MGMT EXAM 2

centralized

Fine Gadgets, a gadgets manufacturing company, has an organizational structure where the employees have to strictly follow rules and regulations stated by the management. Moreover, only the top management is allowed to make key decisions regarding organizational activities. Fine Gadgets is an example of a _____ organization. a. decentralized b. global c. diversified d. centralized

decentralized

A _____ structure is an organizational structure where key decisions are made at all levels of the firm, not only at the top. a. decentralized b. multinational c. centralized d. bureaucratic

true

A key component of a new manager's job is to understand the informal structure of the organization. a. True b. False

false

A wise manager of an acquiring company should incorporate the company into another in such a way that the culture of the acquired company gets sacrificed. a. True b. False

false

Along the horizontal dimension of decision rights, a manager must decide whether decisions are made in a centralized or decentralized manner. a. True b. False

true

An appreciation of the company's values helps in deciphering the roots of a company's culture. a. True b. False

culture

An organization's _____ defines how people think, feel, and act, and it moves at an almost subconscious level. a. structure b. design c. culture d. strategy

false

As firms expand and grow in complexity, they are likely to reorganize into a functional structure. a. True b. False

false

Assumptions are the meanings that members of an organization attach to artifacts. a. True b. False

true

Behaviorists are those who support a more open organizational structure where roles and responsibilities are loosely defined. a. True b. False

true

Behaviorists are those who support a more open organizational structure where roles and responsibilities are loosely defined. a. True b. False

cultural beliefs and values

Ben & Jerry's 5-to-1 policy, whereby executives could not earn more than five times the amount of the lowest-paid employee, is an example of a company's a. cultural artifacts. b. cultural beliefs and values. c. cultural assumptions. d. mission.

initiation stage of growth

BluBuddy Company has a loose, informal management structure, basic benefits, and flexible job definitions. BluBuddy is most likely in the a. initiation stage of growth. b. functional growth stage. c. controlled growth stage. d. functional integration stage of growth.

true

Changes in work practices or informal structures tend to result in greater efficiency. a. True b. False

false

Competitors can easily imitate a firm's unique organizational configuration that drives excellent implementation and performance. a. True b. False

true

Connection involves developing relationships with parties outside a firm to increase the value of the firm's offerings. a. True b. False

how environmental changes impact a firm's strategy.

External adaptation refers to: a. how work is accomplished in a firm. b. how ceremonies help to socialize organizational members. c. how environmental changes impact a firm's strategy. d. how an organization's founder influences its culture.

network

In a _____ structure, "knowledge workers" are organized to work as individual contributors or to be a part of a work cluster that provides a certain expertise for the organization. a. functional b. divisional c. matrix d. network

divides people into units in terms of the main activities that need to be performed.

In a functional structure, a firm a. groups diverse functions into separate divisions. b. divides people into units in terms of the main activities that need to be performed. c. gives equal authority to both divisional and functional managers. d. categorizes its employees based on their performance and commitment.

a firm is organized in terms of the main activities that need to be performed.

In a functional structure: a. a firm groups diverse functions into separate divisions. b. a firm is organized in terms of the main activities that need to be performed. c. a firm gives equal authority to both divisional and functional managers. d. a firm categorizes its employees based on their performance and commitment.

true

In formal organizations, the backbone of culture generally begins with a founder. a. True b. False

how work is accomplished in a firm.

Internal integration refers to: a. how environmental changes impact a firm's strategy. b. how rituals reinforce an organization's culture. c. how stories and myths convey an organization's values. d. how work is accomplished in a firm.

true

It is the culture of the organizational structure that drives performance. a. True b. False

functional growth stage

Majestic Company is expanding benefits, adding training and development programs, and recruiting specialists. Majestic is most likely in the a. initiation stage of growth. b. functional growth stage. c. controlled growth stage. d. functional integration stage of growth.

bureaucratic

Moonbow, Inc., has a highly formalized structure with extensive rules, procedures, policies, and instructions. Positions are arranged hierarchically with top management dictating the direction and activity of the organization while lower- level managers and employees follow orders. The fundamental mechanism of monitoring involves close personal surveillance of subordinates by superiors. Moonbow, Inc., has adopted a _____ approach to organizational control. a. clan b. bureaucratic c. mutually adaptive d. totalitarian

focusing on flexibility, adaptability, and integration across business functions.

