CHAPTER 9 Organizations: Effectiveness, Design and Cultures 1. T F Eileen Fisher Inc. utilizes a command-and control leadership style with a top-down management focus. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 237 2. T F Turnover is higher than average at Eileen Fisher because of the intense pressure in the fashionable clothing industry. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 238 3. T F For better or for worse, virtually every aspect of modern life is influenced in one way or another by organizations. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 238 4. T F Organizations are social entities that enable people to work together to achieve objectives they normally could not achieve alone. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 238 5. T F Organizations, by definition, are technological rather than social entities. Ans: False AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 238 6. T F Whenever people gather together, according to the text's definition, an organization results. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 239 7. T F It takes at least seven people, by definition, to make an organization. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 239 8. T F Before an organization is said to exist, it is necessary to have coordination, common purpose, division of labor, and hierarchy of authority. Ans: True AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 239 9. T F When a business has only one owner/operator, it is technically not an organization. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 239 10. T F The right to direct the actions of others is authority. Ans: True AACSB Outcomes: R Degree of Difficulty: Easy Page: 239 11. Learning Level: fact T F Complex processes are reduced to distinct and less complex jobs when labor is divided. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 239 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 210 Chapter 9: Organizations: Effectiveness, Design and Cultures 12. T F The hierarchy of authority is also known as the chain of command. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 239 13. T F The vertical hierarchy establishes the division of labor. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Page: 239 Learning Level: fact 14. T F Properly structured, hierarchy can release energy and creativity, rationalize productivity, and actually improve morale. Ans: True AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 240 15. T F Any two of the four organization characteristics are necessary before an organization can be said to exist. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 240 16. T F An organizational matrix, by definition, is a visual display of an organization's structural skeleton. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 240 17. T F An organization chart is a visual display of an organization's positions and lines of authority. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 240 18. T F The two basic dimensions of an organization chart are horizontal specialization and vertical hierarchy. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 241 19. T F While staff personnel generally do not have authority to make key business decisions, line managers do. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 241 20. T F On an organization chart, staff positions are connected to the hierarchy by solid lines. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 241 21. T F Environmental influences are largely ignored with open-system thinking. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 242 22. T F Both inputs and outputs should be considered when viewing a business as an open system. Ans: True AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 242 23. T F Managerial and technical subsystems are part of the open-system model of a business. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 242 24. T F One of the three subsystems in the open-system model of organizations is the strategy and planning subsystem. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 242 25. T F In the open-system model of a business, the production function is the same as the managerial subsystem. Ans: False AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: fact Page: 242-243 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . Chapter 9: Organizations: Effectiveness, Design and Cultures 211 26. T F The boundary-spanning subsystem is directed inward toward the relationship between management and labor in the open-system model of a business. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 242 27. 28. T F A field sales representative holds a boundary-spanning job. Ans: True AACSB Outcomes: A Degree of Difficulty: Moderate Page: 242 Learning Level: appl T F Organizations are systems made up of interacting subsystems. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Page: 242 Learning Level: fact 29. T F In the open-system model of organizations, the managerial subsystem is a bridge between the other two subsystems. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 243 30. T F The boundary-spanning subsystem serves as a bridge between the technical and managerial subsystems. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 243 31. T F Whether or not organizational objectives are accomplished is the key to determining efficiency. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 243 32. T F The only acceptable criterion of organizational effectiveness is profitability. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 243 33. T F To be truly effective, today's productive organizations need to strike a generally acceptable balance between organizational and societal goals. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 243 34. T F In the intermediate future, an organization must be adaptive and capable of developing. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 243 35. T F Organizational effectiveness consists of being effective, efficient, satisfying, and adaptive, of developing, and ultimately of surviving. Ans: True AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 243 36. T F Organizations can be designed to fit the demands of the situation with the contingency design. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 245 37. T F Determining the degree of environmental uncertainty is part of the contingency design process. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 245 38. T F According to research on contingency design, the traditional bureaucracy is the best overall approach. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 245 39. T F An important consideration when determining an organization's degree of environmental uncertainty is the reliability of resources and supplies. Ans: True AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 246 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 212 40. 41. Chapter 9: Organizations: Effectiveness, Design and Cultures T F The more frequent the technological breakthroughs in an industry, the lower the level of environmental uncertainty in that industry. Ans: False AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: fact Page: 246 T F Mechanistic organizations are quite rigid in structure. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Page: 245 Learning Level: fact 42. T F In organic organizations, strong bureaucratic qualities can be found. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 245 43. T F Most organizations can be easily classified as purely mechanistic or purely organic. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 245 44. T F A field study found more participative communication in organic organizations than in other types. Ans: True AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 245 45. T F Vertical communication prevails in mechanistic organizations. