ch 16 HRM 360
A ________ is a permanent group, made up of representatives from two or more functions, that meets regularly. A) team B) task force C) work group D) corporate liaison
a
A business owner accepts the importance of the ________ theory. Consequently he has structured his company to fit the factors that affect it the most in an effort to eliminate as much uncertainty as possible. A) contingency B) best-fit C) profit D) standardized
a
A company operating within a ________ focuses on one functional activity in which it excels, such as research and development, and then outsources the rest of its other functional activities to other companies. A) network structure B) product structure C) geographic structure D) divisional structure
a
A company that has low formalization, is decentralized, and has high participation from employees in decision making is considered to have a(n) ________ structure. A) organic B) mechanistic C) market D) product
a
All of the following are possible coordination advantages offered by a divisional structure EXCEPT ________. A) divisional managers enjoy a large measure of autonomy B) product specialization enables salespeople to perform more effectively C) facilitated communication between functions and improvements in decision making D) high-quality products and first-rate customer service
a
An organizational structure composed of all the job specializations that an organization requires to produce its goods or services is the ________. A) functional structure B) divisional structure C) geographic structure D) network structure
a
Examples of ________ include typical mass-production or assembly operations. A) routine technology B) divisional technology C) information technology D) nonroutine technology
a
In a ________ employees are linked to an organization's centralized databases via computers, faxes, and videoconferencing. A) virtual organization B) matrix organization C) network organization D) cross-functional organization
a
Organizations using ________ prefer a formal structure because it gives managers the most control over the production process. A) mass-production technology B) small-batch technology C) intensive technology D) automatic technology
a
Standardizing the conversion process is the process of ________. A) specifying the behaviors companies expect of employees when creating the final product B) specifying the behaviors companies expect of managers during the management process C) specifying the behaviors that companies hope customers will display during the purchasing process D) specifying the behaviors that employees expect of managers during the supervision process
a
The ________ as the number of levels in the organizational hierarchy increases. A) span of control narrows B) span of control expands C) scope of influence narrows D) scope of influence expands
a
The ________ is being used when a product team member reports to a functional boss and a product team boss. A) matrix structure B) divisional structure C) functional structure D) interdepartmental structure
a
The catapult systems repair crew on an aircraft carrier is responsible for repairing the system that launches the aircraft from the carrier. No two repairs are alike, and because pilots' lives are at stake, quality is imperative. Repair personnel often have to develop creative solutions on the spot instead of depending on standard procedures. As a result, the MOST effective structure for the catapult systems repair crew is a(n) ________. A) organic structure B) functional structure C) mechanistic structure D) differentiated structure
a
The first organizational design task is to ________ and create the structure best suited to the contingencies an organization faces. A) group functions and divisions B) allocate managerial authority C) design a managerial hierarchy D) develop a product line
a
The organization that is MOST LIKELY to have the flattest hierarchy is the one ________. A) in which low level employees can talk directly to the CEO B) with a four level hierarchy C) with a six level hierarchy D) in which messages go through many channels
a
The principle of the ________ states that an organization should operate with the fewest levels possible. A) minimum chain of command B) retractable chain of command C) streamlined chain of command D) hierarchical chain of command
a
The term ________ refers to the number of subordinates who report directly to a manager. A) span of control B) locus of control C) sphere of influence D) scope of authority
a
The upper management of a toy company has decided that more divisions would be useful. They decided that one-year-olds have different needs than two-year-olds, so they created a division for each age. They also decided that people in the northern part of the state have different needs than the people in the central part of the state and the southern part of the state, so they created three more divisions. Lastly, they decided that because they serve schools, daycares, families with many kids, and families with few kids, they needed four more divisions. How would an expert on organizational structures MOST LIKELY rate this strategy? A) Poor; operating that many divisions will drastically increase operation costs. B) Poor; divisions never work and lead to motivation problems amongst the employees. C) Excellent; customer service will be flawless and on target. D) Excellent; competition between divisions for resources will incite passion amongst the employees.