Of the five stages of organizational growth, strategic integration involves a. technical specialization and increased formality. b. concentrating on controlled growth and developing more formal procedures and increasing focus on professional management. c. developing multiple product groups and integrating various functional aspects like accounting to provide more autonomy to divisions. d. focusing on flexibility, adaptability, and integration across business functions.

false

Once a behavior has become an assumption, it is even more visible. a. True b. False

true

One of the most important benefits of the functional structure is the efficiency it creates. a. True b. False

true

One of the primary mechanisms by which the objectives of a firm are achieved is through the way the firm is organized. a. True b. False

false

Over time, the process of cultural socialization can result in a decreased level of commitment to an organization. a. True b. False

clan

Star Hydraulics is organized into self-supervising teams that are responsible for a set of tasks. In the teams, each member is cross-trained to be able to perform multiple tasks, and individual goals and values completely overlap with the organization's values. Workers collaborate on projects and must negotiate proper team behavior, using the organization's mission and values as a guide. Star Hydraulics has adopted a _____ approach to organizational control. a. clan b. bureaucratic c. mutually adaptive d. totalitarian

false

Strong cultures lead to increased performance in both stable and turbulent environments. a. True b. False

Compliance, identification, and internalization

The elements that constitute organizational commitment are: a. Artifacts, beliefs and values, and assumptions b. Compliance, identification, and internalization c. Job descriptions, strategic planning, and socialization d. Vision, mission and objectives

true

The embedded nature of culture often makes change very difficult even in the face of strong competitive pressures. a. True b. False

passive

The employees of Konakoala Company are in high agreement about company values but have little passion for them. Konakoala's culture is a. strong. b. weak. c. passive. d. aggressive.

It enables a firm to move quickly to adapt to a change in the marketplace.

Which of the following statements is an advantage of a network structure? a. It is quite inexpensive for virtual teams to use communication technology. b. It enables a firm to move quickly to adapt to a change in the marketplace. c. Virtual teams often require less coordination. d. It promotes greater accountability than divisional structure.

job analysis

Target hires and trains employees well in advance of actual openings and has managers groom one or two direct reports for management positions. Successful HR planning like the approach used at Target requires a. job analysis. b. job previews. c. job appraisals. d. management by objectives.

strategic integration stage of growth.

The HR department at Green Company is involved in long-range planning, training and development, and the strategic issues of the company. Green Company is most likely in the a. controlled growth stage. b. functional integration stage of growth. c. strategic integration stage of growth. d. functional growth stage.

network

The Nickells Advertising Agency assigns a team of individuals to work on a client's advertising campaign. When the project is completed, each of the team members will be assigned to new teams pulled together for new campaigns. The Nickells Advertising Agency has a _____ structure. a. functional b. matrix c. divisional d. network

functional

The Tidwell Company has a production department, a marketing department, a sales department, and an accounting department. The sales department is headed by the VP of sales and manages the department in a hierarchical manner. Employees are evaluated on achieving departmental goals. The Tidwell Company has a _____ structure. a. functional b. matrix c. divisional d. network

a functional structure is organized in terms of the main activities to be performed.

The factor that distinguishes functional organizational structure from divisional is that a. a functional structure is organized around the outputs a firm produces. b. a functional structure is best suited to deal with environmental change. c. a functional structure groups diverse functions into separate divisions. d. a functional structure is organized in terms of the main activities to be performed.

a functional structure is organized in terms of main activities performed.