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Page: 246 Learning Level: fact 46. T F Obligations and techniques are vaguely defined in mechanistic organizations. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 246 47. T F Low emphasis is placed on loyalty and obedience in organic organizations. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 246 48. T F The type of knowledge required in mechanistic organizations is generally narrow, technical, and task-specific. Ans: True AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 246 49. T F According to Burns and Stalker, SiteROCK would be classified as an organic organization because of the company's precise task definition, low task flexibility, clear definition of techniques, and high emphasis on obedience. Ans: False AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: fact Page: 246-247 50. T F The trend today is toward more organic organizations. Ans: True AACSB Outcomes: R Degree of Difficulty: Easy Page: 247 Learning Level: fact 51. T F Organic organizations, according to Burns and Stalker's research, tend to be more effective than mechanistic ones, whatever the situation. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 247 52. T F Departmentalization involves grouping related jobs or processes into major organizational subunits. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 248 53. T F Departmentalization enhances organizational coordination at a low cost, according to James D. Thompson. Ans: True AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 248 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . Chapter 9: Organizations: Effectiveness, Design and Cultures 213 54. T F One of the five basic types of departmentalization is virtual departments. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 248 55. T F Functional departments categorize jobs according to the activity performed. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 248 56. T F "Technical ghettos" is a positive aspect of functional departmentalization. Ans: False AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 248 57. T F The product-service department is the most common type of departmentalization. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 248 58. T F Product-service departmentalization are criticized for encouraging specialization at the expense of coordination. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 248 59. T F Ideally, those working in a functional structure have a broad "business" orientation rather than a narrow functional perspective. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 248 60. T F For mining companies and railroads, geographic departmentalization is appropriate given their dispersion of resources and facilities. Ans: True AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 250 61. T F Long lines of communication among organizational units have traditionally been the biggest advantage enjoyed by geographically dispersed operations. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 250 62. T F Global competition is pressuring managers to organize along geographic lines. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 250 63. T F Product-service departmentalization is the answer when duplication of personnel and facilities is a problem. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 250 64. T F Because of their emphasis on top-to-bottom work flow, organizations with work-flow process departments are called vertical organizations. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 250 65. T F Organizations with work-flow process departments have a distinct outward focus. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 250 66. T F Higher costs, lower quality, slower speed, and less efficient use of modern information technology are some of the disadvantages of reengineering. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 250 67. T F A manager has a narrow span of control when she has only two people directly reporting to her. Ans: True AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: fact Page: 251 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 214 68. Chapter 9: Organizations: Effectiveness, Design and Cultures T F Flat organizations are created by narrow spans of control. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 251 69. T F Wide spans of control are generally a characteristic of flat organizations. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 251 70. T F The ideal span of control, according to extensive research, is seven employees. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 252 71. T F Having wide spans of control is a popular idea today. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Page: 251 Learning Level: fact 72. T F Narrow spans of control mean more self-management and less administrative expense. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 251 73. T F Unnecessarily tall organizations plagued by excessive supervision and long lines of communication are created by overly narrow spans of control. Ans: True AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 251 74. T F If top management makes all key decisions, an organization is centralized. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 252 75. T F A great deal of monitoring and checking up on lower managers by top management is one sign of a highly decentralized organization. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 252 76. T F Centralization is mechanistic in nature. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Page: 252 Learning Level: fact 77. T F Lack of control is a major argument against extreme decentralization. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 252 78. T F Delegation consists of assigning various degrees of decision-making authority to lower-level employees. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 253 79. T F Delegation can be an all-or-nothing proposition. Ans: False AACSB Outcomes: A Degree of Difficulty: Moderate Page: 253 Learning Level: fact 80. T F Delegation isn't the sharing of authority but the abdication of responsibility. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 254 81. T F Delegation is a helpful management training and development tool. Ans: True AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 254 82. T F "If you want it done right, do it yourself" is the belief of managers who are strong delegators. Ans: False AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: fact Page: 254 83. T F One barrier to delegation is the fear of being called lazy. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . Chapter 9: Organizations: Effectiveness, Design and Cultures Ans: True AACSB Outcomes: R Page: 254 84. 85. 215 Degree of Difficulty: Moderate T F If delegation is done right, managerial follow-up is unnecessary. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Page: 254 T F Peter Drucker cautioned that delegation requires follow-up. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Page: 254 Learning Level: fact Learning Level: fact Learning Level: fact 86. T F An increased number of layers is a characteristic of new organizations. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 255 87. T F One clear trend in organizations today is less emphasis on the passing fad of teams. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 255 88. T F One recent trend in organizations is "smallness within bigness." Ans: True AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 255 89. T F The hourglass organization is a five-layer structure with a constricted middle layer. Ans: False AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 256 90. T F Cluster organizations are collaborative structures where teams are the primary unit. Ans: True AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 256 91. T F Internet-linked networks of value-adding subcontractors qualify as virtual organizations. Ans: True AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: fact Page: 257 92. T F Probably the most extreme example of a virtual organization that we can find today is MS DOS. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 257 93. T F Life in virtual organizations, from a personal perspectives, is hectic. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 257 94. T F Cross-functional teams are unheard of in virtual organizations. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Page: 257 Learning Level: fact 95. T F Being collective, emotionally charged, and focused on the future are among the common characteristics of organizational cultures. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 258 96. T F Organizational cultures involve invisible factors such as myths and stories. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 258 97. T F Dysfunctional cultures anchored to irresponsible values and supportive of unethical conduct have been blamed for the collapse of corporate giants such as Enron and WorldCom. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 258 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 216 Chapter 9: Organizations: Effectiveness, Design and Cultures 98. T F The "social glue" that binds an organization's members together is organizational culture. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 258 99. T F To be truly effective, organizational cultures must be individualistic and emotionless. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 258 100. T F Organizational cultures are truly synergistic. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Page: 258 Learning Level: fact 101. T F Effective corporate cultures are anchored in today's values and experiences, not historically based. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 258 102. T F Two key components of organizational culture are trust and loyalty. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 259 103. T F Symbolism plays a large part in organizational culture. Ans: True AACSB Outcomes: R Degree of Difficulty: Easy Page: 259 Learning Level: fact 104. T F Fundamental to organizational culture are ambiguity, contradictions, and multiple meanings. Ans: True AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 259 105. T F Personal values and organizational values are essentially the same. Ans: False AACSB Outcomes: A Degree of Difficulty: Moderate Page: 259 Learning Level: fact 106. T F Shared values, when deeply embedded in the organization's culture, become the equivalent of its DNA. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 259 107. T F Through organizational socialization, the transformation of insiders into outsiders is achieved. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 260 108. T F The first step in the socialization process is orientation. Ans: True AACSB Outcomes: R Degree of Difficulty: Easy Page: 260 Learning Level: fact 109. T F According to a study at Corning Glass Works, new employees who went through a structured orientation program were 98 percent more likely to be with the company after 3 years than those who were left on their own to figure out the job. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 260 110. T F What really counts in organizational culture is actual behavior, not stories of past situations. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 260 111. T F When a weak culture prevails, an organization has an inward focus. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 261 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . Chapter 9: Organizations: Effectiveness, Design and Cultures 217 112. _______ is integrated into the culture and the creative process at Eileen Fisher Inc. a) Division of subsystems b) Obsession c) Passion d) A "quantum leap girl" philosophy e) Individualism Ans: c AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 237 113. A successful "citizen of Eileen Fisher" is a person who a) simply does what she or he is told. b) expresses individualistic beliefs. c) communicates well with others virtually. d) is a team player with competitors. e) is open and flexible. Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Page: 238 114. Eileen Fisher Inc.'s organization is described as a(n) a) traditional pyramid. b) fluid structure. c) machine. d) bee hive. e) upside-down pyramid. Ans: b AACSB Outcomes: A Degree of Difficulty: Moderate Page: 237 115. What is the purpose of the management process? a) To manage people b) To make a profit c) To achieve organizational objectives d) To be the best that there is e) Zero defects Ans: c AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Learning Level: appl Learning Level: fact 116. Organizations, by definition, are _______ entities. a) social b) legal c) political d) corporate e) for-profit Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Page: 238 117. By definition, it takes _______ people to make an organization. a) at least six b) one or more c) more than fifty d) more than twenty e) two or more Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Page: 239 Page: 238 Learning Level: fact Learning Level: fact This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 218 Chapter 9: Organizations: Effectiveness, Design and Cultures 118. Which of the following is not a characteristic common to all organizations? a) Coordination of effort b) Division of labor c) Overlapping subcultures d) Hierarchy of authority e) Common goal or purpose Ans: c AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 239 119. Which of the following is an example of a group that satisfies the definition of an organization? a) Commuters on the Long Island Expressway b) Strangers standing in line to buy tickets to a rock concert c) Two sisters who own and operate a commercial cleaning business d) Three friends riding an elevator e) The crowd watching an Arizona Diamondbacks baseball game Ans: c AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: appl Page: 239 120. Among the four characteristics common to all organizations are common ________ and division of ________. a) goal or purpose; labor b) interests; profits c) mission; responsibility d) culture; techniques e) background; talent Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 239 121. Which of these characteristics of organizations is described by sentence "Two heads are sometimes better than one"? a) Equal authority and responsibility b) Division of labor c) Hierarchy of authority d) Span of control e) Coordination of effort Ans: e AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 239 122. _______ is a characteristic that gives the organization focus and its members a rallying point. a) Equal authority and responsibility b) Common goal or purpose c) Span of control d) Division of labor e) Hierarchy of authority Ans: b AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 239 123. Which of these permits each organization member to become more proficient by repeatedly doing the same specialized task? a) Coordination of effort b) Hierarchy of authority c) Span of control d) A common goal or purpose e) Division of labor Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 239 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . Chapter 9: Organizations: Effectiveness, Design and Cultures 219 124. The chain of command refers to the a) division of labor. b) span of control. c) communication channel. d) hierarchy of authority. e) impersonality of the modern workplace. Ans: d AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 239 125. Which of these terms is defined as the right to direct the actions of