Chapter 8

The adaptive perspective assumes that an organization's culture must align with its business or strategic context in order to foster higher financial performance. T/F

FALSE The fit perspective assumes that an organization's culture must align, or fit, with its business or strategic context. A "correct" fit is expected to foster higher financial performance.

Advances in computer technology and networks have made it increasingly possible for a person to communicate with more than one manager, though this violates what principle? a. unity of command b. division of labor c. common purpose d. coordinated effort e. centralized authority

a. unity of command

Which of the following is the best example of a mechanistic organization? a. Google b. Nordstrom c. McDonald's d. Columbia University e. Motorola

c. McDonald's In a mechanistic organization, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised. Mechanistic organizations, then, are bureaucratic, with rigid rules and top-down communication. This kind of structure is effective at McDonald's because the market demands uniform product quality, cleanliness, and fast service.

Which of the following is the definition of a ritual? a. Explicitly stated values and norms preferred by an organization. b. A narrative based on true events, which is repeated and sometimes embellished upon to emphasize a particular value. c. A formal system of task and reporting relationships. d. The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the life of an organization. e. A person whose accomplishments embody the values of the organization.

d. The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the life of an organization.

Which of the following statements about organizational culture is true? a. Organizational culture appears as four levels: artifacts, statements, values, and assumptions. b. All levels of organizational culture are apparent to outsiders. c. Each level of organizational culture is easy to change. d. Espoused values are also known as enacted values. e. The levels of organizational culture influence one another.

e. The levels of organizational culture influence one another. Organizational culture appears as three layers: (1) observable artifacts, (2) espoused values, and (3) basic assumptions. Each level varies in terms of outward visibility and resistance to change, and each level influences another level.

Legal counsel in most organizations would be considered a. executive managers. b. support managers. c. functional managers. d. decentralized managers. e. staff personnel.

e. staff personnel.

The downside of a(n) ______ culture is that it may become resistant to change. a. adaptive b. aligned c. learning d. fit e. strong

e. strong

Intel's open seating arrangements combined with small conference rooms support its values of equality and innovation, which is an example of how an organization's physical design can help embed culture. T/F

TRUE

Organizations with clan cultures are the most likely to devote considerable resources to hiring and developing their employees, and view customers as partners. T/F

TRUE

Which of the following is a function of organizational culture? a. To facilitate collective commitment. b. To eliminate the need for formal rules and regulations. c. To eliminate social-system effects. d. To provide outward visibility and resistance to change. e. To promote risk-taking by members outside the organization.

a. To facilitate collective commitment.

What portion of the organizational chart shows who reports to whom? a. Vertical hierarchy of authority. b. Dotted lines of responsibility. c. Experience-level specialization. d. Parallel hierarchy of power. e. Horizontal specialization.

a. Vertical hierarchy of authority. Two kinds of information that organization charts reveal about organizational structure are (1) the vertical hierarchy of authority, or who reports to whom, and (2) the horizontal specialization, or who specializes in what work.

A control mechanism for making sure the right people do the right things at the right time is called a a. chain of command. b. division of labor. c. line position. d. span of control. e. hierarchical effort.

a. chain of command.

An advantage of ______ authority is that managers are encouraged to solve their own problems rather than buck the decision to a higher level. a. decentralized b. horizontal c. parallel d. centralized e. narrow

a. decentralized

The three vice presidents reporting to the CEO are known as the CEO's a. range of accountability. b. span of control. c. hierarchy of authority. d. division of labor. e. level of responsibility.

b. span of control. The span of control, or span of management, refers to the number of people reporting directly to a given manager. There are two kinds of spans of control, narrow (or tall) and wide (or flat).

In horizontal design, ________ are used to improve collaboration and work on shared tasks by breaking down internal boundaries. a. modules b. teams or workgroups c. computer networks d. shared functions e. outsourcing and partnerships

b. teams or workgroups

Work specialization is also known as a. teamwork. b. work assignment. c. chain of command. d. division of labor. e. coordinated effort.

d. division of labor.

In a ______ organizational structure, people with diverse occupational specialties are put together in formal groups by similar products or service, customers or clients, or geographical regions. a. functional b. matrix c. team-based d. divisional e. network

d. divisional

The most bureaucratic stage of the organizational life cycle is the ________ stage. a. birth b. youth c. midlife d. maturity e. adulthood

d. maturity

An organization is a system of consciously coordinated activities or forces a. within a legally recognized company. b. of individuals in a permanent structure. c. toward the pursuit of profit. d. of two or more people. e. of individuals capable of division of labor.

d. of two or more people.

Edgar Schein defines organizational culture as a system of ______ that develops within an organization and guides the behavior of its members. a. diversity principles b. task and reporting principles c. teamwork structures d. shared beliefs and values e. rules and regulations

d. shared beliefs and values