MP Chapter 1

Where standardization is important, it is appropriate to ____. a. centralize authority b. decentralize authority c. emphasize line authority d. have a flat organizational structure e. evaluate interdependence

a. centralize authority

Large accounting agencies typically have separate departments that deal with households, businesses, and governments. This allows them to better serve the needs of their clients, by using ____ departmentalization. a. matrix b. product c. customer d. geographic e. functional

c. customer

Which of the following statements about mechanistic organizations is true? a. Mechanistic organizations rely on decentralized authority. b. Mechanistic organizations work best in stable, unchanging business environments. c. Mechanistic organizations are characterized by horizontal communication based on task knowledge. d. Mechanistic organizations have broadly defined jobs. e. None of these statements about mechanistic organizations is true.

ANS: B Mechanistic organizations use job specialization, a rigid chain of command, and vertical communication

In recent years, the Air Force Weather Agency (AFWA) has undergone a radical change in how it determines and shares local weather conditions with pilots. Before the local base weather station was responsible for warnings. The quality of this information varied. Now AFWA provides the same high standard of weather information to all pilots. This is an example of ____? a. customization b. micro-adaptation c. sequential independence d. reengineering e. customer empowerment

ANS: D

LexisNexis realized that its ability to serve new Web-based customers was severely straining its customer service department after thousands of small and midsize law firms representing a huge business opportunity had to wait 48 hours to have their Web accounts activated after signing up. Clearly, LexisNexis needed to revamp its customer sign-up and order-fulfillment processes, which were designed for large law firms and the ordering of hardcover legal tomes. LexisNexis would most likely use ____ to radically change its business practices. a. standardization b. micro-adaptation c. sequential independence d. reengineering e. customer empowerment

ANS: D Reengineering is the fundamental rethinking and radical redesign of operational processes.

Which of the following statements about functional departmentalization is true? a. Functional departmentalization allows work to be done by highly qualified specialists. b. Functional departmentalization increases costs by reducing duplication. c. Functional departmentalization complicates communication and coordination for departmental managers. d. Functional departmentalization requires the same kinds of functional departments in any company. e. Functional departmentalization is also called free-form specialization.

a. Functional departmentalization allows work to be done by highly qualified specialists.

____ is the degree to which a job is perceived to have a substantial impact on others inside or outside the organization. a. Task significance b. Skill feedback c. Skill variety d. Autonomy e. Task identity

a. Task significance

Which of the following statements about the organic form of organization design is true? a. The organic form of organization design is characterized by broadly defined jobs and responsibility; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge. b. The organic form of organization design works best in stable business environments. c. The organic form of organization design is better suited to using organizational design techniques based upon functional departmentalization and centralized authority. d. The organic form of organization design is typically less appropriate than the mechanistic approach for the environments in which today's businesses compete. e. All of these statements about the organic form of organization design are true.

a. The organic form of organization design is characterized by broadly defined jobs and responsibility; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge.

According to an Indian Cardinal by the name of Varkey Vithayathil, the greatest weakness of the Catholic Church is the way papal authority is exercised without the participation of those concerned. His eminence Cardinal Vithayathil is criticizing the fact that the Catholic Church relies on ____. a. centralization of authority b. standardization c. top management reciprocity d. job specialization e. decentralization

a. centralization of authority

Organizational authority is traditionally characterized by ____. a. chain of command b. empowerment c. behavioral informality d. reengineering e. all of these

a. chain of command

Which of the following is NOT one of the core job characteristics in the job characteristics model (JCM)? a. client relationships b. task identity c. autonomy d. skill variety e. task significance

a. client relationships

As a class project, Senora is working with other classmates to create a company that would market NASCAR memorabilia. Senora's teacher has instructed her to use the traditional approach to create the organization's structure. What should Senora do? a. create an organizational structure with vertical and horizontal configurations b. use an organizational process to create a matrix design c. create a virtual organization d. use the organizational structure to control creativity e. create a matrix structure that will adhere to the unity of command principle

a. create an organizational structure with vertical and horizontal configurations