others? a) Authority b) Power c) Responsibility d) Leadership e) Hierarchy Ans: a AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 239 126. Properly structured, _______ can release energy and creativity, rationalize productivity, and actually improve morale. a) closed systems b) hierarchy c) centralization d) cluster controls e) contingency design Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 240 127. Some 35 years of research convinced one expert that the managerial hierarchy a) is just a passing fad. b) is too difficult to establish. c) kills employee participation. d) is an efficient, natural structure. e) is obsolete. Ans: d AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact 240 Page: 239- 128. Which of the following is a diagram of an organization's official positions and formal lines of authority? a) Organization chart b) Fishbone diagram c) Flow chart d) Position chart e) Pattern diagram Ans: a AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 240 129. _______ are the two dimensions of an organization chart. a) People and tasks b) Vertical hierarchy and horizontal specialization c) Economic and social power d) Division of labor and coordination e) Boxes and lines Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Page: 241 Learning Level: fact This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 220 Chapter 9: Organizations: Effectiveness, Design and Cultures 130. Which of these establishes the chain of command in an organization chart? a) The mission statement b) Downward communication c) The corporate charter d) Horizontal specialization e) Vertical hierarchy Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 241 131. _______ establishes the division of labor in an organization chart. a) Span of control b) Vertical hierarchy c) Horizontal specialization d) The mission statement e) The corporate charter Ans: c AACSB Outcomes: R Degree of Difficulty: Moderate Page: 241 Learning Level: fact 132. _______ have the authority to make decisions and give orders to those lower in the chain of command, whereas _______ merely play an advisory and supporting role. a) Line managers; staff personnel b) Top-level managers; first-line supervisors c) Staff managers; line positions d) Supervisory managers; middle managers e) Technical personnel; nontechnical personnel Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 241 133. _______ employees are in the formal chain of command, whereas _______ employees are not. a) Line; staff b) Rank; file c) Field; boundary-spanning d) External; internal e) Informal; formal Ans: a AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 241 134. A broken line on an organization chart indicates a) the chain of command. b) a staff position. c) indirect authority. d) authority but no responsibility. e) a line position. Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Page: 241 Learning Level: fact 135. Jaimie, a college student looking for a job, tells a recruiter, "I want to make important business decisions once I'm on the job." What type of position should she take? a) Core b) Technical c) Central d) Staff e) Line Ans: e AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: appl Page: 241 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . Chapter 9: Organizations: Effectiveness, Design and Cultures 221 136. Which of these is a distinguishing characteristic of the open-system model of organizations? a) Circular arrangement b) No formal chain of command c) Internet-based d) Interaction with the environment e) Self-sufficiency Ans: d AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: fact Page: 242 137. The three organizational subsystems in the open-system model are technical, _______, and ________spanning. a) human resource; culture b) social; department c) procedural; geography d) sociotechnical; function e) managerial; boundary Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 242 138. The _______ subsystem, also called the _______ function, physically transforms raw materials into finished goods and services. a) technical; production b) managerial; technical c) boundary-spanning; managerial d) technical; organizing e) managerial; organizing Ans: a AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 242 139. A sporting goods company's sales representatives, according to the open-system model, would be part of the _______ organizational subsystem. a) managerial b) boundary-spanning c) service d) technical e) marketing Ans: b AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 242 140. Nicholas, a supply-chain manager at a construction firm, is responsible for making sure the organization has a steady and reliable flow of raw materials and subcomponents. In open-system terms, this is an example of what kind of job? a) Production b) Service c) Technical d) Boundary-spanning e) Marketing Ans: d AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 242 141. Which subsystem controls and directs the other subsystems in the organization? a) Production b) Managerial c) Technical d) Marketing e) Boundary-spanning Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 243 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 222 Chapter 9: Organizations: Effectiveness, Design and Cultures 142. _______ is a measure of whether or not organizational objectives are accomplished, whereas _______ is the relationship between outputs and inputs. a) Profitability; satisfaction b) Effectiveness; efficiency c) Efficiency; effectiveness d) Implementation; adaptability e) Adaptability; profitability Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 243 143. Danny is looking for a job with a "very effective" company. What should you tell him about assessing organizational effectiveness? a) Organizational effectiveness cannot be measured. b) There is no single best approach. c) Look for satisfied customers. d) Look for happy employees. e) Bottom-line profits are all that count. Ans: b AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: appl Page: 243 144. Which of the following is the criterion for organizational effectiveness in the distant future? a) Flexibility b) Adaptability c) Profitability d) Survival e) Satisfaction Ans: d AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 243 145. From a time dimension perspective, organizational effectiveness in the intermediate future is judged in terms of a) meeting organizational objectives. b) survival. c) satisfying all employee demands. d) adapting and developing. e) all of these. Ans: d AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 243 146. The _______ approach permits the custom tailoring of organizations to meet unique situational demands. a) integration b) traditional c) differentiation d) contingency e) organic Ans: d AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 245 147. _______ is the process of determining the degree of environmental uncertainty and adapting the organization and its subunits to the situation? a) Mechanization b) Organizing c) Span of control d) Contingency design e) Integration Ans: d AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 245 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . Chapter 9: Organizations: Effectiveness, Design and Cultures 223 148. If Kevin, a manager at Sports 'n More Company, asks you to describe the one best organization design, what should you say based on your knowledge of the contingency approach? a) A closed-system design is best. b) A matrix design is best. c) There is no one best design. d) Organic organizations are best. e) Mechanistic structures are best. Ans: c AACSB Outcomes: A Degree of Difficulty: Easy Learning Level: appl Page: 245 149. Which of the following is a key question in contingency design? a) How can we make our organization a closed system? b) What structural combination is situationally appropriate? c) Which