Chapter 16 - Organizational Design and Structure

All of the following are possible coordination advantages offered by a division 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. divisional managers enjoy a large measure of autonomy

An organizational structure composed of all the job specializations that an organization requires to produce its goods or service is the ____________________. a. functional structure b. divisional structure c. geographic structure d. network structure

a. functional structure

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. group functions and divisions

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 the four level hierarchy c. with a six level hierarchy d. in which messages go through many channels

a. in which low level employees can talk directly to the CEO

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. inputs

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. it needs to minimize role conflict and ambiguity

Which of the following is NOT a major category of contingencies affecting organizational design? a. location b. technology c. human resources d. environment

a. location

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. mass-production technology

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. matrix structure

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. minimum chain of command

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. network structure

__________ 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. task variety

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. team

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. virtual organization

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. function

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. functional structure

The _______________ is an organization's chain of command, extending from the CEO down through the middle managers and first-line managers, to the non-managerial 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. hierarchy of authority

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. integrating mechanisms

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 teh catapult systems' operation crew is a(n) ___________________. a. organic structure b. functional structure c. mechanistic structure d. differentiated structure

c. mechanistic structure

___________ 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. organizational structure

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. product

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. small-batch technology

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. decide what design choices to make

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. poor; operating that many divisions will drastically increase operation costs

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. span of control

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. span of control narrows

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. specifying the behaviors companies expect of employees when creating the final product

_______________ 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. standard operating procedures

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. coordination advantages

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. division

________________ is the use of rules and SOPs to control an organization's activities. a. visualization b. formalization c. standardization d. conceptualization

b. formalization

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. has a mechanistic structure

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. mutual adjustment

__________ 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. function integration

b. mutual adjustment

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. organic structure

In a(n) ____________, employees working in empowered teams assume the responsibility to make decisions as organizational needs dictate. a. hybrid strcture b. organic structure c. mechanistic structure d. evolutionary structure

b. organic structure

__________ 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. organizational design

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. product structure

In highly formalized organizations, job behaviors are MOST OFTEN ____________. a. flexible b. programmed c. discretionary d. loose

b. programmed

A decentralized structure of authority that allows employees to respond to each situation in a more unique fashion in BEST used in __________________. a. automated technology b. small-batch technology c. mass-production technology d. continuous-process technology

b. small-batch technology

_______ 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. small-batch technology

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. uncertain

The effects of IT can be seen _______________ companies. a. inside b. between c. both inside and between d. neither inside nor between

c. both inside and between

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. continuous-process technology

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. continuous-process technology

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. sales staff will be less prepared to help their customers

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. seeing which specialist companies could perform business activities cheaper

___________ organizations have ____________ hierarchical levels relative to their size. a. tall; few b. flaw; many c. tall; many d. thin; wide

c. tall; many

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. task analyzability

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

c. when the technology is complex and hard to understand

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. decisions must be made quickly

In a __________, divisions are broken down by region. a. product structure b. market structure c. functional structure d. geographic structure

d. geographic structure

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. global geographic stucture

____________ 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. mass-production technology

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 supervisors 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. matrix

A company that is centralized and has high formalization MOST LIKELY has a(n) ______________ structure. a. network b. geographic c. organic d. mechanistic

d. mechanistic

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. mutual adjustment

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. offer training to employees to enable them to make more decisions

An organization CANNOT standardize activities at the ____________ stage. a. input b. output c. conversion d. personnel

d. personnel

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. possesses rigid rules to regulate behavior

d. possesses rigid rules to regulate behavior

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. role ambiguity

________________ 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. formulization d. standardization

d. standardization

___________ 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. authority

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. contingency

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. organic

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. organic structure

Examples of ___________ include typical mass-production or assembly operations. a. routine technology b. divisional technology c. information technology d. nonroutine technology

a. routine technology

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. combination of skills, knowledge, tools, machines, computers, and equipment used in the design, production, and distribution of goods and services

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. it expedites service to different regional customers

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. make and sell a wider range of products

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. Elaine

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. decentralized organization

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. market

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. market structure

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. matrix structure

___________ 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. a mechanistic structure

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. a smaller bureaucracy makes decisions faster

Which of the following is NOT produced via continuous-process technology? a. electricity b. soft drinks c. gasoline d. automobiles

d. automobiles

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. communication can be slow as a result of a hierarchical system of managers

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 teach patient's condition c. the members of a SWAT team responding to a threatening situation d. crew members in a fast-food restaurant making the food

d. crew members in a fast-food restaurant making the food

____________ 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. multi-functional teams d. cross-functional teams

d. cross-functional teams

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. geographic structure