   Entrepreneurial stage Collectivity stage Formalization stage Elaboration stage Bureaucracy   Formalization Centralization Bureaucratic control Rational-legal authority Traditional authority Charismatic authority Market control Clan control   Organizational decline Organizational atrophy Organizational vulnerability  







SUBJECT QUESTIONS (MAX 10, 2.5 EACH) – give structured explanation, provide knowledge-based answers, present comparative analysis, if applicable, demonstrate wise use of examples:

1. Choose the appropriate structural dimensions from the list and give short explanation to at least two. Formalization, Specialization, Hierarchy of authority, Centralization, Size, Organizational technology, Environment, Organizational culture.


2. Mechanistic and organic structure (5 issues) Give explanation.




3. How does uncertainty of environment influence the organization (2 options)? Give explanation and provide examples


4. Formalization stage of organizational development. 5 main points (D__of L____, L____of P_____s, F_______d s_____s, M_______E_______, D______ with c________)

Give additional examples to 3 points


TERMS AND EXPLANATIONS (MAX 10, 2,5 EACH) – give academic explanation. Provide your additional explanation, if needed.

5. Efficiency


6. Divisional Design


7. Bureaucracy


8. Operative goals

DISCUSSION QUESTIONS (MAX 10, 5 EACH) – discuss the questions, provide alternatives, sound out your position, back it up with knowledge-base explanation.

9. Give examples of companies successfully using the combination of bureaucracy and market control

10. Do you think a “no growth” philosophy of management should be taught in business schools?


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