a
When Japanese car companies require suppliers of car components to meet stringent quality specifications they are standardizing ________. A) inputs B) outputs C) procedures D) process
a
Which of the following is LEAST LIKELY a reason for an organization to choose a matrix structure? A) It needs to minimize role conflict and ambiguity. B) Rapid product development is crucial to its survival. C) Innovation and creativity are critical to its continuing success. D) It must maximize communication and cooperation between team members.
a
Which of the following is NOT a major category of contingencies affecting organizational design? A) location B) technology C) human resources D) environment
a
________ is the number of new or unexpected problems or situations that a person or functional group encounters while performing tasks or jobs. A) Task variety B) Task specificity C) Task analyzability D) Task characterization
a
________ is the power vested in a manager to make decisions and use resources to achieve organizational goals by virtue of his or her position in an organization. A) Authority B) Hierarchy C) Prescience D) Omnipotence
a
________ specify how people and groups should respond to specific opportunity and problems. A) Standard operating procedures B) Intuitive responses C) Programmed responses D) Formalized instructional procedures
a
88) Technology refers to the ________. A) system of interrelated jobs that motivate workers to contribute their skills and knowledge toward the achievement of organizational goals B) combination of skills, knowledge, tools, machines, computers, and equipment used in the design, production, and distribution of goods and services C) attitudes, values, and norms that allow organizational members to best manage specific environmental forces D) adjustments that occur between functions in a differentiated organization
b
A ________ allows an organization to group people and functions so that it can produce a wide variety of different products. A) functional structure B) product structure C) market structure D) geographic structure
b
A ________ is a group of functions created to specialize in making and selling a particular kind of good or service. A) matrix B) division C) network D) hierarchy
b
A company uses mass production to manufacture toilet paper. The organization MOST LIKELY ________. A) has an organic structure B) has a mechanistic structure C) uses nonroutine technology D) carries high task analyzability
b
A decentralized structure of authority that allows employees to respond to each situation in a more unique fashion is BEST used in ________. A) automated technology B) small-batch technology C) mass-production technology D) continuous-process technology
b
A(n)________ is designed to promote flexibility so that employees can initiate change and adapt quickly to changing conditions. A) hybrid structure B) organic structure C) mechanistic structure D) evolutionary structure
b
An accountant begins working for a new company. She is placed with other accountants and is very thankful to be working with them. She has learned many procedures and efficient techniques from the other accountants. This BEST demonstrates that functional structures have ________. A) social facilitation advantages B) coordination advantages C) motivational advantages D) creativity disadvantages
b
An advantage of a product structure is that it allows a company to increase its division of labor so that it can ________. A) outsource noncritical functions B) make and sell a wider range of products C) increase work specialization D) cross-train employees
b
In a(n)________, employees working in empowered teams assume the responsibility to make decisions as organizational needs dictate. A) hybrid structure B) organic structure C) mechanistic structure D) evolutionary structure
b
In highly formalized organizations, job behaviors are MOST OFTEN ________. A) flexible B) programmed C) discretionary D) loose
b
When the business environment is ________, an organization is MOST LIKELY to decentralize authority and empower its employees to make operating decisions. A) stable B) uncertain C) unknown D) transparent
b
Which of the following is NOT an advantage of the functional structure? A) It improves coordination. B) It expedites service to different regional customers. C) It improves an organization's ability to motivate employees. D) It improves ability of group members to share information.