In essence, reengineering changes organizations by ____. a. increasing reciprocal interdependence b. decreasing the use of autonomy c. increasing pooled interdependence d. decreasing delegation e. increasing sequential interdependence

a. increasing reciprocal interdependence

A military expert describes how the military forces were organized for Operation Desert Storm as pooled interdependence. This means that each branch of the military that took part in the operation ____. a. independently contributed to the success of the campaign b. worked with each other in a give-and-take manner c. performed identical tasks d. accepted the fact that one's group's output was another group's input e. had little, or no, autonomy

a. independently contributed to the success of the campaign

The central concern of the job characteristics model (JCM) is ____. a. internal motivation b. synergy c. task identification d. time-motion studies e. a value-added measure

a. internal motivation

Decentralization ____. a. leads to faster decision making and more satisfied customers and employees b. tends to stymie employee capabilities c. is characteristic of large companies d. is more appropriate where standardization is important e. is accurately described by all of these

a. leads to faster decision making and more satisfied customers and employees

Except for the core business activities that they can perform better, faster, and cheaper than others, ____ outsource all remaining business activities to outside companies, suppliers, specialists, or consultants. a. modular organizations b. hierarchical organizations c. boundaryless organizations d. organizational networks e. virtual organizations

a. modular organizations

Roughly 70 percent of all reengineering projects fail because ____. a. of how the process affects people in the workplace b. the reengineering process requires the organization's vision to be changed c. staff personnel must be given line authority to effectively implement reengineering d. satisfactory benchmarks cannot be located e. newly hired employees cannot internalize the organizational culture

a. of how the process affects people in the workplace

A(n) ____ is a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources directly. a. simple matrix b. networked matrix c. empathetic matrix d. matrix of convenience e. synergistic matrix

a. simple matrix

50. ____ is characterized by simple, easy-to-learn steps; low variety; and high repetition. a. Job consistency b. Job specialization c. Task reengineering d. Standardization e. Task homogeneity

b. Job specialization

The primary disadvantage of customer departmentalization is ____. a. an over-emphasis on customer needs b. duplication c. difficulties in coordinating across departments d. overspecialization of managers and workers e. an inability to solve problems for specific customers

b. duplication

Job specialization can result in ____. a. high job satisfaction b. employee boredom c. low employee turnover d. complicated job designs e. low absenteeism

b. employee boredom

A(n) ____ function is an activity that contributes directly to creating or selling the company's products. a. staff b. line c. mechanistic d. organic e. charted

b. line

With ____ departmentalization, most employees report to two bosses. a. geographic b. matrix c. product d. customer e. functional

b. matrix

65. In a(n) ____ organization, the normal procedure for dealing with any matter lying outside the boundaries of one individual's functional responsibility is to refer it to the point in the system where such responsibility is known to reside, or, failing that, to lay it before one's superior. a. centralized b. mechanistic c. departmentalized d. organic e. modular

b. mechanistic

When higher management in a(n) ____ organization admits there is a need for better communication, the response is to tether subordinates to their jobs and to appoint newly hired employees who specialize in establishing liaison relationships. a. centralized b. mechanistic c. departmentalized d. organic e. modular

b. mechanistic

Hallmark has four departments. These departments are (1) Flowers and Gifts, (2) Cards and E-cards, (3) Hallmark Collectibles, and (4) Photo Albums and Scrapbooks. Hallmark uses ____ departmentalization. a. matrix b. product c. customer d. geographic e. functional

b. product

Which of the following approaches to job redesign entails more than simply providing additional variety in job tasks? a. the job enrichment plan b. the job characteristics model c. the Gantt chart d. the task specialization map e. the task breakdown plan

b. the job characteristics model

As a result of their structures, matrix organizations automatically violate the principle of ____. a. line authority b. unity of command c. delegation of authority d. degree of centralization e. staff authority

b. unity of command

41. ____ involves assigning direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible. a. A job description b. Staff functionality c. Delegation of authority d. Decentralization e. An organization chart

c. Delegation of authority

____ is a general term that refers to subdividing work and workers into separate organizational units that are responsible for completing particular tasks. a. Organizational layout b. Organizational process c. Departmentalization d. Job formatting e. Functionalization

c. Departmentalization

Which of the following is NOT a characteristic of functional departmentalization? a. Functional departmentalization allows work to be done by highly qualified specialists. b. Functional departmentalization lowers costs by reducing duplication. c. Functional departmentalization produces managers with broader experience and expertise. d. Functional departmentalization complicates coordination between departments. e. Functional departmentalization organizes workers into separate units responsible for performing particular business functions.

c. Functional departmentalization produces managers with broader experience and expertise.

