1. Organizational design is the process in which managers change or develop an organization's structure. Answer: True False

Transcription

1 Chapter 5: Organizational Structure and Culture 1. Organizational design is the process in which managers change or develop an organization's structure. 2. There are four basic elements in organizational structure. 3. The original ideas about organizational design formulated by Fayol and Weber are now largely obsolete. 4. When work specialization originally began to be implemented early in the twentieth century, employee productivity initially rose. 5. Today, most managers see work specialization as a source of ever-increasing productivity. 6. The advantage of work specialization is that it tends to result in high employee motivation and high productivity. 7. Departmentalization is a how jobs are grouped. 8. Staff authority is the ability to direct the work of any employee who does not have a higher rank in the organization. 9. Grouping jobs on the basis of major product areas is termed customer departmentalization. 10. Line authority can be exerted only after a manager checks with his or her superior. 11. Unity of command prevents an employee from trying to follow two conflicting commands at once. 12. Power is a right that a manager has when he or she has a higher rank in an organization. 13. When decisions tend to be made at lower levels in an organization, the organization is said to be centralized. 14. Traditional organizations are structured in a pyramid, with the power and authority located in the pyramid's broad base. 15. The two prevalent organization structure models in today's world are the organic organization and the inorganic organization.

2 16. A mechanistic organization is bureaucratic and hierarchical. 17. An organic organization tends to be flexible and have few formal rules. 18. Innovators need the efficiency, stability, and tight controls of a mechanistic structure rather than an organic structure. 19. The relationship between organizational size and structure tends to be linear. 20. Joan Woodward attempted to view organizational structure from a technological perspective. 21. Woodward concluded that mass production worked best with an organic organization structure. 22. The stability of a mechanistic structure seems to work best in today's dynamic and uncertain business environment. 23. The strength of a simple system is that everything depends on a single person. 24. A strength of a functional structure is that it avoids duplication. 25. A weakness of the divisional structure is that duplication tends to occur. 26. In a team structure, team members are not held responsible for their decisions. 27. In a team structure there is a clear line of managerial authority from top to bottom. 28. When an employee in a matrix structure finishes a project, she goes back to her functional department. 29. Employees in an organization with a matrix design can have two bosses for the same job. 30. A significant advantage of the matrix structure is the clear chain of command from top to bottom of the organization. 31. When an employee in a project structure finishes a project, he goes back to his original department.

3 32. Vertical boundaries separate employees by their rank in an organization. 33. Horizontal boundaries separate employees by the amount of power they have in an organization. 34. A virtual organization relies on freelancers who have no permanent status or position in the organization. 35. Managers want to eliminate boundaries in organizations primarily to increase stability and reduce flexibility. 36. Horizontal boundaries separate employees by the specialization of their job. 37. A virtual organization may disintegrate after it finishes its task. 38. All learning organizations share a distinct structure. 39. A company's organizational culture refers to a system of shared political beliefs. 40. Employees learn organizational culture by reading official organization documents and histories. 41. An organization's founder has little influence on its culture. 42. Strong organizational culture can eliminate the need for rules and bylaws. 43. Organizational design requires a manager to. A) change or develop the structure of an organization B) change the culture of an organization C) organize groups within an organization D) change the logo of an organization 44. All of the following are part of the process of organizational design EXCEPT. A) determine goals for the organization B) determine rules for employee behavior C) decide how specialized jobs should be D) determine the level at which decisions are made 45. Which of the following are NOT basic elements of organizational structure? A) work specialization, span of control B) departmentalization, formalization C) centralization, decentralization D) chain of command, line authority