The factor that distinguishes functional organizational structure from divisional is that: a. a functional structure is organized around the outputs a firm produces. b. a functional structure is best suited to deal with environmental change. c. a functional structure groups diverse functions into separate divisions. d. a functional structure is organized in terms of main activities performed.

reference checks

The final stage in the selection process often tends to be a. reference checks. b. situational interviews. c. personality tests. d. cognitive ability tests.

false

The key advantage of the matrix structure is that it creates clarity for managers who are simultaneously accountable to distinct units that don't always share the same objectives. a. True b. False

Capability development

The management of an organization is in the process of reorganizing the firm's activities with a more customer-centric focus. They are mainly focused on helping employees build the skills needed to better serve customers. Identify the customer-centric activity used by the management. a. Capability development b. Coordination c. Cooperation d. Connection

true

The number of values a firm holds is not as important as how strongly held they are and how much organizational buy-in they generate. a. True b. False

mutual adaptation

The process by which firms impact the nature of their overarching environment and adapt their organization in response to evolving contextual factors is called a. business process reengineering. b. vertical specialization. c. mutual adaptation. d. horizontal specialization.

Fashion

The process of mutual adaptation is most critically important in which of the following industries? a. Fashion b. Fast food c. Gas and oil d. Travel and tourism

socialization

The process of understanding how work gets done and how individuals should interact is called a. socialization. b. internalization. c. identification. d. adaptation.

Thomas should preserve those elements of each culture that are essential to the company's well-being.

Thomas is the top manager of a firm that is going to acquire another firm in a similar industry. In terms of culture, which of the following should Thomas do after acquiring the company? a. Thomas should preserve those elements of each culture that are essential to the company's well-being. b. Thomas should completely adopt the culture of the acquired company. c. Thomas should encourage employees to follow both cultures in an attempt to avoid any conflict situations. d. Thomas should stick to his own organization's culture regardless of whether the acquired company's culture is efficient or not.

behavioristic

Thomas, the head of the marketing department in an organization, has structured his department in such a way that the roles and responsibilities of his workers are loosely defined. Moreover, he does not exert too much control over his workers and encourages two-way communication. His workers tend to be highly satisfied with their jobs when compared to those in the finance department, headed by John who exerts more control. From this scenario it can be inferred that Thomas has adopted a _____ mechanism for coordinating. a. bureaucratic b. authoritative c. centralized d. behavioristic

false

Vertical specialization refers to the breadth of activities that are performed in a certain job. a. True b. False

artifacts

When Ms. Chase interviews prospective employees, she shows them the office layout, the work space, the game room, and the professional awards displayed in the lobby. In doing so, she is sharing the _____ of the company's culture. a. artifacts b. values c. beliefs d. assumptions

following the informal rules embodied in organizational culture.

When a Ritz-Carlton employee went above and beyond what was asked to create a memorable experience for guests, he was a. following formal, written organizational rules and guidelines. b. disregarding organizational assumptions. c. showing a lack of organizational commitment. d. following the informal rules embodied in organizational culture.

strong culture

When employees of Hewlett-Packard had difficulty adjusting to a changing marketplace and a new CEO, they demonstrated a(n) a. strong culture. b. weak culture. c. passive culture. d. aggressive culture.

founders

When employees take risks that are not financially prudent in their quest for new innovation, they are likely following in the path of the company's a. board of directors. b. founders. c. stockholders. d. new CEO.

true

When there is no agreement on what is valued in a firm, firms experience weak cultures. a. True b. False

Empower employees to make independent decisions and to find ways to improve operations.

Which of the following aspects of a leader's role in relation to culture is deemed critically important to an organization's success? a. Acquire more companies and adopt all elements of the acquired company's weak culture. b. Reward employees and managers with pay based on commitment and continue raising the bar. c. Empower employees to make independent decisions and to find ways to improve operations. d. Inspire managers and employees to work as they wish in an attempt to reduce their job-related stress.

