mgmt chapter 7

Which of the following would NOT be included among the advantages of a virtual network structure? Workforce flexibility/challenge Global competitiveness Reduced administrative overhead Centralized control of organization activities

Centralized control of organization activities

At a meeting of the strategic planning team, Felicity announced that she wanted to discuss the possibility of reengineering. Which of the following would be a main feature of this approach? The number of levels in the vertical hierarchy would increase. The structure would focus on function rather than horizontal workflows. The number of senior executives in traditional support functions such as finance and human resources would be increased. Company structure would shift away from being strongly vertical and toward emphasizing stronger horizontal coordination.

Company structure would shift away from being strongly vertical and toward emphasizing stronger horizontal coordination.

Which of the following statements best defines high-level relational coordination? Coordination is carried out by managers in a functional hierarchy. Coordination is carried out through a web of ongoing positive relationships. Coordination is a structural device managed by a project manager. Coordination is carried out through formal coordination roles or mechanisms.

Coordination is carried out through a web of ongoing positive relationships.

Which of the following would typically be produced through small-batch manufacturing? Baseball gloves Automobiles Nike socks Custom clothing

Custom clothing

Which of the following statements about trends in organization structure is true? In general, the usefulness of work "silos" containing functional departments is becoming more evident. Managers recognize that traditional vertical organization structures are most effective in a fast-shifting environment. Every organization needs mechanisms for horizontal integration and coordination. Many companies are moving away from horizontal structures based on work processes rather than departmental functions.

Every organization needs mechanisms for horizontal integration and coordination.

Which of the following advantages is provided by a matrix structure? Facilitates horizontal coordination and information sharing Extends collaboration beyond the boundaries of an organization Provides the most recent version of departmentalization Outsources tedious and time-consuming tasks to allow focus on higher-value work

Facilitates horizontal coordination and information sharing

Caleb works for the R&D department of a large company. When an issue arises in this department, they must wait for the president to make a final decision. What approach to organization structure does Caleb's company use? Team-based Divisional Virtual network Functional

Functional

A national ice cream manufacturer has found that customers on the East Coast prefer a slightly different taste and texture to their ice cream than customers on the West Coast. It has facilities on each coast with slightly different names to produce the distinct types of ice cream preferred there. Which of the following approaches does it use in its organization structure? Team-based Virtual network Geographic-based divisional Customer-based functional

Geographic-based divisional

Werner has been hired as a project manager at a construction company. Which of the following statements is most likely true about Werner? His position is not included on the organization chart. He is a member of one of the departments begin coordinated. He will ensure outcomes but will have no input on setting budget goals, marketing targets, and strategies. He is responsible for coordinating several departments to achieve desired project outcomes.

He is responsible for coordinating several departments to achieve desired project outcomes.

Which of the following would be characteristic of most service firms? High horizontal communication Formal Inflexible Centralized

High horizontal communication

Which of the following statements best describes the difference between a divisional structure and a functional structure? A functional structure uses a strong horizontal design, and a divisional structure uses a strong vertical design. In functional structures, workers communicate primarily with others in a different department to coordinate work; in divisional structures, workers communicate primarily with people in the same department to coordinate work. In a functional structure, people are grouped by common skills and resources; whereas in a divisional structure, departments are grouped together based on similar organizational outputs. A functional structure operates best with decentralization, and a divisional structure benefits from centralization.

In a functional structure, people are grouped by common skills and resources; whereas in a divisional structure, departments are grouped together based on similar organizational outputs.

Which of the following statements provides the best definition of delegation? It is the requirement to report and justify task outcomes to those higher in the chain of command. It is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources. It allows managers to transfer the rights and duties of decision making and action taking to those lower in the organizational hierarchy. It is the duty to perform the task that has been assigned.

It allows managers to transfer the rights and duties of decision making and action taking to those lower in the organizational hierarchy.

Which of the following statements about authority is true? Formal authority is the same as actual authority. Although managers may hold the same position, their levels of authority differ. It is accepted by subordinates. Authority is given to individuals, rather than being part of the position the individual holds.

It is accepted by subordinates.

