ADMS 1000 Lecture 12: ADMS 1000 12

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byzantiumcat166

12 Dec 2019

School

York University

Department

Administrative Studies

Course

ADMS 1000

Professor

Alan Shapiro

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ADMS 1000 Full Course Notes

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In a matrix organizational structure, the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. For example, all engineers may be in one engineering department and report to an engineering manager. But these same engineers may be assigned to different projects and might be reporting to those project managers as well. Therefore some engineers might have to work with multiple managers in their job role. Matrix organizational structure chart drawn with creately: horizontal/flat structure. This is an organizational chart type mostly adopted by small companies and start-ups in their early stage. It"s almost impossible to use this model for larger companies with many projects and employees. The most important thing about this structure is that many levels of middle management are eliminated. This enables employees to make decisions quickly and independently. Thus a well- trained workforce can be more productive by directly getting involved in the decision-making process.

Related Questions

A decentralized organization is one in which:

a. each stockholder is given decision-making authority.

b. only top-level management is given decision-makingauthority.

c. each employee in the organization is given permission to makedecisions about their company.

d. managers at various levels throughout the organization aregiven decision-making authority.

A local chain department store grants each of its store managersthe authority to make buying decisions for their stores. Grantingmanagers this kind of authority is found in which type oforganization?

a. Desegmented

b. Centralized

c. Segmented

d. Decentralized

A local chain electronics store does not allow its store ordistrict managers to make important decisions about their stores.The main role of store managers is to supervise employees and makesure day-to-day transactions run smoothly while district managerssupervise store managers and report profitability data back totop-level management. Not allowing store or district managersdecision-making authority is most likely to be found in which typeof organization?

a. Centralized

b. Desegmented

c. Segmented

d. Decentralized

When a few individuals at the top of an organization retaindecision-making authority, the organization is referred to asa(n):

a. investment center.

b. centralized organization.

c. decentralized organization.

d. profit center.

Which of the following statements regarding the structure oforganizations is false?

a. In a decentralized organization, decision-making authority isconfined to top-level management.

b. Decentralization may make it difficult for managers to shareunique and innovative ideas.

c. When decision-making authority is spread among too manymanagers, managers may become so concerned with their own area ofresponsibility that they lose sight of the company's overallfocus.

d. In a decentralized organization, there may be a lack ofcoordination and communication between segments.

Which of the following is an advantage of decentralization?

a. It allows top-level management who normally work at corporateheadquarters to get involved with the day-to-day decisions thatneed to be made at lower levels.

b. It allows managers to focus on their own area ofresponsibility rather than what is best for the company as awhole.

c. It requires very little as far as manager training costs.

d. It allows decisions to be made in a more timely manner.

Which of the following is not an advantage ofdecentralization?

a. It allows lower-level managers to focus on their ownparticular goals and objectives without having to consider theoverall company's goals and objectives.

b. It allows top-level managers more time to devote tolong-range strategic planning.

c. It permits lower-level managers to gain valuable on-the-jobtraining in order to become better managers.

d. It often creates higher job satisfaction for managers.

Which of the following is often not a disadvantage ofdecentralization?

a. Lack of coordination and communication between segments.

b. Higher training costs for lower-level managers.

c. Lack of company focus as lower-level managers may makedecisions that benefit their own particular segment.

d. Decreased job satisfaction for lower-level managers.

Which of the following is a disadvantage ofdecentralization?

a. Lower training costs for lower-level managers.

b. Less timely decisions are able to be made on a day-to-daybasis.

c. Decreased job satisfaction for lower-level managers.

d. Lack of coordination and communication between segments.

"Responsibility accounting" is the concept that says:

a. managers should be responsible for both revenues and costs oftheir particular segment.

b. managers should be held entirely responsible for allinvestment decisions that impact the particular segment in whichthey are in charge.

c. managers should be held responsible for only those thingsunder their control.

d. managers should never be held entirely responsible for thingsthat happen within the particular segment in which they are incharge.

