Prin. of Management - Ch 11 & 12

Crexons Inc. finds that there is too much bureaucracy in their organization. The CEO of the company desires to increase flexibility in the organizational structure. To accomplish this, he must _____.

??

Isabelle, the CEO of Roll-En Pens, finds that vertical hierarchy exists in the organization. She plans to reduce the stress on this hierarchical structure and give more decision-making ability to the subordinates. In the context of tall and flat organizations, Isabelle is trying to create a(n) _____ organization.

??

Which of the following is true of managers with a self-enhancement bias?

???

Which of the following is true of a formal structure?

A formal structure consists of vertical layers of management.

Which type of organization operates with a minimum of bureaucratic features and encourages worker empowerment and teamwork?

Adaptive organizations

Which of the following is true with regard to centralization and decentralization?

Advances in information technology help top managers maintain centralized control.

Which of the following is not a possible type of divisional structure? Groups based on working on the same product Groups based on working in the same area All of these are types of divisional structures Groups based on working with similar customers Groups based on working on the same processes

All of these are types of divisional structures

Which of the following holds true regarding delegation?

Authority should equal responsibility when work is delegated from a supervisor to a subordinate.

Absence of hierarchy, empowerment of team members, technology utilization, and acceptance of impermanence are key requirements of which type of organization structure?

Boundaryless

Branxon Corporation functions with a flat structure. Which of the following would be a characteristic of Branxon Corporation?

Branxon Corporation would permit workers to make their own decisions.

Which of the following emphasizes formal authority, order, fairness, and efficiency?

Bureaucracy

At Sync-In Information Solutions, a startup in software solutions, most processes are determined by the few active partners of the business. Which of the following does this example illustrate?

Centralization

Which of the following are included in the basics of a formal organizational structure?

Communication channels

Which of the following is a horizontal structure that brings together members from different departments such as marketing, production, and accounting?

Cross-functional team

Amethyst Inc.'s organizational structure combines jobs that serve clients based on factors such as their ages, tastes, and preferences. Which of the following organizational structures exists at Amethyst Inc.?

Customer structure

_____ is the dispersion of authority to make decisions throughout all organizational levels.

Decentralization

Which of the following is NOT a characteristic of mechanistic design?

Decentralized authority

Which of the following is an advantage of a functional structure?

Economies of scale with efficient use of resources

Which of the following is an advantage of a divisional structure?

Expertise focused on specific customers, products, and regions

A customer structure is the least common structure in the consumer products industry.

False

A divisional structure is characterized by reduced coordination across functional departments.

False

A matrix structure is characterized by poor customer service.

False

A strategic alliance is a cooperation agreement with another organization to jointly pursue activities of mutual interest.

False

Agile organizations are structured to be slow moving so that they can adequately adjust to changing market conditions.

False

Network structures result in increasing overhead and reducing operating efficiency.

False

Organizations that eliminate internal boundaries among subsystems and external boundaries with the external environment are called bountiful organizations.

False

Project teams are permanent in nature and cannot be disbanded.

False

Team meetings in matrix structures are short and quick.

False

Workers in a matrix structure are allowed to be part of only one formal group at a time.

False

Organizations which are decentralized, with fewer rules and procedures, open divisions of labor, wide spans of control, and more personal coordination are called mechanistic designs.

False, they are organic designs.

Fredent Corporation, an apparel manufacturer, creates groups of employees with similar skills performing similar tasks. Members of each such group share technical knowledge, skills, and responsibilities. Which of the following structures is being used by Fredent Corporation?

Functional structure

Slice-It Inc., a fast food organization operating in many countries, varies its menus in different countries according to local tastes and preferences. It groups together employees and tasks working in the same location. Which of the following structures is Slice-It Inc. using?

Geographical structure

Which of the following is an advantage of a matrix structure?

Improved strategic management

Which of the following explains the purpose of empowering employees?

It allows people at all levels to make more decisions that affect themselves and their work.

Which of the following is true of a product structure?

It clearly links costs, profits, problems, and successes in a market area with a central point of accountability.

Which of the following is true of a functional structure?

It consists of task assignments consistent with expertise and training.

Which of the following is true about a network structure?

It employs a minimum staff and contracts out as much work as possible.

Which of the following is true about the geographical structure?

It helps focus attention on the unique cultures and requirements of particular regions.

Which of the following is true of an organic design?

It is a horizontal structure with decentralized authority.

Which of the following is true of a bureaucracy?

It is a vertical structure with promotion based on competency.

Which of the following is true of a matrix structure?

It is accomplished by creating permanent teams that cut across functions to support specific products, projects, or programs.

Which of the following is true of a mechanistic design?

It is characterized by a precise division of labor.

Which of the following is true of a divisional structure?

It overcomes the disadvantages of a functional structure, such as the functional chimneys problem.

Which of the following is true of empowerment?

It results when delegation enables people to make decisions.

The two-boss system is susceptible to power struggles and can be frustrating if it creates task confusion and conflicting work priorities. This two-boss system is a characteristic of which type of organization structure?

Matrix

Which of the following types of structure combines the functional and divisional structures?

Matrix structure

Which type of structure uses IT to link with networks of outside suppliers and service contractors?

Network structure

Zack Books Ltd., an international library headquartered in Alabama, has many branches across different countries. It uses information technology to be in regular contact with its various outside suppliers of books and magazines. Which of the following organizational structures is being used by the library?

Network structure

Oasis Inc. is an organization with a tall structure. Which of the following would be a characteristic of Oasis Inc.?

Oasis Inc. would be less flexible and more costly due to multiple layers of middle management.

Adzen Inc., an advertising firm, has a horizontal structure with simple rules and procedures. It achieves targets by having personal means of coordination. The firm values the existence of informal groups and does not believe in division of labor. Which of the following designs is being used by Adzen Inc.?

Organic

Which of the following is used to describe a diagram that shows reporting relationships and the formal arrangement of work positions within an organization?

Organization chart

Which of the following is true with regard to use of staff positions?

Organizations can lower costs and increase efficiency by employing fewer staff personnel.

Employees who are involved in designing, engineering, and preparing models are grouped together at Zener Inc. Further, employees who engage in public relations, sales promotion, advertising, and direct marketing are put together in another team. Which of the following structures exists at Zener Inc.?

Process structure

Ramon Auto, an automobile manufacturer, operates in several countries. The company has three major brands which are headed by three separate managers. Each of these three managers look after all the jobs and activities associated with their respective brands. According to this information, which of the following organization structures is adopted by Ramon Auto?

Product structure

Which of the following is true of a project team?

Project teams are temporary and disband once the task is completed.

Which of the following asks people to identify others to whom they turn for help most often, with whom they communicate regularly, and who gives them energy and motivation?

Social network analysis

If you supervise 37 employees, which of the concepts is being described?

Span of control

_____ refers to the number of subordinates directly reporting to a manager.

Span of control

Which of the following is true of trends in organizational designs?

The complexity and uncertainty are prompting more organizations to shift toward organic designs.

Which of the following is true about a team structure?

The intention of a team structure is to create more effective lateral relations around and across the organization.

Which of the following is a disadvantage of a matrix structure?

The requirement of adding the team leaders to a matrix structure can result in higher costs.

Which of the following is true regarding the process of delegation?

The responsibility given by the manager is an expectation for the subordinate to perform assigned tasks.

____ is the tendency to view oneself as more capable, intelligent, and ethical than others.

The self-enhancement bias

Which of the following is a limitation of having a team structure?

The total time spent together in a team meeting is not productive.

Which of the following is a disadvantage of network structures?

There is a potential to experience a lack of loyalty among contractors who are used infrequently.

Which of the following is a disadvantage of informal structures?

They are characterized by the existence of "in" and "out" groups.

Which of the following is true of informal structures?

They are sources of emotional support and friendship.

Which of the following is true of tall structures?

They have narrow spans of control.

Which of the following is true of flat structures?

They help in reducing overhead costs.

Which of the following is a disadvantage of divisional structures?