b
Which of the following is NOT considered an integrating mechanism? A) direct contact B) mutual adjustment C) liaison roles D) teams and task forces
b
________ is the ongoing communication among different people and functions that is necessary for an organization to achieve its goals. A) Instant messaging B) Mutual adjustment C) Divisional alignment D) Functional integration
b
________ is the process of making the specific choices about how to arrange the tasks and job relationships that comprise the organizational structure. A) Organizational formulation B) Organizational design C) Organizational culture D) Organizational enhancement
b
________ is the use of rules and SOPs to control an organization's activities. A) Visualization B) Formalization C) Standardization D) Conceptualization
b
________ relies primarily on the skills of people who work together in small groups to produce goods and services. A) Mass-production technology B) Small-batch technology C) Computer-mediated technology D) Continuous-process technology
b
A ________ groups functions into divisions to respond to the needs of particular types of customers. A) functional structure B) product structure C) market structure D) geographic structure
c
A ________ is a group of people working together who possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs. A) team B) matrix C) function D) division
c
A ________ is composed of all the job specializations that an organization requires to produce its goods and services. A) matrix structure B) virtual structure C) functional structure D) divisional structure
c
A company interested in using a network structure would be spending time ________. A) finding ways to ensure employees behave in predictable, accountable ways B) trying to eliminate role ambiguity for employees with two bosses C) seeing which specialist companies could perform business activities cheaper D) deciding how to divide their functions into certain regions to best serve customers' needs
c
A company that produces televisions decides to expand its operations and produce toys as well. As the company further grows, it also begins to produce office furniture. Assume that this company is organized with a functional structure. What is the MOST LIKELY consequence of this extensive growth? A) Employees will have more flexible schedules and increased vacation time. B) The company will shift from a market structure to a geographic structure. C) Sales staff will be less prepared to help their customers. D) Communication will increase between top management and lower level employees.
c
A large organization sells three very different items: paper, toy blocks, and books. The structure BEST suited to them would be ________ structure. A) market B) virtual C) product D) geographic
c
A tax software company has many clients from a variety of bases. Some of the clients are individuals that need software for their personal expenses, and some of the clients are large corporations. The company should use a ________ structure. A) geographic B) nonroutine C) market D) product
c
According to Charles Perrow, ________ is the degree to which programmed solutions are available to people or functional groups to solve the problems they encounter. A) task variety B) task specificity C) task analyzability D) task characterization
c
An example of ________ is the services rendered by a small group of auditors hired to evaluate the accuracy of a firm's financial statements. A) mediated technology B) functional technology C) small-batch technology D) assembly-line technology
c
In a ________, fewer managers are needed because their role is not to make decisions; instead, they act as coaches or facilitators and help other employees make decisions. A) centralized organization B) transactional organization C) decentralized organization D) monochromatic organization
c
In a ________, managers group people and resources simultaneously by function and by product. A) hybrid structure B) virtual structure C) matrix structure D) divisional structure
c
Managers are likely to design an organizational structure that is formal and controlling in all of the following situations EXCEPT ________. A) when the environment in the workplace is stable B) when the members of the work force are not highly skilled C) when the technology is complex and hard to understand D) when the tasks and responsibilities are clearly defined
c
Organizing tools used to increase communication and coordination among functions and divisions BEST describes ________. A) merged networks B) corporate intranets C) integrating mechanisms D) hierarchical structures
c
The ________ is an organization's chain of command, extending from the CEO down through the middle managers and first-line managers, to the nonmanagerial employees who actually make the goods or provide the services. A) span of control B) network of power C) hierarchy of authority D) paradigm of potentiality
c
The catapult systems operation crew on an aircraft carrier is responsible for operating the system that launches the aircraft from the carrier. The entire process depends on proper operation of the steam catapult machinery via the performance of standardized duties in a fixed order. As a result, the MOST effective structure for the catapult systems' operation crew is a(n) ________. A) organic structure B) functional structure C) mechanistic structure D) differentiated structure
c
The effects of IT can be seen ________ companies. A) inside B) between C) both inside and between D) neither inside nor between
c
The role of employees in ________ is not to produce individual products but instead to watch for unexpected problems that may adversely affect the overall process. A) small-batch technology B) assembly-line technology C) continuous-process technology D) systematic-processing technology
c