Collin works at the front desk of a luxury hotel. His main assignment is to greet guests, register them for their rooms, and call for porters or other assistance the guest might request. Which of the following statements best describes the structure of Collin's organization? The tasks are repetitive, predictable, and continuous. It is characterized by intangible outputs and direct contact between employees and customers. A tight vertical structure is most appropriate for this setting. It benefits from mechanization and continuous production.

It is characterized by intangible outputs and direct contact between employees and customers.

Which of the following statements provides the best definition of responsibility? It is the requirement to report and justify task outcomes to those higher in the chain of command. It is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources. It allows managers to transfer the rights and duties of decision making and action taking to those lower in the organizational hierarchy. It is the duty to perform the task that has been assigned.

It is the duty to perform the task that has been assigned.

Which of the following statements provides the best definition of authority? It is the requirement to report and justify task outcomes to those higher in the chain of command. It is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources. It allows managers to transfer the rights and duties of decision making and action taking to those lower in the organizational hierarchy. It is the duty to perform the task that has been assigned.

It is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources.

Which of the following statements provides the best definition of accountability? It is the requirement to report and justify task outcomes to those higher in the chain of command. It is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources. It allows managers to transfer the rights and duties of decision making and action taking to those lower in the organizational hierarchy. It is the duty to perform the task that has been assigned.

It is the requirement to report and justify task outcomes to those higher in the chain of command.

Which of the following statements would be true of a centralized organization? Its decision authority is located near the top of an organization. It tends to relieve the burden on top managers, unlike decentralization. It makes greater use of employees' skills and abilities when compared with decentralization. It can respond more quickly to rapid change and uncertainty in the environment.

Its decision authority is located near the top of an organization.

_____ is distinguished by standardized production runs. Unit production technology Small-batch production technology Mass production technology Continuous process production technology

Mass production technology

The RHS Law Firm is highly specialized and characterized by rules and procedures. It also has a clear hierarchy of authority. What type of system is it? Organic Horizontal Mechanistic Correctional

Mechanistic

Omega Manufacturing mass-produces bottles for the beverage industry. It has a decentralized structure with mostly verbal communication. The indirect to direct labor ratio is 1:1, and the supervisor span of control is 15. Which of the following statements best summarizes the situation at Omega? Because the production process at Omega is nonroutine, closer supervision is needed; therefore, an organic structure is used. Omega should adopt a highly centralized, mechanistic structural form because it is the type of structure more in keeping with the goals of mass production firms. Because production and consumption of Omega's products are simultaneous, it should adopt a more mechanistic structural form. Omega is highly successful using an organic structure given the technical complexity and type of manufacturing technology.

Omega should adopt a highly centralized, mechanistic structural form because it is the type of structure more in keeping with the goals of mass production firms.

Distill Manufacturing has clearly defined lines of authority. Dudley is a front-line manager. Each of the six employees Dudley supervises knows that he or she has authority and responsibility for a distinct set of tasks. Dudley reports to his supervisor who is the next step in successive management levels all the way to the top. Distill Manufacturing follows which of the following principles? Authority Specialization Responsibility Scalar

Scalar

Which of the following is characterized by intangible outputs? Mass production Continuous process production Small-batch production Service technology

Service technology

Nicole is considered to be the top leader at her organization, which uses a matrix structure. Which of the following is true of Nicole's role in the organization? She reports to two supervisors simultaneously and must resolve conflicting demands from the matrix bosses. She is responsible for one side of the matrix. She reports problems that arise between the two sides of a matrix to the matrix boss. She oversees both product and functional chains of command.

She oversees both product and functional chains of command.