structure will eliminate major uncertainties? d) Will our present structure help us formulate a good strategy? e) What is the single best organization design? Ans: b AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: fact Page: 245 150. Which one of these requires managers to select from a number of situationally appropriate alternatives instead of blindly following fixed principles of organization? a) Command-and-control b) Functional c) Situational d) Centralized e) Contingency Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 245 151. When looking at the contingency approach to organization design, what should a manager ask about the environment? a) When will it matter? b) Is the competition concerned with it? c) How uncertain is it? d) How can we eliminate its impact? e) Why worry about it? Ans: c AACSB Outcomes: A Degree of Difficulty: Easy Learning Level: appl Page: 245 152. Which of these is not among the four factors to assess in determining the degree of environmental uncertainty? a) Social, political, and economic pressures b) Frequency of technological breakthroughs in the industry c) Reliability of resources and supplies d) Stability of demand for product or service e) Degree of foreign competition Ans: e AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: fact Page: 246 153. Mechanistic organizations, according to Burns and Stalker, have a tendency to be a) small. b) networks rather than hierarchies. c) strongly bureaucratic. d) found in the private business sector. e) flexible in structure. Ans: c AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 245 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 224 Chapter 9: Organizations: Effectiveness, Design and Cultures 154. Which type of organization tends to be rigid in design and to have strong bureaucratic qualities? a) Hour-glass b) Mechanistic c) Virtual d) Cluster e) Organic Ans: b AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 245 155. Which organizations tend to be quite flexible in structure and adaptable to change? a) Organic b) Segmented c) Centralized d) Mechanistic e) Matrix Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 245 156. Which of the following labels best describes organic organizations? a) Slow and steady b) Bureaucratic c) Large d) Flexible and adaptive e) Quite mechanistic Ans: d AACSB Outcomes: R Degree of Difficulty: Moderate Page: 245 Learning Level: fact 157. What should not be included if a management team faces a highly uncertain environment and wants to create an organic design for their company? a) Lateral communications b) Reliance on self-control c) High task flexibility d) High emphasis on loyalty and obedience e) Requirement of broad and professional knowledge Ans: d AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 247 158. Communication tends to be _______ in the mechanistic organization and _______ in the organic organization. a) top-down; bottom-up b) vertical; lateral c) lateral; participative d) of the command-and-control type; vertical e) top-to-bottom; lateral Ans: e AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 245246 159. Which of the following is not a characteristic of an organic organization? a) Primarily vertical communication b) High task flexibility c) Low emphasis on loyalty d) Broad and general task definitions e) Requirement of broad and professional knowledge Ans: a AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: fact Page: 246 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . Chapter 9: Organizations: Effectiveness, Design and Cultures 225 160. Sophia is a supervisor at a music production company where reliance on instructions and decisions from top management is high. How would you characterize her company? a) Mechanistic b) Ambidextrous c) Organic d) Matrix e) Bureaucratic Ans: a AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 245 161. _______ organizations tended to be successful in relatively stable and certain environments, according to Burns and Stalker's research. a) Differentiated b) Organic c) Matrix d) Segmented e) Mechanistic Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 245 162. Based on Burns and Stalker's research, _______ organizations tend to be successful in unstable and uncertain environments. a) organic b) mechanistic c) centralized d) incremental e) segmented Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 247 163. Generally speaking, the _______ design is appropriate for high environmental uncertainty, and the _______ design is appropriate for environmental stability. a) organic; mechanistic b) organic; flexible c) mechanistic; organic d) flexible; contingency e) mechanistic; centralized Ans: a AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 247 164. The trend is toward more __________ organizations because __________ is the rule today. a) mechanistic; ambiguity b) mechanistic; certainty c) organic; certainty d) organic; uncertainty e) centralized; certainty Ans: d AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 247 165. Which of the following is a common technique for achieving organizational coordination in what one expert says is the least costly manner? a) Differentiation b) Functional design c) Departmentalization d) Matrix design e) Line-and-staff organization Ans: c AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 248 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 226 Chapter 9: Organizations: Effectiveness, Design and Cultures 166. _______ is not one of the five basic types of departmentalization. a) Customer classification b) Technological c) Functional d) Geographic location e) Product-service Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 248 167. _______ categorize jobs according to the activity performed. a) Departments based on geographic location b) Product-service departments c) Departments based on customer classification d) Functional departments e) Work-flow process departments Ans: d AACSB Outcomes: R Degree of Difficulty: Moderate Page: 248 168. All of the following are basic types of departmentalization except a) functional. b) operational. c) geographic location. d) work-flow process. e) customer classification. Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Page: 248 169. What is the most common type of departmentalization? a) Geographic location b) Technical c) Functional d) Traditional e) Customer classification Ans: c AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Learning Level: fact Learning Level: fact Page: 248 170. Which of the following is not a description of functional departments? a) Include production, marketing, and finance departments b) Most common form of departmentalization c) Can become technical ghettos d) Can be used in not-for-profit organizations e) Encourage an organizationwide perspective Ans: e AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: fact Page: 248 171. An executive from an aircraft components manufacturing company asks you to recommend a type of departmentalization that would permit department heads to develop a broad business orientation. Which of these types of departmentalization should you recommend? a) Geographic location b) Customer classification c) Product-service d) Sociotechnical e) Functional Ans: c AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: appl Page: 248 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . Chapter 9: Organizations: Effectiveness, Design and Cultures 227 172. Recently, General Electric reorganized into the following departments: energy, transportation, and health care, among others. This is an example of what type of departmentalization? a) Functional b) Product-service c) Geographic location d) Technical e) Work-flow process Ans: b AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 248 173. What type of departmentalization was used when