A budget for a single unit of a product or service is called asa:

a. real cost.

b. fixed cost.

c. total cost.

d. standard cost.

Which of the following statements is true regarding the budgetedcost for direct materials?

a. It must be determined after materials are purchased for theyear.

b. It can not be determined if a company uses a just-in-timeinventory system.

c. It would consist of two components - a standard quantity anda standard price.

d. It would be used on a static budget but not a flexiblebudget.

Variance analysis compares:

a. standard costs and actual costs.

b. static budgets and flexible budgets.

c. product costs and period costs.

d. practical standards and ideal standards.

Which of the following statements is false regarding taskanalysis?

a. It uses actual historical data in the determination ofstandard costs.

b. It emphasizes what it should cost to produce a product ratherthan historical costs.

c. It examines the production process in detail.

d. It may involve the use of engineers.

Task analysis:

a. is used to set standard costs.

b. is used to determine the tasks that production employeesshould complete on a daily basis.

c. is used to evaluate employee performance.

d. emphasizes the historical costs of a product.

A(n) ____ is attainable only when near-perfect conditionsexist.

a. static budget

b. ideal standard

c. flexible budget

d. practical standard

In most companies, machines break down occasionally andemployees are often less than perfect. Which type of standardacknowledges these characteristics when determining the standardcost of a product?

a. Practical standard

b. Ideal standard

c. Efficiency standard

d. Budgeted standard

Hathaway Inc. produces and sells golf umbrellas to localresorts. Hathaway anticipates April to be a busy month with thesale of 2,000 umbrellas. The company has prepared the followingstatic budget for April:

Sales revenue (2,000 units)	$60,000
Variable costs:
Direct materials	6,000
Direct labor	8,000
Overhead	2,500
Fixed costs	6,000
Net operating income	$37,500

During April, Hathaway actually produced and sold 2,300 umbrellas.What should be Hathaway's net operating income in April based on aflexible budget?

a. $35,025

b. $43,125

c. $44,025

d. $37,500

Hoppe Inc. manufactures widgets. Management has determined thateach widget has a standard materials cost of $3.50 when 2.5 ouncesof raw material at a cost of $1.40 per ounce are used. The staticbudget for the month of December showed an estimated production of4,000 widgets in December. During December, 4,300 widgets wereactually produced. The actual cost for each widget was $3.60 when2.25 ounces of raw material at a cost of $1.60 per ounce werepurchased and used. What should be the total direct materials costaccording to Hoppe's flexible budget for December?

a. $14,000

b. $15,480

c. $14,400

d. $15,050

Violetta Inc. manufactures plastic storage boxes. Management hasdetermined that each medium-sized box has a standard materials costof $1.20 when 4 pounds of raw material at a cost of $.30 per poundare used. The static budget for the month of March showed anestimated production of 15,000 boxes in March. During March, 17,000boxes were actually produced. The actual cost for each box was$1.56 when 3.9 pounds of raw material at a cost of $.40 per poundwere purchased and used. What should be the total direct materialscost according to Violetta's flexible budget for March?

a. $26,520

b. $23,400

c. $18,000

d. $20,400

John is a manager in the Gardening department at ABC Hardware. Last week the general manager was fired for incompetence. The chief executive officer appointed John to be the new general manager. John's salary will increase from $150,000 annually to $350,000 annually. John wants the job and is willing to accept the responsibilities that come with it.

The CEO said that there are many changes in the making and that everything will go digital. The employees are used to doing their work by handwritten orders. This new change will have to be implemented within the next 60 days. Most of the employees have never used a computer and do not understand what is meant by digital.

The CEO told John that the plumbing department, which consists of 25 employees, is not working efficiently. The workers continuously arrive late to work and do little or no work during the time that they are at work. The morale in that unit is very low. Their manager is attending school at night and could care less about the employees or the business. He has a total" hands-off "approach to running the business and totally neglects the business. The supervisor of the unit is off on disability caused by alcoholism, so no one is there to monitor the work.