There are four middle managers at a company. Lucille has been working at the company for ten years and is in charge of ten employees. Dan has worked at the company for five years and oversees six employees. Elaine has worked at the company for two years and oversees twelve employees. Greg has only worked at the company for a year and oversees nine employees. Who has the greatest span of control? A) Lucille B) Dan C) Elaine D) Greg
c
Workers at the Calhoun paper mill focus on keeping track of the five computer-controlled papermaking machines and ten automated pulp-making machines that produce the paper and pulp the mill markets to its customers worldwide. According to Woodward's classification of technology, the Calhoun mill is using ________. A) small-batch technology B) mass-production technology C) continuous-process technology D) long-linked technology
c
________ is the formal system of task and job reporting relationships that determines how employees use resources to achieve the organization's goals. A) Organizational behavior B) Organizational culture C) Organizational structure D) Organizational formulation
c
________ organizations have ________ hierarchical levels relative to their size. A) Tall; few B) Flat; many C) Tall; many D) Thin; wide
c
A clearly defined hierarchy of authority, along with an extensive body of rules and regulations, will be LEAST effective when ________. A) uncertainty is low B) the environment is stable C) resources are readily available D) decisions must be made quickly
d
A company that is centralized and has high formalization MOST LIKELY has a(n) ________ structure. A) network B) geographic C) organic D) mechanistic
d
Amos is an engineer on a team developing a new video game system. He is frustrated that one of his supervisors is impressed with the team's work while his other supervisor complains that Amos interacts with some of the team members too much. This supervisor feels that to be effective and develop a good product, Amos can't spend a lot of time working on being cordial and developing relationships. This role ambiguity caused by feedback from two different bosses could be seen as a disadvantage of the ________ structure. A) geographic B) market C) programmed D) matrix
d
An organization CANNOT standardize activities at the ________ stage. A) input B) output C) conversion D) personnel
d
Because the purchases of retail customers can vary dramatically by region, large retailers like Macy's and Neiman Marcus use a ________ to give them the flexibility they need to choose the range of products best suited to their customers. A) product structure B) market structure C) functional structure D) geographic structure
d
Examples of nonroutine technology include all of the following EXCEPT ________. A) scientists developing new products in a research and development laboratory B) emergency room personnel cooperating to respond to each patient's condition C) the members of a SWAT team responding to a threatening situation D) crewmembers in a fast-food restaurant making the food
d
If an organization adopts a ________, then it locates different divisions in each of the world regions in which it operates. A) global product structure B) global market structure C) global functional structure D) global geographic structure
d
If an organization's work force is highly skilled, the organization will LEAST LIKELY ________. A) be required to work together in groups or teams. B) use a flexible, decentralized structure C) have members of the workforce who will desire freedom and autonomy D) possess rigid rules to regulate behavior
d
In a ________, divisions are broken down by region. A) product structure B) market structure C) functional structure D) geographic structure
d
In order for an organization to be effective in organizational design, what is the last thing it should do? A) decide how it wants its members to behave B) decide what attitudes it wants to encourage C) decide what it wants its members to accomplish D) decide what design choices to make
d
The sales and production departments within the television company Omega need to communicate with one another or the company will not produce enough televisions to fulfill its sales needs. The problem is that these two departments report to different directors. There is poor communication between these two departments. It would be BEST for the company to work on ________ in order to produce enough televisions. A) flattening its structure B) decentralizing authority C) role enlargement D) mutual adjustment
d
Top management members do not want a tall organization, so they should ________. A) follow the principle of maximum chain of command B) stress the importance of low risk behaviors to employees C) hire more managers to supervise lower level managers D) offer training to employees to enable them to make more decisions
d
Which of the following does NOT occur when an organization's hierarchy becomes too tall? A) The decision-making process becomes slower. B) Coordination between hierarchical levels becomes more difficult. C) Information passed from person to person is more likely to get distorted. D) A smaller bureaucracy makes decisions faster.
d
Which of the following is NOT a disadvantage of building an organization around a divisional structure? A) increased costs B) reduced cooperation C) communication problems D) role ambiguity
d
Which of the following is NOT produced via continuous-process technology? A) electricity B) soft drinks C) gasoline D) automobiles
d
Which of the following is a disadvantage of a divisional structure? A) Divisional managers enjoy a large measure of autonomy. B) Regional managers and employees are likely to develop personal relationships with customers. C) Employees' close identification with their division can increase commitment, loyalty, and job satisfaction. D) Communication can be slow as a result of a hierarchical system of managers.