General Motors created departments based on Buick, Chevrolet, Cadillac, and Pontiac lines of automobiles? a) Functional b) Geographic location c) Work-flow process d) Product-service e) Production Ans: d AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: appl Page: 248 174. H2O Fun, Inc. is a multinational water recreation company operating in more than 15 countries. It uses functional departmentalization and is reorganizing to better serve local markets. Which of these types of departmentalization should you recommend? a) Line and staff b) Geographic location c) Customer classification d) Product-service e) Work-flow process Ans: b AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: appl Page: 250 175. What type of operations have traditionally had a limiting factor of long lines of communication among organizational units? a) Geographically dispersed b) Technical c) Product-service d) Customer classification e) Functional Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 250 176. Increased global competition is pushing managers toward _______ departmentalization. a) geographic location b) customer classification c) work-flow process d) functional e) product-service Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 250 177. Intel, a major maker of computer chips, recently reorganized into five market-focused units: corporate computing, the digital home, mobile computing, health care, and channel products for small manufacturers. This is an example of what type of departmentalization? a) Geographic location b) Functional c) Customer classification d) Work-flow process e) Product-service Ans: c AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 250 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 228 Chapter 9: Organizations: Effectiveness, Design and Cultures 178. What type of departmentalization is being used when an extended-care facility has independent-living and medically dependent departments? a) Product-service b) Work-flow process c) Customer classification d) Geographic location e) Functional Ans: c AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: appl Page: 250 179. Horizontal organizations have what type of departmentalization? a) Geographic location b) Work-flow process c) Customer classification d) Product-service e) Line and staff Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Page: 250 Learning Level: fact 180. Which type of departmentalization would be best if an automobile manufacturing plant wanted to avoid costly duplication of personnel and facilities? a) Functional b) Matrix c) Geographic location d) Customer classification e) Organic Ans: a AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 250 181. Organizations with work-flow process departments have a(n) _______ focus. a) outward b) inward c) functional d) vertical e) centralized Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 250 182. The _______ best describes the span of control. a) number of direct subordinates b) number of managers c) degree of delegation d) number of employees e) number of departments Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Page: 251 183. Generally, _______ spans of control foster _______ organizations. a) moderate; flat b) narrow; flat c) wide; tall d) moderate; tall e) narrow; tall Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Page: 251 Learning Level: fact Learning Level: fact This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . Chapter 9: Organizations: Effectiveness, Design and Cultures 229 184. Which statement about spans of control is true? a) Spans of control are irrelevant today. b) Today, narrower spans are better. c) Researchers say a span of no more than seven is best. d) There is no ideal span of control. e) It is difficult to directly manage more than three people. Ans: d AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: fact Page: 251 185. If Alicia, the manager of an office supply company, asked how wide the company's spans of control should be, what would you advise, based on what you have read about spans of control? a) Does not matter b) As wide as possible c) As narrow as possible d) No more than two e) Never more than six or seven Ans: b AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: appl Page: 251 186. Who would have most of the decision-making authority in a centralized chain of athletic apparel stores? a) Top management b) Middle managers c) Lowest-level management d) Nonmanagers e) Staff personnel Ans: a AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: appl Page: 252 187. Which of the following is defined as the relative retention of decision-making authority by top management? a) Decentralization b) Differentiation c) Contingency design d) Centralization e) Departmentalization Ans: d AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 252 188. Which of these involves the granting of decision-making authority to lower-level employees? a) Decentralization b) Centralization c) Contingency design d) Differentiation e) Departmentalization Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 252 189. What is the strongest argument against decentralization? a) Lack of power b) Lack of control c) Lack of ethics d) Lack of flexibility e) Lack of speed Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Page: 252 Learning Level: fact This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 230 Chapter 9: Organizations: Effectiveness, Design and Cultures 190. Sherry is the manager of a wildlife zoo. Over the last decade, the zoo industry has been very stable, with few new entrants or changes in competitive scope. What sort of control should be employed in such an organization? a) Centralized b) Contingency c) Decentralized d) Organic e) Command-and-control Ans: a AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 252 191. Which statement best characterizes the relationship between centralization and decentralization? a) They are unrelated. b) One is for line, the other for staff. c) They are opposite ends of the same continuum d) The first is bad, the second good. e) They are actually the same concept. Ans: c AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: fact Page: 252 192. What is recommended relative to centralization and decentralization? a) Equal parts of each b) A bias toward centralization c) Replacement with delegation d) Balance and a contingency approach e) A bias toward decentralization Ans: d AACSB Outcomes: A Degree of Difficulty: Moderate Page: 252 193. What does delegation involve? a) Authority being replaced with responsibility b) Authority being weakened c) Authority being shared with lower levels d) Authority being eliminated e) Authority being greatly increased Ans: c AACSB Outcomes: R Degree of Difficulty: Moderate Page: 253 194. Delegation is a matter of a) functional conflict. b) degree. c) integration. d) centralization. e) absolutes. Ans: b AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Learning Level: fact Learning Level: fact Page: 253 195. In terms of new-product development, former Chrysler CEO Lee Iacocca faulted himself for which of these? a) Too much interference b) Excessive control c) Too little advertising d) Too much R&D e) Loose delegation Ans: e AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: fact Page: 253 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . Chapter 9: Organizations: Effectiveness, Design and Cultures 231 196. Which of the following is enhanced by delegation? a) Integrating b) Training and development of managers c) Departmentalization d) Financial control e) Strategic planning Ans: b AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: fact Page: 254 197. Which of the following is not a typical barrier to delegation? a) Lack of trust in subordinates b) Fear of being called lazy c) fear of competition from subordinates