Day-to-day behaviors that can be observed

Which of the following best describes an organization's artifacts? a. Day-to-day behaviors that can be observed b. The underlying essence of why members of an organization act as they do c. Relational factors between an organization's culture and its performance d. Aspects deemed important by members of an organization

No agreement on the firm's values

Which of the following characterizes a weak culture? a. Employees require less coordination and monitoring b. High role clarity c. Allows a company to run more smoothly and quickly d. No agreement on the firm's values

Organizational commitment

Which of the following evolves over three stages—from compliance to identification to internalization? a. Internal integration b. Organizational commitment c. Cultural socialization d. External adaptation

A firm with high turnover and a diverse workforce

Which of the following firms is most likely to benefit from a bureaucratic approach? a. A firm with constantly changing, dynamic markets b. A start-up firm with less complexity c. A firm involving creativity and innovation d. A firm with high turnover and a diverse workforce

A firm with highly uncertain working conditions

Which of the following firms is most likely to benefit from the clan approach? a. A firm with highly uncertain working conditions b. A firm with work activities that can be easily measured c. A firm that lacks diverse working styles d. A firm operating in a price-competitive industry

Role modeling, leader examples, and coaching

Which of the following helps organizations to socialize employees? a. The intermediaries used to reach customers b. Role modeling, leader examples, and coaching c. Technologies used in manufacturing a firm's product d. Employee characteristics such as age and experience

Culture is dynamic.

Which of the following is a characteristic of an organization's culture? a. Culture is unchangeable. b. Culture is unrelated to performance. c. Culture is dynamic. d. A company's culture can be easily copied by competitors.

Several core functions are duplicated, preventing the development of economies of scale for those functions.

Which of the following is a disadvantage of a divisional structure? a. It is not suited to competitive situations where coordinated action is needed for innovation. b. This structure does not allow for much accountability. c. It is not suited to business environments marked by high degrees of uncertainty. d. Several core functions are duplicated, preventing the development of economies of scale for those functions.

A strong culture tends to be difficult to change.

Which of the following is a disadvantage of a strong culture? a. A strong culture seldom influences an organization's performance. b. A strong culture tends to be difficult to change. c. In a strong culture, the goals are unclear. d. A strong culture requires more coordination and monitoring.

Result in smaller pool of applicants

Which of the following is a disadvantage of realistic job previews? a. Communicate only positive job aspects b. Result in smaller pool of applicants c. Provide poor job description d. Cause increase in turnover

Self-regulating characteristics of employees

Which of the following is a key advantage of the clan approach? a. Clearly defined roles and responsibilities b. Self-regulating characteristics of employees c. Close personal surveillance of superiors over subordinates d. Extreme job specialization

The founder of the organization

Which of the following is a source from which a firm's culture develops? a. The employees' skill set b. The suppliers and customers c. The organization's competitors d. The founder of the organization

It often creates confusion for its managers who are simultaneously accountable to distinct units that don't always share the same objectives.

Which of the following is a weakness of the matrix structure? a. In matrix structure, the divisional managers have more authority than the functional managers, which causes an imbalance of power. b. A manager cannot use a matrix structure when resources need to be shared and optimized across divisions and within functions. c. When a firm's internal interrelationships are complex, it is not possible for managers to adopt a matrix structure. d. It often creates confusion for its managers who are simultaneously accountable to distinct units that don't always share the same objectives.

It often creates confusing and inefficient scenarios for managers working in a functional group as well as across divisions.

Which of the following is a weakness of the matrix structure? a. In matrix structure, the divisional managers have more authority than the functional managers, which causes an imbalance of power. b. A manager cannot use a matrix structure when resources need to be shared and optimized across divisions and within functions. c. When a firm's internal interrelationships are complex, it is not possible for managers to adopt a matrix structure. d. It often creates confusing and inefficient scenarios for managers working in a functional group as well as across divisions.

A strong culture has been linked to better levels of performance.