The electrical department, consisting of 100 workers, is working efficiently, however, the morale is extremely low there. The workers are upset that they cannot advance and they have not received a wage increase in two years. John discovered that the manager continuously shows up to work late and never engages the employees. Sometimes he tells the workers that they are not professional and that they are lucky to have a job. Most of the workers are afraid of him and want to transfer or quit. It has been rumored that he sexually harasses the woman in the unit. The supervisor of this unit has been in the hospital suffering from a stroke for the past month. They are not sure if he will ever return to work.

Other than the above-mentioned problems, the company is doing well financially. Last year it made a profit of 100 million. It has the potential to make 500 million.

John has been given one year to turn these departments around. John comes to you and he asks your advice about how to turn this business around. He was told that if he did not turn these units around, he will be looking for a job as well. The CEO is a nice guy, but he is demanding and he has fired managers before.

You will be required to answer one of the four questions for your exam. You have 2 hours. You may not use your notes, books, or electronic devices.

1. Provide a written analysis of how John should tackle these problems. Explain the different approaches and the relative success that each approach might have.

2. Analyze the issue regarding "going digital" and explain how that change can be carried out. Also analyze the approach that should be taken regarding the managers and supervisors of both units.

3. Analyse what it will take for John to get the workers to accept the digital change, production improvement, and the morale increase.

4. Analyse the leadership skills that are necessary for John to be able to be successful in this new position. Analyze whether it would be necessary for John to use a team approach.

grayskunk84

Case : Multi Projects Inc (Page 452 -454) Successful Project Management 6th Edition (Clements & Gido)

Case Study 1 Multi Projects

Multi Projects, Inc., is a well established consulting firm with 400 employees. It has many projects going on at the same time for various clients. Multi Projects has a good reputation , and nearly 30 percent of its business is from previous clients. It targets growing companies for future business and has been successful in this, too. Because of the growth, things have been quite hectic, with employees trying to keep up with the work, keep old clients satisfied, and bend over backward to accommodate new clients. Multi Projects has been hiring new employees-in fact, it has grown from 300 to 400 employees over the past two years.

Multi Projects has a matrix organizational structure. As new projects come in, a project manager is assigned. One project manager may be assigned to several projects at a time, depending on the sizes of the projects. Projects range in value from $20,000 to $1 million and can be from one month to two years in duration. Most projects are about six months in duration and worth about $60,000 to $80,000. The firm performs a range of consulting services, including market research, manufacturing system design, and executive recruiting. Its clients are medium to large corporations and include banks, manufacturers, and government agencies.

Multi Projects just got a call from Growin Corporation, which wants to go forward with a project that Multi Projects proposed nearly six months ago. Partners at Multi Projects are surprised by the good news. They had thought the project was dead. They are also very interested in carrying out a first project for Growin Corporation because it is a rapidly growing company. Multi Projects sees an opportunity to do several projects with Growin Corporation in the future.

Jeff Armstrong has been assigned as project manager for the Growin Corporation project. He has been with Multi projects far about a year and has been anxious to get a challenging project to manage. He worked on the proposal for the Growin project.

Tyler Bonilla is a senior systems engineer. He has been with Multi Projects eight years. He has an excellent reputation, and previous clients with whom he has worked usually request that he be assigned to their projects. He enjoys his work, even though he is extremely busy. He is currently working full time on a project for Goodold Company, a previous client. Goodold said that one of the reasons it does business with Multi Projects, rather than with another consulting firm, is the great work Tyler does on their projects.

Jennifer Fernandez is the manager of systems engineering. She has been with Multi Projects about 15 years. Tylet reports to Jennifer, but because of his heavy workload and associated travel, he does not get to see Jennifer very often, other than at her monthly staff meetings.