d
________ consist of people from different functions who are permanently assigned to work full time on a team to bring a new good or service to market. A) Ad hoc teams B) Virtual teams C) Multifunctional teams D) Cross-functional teams
d
________ is based primarily on the use of automated machines that are programmed to perform the same operations time and time again. A) Process technology B) Functional technology C) Information technology D) Mass-production technology
d
________ is the development of programmed responses, performance standards, written rules, and standard operating procedures (SOPs) that specify how employees and functions should respond to recurring problems or opportunities. A) Organization B) Virtualization C) Formalization D) Standardization
d
________ is used to induce employees to behave in predictable, accountable ways. A) A hybrid structure B) An organic structure C) A stationary structure D) A mechanistic structure
d
12) Small-batch technology is used when a customer wants a large quantity of a certain product delivered a few items at a time.
f
16) Mass-production technology is almost totally mechanized.
f
2) Organizational design is the formal system of task and reporting relationships that controls, coordinates, and motivates employees so that they cooperate and work together to achieve an organization's goals.
f
20) Highly skilled employees usually desire conformity and like close supervision.
f
24) In a mechanistic structure decision-making authority is distributed throughout the organization as employees are empowered to make decisions.
f
28) A division is a group of workers who perform general operational functions.
f
29) Regardless of size, all organizations group their activities into divisional modules.
f
34) When an organization chooses to group people and functions so that it can produce a wide variety of different products, it moves to a market structure.
f
38) A regional marketing structure allows organizations to customize products to meet the needs of customers in different world regions.
f
42) Functional costs are the costs associated with managing an organization.
f
45) Employees in matrix-structure product teams are permanent members of two-boss teams.
f
47) Matrix structures minimize role conflict and role ambiguity.
f
51) As the number of levels in an organization's hierarchy increases, the span of control of the organization's managers widens.
f
52) The taller an organization's hierarchy becomes, the easier it is to coordinate its hierarchical levels.
f
55) In a flat organizational structure, managers are expected to make all of the decisions.
f
58) In environments like those surrounding high-tech industries, companies are more likely to prefer a high level of centralization.
f
63) A team is a temporary (ad hoc) group set up to solve a specific problem; a task force is a permanent group made up of representatives from two or more functions.
f
68) An organization can only standardize activities at the input stage.
f
7) If the environment is stable, an organization is more likely to decentralize authority and empower its employees to make important operating decisions.
f
73) Formalization drives up operating costs.
f
74) The more an organization relies on formalization to specify required behaviors, the more it needs to use direct supervision from the hierarchy or mutual adjustment.
f
76) Specific targets and goals for measuring the performance of individuals and groups have little to no effect on the overall effectiveness of an organization.
f
77) Information technology (IT) has little effect on a company's organizational design and structure.
f
79) Information technology (IT) promotes centralized decision making.
f
8) Task analyzability is the number of new or unexpected problems or situations that a person or functional group encounters while performing tasks or jobs.
f
9) Nonroutine or complicated technologies are characterized by low task variety and high task analyzability.
f
1) Organizing is the process of establishing the structure of working relationships among employees, in order to allow them to achieve organizational goals effectively.
t
10) When routine technologies are used in a workplace setting, the problems encountered do not vary much and are easily resolved through programmed decision making.
t
11) In typical mass-production or assembly operations, employees perform the same tasks repeatedly; moreover, the programmed solutions needed to perform a task efficiently have been identified and refined.
t
13) A decentralized structure is appropriate with small-batch technology.
t
14) Mass-production technology is based primarily on the use of automated machines that are programmed to perform the same basic operations time and time again.
t
15) Organizations using mass-production technology MOST OFTEN prefer a formal organizational structure.
t
17) The ability to respond quickly to unexpected events that could have catastrophic effects is most important to organizations using continuous process technology.
t
18) Knowledge management uses IT to integrate and share expertise within and between functional groups and divisions in real time.
t
19) In general, the more highly skilled an organization's work force, the more people are required to work together in groups or teams to perform their tasks.
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21) An organic structure is designed to promote flexibility so that employees can initiate change and adapt quickly to changing conditions.
t
22) A mechanistic structure is used to induce employees to behave in predictable, accountable ways.
t
23) In a mechanistic structure, an extensive system of rules and regulations coordinates the activities of employees, thus making those activities orderly and predictable.
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25) A function is a group of people working together who possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs.
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26) A functional structure is composed of all the job specializations that an organization requires to produce its goods or services.