d) Working for a manager who likes to delegate e) Vague job definition Ans: d AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: fact 198. Delegation, according to Peter Drucker, requires that delegators a) ignore employees. b) hire assistants. c) follow up. d) create new regulations. e) get approval from their superiors first. Ans: c AACSB Outcomes: R Degree of Difficulty: Moderate Page: 254 Page: 254 Learning Level: fact 199. Today's organizations must have a lot more _______, according to Jack Welch, former CEO of GE. a) centralization b) financial accountability c) managers d) freedom e) control Ans: d AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 255 200. _______ is a clear structural trend in modern organizations. a) More middle managers b) More managers per employee c) Narrow spans of control d) Fewer layers e) Less teamwork Ans: d AACSB Outcomes: R Degree of Difficulty: Moderate Page: 255 201. _____ is one of three notable current trends in organizations. a) Strategic alliances b) Smallness within bigness c) Less teamwork d) Ethnocentrism e) Economies of scale Ans: b AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Learning Level: fact Page: 255 202. Which of the following is(are) a distinctive characteristic of the new hourglass organizations? a) Narrowly specialized middle managers b) Top broader than bottom c) No managers d) A pinched middle layer e) No top management Ans: d AACSB Outcomes: A Degree of Difficulty: Easy Learning Level: fact Page: 256 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 232 Chapter 9: Organizations: Effectiveness, Design and Cultures 203. The _______ organizational configuration is based on teams. a) virtual b) matrix c) cluster d) hourglass e) lattice Ans: c AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 256 204. At the technology company where Jill works, multiskilled people move from team to team as projects dictate, and pay for knowledge is common practice. Although Jill is highly motivated, she is also very stressed. Which type of organization does this exemplify? a) Mechanistic organization b) Matrix organization c) Virtual organization d) Cluster organization e) Hourglass organization Ans: d AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 256 205. Which of the following are Internet-linked networks of value-adding subcontractors? a) Functional structures b) Project systems c) Hourglass structures d) Cluster organizations e) Virtual organizations Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 256 206. What has become the most important factor in virtual organizations? a) Speed b) Quality c) Organization size d) Organization structure e) Culture Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Page: 256 207. Linux, a virtual organization, a) is headquartered in Switzerland. b) has no headquarters or CEO. c) is a division of Microsoft. d) has employees communicate via Facebook. e) failed within 6 months due to lack of coordination. Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Page: 257 208. Which of the following best matches the term "organizational values"? a) Official policy b) Hierarchy c) Instrumental values d) Informal authority e) Shared beliefs Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Page: 258 Learning Level: fact Learning Level: fact Learning Level: fact This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . Chapter 9: Organizations: Effectiveness, Design and Cultures 233 209. Which type of organizational culture, according to a study of accounting firms, was associated with lower turnover rates? a) Professional b) Formally structured c) People-friendly d) Ethical e) Skill-oriented Ans: c AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 258 210. _______ is a good term for organizational culture. a) Harmony b) Win-win climate c) Emotional bond d) Social glue e) Functional teamwork Ans: d AACSB Outcomes: R Degree of Difficulty: Moderate Page: 258 Learning Level: fact 211. Which term refers to people who tend to find their organization's culture a comforting security blanket that enables them to deal with their insecurities and uncertainties? a) Collective b) Emotionally charged c) Dynamic d) Historically based e) Inherently symbolic Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 258 212. Which of these is a characteristic of organizational culture? a) Unemotional b) Future-oriented c) Inherently fuzzy d) Personal e) Formalized Ans: c AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 259 213. The author likened organizational values to a) conflict triggers. b) terminal values. c) politics. d) DNA. e) personal instrumental values. Ans: d AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 259 214. _______ transforms organizational outsiders into accepted insiders. a) Organizational socialization b) Recruitment c) Self-management d) Behavior modification e) Staffing Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Page: 260 Learning Level: fact This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 234 Chapter 9: Organizations: Effectiveness, Design and Cultures 215. What is the first step in the socialization process? a) Orientation b) Interviewing c) Recruiting d) Storytelling e) Training Ans: a AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 260 216. Which of these have been called "social roadmaps" in organizational socialization? a) Values b) Stories c) Regulations d) Policies e) Norms Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 260 217. Nicole is the owner of a graphic design company. Recently, she noticed a lack of communication between the designers and the marketing people. This problem represents which symptom of a weak culture? a) Subculture elitism b) Fragmentation/inconsistency c) Inward focus d) Morale problems e) Ingrown subcultures Ans: e AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 261 218. Which of these is(are) not among the symptoms of a weak organizational culture? a) Fragmentation b) Warfare among subcultures c) Subculture elitism d) Ingrown subcultures e) Excessive peer pressure Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 261 Use the following to answer questions 219-222: MachineWorks MachineWorks is a global manufacturer of metal machine parts. Presently the company's jobs are categorized according to the activity performed. The company's CEO and president is considering alternatives that may help MachineWorks compete more effectively and be more profitable. 219. For MachineWorks to be described as a mechanistic organization, all of these characteristics should be present except a) high reliance on instructions and decisions from superiors. b) high task flexibility. c) high reliance on hierarchical control. d) primarily vertical communication. e) high emphasis on loyalty and obedience. Ans: b AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 264 220. T F If MachineWorks were an organic organization, it would put low emphasis on loyalty and obedience. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: appl Page: 247 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . Chapter 9: Organizations: Effectiveness, Design and Cultures 235 221. Presently, MachineWorks has grouped jobs according to _______ departments. a) functional b) customer classification c) geographic location d) work-flow process e) product-service Ans: a AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: appl Page: 248 222. MachineWorks, being a global company, could serve local markets better through __________ departments. a) geographic location b) product-service c) customer classification d) functional e) work-flow process Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: appl Page: 250 Use the following to answer questions 223-227: Charlie's Catering Company Blake is responsible for bringing about a change in the way work is done at Charlie's Catering Company. At present, every manager has two to three direct subordinates, top management retains decision-making authority, and jobs are categorized according to the activities performed. 