4 46. Which of the following is synonymous with work specialization? A) job preference B) division of labor C) job discrimination D) chain of command 47. Which statement accurately defines work specialization? A) Work specialization clarifies who reports to whom. B) Individual employees specialize in doing part of an activity rather than the entire activity. C) It is the degree to which tasks are grouped together. D) Jobs are ranked relative only to their worth or value to the businesses. 48. Early supporters of work specialization saw it as. A) an immoral way to coerce workers into greater productivity B) a good way to increase employee morale C) a source of innovation D) a reliable way to increase productivity 49. Early users of work specialization early in the twentieth century found that the practice ultimately resulted in. A) huge and permanent productivity gains B) better communication among employees C) Bored workers with low morale D) Higher profits and better employee morale 50. Today, managers favor this approach instead of work specialization. A) Employees perform a broad range of tasks. B) Partners switch jobs every half hour. C) Monotonous tasks are shared by all employees. D) All tasks are performed by all employees. 51. Functional departmentalization groups jobs by. A) Products or services they manufacture or produce B) Type of customer they serve C) Tasks they perform D) Territories they serve 52. departmentalization is based on territory or the physical location of employees or customers. A) Matrix B) Geographic C) Functional D) Product

5 53. A soap company that features a bath soap department, a laundry detergent department, and a dish soap department is using which of the following? A) Customer departmentalization B) Process departmentalization C) Functional departmentalization D) Product departmentalization 54. What kind of departmentalization would be in place in a government agency in which there are separate departments that provide services for employers, employed workers, unemployed workers, and the disabled? A) Geographic B) Customer C) Outcome D) Product 55. State motor vehicle offices usually use this kind of departmentalization. A) Process B) Functional C) Product D) Customer 56. The line of authority that extends from the upper levels of management to the lowest levels of the organization is termed the. A) chain of command B) chain of responsibility C) unity of command D) staff authority 57. The chain of command answers this question. A) How do I know when the task is complete? B) Who reports to whom? C) What are the rules? D) Where do I go for help? 58. Authority gives an individual the right to do this. A) command respect B) obey orders C) give orders D) reprimand employees 59. In the chain of command, each person above you. A) has special privileges B) has no right to give you orders C) receives higher pay D) has line authority

6 60. Staff managers have authority over. A) middle managers B) the person above them in the chain of command C) special support employees only D) line managers 61. Line authority gives a manager the ability to direct the work of. A) any employee in the firm B) only subordinates one level down C) any subordinate, after consulting with the next higher level D) any subordinate 62. prevents a single employee from getting conflicting orders from two different superiors. A) Unity of command B) Staff authority C) Line authority D) Chain of command 63. The importance of unity of command has diminished in today's workplace because of its tendency to be. A) ethically questionable B) inflexible C) chauvinistic and dictatorial D) too decisive 64. Which of the following statements is true? A) Both power and authority are rights. B) Authority is a right. C) Power is a right. D) Authority is one's ability to influence decisions. 65. is the obligation or expectation to perform a duty. A) Span of control B) Chain of command C) Unity of command D) Responsibility 66. The personal secretary of a top manager may have. A) power and authority B) power but not authority C) line authority but not staff authority D) authority but not power

7 67. Which of the following statements is true? A) Authority and power are identical. B) Power is a type of authority. C) Authority is a type of power. D) Power is determined by horizontal position in an organization. 68. As represented in a power cone, power is based on. A) vertical position and distance from the center B) vertical position only C) horizontal position only D) distance from the center only 69. As represented in a hierarchical organization diagram, authority is based on. A) horizontal position only B) horizontal and vertical position C) distance from the center only D) vertical position only 70. A construction site supervisor who sees an impending thunderstorm and tells workers to go home is demonstrating. A) responsibility B) staff delegation C) provisional accountability D) line authority 71. is the power that rests on the leader's ability to punish or control. A) Expert power B) Reward power C) Referent power D) Coercive power 72. A bank manager who passes out bonuses at the end of the year is exercising this. A) expert power B) reward power C) coercive power D) referent power 73. Your firm's attorney has power when giving legal advice. A) expert B) legitimate C) coercive D) status

