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Read the following scenario and study the diagram


Read the following scenario and study the diagram. Then apply your understanding of organizational structure to answer the questions that follow. C & 1 Construction employees report to two managers-one who oversees their job function and one in charge of their current project. For example, Joe is a surveyor. He reports to an engineering manager and to the manager for his current project, Highway 8A. Here is the organizational chart for C & J Construction: CEO Sales Construction Engineering Highway 8A Joe Bridge 37

1. C & J Construction has a ________structure.

a. functional

b. matrix

c. virtual

d. divisional

2. Which of the following characteristics would you expect C & J Construction to have? Check all that apply.

a. Engineers working on different projects interact with each other, and employees with different jobs assigned to the same project also communicate with each other.

b. Departments in this organization do not have formal leaders.

c. The company seeks to focus on two dimensions, functional competency and excellent results on specific projects.

d. Joe’s engineering manager prioritizes efficiency, while the Highway 8A manager prioritizes project results.

3. The CEO of C & J Construction is considering moving to a network structure. What would be the best reason to make such a move?

a. To maximally leverage the expertise of knowledge workers

b. To create closely integrated departments of people who perform the same work

c. To create more long-term stability in supervisory relationships

4. What problem might the CEO expect if the company switches to a network structure?

a. The firm will have less adaptability to rapid changes in the business environment.

b. Accountability for results may be more difficult to enforce.

c. A network structure does not drive the adoption of productivity-enhancing technology.

5. At C & J Construction, CEO Charlie and vice president Janice have traditionally made most of the key decisions. However, they are considering decentralizing the firm’s decision making. Which of the following is a problem that may result?

a. The burden on Charlie, Janice, and other senior managers to collect information and make timely decisions will increase.

b. Employees at lower levels in the firm may make decisions that benefit themselves or their customers but not the department or company.

c. The company will become less able to adapt to changes in the business environment.


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