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27) When Dell groups all employees who perform tasks related to assembling personal computers into the manufacturing function and all employees who handle Dell's telephone sales into the sales function, it is using functional structure.
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3) Since each organization faces a different set of contingencies, there is no "one best way" to design an organization.
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30) A functional grouping makes it easier for people to learn from one another's experiences.
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31) Grouping by function improves an organization's ability to motivate employees.
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32) Supervisors in functional structures find monitoring easy because they usually possess high levels of skill in the particular function.
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33) As an organization grows, and its activities become more diverse and complex, a functional structure may no longer allow it to coordinate its activities effectively.
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35) In order to deliver products in a way that best meets the needs of customers, an organization is likely to choose a market structure.
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36) In a marketing structure, functions are grouped by types of customers so that each division contains the functions it needs to service a specific segment of the market.
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37) A geographic structure can be used to deal with the different issues facing different regions.
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39) A divisional structure facilitates communication between functions and can improve decision making, thereby increasing performance.
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4) The best design is one that fits the organization's specific situation.
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40) The responsibility of corporate managers is to supervise and oversee the managers of the various divisions.
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41) The major disadvantages of a divisional structure include increased operating costs, higher potential for communication problems, and internal competition between divisions for resources.
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43) In a matrix structure, managers group people and resources by function and by product.
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44) Because of its complex network of reporting relationships among product teams and functions, the matrix structure is very flexible.
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46) Matrix structures are common in high-tech and biotechnology companies.
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48) Authority is the power vested in a manager to make decisions and use resources to achieve organizational goals by virtue of his or her position in an organization.
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49) The hierarchy of authority exemplifies the relative authority that each manager has - extending from the CEO at the top down through the middle managers and first-line managers, to the nonmanagerial employees who actually make the goods or provide the services.
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5) When the organizational environment lacks stability, organizations are more likely to decentralize authority and empower employees to make important operating decisions.
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50) The term "span of control" refers to the number of subordinates who report directly to a manager.
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53) In general, the larger and more complex an organization is, the taller is its hierarchy.
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54) The principle of the minimum chain of command states that an organization should operate with the fewest levels possible.
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56) Decentralizing authority allows an organization and its employees to behave in a flexible way, even as the organization grows.
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57) If an organization operates in a stable environment using well-understood technology, then there is no pressing need to decentralize decision-making authority.
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59) Mutual adjustment is the ongoing communication among different people and functions that is necessary for an organization to achieve its goals.
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6) A clearly defined hierarchy of authority and an extensive body of rules and regulations are most appropriate in a stable business environment.
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60) Integrating mechanisms are tools used to increase communication and coordination among functions and divisions.
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61) A high level of direct contact can lead to a give-and-take relationship that fosters cooperation between functions.
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62) Because organizations recognize that direct contact is important, they often establish liaison roles giving specific functional managers the formal responsibility of communicating with managers in another function to solve common problems.
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64) A task force disbands once it has solved its assigned problem.
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65) Members of an ordinary team are full-time members of the same function or organization.
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66) Members of cross-functional teams are full-time members of different functions or divisions and report to the leader of the team.
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67) Standardization is the development of programmed responses, performance standards, written rules, and standard operating procedures (SOPs) that specify how employees and functions should respond to recurring problems or opportunities.
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69) Organizations can develop performance programs to standardize their inputs, their conversion process, and their outputs.
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70) Increasingly, more global companies are recognizing that higher input standards result in higher-quality products.
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71) The principal way in which organizations standardize behaviors is through rules and standard operating procedures (SOPs).
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72) Formalization is the use of rules and standard operating procedures to control an organization's activities.
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75) Output standards are an effective way to standardize behavior.
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78) Information technology (IT) increases communication and coordination and promotes mutual adjustment among teams, functions, and divisions.
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80) A virtual organization does not require face-to-face interaction because employees are linked to centralized databases by computers, faxes, and videoconferencing.
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81) A company operating within a network structure focuses on one functional activity in which it excels, such as product design, and then outsources the rest of its other functional activities to other companies.
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82) Designing an organizational structure is becoming increasingly complex in today's rapidly changing global world.
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