8 74. is the power that arises when a person is close to another person who has great power and authority. A) Referent power B) Reward power C) Expert power D) Legitimate power 75. When a top manager decides to hire an individual over the objections of her staff she is exercising which kind of power? A) coercive B) referent C) legitimate D) expert 76. The traditional view holds that managers should not directly supervise more than subordinates. A) seven or eight B) nine or ten C) three or four D) five or six 77. Modern managers find that they can if their employees are experienced, well-trained, and motivated. A) eliminate their span of control B) decrease their span of control C) increase their span of control D) fluctuate their span of control 78. A traditional "top down" organization is organization. A) a largely decentralized B) an absolutely decentralized C) an absolutely centralized D) a largely centralized 79. reflects the degree to which decision making is distributed throughout the hierarchy rather than concentrated at the top. A) Centralization B) Decentralization C) Span of Control D) Concentration 80. In recent years, organizations have become more to be responsive to a dynamic business environment. A) decentralized B) mechanistic C) structured D) centralized

9 81. In today's decentralized business world, the most important strategic decisions. A) No managerial employees B) Top managers still primarily make C) Lower-level managers D) Middle managers make 82. All of the following are characteristics of a highly formalized organization EXCEPT. A) minimum number of rules B) a standardized way of doing things C) little discretion for employees D) explicit job descriptions 83. Today's managers are moving away from formalization and trying to be this. A) more rigorous B) more strict C) less permissive D) more flexible 84. Today's managers expect employees to. A) ignore rules for the most part B) use discretion when it comes to following rules C) make their own rules D) faithfully follow rules even when it may harm the organization 85. A(n) organization has a high degree of specialization, formalization, and centralization. A) learning B) organic C) horizontal D) mechanistic 86. Which of the following would likely be found in mechanistic organizations? A) empowered employees B) wide span of control C) standardized jobs D) decentralized responsibility 87. A(n) organization is able to change rapidly as needs require. A) hierarchical B) organic C) vertical D) mechanistic

10 88. Which term best describes an organic organization? A) pyramid-shaped B) hierarchical C) fixed D) flexible 89. Which word best characterizes a mechanistic organization? A) informal B) hierarchical C) collaborative D) adaptable 90. Strategy, size, technology, and the degree of uncertainty in the environment together make up what are called. A) control factors B) contingency variables C) structure variables D) probable factors 91. Together, contingency variables determine the. A) success of an organization B) size of an organization C) structure of an organization D) culture of an organization 92. A company that is pursuing a cost leadership strategy would be most likely to have this kind of structure. A) mechanistic B) matrix-project C) virtual D) team 93. A company that is trying to be a leader in innovation within its industry would be most likely to have this kind of structure. A) organic B) functional C) simple D) mechanistic 94. Larger organizations tend to have than smaller organizations. A) less centralization B) more specialization C) fewer rules and regulations D) less departmentalization

11 95. As an organization grows to a size of over 2,000 employees, it finds it hard to avoid becoming more. A) organic B) informal C) mechanistic D) adaptable 96. Joan Woodward conducted pioneering studies on how this affected the structure of companies. A) technology B) values C) ethics D) corporate culture 97. Woodward found that if horizontal differentiation in an organization was low, this structure worked best. A) mechanistic B) organic C) traditional D) inorganic 98. Woodward concluded that a mechanistic structure worked best for a firm that used. A) unit production B) process production C) quality production D) mass production 99. In Woodward's study, this type of production combined high vertical differentiation and low horizontal differentiation. A) mass production B) process production C) technological production D) unit production 100. The greater the environmental uncertainty, the more an organization needs to become. A) organic B) mechanistic C) high-tech D) stable 101. Global competition forces firms to. A) become lean, fast, and flexible B) become more hierarchical C) think locally D) build up enormous cash reserves