____ determines the number, kind, and variety of tasks that individual workers perform in their jobs. a. Standardization b. Task mapping c. Job design d. Job specialization e. An organizational chart

c. Job design

____ is a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed. a. Pooling interdependence b. Reciprocating interdependence c. Reengineering d. Repositioning e. Manufacturing conversion

c. Reengineering

Elena works in a data processing department for a large credit reporting service and is bored. She spends her days inputting an endless stream of monotonous data into much larger data bases. According to the job characteristics model (JCM), one of the primary reasons for her boredom is ____. a. a low degree of feedback b. a high degree of autonomy c. a low degree of task identity d. a high degree of task significance e. a high degree of skill variety

c. a low degree of task identity

In a(n) ____, managers from different parts of the matrix report to matrix managers who help them sort out problems and conflicts. a. networked matrix b. synergistic matrix c. complex matrix d. hierarchical matrix e. organic matrix

c. complex matrix

A manufacturer of acrylic and latex gloves sells to medical laboratories, to factories where employees handle chemicals, to companies that manufacture micro-tech equipment, and to cleaning services. Because it is organized to better satisfy the needs of each of its four target markets, the manufacturer uses ____ departmentalization. a. matrix b. product c. customer d. geographic e. functional

c. customer

With divisions that focus on business clients and consumer clients, companies like Sprint, American Express, and others are examples of ____ departmentalization. a. boundaryless b. product c. customer d. functional e. matrix

c. customer

As a consequence of the Industrial Revolution and its emphasis on specialization, institutions providing higher education developed strict departments that contained specialized functions. This organizational structure was perceived as a way to enhance the accumulation and dissemination of knowledge. Institutions providing higher education have traditionally used ____. a. reengineering b. functionalization c. departmentalization d. functional empowerment e. job dissemination

c. departmentalization

Novo Nordisk is a European manufacturer of pharmaceuticals. An employee , Rikke NedergaardBischoff, who is a clinical-development scientist, contends that Novo upholds the standards expected of public institutions without the stifling bureaucracy. She says, "There's a great deal of empowerment at Novo Nordisk." Novo Nordisk provides NedergaardBischoff with ____. a. a rigid chain of command b. a mechanistic work environment c. feelings of intrinsic motivation d. reengineering opportunities e. a high degree of job significance as defined by the JCM

c. feelings of intrinsic motivation

An organization that has increased the number of different tasks that a worker performs within one particular job has engaged in ____. a. task aggregation b. job specialization c. job enlargement d. employee specialization e. job rotation

c. job enlargement

Of all types of departmentalization, ____ departmentalization requires the highest level of management skill for successful implementation. a. geographic b. customer c. matrix d. product e. functional

c. matrix

The primary advantage of ____ departmentalization is the fact that it allows companies to manage large, complex tasks efficiently by minimizing duplication. a. product b. functional c. matrix d. geographic e. functional

c. matrix

Modular organizations ____. a. allow a high level of control over business processes and output b. cost significantly more to run than traditional organizations c. outsource all but the core business activities that they can perform best d. succeed because they operate independently from vendors and suppliers e. are accurately described by all of these

c. outsource all but the core business activities that they can perform best

Procter & Gamble has divisions for personal and beauty, house and home, health and wellness, baby and family, and pet nutrition and care. These divisions indicate that the company uses ____ departmentalization. a. functional b. geographic c. product d. customer e. strategic business unit (SBU)

c. product

45. Like most large U.S. hospitals, University Health Care System spends an enormous amount on patient supplies. The hospital has more than 15,000 individual products that are purchased on a routine basis. Its purchasing manager instituted a hospital-wide purchasing policy that gave a specific code to each individual item. In other words, the purchasing manager engaged in ____. a. consistency planning b. organizational autonomy c. standardization d. problem empowerment e. procedural planning

c. standardization

40. Which of the following positions most likely performs a staff function? a. the supervisor of the loading dock b. the organization's receptionist c. the vice president of marketing d. a member of the office cleaning crew e. a shift supervisor

d. a member of the office cleaning crew

When managers delegate work, three transfers occur. The three transfers are responsibility, authority, and ____. a. utility b. synergy c. reciprocity d. accountability e. empathy

d. accountability

38. An international distribution company has a shipping division, a warehouse division, a computer hardware and software distribution center, as well as, a marketing research department, a human resources department, and an accounting department. A salesperson who works in the shipping division is told by the accounting department that he must turn in a weekly expense account. His supervisor in the shipping division wants expense accounts submitted monthly. The salesperson is likely experiencing a problem with ____. a. line authority b. delegation of authority c. centralization d. chain of command e. organizational synergy

d. chain of command

43. The marketing manager of a company that manufactures church furniture has been given the job of increasing corporate profits by 5 percent during the upcoming year. The manager decided to give his assistant the full responsibility and authority for developing a mailing campaign to target churches on the Mississippi Gulf Coast. In other words, the marketing manager has ____. a. implemented feedback controls b. created a staff position c. embraced the matrix organizational philosophy d. delegated the task e. created a win-win relationship