Which of the following is an advantage of a strong culture? a. A strong culture has been linked to better levels of performance. b. Strong cultures increase performance even in turbulent environments. c. Organizations with strong cultures only encourage ethical behavior. d. It is a simple and easy task to change the strong culture of an organization.

Decrease turnover in many organizations

Which of the following is an advantage of realistic job previews? a. Large number of applicants to choose from b. All candidates tend to be highly skilled c. Communicate only positive job aspects d. Decrease turnover in many organizations

The performance of ElectronicZone tends to fluctuate, wherein it's good under stable environments and very poor under turbulent environments.

Which of the following is the best example of an organization with a strong culture? a. TechPark is a company characterized by low levels of agreement among employees about what is valued in the organization. b. The employees of Z-Gadgets, a manufacturing company, experience role ambiguity and therefore they require more coordination and monitoring. c. The performance of ElectronicZone tends to fluctuate, wherein it's good under stable environments and very poor under turbulent environments. d. Z-Furn's organizational culture is very flexible and can be easily changed in response to changing environments.

TechPark is a company characterized by low levels of agreement among employees about what is valued in the organization.

Which of the following is the best example of an organization with a weak culture? a. TechPark is a company characterized by low levels of agreement among employees about what is valued in the organization. b. The employees of Z-Gadgets, a manufacturing company, experience role clarity, in which they operate autonomously with little monitoring. c. The performance of ElectronicZone tends to fluctuate, wherein it's good under stable environments and very poor under turbulent environments. d. Z-Furn's organizational culture is very inflexible and cannot be easily changed in response to changing environments.

artifacts

Which of the following levels of organizational culture refers to the visible organizational structures, processes, and languages? a. Artifacts b. Values c. Assumptions d. Beliefs

Job analysis

Which of the following provides a more precise job description and defines the characteristics of the ideal candidate for the position? a. Mission statement b. Job analysis c. Job evaluation d. Balanced scorecard

Where are the similarities and differences between the merging cultures?

Which of the following questions regarding culture should a manager address while acquiring a company? a. Which culture is the best? b. How socialized are the employees? c. Is culture linked to performance? d. Where are the similarities and differences between the merging cultures?

Where are the similarities and differences?

Which of the following questions should a manager address while acquiring a company in terms of culture? a. Which culture is the best? b. How socialized are the employees? c. Is culture linked to performance? d. Where are the similarities and differences?

The underlying essence of why members of an organization act as they do

Which of the following refers to an organization's assumptions? a. Aspects deemed important by members of an organization b. Relational factors between an organization's culture and its performance c. The underlying essence of why members of an organization act as they do d. Day-to-day behaviors that can be observed

Initiation phase

Which of the following stages of organizational growth is characterized as being highly entrepreneurial and informal? a. Functional growth b. Initiation phase c. Controlled growth d. Strategic integration

Strong cultures allow a company to run more smoothly and quickly.

Which of the following statements about strong cultures is true? a. Strong cultures often result in greater role ambiguity. b. Strong cultures allow a company to run more smoothly and quickly. c. Strong cultures lead to decreased performance in stable environments. d. In strong cultures, there are low levels of agreement among employees.

It allows for greater accountability because each division is a separate self-contained entity.

Which of the following statements about the divisional structure is true? a. Coordination among functions in a divisional structure is less fluid than it is in a functional structure. b. It allows for greater accountability because each division is a separate self-contained entity. c. The general manager of a functional form has a broader purpose than the general manager in the divisional form. d. Employees tend to identify more with their function than with their division.

It enables a firm to adapt to a change in the marketplace

Which of the following statements is an advantage of a network structure? a. It is quite inexpensive for virtual teams to use communication technology. b. It enables a firm to adapt to a change in the marketplace. c. Virtual teams often require very less coordination. d. It promotes greater accountability than divisional structure.

Employers can find new talent through external recruiting.