12 102. Traditional organizational designs tend to be more mechanistic and include. A) functional, divisional, and vertical structures B) simple, complex, and divisional structures C) simple, functional, and divisional structures D) simple, functional, and dysfunctional structures 103. A simple structure is like a mechanistic organization, but like an organic organization. A) decentralized; formal B) centralized; informal C) centralized; formal D) informal; decentralized 104. What is a strength of a simple structure? A) Employees are grouped with others who have similar tasks. B) There are cost-saving advantages from specialization. C) Power and authority are widely distributed. D) Accountability is clear What is a weakness of a simple structure? A) Reliance on a single person is risky. B) Functional specialists become insulated and have little understanding of what other units are doing. C) Pursuit of functional goals can cause managers to lose sight of what is best for the overall organization. D) Duplication of activities and resources increases costs and reduces efficiency This is a key characteristic in an organization with a functional structure. A) little specialization B) adaptability C) departmentalization D) flexibility 107. This is a weakness of a functional structure. A) favoring functional goals over organizational goals B) favoring organizational goals over functional goals C) overemphasizing organizational goals D) failing to attain functional goals 108. Avoiding redundancy is a strength of which structure? A) functional B) simple C) divisional D) corporate

13 109. In a structure each business unit has complete autonomy to reach its goals. A) simple B) divisional C) functional D) matrix 110. A media company that has separate, autonomous companies for movies, TV, Internet, and print journalism is most likely a structure. A) functional B) matrix C) simple D) divisional 111. Having separate payroll departments in each division of a divisional structure is an example of which of the following? A) duplication, because a single payroll department could do the job B) efficiency, because payroll departments compete C) effectiveness, because separate payroll departments create jobs D) efficiency, because separate payroll departments can share methods of operation 112. As the number of employees in an organization grows, structure tends to become more. A) decentralized B) informal C) bureaucratic D) relaxed 113. Looking for ways to make their organization more flexible and innovative, today's managers may choose this kind of structure. A) simple B) team C) divisional D) functional 114. In a team structure,. A) no one has the authority to make decisions B) there is a clear line of managerial authority C) authority comes from top managers only D) there is no clear line of managerial authority 115. In a team structure, team members. A) make decisions and are accountable for their decisions B) are subject to decisions made by their supervisors C) can influence decisions made by top managers D) make decisions only after first checking with management

14 116. All of the following are necessary for successful team structure EXCEPT. A) team members with cross-functional skills B) well-trained team members C) a fair and well-run team-based pay plan D) team members with years of management experience 117. In a, employees are recruited from functional departments to work on a specific project for a limited time period. A) matrix structure B) product structure C) team structure D) divisional structure 118. In a matrix structure, a group member will typically report to. A) both a project manager and functional department head B) a functional department head only C) a project manager only D) Group members are fully autonomous in a matrix structure, so they don't report to anyone When a group member in a matrix structure finishes a project, she. A) starts looking for a new job B) enters a pool of available employees from the entire organization C) stays with the group to take on a new project D) returns to her functional department 120. By giving employees two direct superiors, a matrix structure violates this key element of organizational design. A) decentralization B) chain of command C) unity of command D) span of management 121. A key difference between a team structure and a matrix structure is that a team structure while a matrix structure does not. A) works on projects B) holds group members accountable C) has fairly permanent groups or teams D) empowers group members 122. In a project structure, when employees finish a project they. A) return to their regular work B) return to a different division C) move on to another project D) return to their department

15 123. In an orchestra, a horizontal boundary exists between which of the following? A) the string section and the audience B) the conductor and the audience C) the string section and the horn section D) the string section and the conductor 124. In an orchestra, a vertical boundary exists between which of the following? A) the horn section and the percussion section B) the string section and the conductor C) the string section and the horn section D) the percussion section and the string section 125. Boundaryless organizations try to eliminate within their organization. A) vertical hierarchy only B) horizontal specialization only C) horizontal specialization and vertical hierarchy D) vertical specialization only 126. A virtual organization is essentially who come together for a particular project. A) a group of employees from a single company B) a team of employees from different departments of a company C) a group of free agents D) a group of top managers and CEOs 127. How does a virtual organization save on costs? A) by eliminating all administrative duties B) by hiring people who specialize in what they do C) by hiring fewer people than they need and making them work much longer hours D) by keeping only a small permanent staff for administrative purposes only 128. A subcontracts part of a project out to outside suppliers. A) network organization B) boundary organization C) matrix structure D) virtual organization 129. A building contractor follows the network organization model when he does which of the following? A) hires three workers to help with framing B) gives orders to workers C) does the framing and tiling by himself D) farms out the plumbing to a plumbing firm