Julie Capriolo is the project manager for the Goodold Company project. She has been with Multi Projects for about two years. Tyler is assigned to her project full time. The project has a tight schedule, and everyone is putting in extra hours . Julie feels a lot of pressure, but she has a good project team--she relies heavily on Tyler. She had heard from a friend who used to work with Jeff that Jeff is very ambitious and will do whatever it takes to make himself look good. This had not been of concern to Julie because she and Jeff have separate projects and do not run into each other very often.

The day Jeff is assigned to be project manager on the Growin Corporation project, he runs into Tyler in the hallway. "We got the Growin project," he tells Tyler.

"Great," responds Tyler.

Jeff continues, "You know, one of the big reasons they gave the project to us rather than another consulting firm is because we promised you'd be the lead systems engineer on the project, Tyler. They were impressed with you when we met with them to present our proposal. When do you think you can start work on the project:"

"Unfortunately, I can't. I'm tied up on the Goodold project, and things are really hectic. I'll be on the project for another four months," says Tyler.

"No way!" exclaims Jeff. "This Growin project is too important to me--I mean, to us. I'll take care of it."

"You'd better talk to Jennifer," Tyler tells him.

Jeff stops by Jennifer's office. She's busy, but he interrupts her. "I gotta have Tyler Bonilla on my Growin project. He wants to work on it, but he said I should talk to you."

"Thats impossible," says Jennifer. "He's assigned to Julie Capriolo's Goodold project for the next four months."

"Julie? Who's she? Never mind. I'll find her and work it out. You probably have somebody else you can assign to her project." replies Jeff, as he quickly bolts out of her office in search of Julie.

"Thats my decision , not yours or Julie's!" shouts Jennifer. But by that time Jeff is gone and does not hear what she says.

Julie is meeting with her project team in the conference room. Jeff knocks on the door and opens it. "Is there a Julie in here?" he asks.

"I am Julie," she responds.

"I need to talk to you ASAP. It's important. Oh, by the way, sorry for interrupting." Looking forward Tyler, who's in the meeting, Jeff says, "Hey, Tyler, catch you later, buddy, after I talk with Julie." Jeff then shuts the door and goes back to his office. Julie is noticeably disturbed at the interruption.

After her meetin, Julie calls Jeff. "This is Julie. What did you want to talk to me about that was so urgent?'

"About reassigning Tyler to my project. He's interested, and I've already talked to Jennifer about it," answers Jeff.

"Thats impossible," declares Julie. "He's critical to the Goodold project."

"Sorry," says Jeff, "but if the Growin project is successful, we'll get more business from them than we ever got form the Goodold Company."

"It's already after 6 o'clock and I have to be out of town for a week, but I'll discuss this with Jennifer as soon as I get back," snaps Julie

"Yeah, sure, whatever," responds Jeff.

The next day Jeff calls a meeting with Jennifer and Tyler. He starts by telling them, "I called this meeting to figure how soon Tyler can begin working on the Growin project and how you [looking at Jennifer] can get somebody to take his palce on what's-her-name's project."

"I think Julie should be here for this discussion," says Jennifer.

"She couldn't make it. Apparently she's out of town for a week, and we need to get going on the Growin project." Jeff tells her. "We need to prepare for a meeting with them next week. Besides, Tyler is the one we're talking about, and he'd rather work on the Growin project. Right, Tyler?'

"Ah, well, now that you have asked, I am getting tired of working on the Goodold projects," replies Tyler. "I'm not learning anything new. I mean, it's okay, but I'd like a change.

Jennifer is astonished. "You never mentioned that to me, Tyler."

Jeff breaks in, "Well, I guess it's settled. Jennifer, you assign somebody else to the Goodold project who'll feel a little more challenged and tell Julie when she gets back. In the meantime, me and my buddy Tyler have got a lot of work to do to look good for our meeting with the Growin people next week."

Evaluate the case and propose a solution. Prioritise the steps to be taken in your approach, be systematic and motivate your assertions.

Total: [100]

scarletgnu53

ADMS 1000 Lecture 12: ADMS 1000 12

ADMS 1000 Full Course Notes

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