Low technical complexity, decentralization, and an organic structure are typical of which of the following types of manufacturing technology? Continuous process Small-batch production Large-batch production Mass production

Small-batch production

The environment in which organizations using decentralization of decision making would be characterized by which of the following? The need to avoid duplication of effort Certainty Greater need to manage risk Strategy that encourages creativity

Strategy that encourages creativity

_____ defines what to do, while _____ defines how to do it. Organizing; planning Controlling; strategy Organizing; controlling Strategy; organizing

Strategy; organizing

A functional structure would be most appropriate in which of the following circumstances? Differentiation and organic environment Task specialization and mechanistic environment Stability and organic environment Innovation and mechanistic environment

Task specialization and mechanistic environment

Which of the following would NOT be considered a disadvantage of the matrix approach? It generates conflict because it pits divisional against functional goals in a domestic structure. Rivalry between the two sides of the matrix can be exceedingly difficult for two-boss employees to manage. The matrix structure leads to more discussion than action because different goals and points of view are being addressed. The conflict and frequent meetings generated by the matrix allow new issues to be raised and resolved.

The conflict and frequent meetings generated by the matrix allow new issues to be raised and resolved.

Which of the following statements is NOT part of the definition of organization structure? The desired future circumstance or condition that the organization attempts to realize The set of formal tasks assigned to individuals and departments The design of systems to ensure effective coordination of employees across departments The formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managers' control

The desired future circumstance or condition that the organization attempts to realize

The manager of the chemical products division disagrees with the budget set out for her R&D department by the accountant in her division. The vice president of finance claims no money is available for R&D right now. In this matrix structure, how will this dispute be resolved? The issue will be referred to the president who, as top leader, has authority over both the vice president and division manager and will make a decision based on what is best for the company. The vice president has ultimate authority over budget matters of the divisions, and so the budget will go unchanged. This matter is unlikely to be resolved because no one has definitive authority over the matter. The division manager knows what money is needed to effectively operate the division's R&D department, so the budget will be revised to accommodate the division's needs.

The issue will be referred to the president who, as top leader, has authority over both the vice president and division manager and will make a decision based on what is best for the company.

What is the difference between a matrix boss and a top leader? The matrix boss oversees both the product and functional chains of command, while the top leader is responsible for the entire matrix. The matrix boss reports to two supervisors simultaneously, while the top leader oversees both the product and functional chains of command. There is no distinct difference between matrix boss and top leader: they both are responsible for horizontal and vertical chains of command. The matrix boss is the product or functional boss and responsible for one side of the matrix, while the top leader is responsible for the entire matrix and oversees both the product and functional chains of command.

The matrix boss is the product or functional boss and responsible for one side of the matrix, while the top leader is responsible for the entire matrix and oversees both the product and functional chains of command.

Which of the following statements would characterize a permanent team? The team does not allow front-line employees to make decisions to resolve issues on their own. The team pushes authority to an organization's top levels. The team works to complete a specific task and includes representatives from the various functions who coordinate their work. The team emphasizes vertical communication.

The team works to complete a specific task and includes representatives from the various functions who coordinate their work.

When designing an organization, a strategic team should look out for which of the following bottom-up pressures? Organizational goals The political and legal environments in which the organization operates Economic conditions The work processes performed to produce the organization's products

The work processes performed to produce the organization's products

In the creative department at Newcomb Advertising, the employees do work that is low in task specialization. Which of the following is most likely true about these employees? They often find their work boring. They usually perform a single task. They seldom find their work challenging. They engage in a variety of tasks and activities.

They engage in a variety of tasks and activities.

Rolf is an accountant for a major architectural firm. His manager is the CFO for the company. He is also on a team that is responsible for putting together project proposals for clients. In this position, Rolf answers to the vice president of operations. Which of the following principles is broken in this situation? Work specialization Unity of command Responsibility Scalar principle

Unity of command

Which of the following factors is associated with less supervisor involvement and thus larger spans of control? Work performed by subordinates is stable and routine. Subordinates are dispersed among numerous locations. Significant time is required to coordinate with other departments or planning. Rules and procedures for task activities are not clearly defined.

Work performed by subordinates is stable and routine.

Lillian is the chief financial officer at her company. She is responsible for keeping accurate financial records of the company and reporting them as required by the government. She has a staff of administrative workers and accountants which she authorizes to complete various aspects of these tasks. Given this responsibility and authority, Lillian is _____ to the shareholders of the company and the Securities and Exchange Commission. complicit compliant acceptable accountable

accountable

Which of the following would typically be produced through continuous process production? Chemicals Automobiles Nike socks Custom clothing

chemicals

Companies use a narrow span of control to facilitate: routine work. delegation. a flatter organization structure. close supervision of work.

close supervision of work.

Gina from the accounting department needs better data from the production department in order to pay invoices and to send bills in a more timely manner. Harry from the production department needs faster approval of purchase requests and better access to budget proposals. Gina and Harry meet to find solutions to these issues. Through their _____, they devise a system of communication and procedures that makes these processes flow more smoothly. reengineering coordination strategic planning collaboration

collaboration

The engineering design and production departments at Power Tools Inc. have new models in several of their product lines; however, demand for these new tools have been low. The engineers have not done a good job of communicating with the marketing and sales department about the new features. This situation is an example of poor: planning. reengineering. coordination. leading.

coordination

When a manager is asked to adjust and synchronize the diverse activities among different individuals and departments, that manager is performing the task of: coordination. subordination. collaboration. departmentalization.

coordination.

As a team member, Rosa reports to her department, and she also reports to the team leader. Rosa is part of a _____ team. virtual network cross-functional vertical permanent

cross-functional

Because Rebecca's medical technology company operates in an environment that can change rather quickly, she focuses the company's strategy on being innovative and hires creative people. She finds that _____ fits best with this strategy. centralization the accounting approach to departmentalization decentralization little or no delegation

decentralization

In a _____ structure, the major departments under the president are groupings of similar expertise and resources. divisional program functional decentralized

functional

In order to take advantages of economies of scale, Pet Toys Company uses a _____ approach to its organization structure. functional matrix hierarchical team-based

functional

The traditional approaches rely on the chain of command to define departmental groupings, and reporting relationships follow the hierarchy in the: departmental, team-based, and divisional approaches. functional, matrix, and divisional approaches. divisional, virtual network, and matrix. team-based, matrix, and virtual network approaches.

functional, matrix, and divisional approaches.

When people share information freely across departmental boundaries, the organization: finds formal coordination roles or mechanisms are necessary. uses task forces and standing committees to resolve issues. has a high level of relational coordination. has a low level of horizontal coordination.

has a high level of relational coordination.

Which of the following would NOT be included among the five approaches to structural design? Divisional Functional Matrix Ideological

ideological

Studies have shown that having people work in close proximity to one another does: reduce the amount of coordination. increase the need for vertical structure. benefit from formal coordination roles or mechanisms. increase collaboration.

increase collaboration.

An organization with a mechanistic system: is free-flowing and adaptive. has a horizontal structure. has a decentralized decision-making authority. is highly specialized and characterized by rules.

is highly specialized and characterized by rules.

An organization's departmental tasks and how they fit together, as well as the order and logic for the organization, can be presented on a(n): organization chart. chart of centralization. mission statement. chart of decentralization.

organization chart.

The evolution of organization structures began with traditional vertical structures, which were followed by cross-functional teams and project managers, and finally by: coordinating task forces. collaborating divisions. reengineering to horizontal teams. virtual networks.

reengineering to horizontal teams.

Because the company had recently started to emphasize new product development, the executive team wanted to make sure the company had greater horizontal coordination. Departments across the entire company were reconfigured to increase sensitivity to customer needs and to increase product quality. This level of change is known as: strategic planning. reorganization. reverse engineering. reengineering.

reengineering.

A task force is a team or committee designed to solve a problem involving several departments; therefore, task force members: represent their departments and share information that enables coordination. eventually form a permanent team and meet regularly. belong to the same department and resolve critical issues related solely to their departments. work with continuing rather than temporary problems.

represent their departments and share information that enables coordination.

At Acme Accounting, there are six levels of management between entry-level accountants and the CEO. At Zenith Public Relations, there are three organizational levels from entry-level associates and the CEO. When comparing the two, Acme has a _____ organization structure, and Zenith has a _____ organization structure. wide; flat narrow; wide tall; flat wide; tall

tall; flat

The most widespread trend in departmentalization in recent years has been the: functional approach. team-based approach. matrix approach. divisional approach.

team-based approach.

Taylor works at a chemical processing plant. She monitors the sodium levels of the solution via computer that tests the formula as it moves through the process. If it is not within limits, the computer automatically adjusts the flow. This production process is characterized by a high degree of: technical complexity. relational coordination. project management. work specialization.

technical complexity.

Norman works in the accounting department at his company, which uses a matrix structure. He reports to the vice president of finance. He is also the primary numbers person in the garden products division of the company which is managed by the division manager. Norman is a: top leader. collaborator. two-boss employee. matrix boss.

two-boss employee.

Salima and Stefan own a small engineering company. Their customers generally want a small manufacturing machine for custom orders. Salima and Stefan do all the designing. They then send their designs out to a fabrication shop that makes the machine. They outsource their accounting and marketing functions to companies specializing in those activities for small businesses. Their company functions quite well with this _____ structure. divisional virtual network functional matrix

virtual network

With a _____, the organization may be viewed as a central hub surrounded by a system of outside specialists, sometimes spread all over the world. virtual network structure functional structure matrix structure divisional structure

virtual network structure

Yuan works at a dental center where he is a dental hygienist. The tasks at the dental center are divided among his coworkers who are either lab technicians or administrative personnel. These separate jobs are part of the organization's: span of management. chain of command. centralization. work specialization.

work specialization.

Which of the following is a characteristic of an organization with an organic system? It is characterized by rules. It typically has a vertical structure. It is free-flowing and adaptive. It follows a centralized structure.

It is free-flowing and adaptive.

Within an organization, the intersection between authority and responsibility is: accountability. delegation. sustainability. departmentalization.

accountability

As the human resources manager at her company, Elsa has transferred some of her responsibility and authority for interviewing potential employees to two human relations specialists. In other words, Elsa has ______ these tasks to her employees. reported counseled centralized delegated

delegated

Olivia is a copy editor for a large organization's marketing department. Her department is putting together a marketing campaign for the company's newest version of high-efficiency refrigerator. Part of the campaign emphasizes the product in the kitchen of the future. In another department, the marketing team is putting together the campaign for the newest radiant oven. If these two campaigns could be coordinated, it would be beneficial, but the two departments are disagreeing over the best direction for the marketing. Which of the following types of organization structure does Olivia's company use? Team-based Divisional Virtual network Functional

divsional

Which of the following typically is considered a line department? Human resources Manufacturing Strategic planning Research and development

manufacturing

The person who is responsible for coordinating the activities of several departments for the completion of a specific project is generally known as the: cross-functional manager. collaborator. project manager. reengineer.

project manager

Studies demonstrate that business performance is most successful when: using a structure that emphasizes the formal, vertical hierarchy. goals of efficiency and a stable environment are associated with an organic system. the company's structure is aligned well with its strategic intent and the needs of the environment. goals of innovation and a rapidly changing environment are associated with a mechanistic system.

the company's structure is aligned well with its strategic intent and the needs of the environment.

Traditional views of organizational design recommend a span of management of about _____ subordinates per manager. 15 to 20 4 to 5 30 to 40 7 to 10

7 to 10

Which of the following would be an example of high-level relational coordination? The head of maintenance and the line supervisors have a contentious meeting about a rash of equipment breakdowns. A liaison from the sales department and the design department meet frequently to review products in development and discuss ideas received from customers. The CEO meets with an employee who wants to form a union among the production workers. The head of accounting meets with mid-level managers to review monthly budgets.

A liaison from the sales department and the design department meet frequently to review products in development and discuss ideas received from customers.

Norman works in the accounting department at his company. He reports to the vice president of finance. He is also the primary numbers person in the garden products division of the company which is managed by the division manager. In which of the following types of organization structure does Norman work? A matrix approach A virtual network approach A multidivisional approach A team approach

A matrix approach

Which of the following advantages is provided by a divisional structure? Better coordination across divisions A unified direction from top managers Greater efficiencies and economies of scale A more flexible organization that is responsive to change

A more flexible organization that is responsive to change

Which of the following advantages is provided by a functional structure? Better coordination across functional departments A unified direction from top managers Better communication across functions A more flexible organization that is responsive to change

A unified direction from top managers