d. delegated the task

Leaders during any disaster need to give their employees a sense that everyone is participating in the relief effort. The Gap gave its employees the authority to transfer their paid time off to some 1,300 employees affected by Hurricane Katrina. The Gap used ____ to allow its employees to gain a feeling of intrinsic motivation. a. standardization b. sequential interdependence c. pooled interdependence d. empowerment e. transactional intradependence

d. empowerment

Disadvantages of ____ departmentalization include slower decision making, the development of managers and workers with narrow experience and expertise, and makes it more difficult for cross-departmental coordination. a. product b. customer c. geographic d. functional e. hierarchical

d. functional

The job design approach associated with ____ involves increasing the number of different tasks that a worker performs within one particular job and giving workers the authority and control to make meaningful decisions about their work. a. job rotation and job enlargement b. job specialization and job enrichment c. job specialization and job enlargement d. job enlargement and job enrichment e. job enrichment and job rotation

d. job enlargement and job enrichment

A(n) ____ organization is one that is characterized by broadly defined jobs and responsibilities; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge. a. centralized b. mechanistic c. departmentalized d. organic e. modular

d. organic

According to an electronics CEO, the first requirement of management is that it should make the fullest use of the capacities of its members. Thus any individual's job should be as little defined as possible so that it would 'shape itself' to the person's special abilities and initiative. This electronics company more than likely had a(n) ____ organization. a. centralized b. mechanistic c. departmentalized d. organic e. modular

d. organic

37. Jennifer Lee works in the public relations department of a large pharmaceutical company. It is her job to write speeches for the company's top managers, to issue press and video releases, to host plant tours, and to be involved in community affairs. Lee has ____. a. line authority b. mechanistic authority c. empowerment obligations d. staff authority e. linear power

d. staff authority

The composition of a ____ organization is always changing. a. modular b. boundaryless c. decentralized d. virtual e. mechanistic

d. virtual

Which of the following statements about matrix departmentalization is true? a. Most employees in an organization that uses matrix departmentalization report to two bosses. b. With matrix departmentalization, there tends to be more cross-functional interaction among employees than in other types of departmentalization. c. With matrix departmentalization, there needs to be significant coordination between functional and project managers. d. The most common matrix combines product and functional departmentalization. e. All of these statements about matrix departmentalization are true.

e. All of these statements about matrix departmentalization are true

____ is the collection of activities that transform inputs into outputs that customer's value. a. Reengineering b. Functionalization c. Organizational structure d. Production positioning e. Organizational process

e. Organizational process

The primary disadvantage of geographic departmentalization is ____. a. the absence of cross-departmental coordination b. broken chains of command c. spans of control that are too wide d. the lack of empowerment e. duplication of resources

e. duplication of resources

The organizational process ____. a. defines roles not activities b. limits the adaptivity of an organization c. uses vertical and horizontal departmentalization d. is a traditional method for establishing organizational structures e. is the collection of activities that transform inputs into outputs that customers value

e. is the collection of activities that transform inputs into outputs that customers value

The Ryerson University Library is organized in a hierarchy with six unit heads reporting to a chief librarian. Within these units are fifteen librarians and forty-seven full-time library staff. One of the tools used in the organizational development of the library was to systematically move employees from one job to another to give them an opportunity to learn and use different skills. The Ryerson University Library used ____. a. task aggregation b. job specialization c. job enlargement d. employee specialization e. job rotation

e. job rotation

In terms of the chain of command, ____ authority is the right to command immediate subordinates, while ____ authority is the right to advise but not command others who are not subordinates. a. departmental; functional b. centralized; decentralized c. functional; expert d. internal; external e. line; staff

e. line; staff

Because of problems associated with conflicts over schedules, budgets, and available resources (including employees), ____ departmentalization often evolves from a simple form to a more complex form. a. hierarchical b. functional c. customer d. product e. matrix

e. matrix

Commerce Insurance Services has five divisions. They are personal; core commercial; Main Street business; major commercial; and benefits. The company is also departmentalized along product lines. Commerce Insurance Services uses ____ departmentalization. a. boundaryless b. product c. customer d. functional e. matrix

e. matrix

A(n) ____ organization is an organization that is characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication. a. modular b. departmentalized c. standardized d. organic e. mechanistic

e. mechanistic

While ____ emphasizes jobs and their authority relationships, ____ emphasizes the activities through which work gets done in the organization. a. departmentalization; functionalization b. organizational process; organizational structure c. interorganizational process; intraorganizational process d. intraorganizational process; interorganizational process e. organizational structure; organizational process