Which of the following statements is an advantage of external recruitment? a. External candidates often make a quicker impact in the new role. b. Companies know better about the skills of external candidates. c. Employers can find new talent through external recruiting. d. External candidates tend to perform better than internal candidates.

Culture tends to be a competitive differentiator.

Which of the following statements is true of adapting culture to a new contextual landscape? a. In times of crisis, a company's culture cannot change quickly. b. Culture tends to be a competitive differentiator. c. External adaptation addresses how work is accomplished in a firm. d. Culture cannot be a strong inhibitor to change.

The repetitive nature of specialized jobs lends itself to quick and efficient training of new resources.

Which of the following statements is true of division of labor? a. Horizontal specialization refers to how much an employee creates, executes, and administers activities in a certain area of the firm. b. The repetitive nature of specialized jobs lends itself to quick and efficient training of new resources. c. Extreme job specialization tend to increase the level of job satisfaction among workers. d. Vertical specialization refers to the breadth of activities that are performed in a certain job.

Companies implement their strategies by analyzing the organizational culture, human capital, and measurement.

Which of the following statements is true of organizational strategy in terms of structure and design? a. An organization's execution is not as significant as it's strategy to enable long-term success. b. Competitors often easily imitate another firm's unique organizational configuration that drives excellent implementation and performance. c. Companies implement their strategies by analyzing the organizational culture, human capital, and measurement. d. It is not possible for competitors to steal or adopt another company's strategic perspective.

Bureaucracies can withstand a diverse workforce and high turnover.

Which of the following statements is true of the bureaucratic approach? a. Bureaucracies can withstand a diverse workforce and high turnover. b. Bureaucracies are not suitable for large, complex organizations. c. Bureaucracies are often considered the most inefficient methods of control. d. Bureaucracies are more suited to creative and innovative environments.

Assumptions are deeply embedded in an organization's culture.

Which of the following statements is true of the levels of organizational culture? a. Assumptions are deeply embedded in an organization's culture. b. It is quite difficult to note the artifacts present in an organization. c. Assumptions are the meanings that members of an organization attach to artifacts. d. Values are visible organizational structures, processes, and languages.

As a firm matures, it tends to emphasize division of labor.

Which of the following statements is true of the organizational design and the life cycle of a firm? a. Once a firm reaches maturity, the emphasis on coordination generally increases. b. The nature of leadership should remain stable as the firm keeps evolving. c. As a firm matures, it tends to emphasize division of labor. d. Start-up firms are characterized by more job specialization.

Founders are uniquely situated to be innovative and to exemplify innovation to their employees.

Which of the following statements is true of the role of founders in influencing culture? a. The founders take the least risk and therefore do not feel as much anxiety as their employees. b. In allowing values to trump economics, founders tend to have a weak influence on the company's culture. c. A founder cannot make any risky decisions as he/she is required to account to everyone in the organization. d. Founders are uniquely situated to be innovative and to exemplify innovation to their employees.

Silo

Which of the following terms refers to a functional unit that operates according to its own rules and guidelines and does not openly share information with other units? a. Artifact b. Silo c. Claim value d. Synergy

Matrix structure

Which of the following terms refers to a structure where many employees have two bosses (one divisional and one functional) with equal authority in the organization? a. Functional structure b. Divisional structure c. Matrix structure d. Network structure

Teams

____ directly impact culture in the manner in which they encounter big problems, solve those problems, and see the effects of their solutions. a. Suppliers b. Competitors c. Customers d. Teams

organizational structure

____ is defined as the pattern of organizational roles, relationships, and procedures that enable coordinated action among employees. a. Organizational structure b. Value chain c. Synergy d. Organizational culture

Organizational structure

_____ is defined as the pattern of organizational roles, relationships, and procedures that enable coordinated action among employees. a. Organizational structure b. Value chain c. Synergy d. Organizational culture

values and beliefs

_____ refer to the meanings that members of an organization attach to visible aspects of a firm. a. Artifacts b. Values and beliefs c. Assumptions d. Objectives