16 130. A learning organization develops the capability to. A) attract new employees who have special knowledge B) add new training programs to keep employees up to date C) continuously learn, adapt, and change. D) accept the conventional wisdom of the industry 131. A learning organization requires employees to. A) encode information to prevent competitors from stealing ideas B) make all ideas public C) share information and collaborate with one another D) collaborate with competitors 132. All of the following are characteristic of learning organizations EXCEPT. A) managers who serve as facilitators B) a strong sense of community C) a collaborative environment D) fear of making mistakes 133. Organizational learning can't take place without. A) a clear chain of command B) a stable structure or hierarchy C) a shared vision of the future D) complete privacy for employees 134. The culture of an organization is analogous to the of an individual. A) skills B) motivation C) personality D) ability 135. Which of the following phrases best characterizes the culture of an organization? A) how things are done around here B) guidelines for where this organization is going C) our official code of conduct D) the most efficient way to do things 136. Which of the following is NOT a common way in which corporate cultures are transmitted to employees? A) informal rituals B) symbols C) stories D) formal culture meetings

17 137. Sony Corporation's focus on product innovation is an example of which of the following dimensions of organizational culture? A) member identity B) risk tolerance C) people focus D) conflict tolerance 138. Which of the following is NOT considered to be a characteristic of organizational culture? A) aggressiveness and competitiveness B) attitudes about taking risks C) purchasing policies D) attention to detail 139. The original source of an organization's culture usually reflects the vision and attitudes of. A) contemporaries who are admired by the organization B) the organization's founders C) the current president or CEO of the organization D) the organization's original employees 140. What does the story of 3M employee Art Fry inventing the Post-It Note to make church hymns communicate to 3M employees? A) that workers never stop working B) that church is important C) that workers need to take a day off D) that creativity is important 141. All of the following show why corporate rituals can be valuable in a corporate culture EXCEPT. A) rituals symbolize key ideas that are important in the culture B) rituals intimidate and silence critics of the corporate culture. C) rituals help initiate new employees into the culture D) rituals reinforce corporate values 142. Which of the following most accurately reflects the difference between strong cultures and weak cultures? A) Strong cultures tend to encourage employee innovation, while weak cultures do not. B) Strong cultures have less of an influence on employee behavior than do weak cultures. C) Weak cultures are found in most successful organizations, whereas strong cultures are relatively rare. D) Company values are more deeply held and widely shared in strong cultures than in weak cultures. Eric the Redd (Scenario) Eric Redd graduated from college and was hired by a corporation that manufactured parts for the automotive industry. The employees on the assembly line seemed bored, and their motivation was low. Eric's employer decided to try to reorganize to increase productivity. During his career, Eric will see his job change from an engineer to a more complex job assignment.

18 143. The jobs of assembly-line employees are to be changed to allow more tasks to be done by individual workers. This is a reduction in. A) centralization B) work specialization C) chain of command D) departmentalization 144. Eric, who is trained as an engineer, is now in a group with production workers and marketing specialists from different departments designing a new product that the company plans to offer. This situation could be described as a(n). A) advanced assignment B) project assignment C) collective assignment D) alternative assignment 145. Eric is offered a chance to help direct the efforts of some employees assigned to his work group. This is a chance for Eric to experience. A) functional structure B) responsibility C) authority D) divisional structure 146. Eric sees this new assignment as an increase in, or an obligation or expectation for him to perform at a new level. A) functional structure B) responsibility C) authority D) divisional structure