They increase costs through the duplication of resources and efforts across divisions.

Divisional structures can create unhealthy rivalries as divisions compete for resources and top management attention.

True

Empowerment refers to letting others make decisions and exercise discretion in their work.

True

In a matrix structure, top managers are freed from lower-level problem solving to focus time on more strategic issues.

True

Network structures help organizations stay cost-competitive by reducing overhead and increasing operating efficiency.

True

Organizations with team structures make extensive use of both permanent and temporary teams to solve problems, complete special projects, and accomplish day-to-day tasks.

True

Self-enhancement bias is the tendency to see yourself as more capable, intelligent, and ethical than others.

True

Supplier strategic alliances link businesses in preferred supplier-customer relationships that guarantee a smooth and timely flow of quality supplies among the partners.

True

Workers in a matrix structure report to two supervisors—one within the function and the other within the team.

True

What do we call boundaryless organizations that use IT and the Internet to engage a shifting network of strategic alliances?

Virtual organizations

An organization structure refers to:

a system of tasks, reporting relationships, and communication linkages.

The best organizational design is the one that:

achieves a good match between structure and situational contingencies.

LMZ Inc. functions with systematic order and a hierarchical system of management. It is characterized by formal channels of communication. The employees of the firm are required to strictly abide by the formal rules of the company. LMZ Inc. is a(n) _____.

bureaucracy

At ZCN Bank, all operational decisions regarding promotional measures, interest rates, benefits, and customers are made completely by the top management. This implies that ZCN Bank has a(n) _____.

centralized system

Centralization refers to the:

concentration of authority for most decisions at the top level of an organization.

Potential advantages of team structures include all of the following except:

consistently productive team meetings.

A strategic alliance is a(n):

cooperation agreement with another organization to jointly pursue activities of mutual interest.

The dispersion of authority to make decisions throughout all organization levels is known as _____.

decentralization

Franklin Inc. encourages its employees at all levels to provide ideas, opinions, and support the process of decision making. This indicates that the firm has a(n) _____.

decentralized system

The process of entrusting work to others by giving them the right to make decisions and take action is referred to as _____.

delegation

A _____ groups together people working on the same product, in the same area, with similar customers, or on the same processes.

divisional structure

In Bill's organization, employees are encouraged to use their skills without restrictions, provide views and concepts, and independently select the best line of solutions. This information indicates that Bill's organization practices _____.

empowerment

Reading an organization chart should help you learn the basics of an organization's formal structure. This includes all of the following EXCEPT:

financial documents

Structures with wider spans of control and fewer levels of management are called _____; those with narrow spans of control and many levels of management are known as _____.

flat, tall

The official structure of the organization, typically illustrated in the organization chart, is called the _____ structure.

formal

A _____ structure groups together people with similar skills who perform similar tasks.

functional

In _____ structures, people with similar skills who perform similar tasks are grouped together.

functional

Lack of communication, coordination, and problem solving across functions is called the:

functional chimney's problem.

A(n) _____ structure groups together people and jobs performed in the same location.

geographical e genetic

Behind every formal structure typically lies a(n) _____, which is the set of unofficial relationships among an organization's members.

informal structure

An organizational design:

is the process of creating structures that accomplish mission and objectives.

Potential advantages of matrix structures include all of the following except:

less performance accountability through the program, product or project managers.

The chain of command:

links all persons with successively higher levels of authority.

Brendon, a software engineer at Re-Soft Inc., has to report to two managers at the same time, a functional manager and a team manager. In the context of divisional structures, Brendon is working in a _____ structure.

matrix

Environment First, an organic farm forms a permanent team to ensure the people who manage the crop rotations, purchase the crop fertilizers, and observe the soil's water retention work together to support the farm. Each member reports to someone on the permanent team as well as a person in their functional area. In the context of team structures, Environment First has the _____ structure.

matrix

A CEO at Widgets R Us takes a new opportunity at Create-A-Cart. The CEO knows the same matrix structure that worked at Widgets R Us ___ at Create-A-Cart because

may not work; every organization faces its own set of unique problems and opportunities.

The staff at Grace Grocery Store is assigned specific tasks such as receiving supply, arranging stock, making sales, preparing cash registers, and so on. They perform the same task every day. The firm is characterized by formal means of coordination. Grace Grocery Store is functioning with a(n) _____ design.

mechanistic

The major advantages of a functional structure include all of the following EXCEPT:

minimized need of communication.

A _____ structure has a central core of full-time employees surrounded by outside contractors and partners that supply essential services.

network

Traves Inc., a transcription services company, manages all its core processes with a small team of highly skilled employees. However, it outsources five of its processes to contractors. This helps the company to lower its costs and have a high degree of flexibility. In this context, Traves Inc. is using a(n) _____ structure to carry out its functions.

network

Suppose you start a new business to compete with Uber. You design an easy-to-use app and arrange for drivers to get paid a percentage for each ride. This is an example of a ____.

network structure

Organizations which are decentralized, with fewer rules and procedures, open divisions of labor, wide spans of control, and more personal coordination are called:

organic designs.

Leisure Viaje is a major tour operator in the country. Four senior managers look after the company's operations in 20 locations. All these senior managers report to the general manager of the company who is stationed at the company headquarter in Chicago. This description represents the _____ of the company.

organization chart

The process of choosing and implementing structures that best arrange resources to accomplish the organization's mission and objectives is called:

organizational design.

Sara's job includes dividing up the work and assigning tasks to each employee. She identifies people responsible for each task, decides the reporting structure, and decides employees' work relationships. Sarah is a part of the _____ team in her company.

organizing

The process of arranging people and other resources to work together to accomplish a goal is called _____.

organizing

In an organizational structure, division of work refers to:

positions and titles that show work responsibilities.

In an organizational structure, major subunits refer to:

positions that report to a common manager.

A _____ structure groups jobs and activities that are part of the same processes.

process

Rezter Group, a consumer goods company, owns several brands that produce different goods. Each brand is focused on a single consumer good and has a separate chief executive who is responsible for the manufacturing, sales, costs, profits, and losses of his or her brand. This implies that each brand at Rezter Group is applying a _____ structure in the organization.

product

A(n) _____ convenes for a particular task and disbands once a project is completed.

project team

Four engineers from the technology cell of a company are required to work together for a certain time on a job till the job is completed. This is an example of a(n) _____.

project team

People in _____ positions provide technical expertise for other parts of the organization.

staff

Delix Juices Co., well-known for its fruit juices with catchy names, has recently signed an agreement with Finred Books Ltd. According to this agreement, Delix Juices Co. has an outlet at each Finred store. This agreement has led to an increase in profits for both the companies as sales of both have increased. This is an example of a _____.

strategic alliance

Feast-It Inc., a fast food corporation, entered into an agreement with Spark Inc., a company that manufactures cheese, mayonnaise, and other toppings. Feast-It Inc. exclusively uses the toppings produced by Spark Inc. This business agreement has resulted in benefits for both the companies. This is an example of a _____.

strategic alliance

The CEO of Astro Inc., a graphics design firm, believes he is more capable, intelligent, and ethical than any of his other managers. He has a hard time letting his other top-level managers do their jobs without his direct supervision. This implies that the CEO of Astro Inc. _____.

suffers from a self-enhancement bias

A network structure helps lower costs and improves flexibility in dealing with changing environments because:

the central core is relatively small and the surrounding networks can be expanded or shrunk as needed.

The line of authority that vertically links each position with successively higher levels of management is called:

the chain of command.

A _____ uses IT and the Internet to engage a shifting network of strategic alliances.

virtual organization

Brandon & Sons Inc., a well-established electronics company, uses IT and the Internet to enter into business alliances with software firms spread across different nations to meet specific operating needs and objectives. Once the work is completed, the alliance rests until next called into action. Brandon & Sons Inc. is a _____.

virtual organization

An order fulfillment by a catalog retailer, a procedure that takes an order from point of initiation by the customer to point of fulfilment by a delivered product is an example of a _____.

work process