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
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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
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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
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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
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resold, copied, or distributed without the prior consent of the publisher.
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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
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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
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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
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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
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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
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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
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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
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resold, copied, or distributed without the prior consent of the publisher.
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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
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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
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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
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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
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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
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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
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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
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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
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resold, copied, or distributed without the prior consent of the publisher.
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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
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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
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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
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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
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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
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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
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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.