Answer to Question 1
D
Explanation: D) Organizations need shared meaning, which is very difficult to achieve with reduced control systems.
Answer to Question 2
a) One of the most popular ways to group activities is by functions performed. A manufacturing manager might organize his or her plant by separating engineering, accounting, manufacturing, personnel, and supply specialists into common departments.
b) Tasks can also be departmentalized by type of product the organization produces. Procter & Gamble is organized along these lines. Each major product is placed under the authority of an executive who has complete global responsibility for that product.
c) Another way to departmentalize is on the basis of geography or territory. The sales function, for instance, may have western, southern, midwestern, and eastern regions. Each of these regions is, in effect, a department organized around geography.
d) Process departmentalization works for processing customers as well as products. At an Alcoa aluminum tubing plant in upstate New York, production is organized into five departments: casting; press; tubing; finishing; and inspecting, packing, and shipping. Each department specializes in one specific phase in the production of aluminum tubing.
e) A final category is to use the particular type of customer the organization seeks to reach. Microsoft recently reorganized around four customer markets: consumers, large corporations, software developers, and small businesses.
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