Eman Ch11 T/F

) One of the disadvantages of functional structures is that employees lack a clear career path within functions.

False

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 as it is easy to "pass the buck" if you have two bosses.

False

A potential disadvantage of the matrix structure is that problem solving is forced down the hierarchy to where the best information is available.

False

A social network analysis is a tool that identifies formal structures and their social relationships.

False

According the research findings of Paul Lawrence and Jay Lorsch, successful firms operating in certain environments had more organic designs, whereas successful firms operating in uncertain environments had more mechanistic designs.

False

Adaptive organizations stimulate the utilization of narrow spans of control and tall structures.

False

Advantages of functional structures include the support of in-depth training and reduced accountability for total product or service delivery.

False

An organization with narrow spans of control will have fewer managers and more subordinates per manager, whereas an organization with wide spans of control will have more managers and fewer subordinates per manager.

False

Boundaryless sourcing refers to the contracting of business functions to outside suppliers.

False

Customer structures group together jobs and activities dealing with a single product or service.

False

Divisional structures are common in organizations dealing with only one or a few products or services.

False

Divisional structures can create healthy rivalries as divisions compete for available resources.

False

Due to the absence of structural barriers, boundaryless organizations have few communication and coordination problems.

False

Geographical structures group together jobs and activities being performed in nearby locations or regions.

False

In a functional structure, people working on the same product, in the same area, with similar customers, or on the same processes, are grouped together.

False

In addressing the potential disadvantages of team structures, managers should manage time effectively but need not promote effective interpersonal relations, group dynamics, and team management.

False

Informal structures always serve the best interests of the organization.

False

Informal structures always work against the achievement of high productivity.

False

Mechanistic designs are tight structures with a horizontal form.

False

Narrow spans of control create an organization that is more efficient and flexible, whereas wider spans of control usually result in additional management overhead costs.

False

Network organizations own only the support functions and outsource core functions.

False

Network structures result in increasing overhead and reducing operating efficiency.

False

Process structures group together jobs and activities that are part of processes within the same product area.

False

Product structures group together jobs and activities that serve similar customers or clients.

False

Project teams are permanent in nature and cannot be disbanded

False

Team meetings in matrix structures are short and quick, because with two bosses, an employee has twice as many meetings to attend.

False

Team members' effective utilization of the time they spend together is independent of the quality of their interpersonal relations, group dynamics, and team management.

False

The key to organizational success is finding the one best organization design to fit all problems and opportunities.

False

The mechanistic design is characterized by decentralization, wider spans of control, and few rules and procedures.

False

The potential disadvantages of the network structure are due primarily to the demands of flexibility in responding to changing conditions, having fewer full-time employees to help build the supervisor's managerial empire, and the need to operate across great distances.

False

Tom Burns and George Stalker found that the mechanistic organizations thrived when the environment was unstable and changing because it provided a necessary counterbalancing sense of order.

False

When an organization chart shows vice presidents of marketing, manufacturing, finance, and human resources reporting directly to the president of a company, the top management group is organized as a divisional structure.

False

When problems occur between functions, they should immediately be referred up to a higher level for resolution.

False

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

False

A bureaucracy is a form of organization based on logic, order, and the legitimate use of formal authority.

True

A clear-cut division of labour, a strict hierarchy of authority, formal rules and procedures, and promotion based on competency are features that characterize bureaucracy.

True

A potential disadvantage of functional structures concerns difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness, and innovation.

True

A product structure prompts managers to be responsive to changing market demands and customer tastes.

True

A virtual organization is an extreme form of a boundaryless organization and requires as a fluid network of alliances in order to function in a wireless manner.

True

A virtual organization operates in a shifting network of external strategic alliances that are engaged as needed, and typically are supported by extensive information technology utilization.

True

A work process is a group of tasks related to one another that collectively creates something of value to a customer.

True

Adaptive organizations operate with a minimum of bureaucratic structure and with cultures that encourage worker empowerment and participation.

True

An organization chart includes major subunits in which positions reporting to a common manager are shown.

True

An organization structure is the system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups.

True

An organization's ability to implement its strategy is greatly helped by a structure that allocates tasks through a division of labour and provides for the coordination of performance results.

True

As organizations grow, they get taller as more levels are added to the chain of command.

True

Boundaryless organizations eradicate internal boundaries among parts and external boundaries linking with the external environment.

True

Decentralized authority, fewer rules and procedures, and personal means of coordination are characteristics of organic designs.

True

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

True

Dynamic environments and changing conditions call for more organic designs.

True

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

True

Functional structures tend to work best in relatively stable environments where problems are predictable and the demands for change and innovation are limited.

True

Geographical structures are typically used when there is a need to differentiate products or services in various locations, such as in different parts of a country.

True

In a functional structure, the functions become formalized not only on the organization chart, but also in the mind-sets of people.

True

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

True

In a mechanistic organization, an employee works in an orderly and disciplined environment, adheres to many rules and procedures, and is closely supervised.

True

Informal networks are sources of emotional support and friendship that satisfy members' social needs.

True

Key requirements for a boundaryless organization are the absence of hierarchy, empowerment of team members, technology utilization, and acceptance of impermanence.

True

Members of matrix organizations may experience task confusion and encounter power struggles because of reporting to both a "project team boss" and a "functional boss."

True

Network structures consist of a central business core that that is linked through networks of relationships with outside contractors and suppliers of essential services.

True

Organic designs are laissez-faire systems in which a lot of work gets done through informal structures and networks of interpersonal contacts.

True

Organizational design is the process of choosing and implementing organizational structures that best arrange resources to accomplish the organization's mission and objectives.

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

Social network analysis identifies the informal structures and their embedded social relationships that are active in an organization.

True

Span of control refers to the number of subordinates reporting directly to a manager.

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

Team meetings in the matrix can take lots of time, and the teams may develop "groupitis."

True

The advantages of network structures include (a) staying cost competitive through reduced overhead and increased operating efficiency, and (b) operating with fewer fulltime employees and less complex internal systems.

True

The functional chimneys problem can slow decision making, diminish cooperation and commitment to a common purpose, and interfere with coordination across functions.

True

The line of authority that vertically links each position with successively higher levels of management is chain of command.

True

The matrix structure makes use of permanent cross-functional teams to integrate functional expertise in support of a clear divisional focus on a product, project, or program.

True

The potential disadvantages of team structures include conflicting loyalties among members regarding both team and functional assignments and the excessive time spent in meetings.

True

The purpose of an organization structure is to design titles for different workers and to assign daily work tasks to them.

True

In a virtual organization, when the work is complete, the alliance rests until next called into action.

true