Chapter 7

A disagreement between two or more parties on one or more issues is called a(n) A) integrated solution. B) conflict. C) compromise. D) diffusion. E) avoidance.

B

All of the following statements regarding the recent trend in Japan of switching from seniority-based pay to performance-based approaches are true EXCEPT A) the switch is an effort to cut costs. B) the switch is boosting employee morale. C) the switch is an effort to increase productivity. D) the switch opposes the traditional training of Japanese employees to cooperate rather than compete. E) the switch goes against decades of encouraging workers to work in groups instead of individually.

B

What change strategy involves giving orders and enforcing those orders? A) Self-interest B) Educative C) Force D) Rational E) Diffusion

C

What is the most complex form of organizational structure? A) Divisional B) SBU C) Matrix D) Functional E) Geographic

C

Which of the following is NOT true about objectives? A) They should be communicated throughout the organization. B) They should have an appropriate time dimension. C) They should use terms like "maximize," "minimize," and "as soon as possible." D) They should be measurable. E) They should be consistent.

C

"All of our locations will be open at least two evenings per week until 8:30 p.m." is an example of a(n) A) administration. B) goal. C) objective. D) policy. E) procedure.

D

A change strategy that attempts to convince people that the change is to their personal advantage is A) diffusion. B) force. C) educative. D) rational. E) compromise.

D

All of the following are examples of offerings at companies to promote a corporate wellness culture EXCEPT A) stress management programs. B) health fairs. C) abundance of bicycle racks onsite. D) free health insurance for employees who exercise regularly. E) cash incentives for completing Ironman triathlons.

D

Aspects of an existing culture that are antagonistic to a proposed strategy should be A) preserved. B) emphasized. C) built upon. D) changed. E) celebrated.

D

When developing an organizational chart, you should A) recommend dual titles for executives. B) use the title "president" for the top executive of the firm. C) make sure that the chief financial officer is not at the same level as the chief operating officer (COO). D) have division presidents report to a chief operating officer (COO). E) have employees report to more than one person in the chain of command.

D

Which approach for managing and resolving conflict involves playing down differences between conflicting parties, while accentuating similarities and common interests? A) Avoidance B) Resistance C) Compliance D) Diffusion E) Confrontation

D

Why do changes in company strategy often require changes in the way an organization is structured? A) Structure dictates how objectives and policies will be established. B) Structure dictates how resources will be allocated. C) Structure should be designed to facilitate the strategic pursuit of a firm. D) All of the above E) None of the above

D

Horizontal consistency is less important than vertical consistency in developing annual objectives, but it still contributes to improved objectives.

False

In Japan, performance rather than seniority has traditionally been the key factor in determining pay.

False

In publicly held U.S. companies it is becoming increasingly common to combine the positions of chairperson of the board and the CEO.

False

In the context of conflict management and resolution, ignoring the problem in the hopes that the conflict will resolve itself is classified as a diffusion technique.

False

Organizational change today should be viewed as a project or event rather than as a continuous process.

False

Tasks and activities are grouped together by business function in a divisional organizational structure.

False

The focus of restructuring is changing the way work is actually carried out.

False

The work and family issue is overwhelmingly a women's issue.

False

A recent study reports that nearly 90 percent of employers today offer some kind of wellness incentives or prizes to employees who "get healthier."

True

Besides reducing worker alienation and stimulating productivity, ESOPs allow firms other benefits, such as substantial tax savings.

True

Exchanging members of conflicting parties so each can gain an appreciation of the other's point of view exemplifies a confrontation approach.

True

Recruitment, promotion, and mentoring are ways to alter an organization's culture.

True

Reengineering does not usually affect the organizational structure or chart, nor does it imply job loss or employee layoffs.

True

Resistance to change can be considered the single greatest threat to successful strategy implementation.

True

The most complex of all organizational structures is a matrix structure.

True

The rational change strategy is one that presents information to convince people of the need for change.

True

Unlike strategy formulation, strategy implementation varies considerably among different types and sizes of organizations.

True

When developing an organizational chart, it is not wise to recommend that any executive have a dual title.

True

When the rational type change strategy is successful, strategy implementation can be relatively easy.

True

With a divisional structure by customer, an organization can effectively cater to the requirements of clearly defined customer groups.

True

Policies largely dictate how structure will be established.

False

Strategies clarify what can and cannot be done in pursuit of an organization's objectives.

False

A firm's annual objectives can be stated by business segment.

True

Most large companies have abandoned the functional structure in favor of decentralization.

True

An absence of conflict can signal ________ within an organization. A) indifference and apathy B) insight and apathy C) indifference and indignation D) disputes E) all of the above

A

Medium-sized firms tend to use which type of structure? A) Divisional B) Matrix C) SBU D) Functional E) Centralized

A

Formal statements of organizational philosophy, charters, creeds, materials used for recruitment and selection, and socialization help an organization A) abide by SEC rules. B) link culture to strategy. C) set guidelines for firing. D) increase profits. E) manage conflicts between stakeholders.

B

Just-in-time describes A) implementing strategies just before bankruptcy. B) delivering materials just as they are needed. C) a scheduling method for meetings. D) a personnel planning method. E) a process for improving quality.

B

The primary benefit sought from restructuring is A) employee involvement. B) cost reduction. C) increased morale. D) increased number of hierarchical levels in the organization. E) increased innovation.

B

What type of organizational structure promotes specialization of labor and allows rapid decision-making? A) Divisional structure by product B) Functional structure C) Divisional structure by customer D) Strategic business unit E) Matrix structure

B

Which divisional structure stands out for effectiveness when a few major customers are of paramount importance and many different services are provided to these customers? A) By geographic area B) By customer C) By product D) By process E) By cost

B

A divisional structure by product is most effective when A) special emphasis needs to be placed on specific products. B) an organization offers few products. C) an organization's products or services differ substantially. D) special emphasis needs to be placed on specific services. E) all of the above

E

According to the information in the text, how many Fortune 500 have women CEOs? A) Two B) Five C) Twelve D) Eighteen E) Twenty-six

E

In 2017, which governmental entity will impose penalties up to $450 on any employee who fails to undergo certain health screenings or treatment plans? A) City of Boston B) City of New York C) Hennepin County Minnesota D) State of Massachusetts E) State of Maryland

E

Policies A) let both employees and managers know what is expected of them. B) provide a basis for management control. C) allow coordination across organizational units. D) reduce the amount of time managers spend making decisions. E) all of the above

E

Which approach for managing and resolving conflict involves exchanging members of conflicting parties so that each can gain an appreciation of the other's point of view? A) Avoidance B) Resistance C) Compliance D) Diffusion E) Confrontation

E

Which of the following is a management issue central to strategy implementation? A) Devising policies B) Revising reward and incentive plans C) Minimizing resistance to change D) Developing an effective human resources function E) All of the above

E

Effective strategy formulation can usually guarantee successful strategy implementation.

False

Avoidance, diffusion, and confrontation are the classifications for the various types of conflict that can arise in organizations.

False

Changing a strategy to fit an existing culture is usually more effective than changing a firm's culture to fit a new strategy.

False