e. organizational structure; organizational process

Honeywell Inc. reorganized its European operations along customer lines to prepare for a unified European Union. In doing so, it abandoned matrix departmentalization. Why would Honeywell engage in such restructuring? a. to create pools of resources b. to empower its employees c. to better adhere to the management philosophy of staff authority d. to improve its ability to handle complex tasks e. to end conflict between product managers in different parts of its matrix

e. to end conflict between product managers in different parts of its matrix

In the automobile industry, three car manufacturers and a variety of suppliers and distributors have formed a network to create economies in production through outsourcing. It is intended for this ____ to cut as much as $3,000 from the costs of producing one car. a. matrix organization b. functional organization c. modular organization d. hierarchical organization e. virtual organization

e. virtual organization

75. Zara clothing stores has developed a system that can order new fashions and deliver them to the store in only three weeks. It uses ____ to pass information to the next person in the line of development. a. standardization b. sequential interdependence c. pooled interdependence d. manager empowerment e. transactional intradependence

B Sequential interdependence is work completed in succession

____ departmentalization is defined as organizing work and workers into separate units responsible for particular business functions or areas of expertise. a. Functional b. Customer c. Matrix d. Product e. Hierarchical

a. Functional

____ departmentalization is notorious for confusion and conflict between project managers in different areas of the organization. a. Matrix b. Functional c. Customer d. Product e. Geographic

a. Matrix

19. Which of the following types of departmentalization does NOT have a problem with the duplication of resources? a. functional b. geographic and matrix c. product and customer d. customer and functional e. geographic

a. functional

Functional departmentalization ____. a. makes it easier for top managers to assess work-unit performance b. allows work to be done by highly qualified specialists c. produces managers with broader experience and expertise d. enhances coordination between departments e. encourages interdepartmental communication

b. allows work to be done by highly qualified specialists

Kimberly-Clark is subdivided into organizational units called Kimberly-Clark Health Care, which provides products to hospitals, Kimberly-Clark Professional, which sells to businesses, and Kimberly-Clark Consumer, which sells the company's products to customers. From this information, you know that Kimberly-Clark uses ____. a. hierarchical functionalization b. departmentalization c. a nonlinear organizational structure d. a product layout e. product formatting

b. departmentalization

According to the job characteristics model, ____ means pushing some managerial authority down to workers. a. establishing reciprocity b. vertical loading c. forming natural work units d. decoding tasks e. creating group norms

b. vertical loading

A(n) ____ organization is part of a network in which many companies share skills, costs, capabilities, markets, and customers with each other. a. modular b. virtual c. matrix d. electronic e. boundaryless

b. virtual

____ is the process of solving problems by consistently applying the same rules, procedures, and processes. a. Consistency planning b. Organizational autonomy c. Standardization d. Problem empowerment e. Procedural planning

c. Standardization

____ is the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish their jobs. a. Task significance b. Task identity c. Skill variety d. Autonomy e. Skill feedback

d. Autonomy

____ is a feeling of intrinsic motivation, in which workers perceive their work to have meaning and perceive themselves to be competent, having an impact, and capable of self-determination. a. Reciprocity b. Motivational assertion c. Eutonomy d. Empowerment e. Autonomy

d. Empowerment

The three types of task interdependence are a. pooled, delegated, and systematic b. delegated, integrated, and combined c. sequential, delegated, and pooled d. reciprocal, pooled, and sequential e. integrated, reciprocal, and synergistic

d. reciprocal, pooled, and sequential

Robert Strickland works in the legal department at a large consumer products manufacturer. It is his job to craft warnings on package labels. This is Strickland's ____. a. line function b. boundary-spanning role c. chain of command role d. staff function e. personal empowerment role

d. staff function

One of the key assumptions underlying the chain of command is ____, which means that workers should report to just one supervisor. a. delegation of command b. empowerment c. synergistic authority d. unity of command e. centralization of authority

d. unity of command

A park, recreation, and open space (PROS) cooperative is a recognized association of park, recreation, open space, and related entities united voluntarily. PROS cooperatives conserve the diversity of valued resources and recreation opportunities for the benefit these afford individuals, communities, the economy, and the environment. A PROS cooperative is an example of a ____ organization. a. modular b. boundaryless c. decentralized d. virtual e. mechanistic

d. virtual

An Indian Catholic Cardinal's call for local church leaders to have more power and for papal authority to be distributed to lower levels within the Catholic hierarchy has elicited agreement from other church leaders in India. He also asserted that bishops should not have "to run to Rome for everything" and that canon law should be modified to allow the pope to share his authority. Vithayathil is calling for ____. a. centralization b. standardization c. top management empowerment d. job specialization e. decentralization

e. decentralization