223. What type of departmentalization does Charlie's Catering use? a) Product-service b) Functional c) Geographic location d) Customer classification e) Work-flow process Ans: b AACSB Outcomes: A Degree of Difficulty: Moderate Page: 248 Learning Level: appl 224. The spans of control at Charlie's Catering would tend to create what type of structure? a) Decentralized b) Tall c) Flat d) Contingency-based e) Wide Ans: b AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: appl Page: 251 225. If Blake wants to enhance efficiency at Charlie's Catering, he must change the spans of control to be a) centralized. b) narrower. c) taller. d) wider. e) zero. Ans: d AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: appl Page: 251 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 236 Chapter 9: Organizations: Effectiveness, Design and Cultures 226. Given the spans of control at Charlie's Catering, all of these situational determinants could be expected except a) a great deal of time spent coordinating with other managers. b) little control and direction required by subordinates. c) distinctly different work performed by subordinates. d) highly complex work performed by subordinates. e) a great deal of time required for planning. Ans: b AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: appl Page: 251 227. T F Charlie's Catering can be described as a highly centralized organization. Ans: True AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: appl Page: 252 228. Does a stadium full of people watching a baseball game qualify as an organization based on the four characteristics of an organization? Why or why not? Ans: No. Considering the four characteristics common to all organizations will help explain why not. (1) There is no formal coordination of effort, because the fans can conduct themselves pretty much as they like, as long as they act within the law. (2) Because some fans will cheer for one team and other fans for the other team, there is no common goal or purpose. (3) Although there is division of labor among the baseball players and stadium employees, the fans themselves do not have assigned tasks. (4) A hierarchy of authority exists for each baseball team and for the stadium employees, but not for the fans. AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 239 229. "Vertical hierarchy" is one basic dimension of an organization chart. What is the other dimension, and what does it establish? Ans: Horizontal specialization establishes the division of labor. AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 241 230. In the open-system model of a business, what subsystem serves as a bridge between the technical and boundary-spanning subsystems? Ans: The managerial subsystem. AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 243 231. Contingency organization design boils down to what two questions? Ans: (1) What is the degree of environmental uncertainty? (2) What organization structure is most appropriate, given the situation? AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 245 232. Why are organic organizations more suitable than mechanistic organizations for uncertain environments? Ans: Organic organizations can adapt more quickly to changing circumstances because they are staffed by people with broad and professional knowledge who exercise high task flexibility and self-control. Because mechanistic organizations with rigid bureaucratic tendencies generally react slowly to change, they are more appropriate for stable and certain environments. AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 247 233. Why is the term "horizontal organization" appropriate for a company with work-flow process departments? Ans: Organizations with work-flow process departments are called horizontal organizations because emphasis is on the smooth and speedy horizontal flow of work between two key points: (1) identifying customer needs and (2) satisfying the customer. AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 250 234. Ali is being interviewed for a well-paid supervisory position at a major corporation, and the recruiter mentions that the company is highly decentralized. What does this mean? Ans: If Ali is an intelligent self-starter, this is good news because it means that top management will not spoon-feed decisions to him. As a lower-level manager, he will be responsible for making important decisions. Of course, he will be held accountable for the results of his decisions. AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 252 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . Chapter 9: Organizations: Effectiveness, Design and Cultures 237 235. Why would a manager want to delegate? Ans: Delegation involves assigning decision-making authority to your subordinates. Managers who delegate extensively to carefully selected and trained people find that the better their people do, the better they do. Moreover, delegation is an excellent management development tool, because the best way to learn is by actually doing. Managers who delegate tend to improve their own chances of promotion, because they have someone ready and able to take over when they depart. AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 253 236. What is happening to the traditional pyramid-shaped organization structure? Ans: It is being flattened through the removal of layers and compartmentalized into teams and smaller, easier-to-manage units. This development has the overall effect of making today's leaner organizations more flexible, adaptable, responsive, efficient, and competitive. AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 255 237. Discuss how hourglass organizations and cluster organizations are reshaping the traditional pyramid-shaped organization. Ans: An hourglass organization is a three-layer structure with a constricted middle layer. This means that lower-level managers have more influence on coordinating efforts. This type of structure reduces employment costs in organizations. However, employees at the lower levels may complain about a lack of promotion opportunities. Cluster organizations rely on a collaborative structure in which teams are the primary unit. This involves multiskilled people moving from team to team as projects dictate. Pay for knowledge is common practice. With this type of structure, high levels of motivation and stress are both present. AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 255 238. How would you respond to a manager who made this comment? "I love the idea of virtual organizations because we can do away with all those time-wasting face-to-face meetings." Ans: Paradoxically, the opposite is true. A certain amount of face-to-face contact among Internet-linked coworkers is necessary to build rapport and trust. Virtual organizations still need a "human face." AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: appl Page: 256-257 239. Why is a strong organizational culture important? Ans: A strong organizational culture acts as a form of social glue for organization members. AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: fact Page: 258 240. What are the six characteristics of organizational cultures? Ans: They are collective (social entities), emotionally charged (value-based), historically based (shared experiences breed trust and loyalty), inherently symbolic (actions speak louder than words), dynamic (reflecting a struggle between stability and change), and inherently fuzzy (ambiguous, filled with contradictions). AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 258-259 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher.