OB Chapter 15

22. Martha wants her house fully cleaned on Monday. She takes the dusting, Marvin vacuums, Kit does the bathrooms, and Tina cleans the kitchen. ___________ occurs when the common goal is pursued by individuals performing separate but related tasks. A. Division of labor B. Hierarchy of authority C. Unity of command D. Span of control E. Traditional structure

A

24. _______ is the number of people reporting directly to a given manager. A. Span of control B. Span of authority C. Chain of command D. Unity of command E. Unity of control

A

30. The human body is an example of a(n) ________ because it requires life-sustaining oxygen, nutrients, and water from the environment. A. open system B. closed system C. learning system D. hierarchy E. flat organization

A

35. The Meyers Motor Company to¬day is very different from the same company of 1965, yet many essential characteristics remain so that "Meyers is still Meyers." This suggests that organizations have ____________, the means to retain and transmit information from past to future members of the social system. A. organizational memory B. information acquisition C. information distribution D. information interpretation E. knowledge integration

A

37. __________ rely on a vertical hierarchy and attempt to define clear departmental boundaries and reporting relationships. A. Traditional structures B. Horizontal designs C. Open designs D. Boundaryless organizations E. Learning organizations

A

40. Mosco's is a ____________ in which management has largely succeeded in breaking down barriers among internal levels, job functions, and departments, as well as reducing external barriers between the organization and those with whom it does business. A. boundaryless organization B. learning organization C. matrix structure D. clan culture E. divisional structure

A

42. Roscoe Products produce widgets. Using a(n) __________, they are able to achieve economies of scale by specializing the application of labor to specific and standardized functions. A. traditional design B. open design C. horizontal structure D. organic structure E. closed design

A

47. Queen Electric is structured around five primary business divisions: Queen Power, Queen Oil & Gas, Queen Energy Connections, Queen Transportation, and Queen Digital. These business areas are subdivided further into either product or geographic divisions. What kind of structure has Queen Electric adopted? A. divisional B. hollow C. matrix D. functional E. horizontal

A

53. A fabric design company is known for the designs it develops, owing to its creative talent and knowledge of the market. This firm uses partner organizations to take orders, ship products, and manage employee benefits. The company has a _____ structure. A. hollow B. modular C. matrix D. horizontal E. virtual

A

63. __________ typically have a more open communication and contribution style. For example, at Google, the environment is unpredictable, but because of the freedom afforded the employees and management, it runs smoothly. A. Organic organizations B. Closed organizations C. Market cultures D. Virtual structures E. Functional organizations

A

70. The ____________ translates an organization's vision and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system. A. balanced scorecard B. internal processes C. resource acquisition D. strategy map E. organization chart

A

76. While the rest of the academia is suffering from labor shortages, WhatsUp University averages five applicants for every position opening. With this ratio of applicants to openings, the university can pick and choose from among the top candidates. The organization is known to excel at meeting expectations. WhatsUp University is successful, most likely, because of what balanced scorecard perspective? A. internal processes B. customer C. external processes D. goal accomplishment E. financial

A

77. According to Kaplan and Norton, a(n) ________ is a "visual representation of a company's critical objectives and the crucial relationships among them that drive organizational performance." A. strategy map B. external process C. corporate plan D. resource acquisition E. goal accomplishment

A

79. ________ is the creation of something new that makes money and finds a pathway to the consumer. A. Innovation B. Invention C. Creativity D.Integration E. Inspiration

A

80. Sunshine Crackers introduces Wheat Flats,a cracker with more fiber, fewer calories, and great flavor. Wheat Flats is a great success. This is an example of __________ innovation. A. product B. process C. resource D. culture E. capital

A

68. Which of the following is not a benefit of open structures? A. high control of outsourced operations B. focus on what they do best C. work well when trusted and suitable partners are available D. high control of outsourced operations E. work well when efficiency is very important F. work well when trusted and suitable partners are available G. potentially better access to specialists H. work well when efficiency is very important I. potentially better access to specialists

A,D

16. Which of the following is not one of the common denominators of organizations? A. coordination of effort B. profit motive C. hierarchy of authority D. division of labor E. aligned goals

B

23. Which of the following cannot be viewed in an organizational chart? A. hierarchy of authority B. organizational culture C. division of labor D. span of control E. line and staff positions

B

28. Which of the following statements about span of control is true? A. Larger organizations tend to have wider spans of control. B. Costs tend to be higher in organizations with narrow spans. C. Complex tasks tend to require a narrower span of control. D. Narrow spans of control are mostly found in clan cultures. E. Senior-level executives tend to have wider spans of control

B

38. Many new companies and small businesses opt for a(n) __________ because they have a limited amount of employees, A. traditional structure B. horizontal structure C. open design D. boundaryless organization E. learning organization

B

41. Which of the following is an open organizational design? A. matrix B. modular C. horizontal D. functional E. divisional

B

44. When a business doesn't have control of all the environmental forces, it is called __________ design. For example, Acme Medical relies on predictions and contingencies to cope with unexpected input. Last year, an influenza epidemic affected suppliers, personnel, and even customers, causing lost production and lost profit. A. traditional B. open C. horizontal D. functional E. divisional

B

52. A horizontal approach to organizational design tends to focus on A. specific customers. B. work processes. C. functional expertise. D. efficiency over effectiveness. E. use of information technology

B

54. Wayneslock, when producing the Steamer Cabin Craft luxury yacht, assigned subcontractors to complete specific subassemblies and deliver them to Wayneslock Corporate for final assembly. This approach resulted in a leaner and simpler assembly line and lower inventory. Wayneslock is an example of a __________ structure. A. hollow B. modular C. matrix D. horizontal E. virtual

B

57. The ________ organization structure is best for situations where the nature of product modules and design interfaces can be specified. A. hollow B. modular C. matrix D. horizontal E. virtual

B

58. Tsunamet Cosmetics is highly responsive to its customers. This is one of the advantages of _________ organizations. A. functional B. horizontal C. divisional D. hollow E. virtual

B

60. One of the problems that Featherstock Products faces is the coordination and communication across silos. Featherstock uses a ________ organization. A. matrix B. functional C. hollow D. learning E. modular

B

62. ________ is the idea that organizations tend to be more effective when they are structured to fit the demands of the situation. A. Virtualness B. Contingency approach C. The closed systems theory D. A mechanistic approach E. A cultural fit process

B

64. Which of the following statements about mechanistic organizations is true? A. Mechanistic organizations generally have open structures. B. Mechanistic organizations generally are expected to produce reliability and consistency in internal processes. C. Mechanistic organizations result in lower efficiency, quality, and timeliness. D. Mechanistic organizations are more responsive to customer feedback. E. Mechanistic organizations are inappropriate in industries where mistakes and errors can be catastrophic

B

73. Management at the Relaxing Pines resort chain places great emphasis on customer satisfaction and loyalty. They emphasize quiet, luxurious rooms and personalized service. In fact, bonuses are based primarily on customer evaluations. What perspective does this reflect?: A. financial B. customer C. internal processes D. goal accomplishment E. organizational culture

B

75. XYZ Corporation set a number of objectives for the quarter, including increasing productivity by 10 percent and reducing turnover by 20 percent. As a whole, the organization accomplished both these objectives. XYZ Corporation is successful according to which balanced scorecard perspective? A. financial B. internal processes C. customer D. learning and growth E. strategic constituencies satisfaction

B

. 51. In XYZ Aerospace, project engineers report both to a project manager for the particular work they are performing as well as the manager of engineering. This is a ________ organization. A. divisional B. hollow C. matrix D. functional E. horizontal

C

19. Using __________, Sensotix emphasizes using the chain of command to make sure the right people do the right things at the right time. A. coordination of effort B. the span of control C. the hierarchy of authority D. a division of labor E. aligned goals

C

25. Adam is a new product development manager for Hello.com, an Internet match-making service. He has only two employees reporting directly to him. From what you have read about organization charts, what do you know for sure? A. His subordinates enjoy greater autonomy than others. B. His subordinates take part in the decision-making process. C. He has a narrow span of control. D. His subordinates are not closely supervised. E. He is encountering low administrative costs

C

26. Pierre is a foreman in a plant. He has 25 line workers who report to him on the night shift. From what you have read about organization charts, what do you know for sure? A. His subordinates enjoy less autonomy than others. B. His subordinates take part in the decision-making process. C. He has a wide span of control. D. His subordinates are closely supervised. E. He is encountering high administrative costs

C

27. Narrow spans of control are most likely in companies with a(n) A. clan culture. B. market culture. C. hierarchical culture. D. adhocracy culture. E. network structure

C

29. A(n) _________ can hamper growth because the flow of information stays within the system and has no chance to interact with or build on knowledge from the outer environment. A. organic structure B. learning organization C. closed system D. divisional structure E. modular structure

C

34. In a learning organization, the _________ subprocess leads to shared understanding among individuals and groups. A. information acquisition B. information interpretation C. knowledge integration D. organizational memory E. information distribution

C

39. __________ rely on leveraging technology and structural flexibility to maximize potential value through outsourcing and external collaboration. A. Traditional structures B. Horizontal designs C. Open designs D. Matrix organizations E. Divisional organizations

C

43. ________ organizational design organizes people around the workflow. A. Traditional B. Open C. Horizontal D. Mechanistic E. Closed

C

45. A(n) _______ structure groups people according to the type of work they perform. A. divisional B. matrix C. functional D. horizontal E. open

C

49. When organizations need stronger horizontal alignment or cooperation in order to meet their goals, a ________ structure is appropriate. A. divisional B. hollow C. matrix D. functional E. horizontal

C

50. The _______ structure enables Jerome Financial to upgrade and promote excellence around core capabilities, so they can be very focused on developing functional expertise in specific disciplines, such as marketing, money management, and lending. A. divisional B. hollow C. matrix D. functional E. horizontal

C

59. One of the pros of _________ organizations is a lower cost of entry and overhead. A. matrix B. functional C. hollow D. learning E. divisional

C

61. Straight Line Co. faces heavy price competition and is under pressure to cut costs. Management has decided to farm out some processes to outside companies, but they are concerned that this choice might result in loss of in-house capacity to innovate. Straight Line is using a _____ structure. A. matrix B. functional C. hollow D. learning E. divisional

C

18. ________ occur(s) when organizations divide the work in pursuing the common goal among groups and individuals performing separate but related tasks. A. Coordination of effort B. The chain of command C. The hierarchy of authority D. Division of labor E. Aligned goals

D

31. Which of the following is not an organizational subsystem of an organization? A. managerial B. technical C. structural D. environmental E. psychosocial

D

32. A(n) ________ organization is composed of "a group of people working together to collectively enhance their capacities to create results that they truly care about." A. information B. complex C. network D. learning

D

36. Government, church, and military organizations are based on a (n) _______ structure. They have many layers of managers and red tape. A. horizontal B. open C. boundaryless D. traditional E. virtual

D

56. O'Connell Research is a small organization with four partners, each responsible for one primary function. The organization structure that is best for small companies is A. divisional. B. hollow. C. matrix. D. functional. E. horizontal

D

67. Which of the following is not a benefit of horizontal structures? A. faster and more efficient new product development B. encourage knowledge sharing C. greater creativity D. greater opportunities for functional specialization E. rapid communication and reduction of cycle time

D

69. ________ is not a benefit of horizontal structures. A. Faster and more efficient new product development B. Encourage knowledge sharing C. Greater creativity D. Greater opportunities for functional specialization E. Rapid communication and reduction of cycle time

D

74. The ________ perspective focuses on providing employees with the capabilities, resources, and work environment they need to achieve their goals. A. goal accomplishment B. internal processes C. financial D. customer E. learning and growth

D

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember 72. Happy Helpers provides caregiver services to their local community. The company's financial growth is dependent on getting more revenue from existing customers. To do this, management decides to A. merge with a caregiver group across the country. B. sell the business to a nationwide nursing service. C. invest in a pharmaceutical company. D. supply personal care services (such as hair styling, shopping, etc...) to its clients. E. handle Happy Helpers' computer services internally, rather than farming it out to a tech company

D

17. The Peter's Group originated four years ago, and since then, the company has grown each year. Management has focused on making sure that the organization's strategic goals cascade down through the organization so that the employees can work together in pursuit of common ends. Peter's Group is using ________ in their organization. A. coordination of effort B. the chain of command C. the hierarchy of authority D. division of labor E. aligned goals

E

20. ___________ is achieved through formulation and enforcement of policies, rules, and regulations. A. Hierarchy of authority B. The strategic plan C. Aligned goals D. Division of labor E. Coordination of effort

E

21. Aligned goals start with the A. hierarchy of authority. B. organizational structure. C. organizational culture. D. organizational climate. E. strategic plan.

E

46. ABC Company has divided its employees into departments of manufacturing, marketing, and finance. The company is said to have a(n) _____ structure. A. entrepreneurial B. project C. hollow D. modular E. functional

E

48. Johnson & Co. has divided its employees according to the locations of the customers that they tend to. Thus, it has teams that cater to the urban areas, semi-urban areas, and so on. Johnson & Co. is said to have a ________ structure. A. functional B. hollow C. modular D. virtual E. divisional

E

55. Simentec Inc., a tech support company, has over 150 employees working in five countries. The company allows workers to work from anywhere, and virtual meetings are the primary means of communication across the company. Simentec is a _________ structure—one whose members are geographically apart and work using information technology. It appears to customers as a single, unified organization with a real physical location. A. hollow B. modular C. matrix D. horizontal E. virtual

E

65. Managers should consider certain key factors when making decisions about how best to design an organization. These are A. strategy and goals, culture, climate, and human resources. B. strategy and goals, technology, size, and culture. C. culture, climate, human resources, and leadership. D. size, technology, and environmental change. E. strategy and goals, size, technology, and human resources.

E

66. ABC International has just passed $250 million in sales, and its president decides to adopt a different organizational structure in order to better service its customers. The structure looks like this: • Commercial division. Focuses on all commercial customers and has its own product development and production employees. • Retail division. Focuses on all retail customers in the United States, and has its own product development and production employees. • International division. Focuses on all retail customers outside of the United States. It shares product development and production facilities with the retail division. ABC International is now using a ____________ structure. A. hollow B. matrix C. functional D. mechanistic E. divisional

E

71. Deliver-IT dispatches over 5,400 trucks from 165 service centers on a daily basis. The company picks up deliveries, consolidates them, and then delivers them to customers. This company: • delivers 81 percent of packages on time. • has an impressive driver safety record. • uses driver mentors and trainers. • links pay to safety measure. This reflects the ___________ perspective. A. resource acquisition B. goal accomplishment C. organizational culture D. strategic constituencies satisfaction E. internal processes

E

78. A major pharmaceutical firm is developing a new medical drug for the market. Stockholders are pressing for an early release date, as the drug is expected to generate significant profits. Unions representing production workers are pressing for wage increases, which would reduce the resources available for development and marketing, thus delaying the release date. Consumer activists are pressing for increased testing which would both increase costs and delay the release date. Which balanced scorecard perspective is most applicable in this situation? A. resource allocation B. internal processes C. learning and growth D. customer E. financial

E

E. closed 33. Mary Flowers, the founder of MedTran, an offsite transcription service, asks transcribers to discuss their potential problems at weekly staff meetings. ___________ is the process that a learning organization uses to share information among its people. A. Information acquisition B. Information interpretation C. Knowledge integration D. Organizational memory E. Information distribution

E