Chapter 10
Designing Adaptive Organizations
True/False Questions
1.
Organizing is the deployment of organizational resources to achieve strategic goals.
Answer: True
2.
Level: 2
Page: 350
Type: F
Level: 1
Page: 350
Type: F
Level: 1
Page: 351
Type: F
Level: 2
Page: 352
Type: F
The idea that organizations develop a well-defined line of authority in the organization that
includes all employees is suggested by the network approach.
Answer: False
8.
Type: F
Despite the apparent advantages of specialization, many organizations are moving away
from this principle.
Answer: True
7.
Page: 350
A visual representation of an organization's structure, showing communication and lines of
power is called a structure graph.
Answer: False
6.
Level: 2
The framework in which the organization defines how tasks are divided, resources are
deployed and departments are coordinated is called organizational structure.
Answer: True
5.
Type: F
Strategy defines what to do; organizing defines how to do it.
Answer: True
4.
Page: 350
Organizing defines what to do while strategy defines how to do it.
Answer: False
3.
Level: 1
Level: 2
Page: 310
Type: F
The principle of unity of command suggests that managers within an organization should
reach agreement on the goals and objectives of the organization.
Answer: False
Level: 2
Page: 352
Type: F
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Test Bank * Page 269
9.
The right to use resources, make decisions and issue orders in an organization is authority.
Answer: True
10.
Type: F
Level: 2
Page: 353
Type: F
Level: 2
Page: 353
Type: F
Level: 2
Page: 353
Type: F
Level: 1
Page: 353
Type: F
Level: 1
Page: 353
Type: F
A flat structure is characterized by a relatively few hierarchical levels and a correspondingly
narrow span of management.
Answer: False
18.
Page: 352
People in management positions have formal authority to direct and control immediate
subordinates.
Answer: True
17.
Level: 1
The number of employees reporting to a supervisor is his or her span of management.
Answer: True
16.
Type: F
The right to advise, recommend, and counsel in the staff specialists' area of expertise is
included in staff authority.
Answer: True
15.
Page: 352
Staff departments perform tasks that reflect the organization’s primary goal and mission.
Answer: False
14.
Level: 1
Given the challenges to meet customer needs and adapt to the environment, most
organizations today discourage managers to delegate authority to the lower levels.
Answer: False
13.
Type: F
The flip side of the authority coin is responsibility.
Answer: True
12.
Page: 352
The duty to perform the task or activity an employee has been assigned is called
accountability.
Answer: False
11.
Level: 1
Level: 2
Page: 355
Type: F
The trend in recent years has been toward narrower spans of control as a way to facilitate
delegation.
Answer: False
Level: 2
Page: 355
Type: F
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 270
19.
Certainty in the environment is usually associated with decentralization.
Answer: False
20.
Type: F
Level: 3
Page: 357
Type: A
Level: 2
Page: 357
Type: A
Level: 2
Page: 358
Type: F
Level: 3
Page: 358
Type: F
Level: 2
Page: 359
Type: F
The functional structure is sometimes called a product, a program, or self-contained unit
structure.
Answer: False
28.
Page: 356
Quick response to external changes is an advantage of vertical functional structure.
Answer: False
27.
Level: 2
Because the chain of command converges at the top, the functional structure provides a way
to decentralize decision making and provide unified direction from all managers.
Answer: False
26.
Type: F
The functional structure offers a way to decentralize decision making and provide direction
from the teams in the field.
Answer: False
25.
Page: 356
At Creative Expressions, departments are grouped together into separate self-contained
groups based on common products and product lines. This is an example of departmental
approach.
Answer: False
24.
Level: 1
At Owl End, people are grouped together in departments by common skills and work
activities, including a sales department and a production department. This is an example of
vertical functional approach.
Answer: True
23.
Type: F
Two contemporary approaches to departmentalization are the use of teams and groups.
Answer: False
22.
Page: 355
The basis for grouping positions into departments and departments into the total
organization is referred to as departmentalization.
Answer: True
21.
Level: 2
Level: 1
Page: 359
Type: F
In functional structures, divisions are created as self-contained units with separate functional
departments for each division.
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 271
Answer: False
29.
Type: F
Level: 3
Page: 361
Type: F
Level: 2
Page: 361
Type: F
Level: 1
Page: 361
Type: F
Level: 2
Page: 363
Type: F
Level: 2
Page: 363
Type: F
The organization, in a network approach to structure, becomes a small broker and
departments are independent contracting services to the broker for a profit.
Answer: True
37.
Page: 360
Designing team relationships does not help overcome shortcomings in a functional, topdown approach to organizing.
Answer: False
36.
Level: 1
A cross-functional team normally has two or more groups of employees who are in
continuing conflict because of a difference in goals and values.
Answer: False
35.
Type: F
The confusion and frustration caused by the dual chain of command is the major problem of
the matrix structure.
Answer: True
34.
Page: 359
The success of matrix structure depends on the abilities of people in key matrix roles.
Answer: True
33.
Level: 2
Two chains of command exist, with top priority given to the team managers, in a matrix
approach to departmentalization.
Answer: False
32.
Type: F
Aspects of both functional and divisional structures simultaneously in the same part of the
organization are combined in the network approach.
Answer: False
31.
Page: 359
The divisional structure fosters excellent coordination within divisions, but coordination
across divisions is often poor.
Answer: True
30.
Level: 2
Level: 1
Page: 364
Type: F
The nature of the network structure means that the subcontractor becomes a permanent part
of and an internal division of the organization.
Answer: False
Level: 2
Page: 364
Type: F
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Test Bank * Page 272
38.
The modular approach is similar to networking.
Answer: True
39.
Type: F
Level: 1
Page: 369
Type: F
Level: 1
Page: 369
Type: F
Level: 1
Page: 370
Type: F
Level: 2
Page: 371
Type: F
Level: 1
Page: 371
Type: A
Reengineering basically means preserving the past by establishing the sequence of
activities by how work was done.
Answer: False
47.
Page: 368
Procter and Gamble, General Mills, and General Foods all use product managers to
coordinate their product lines. These product managers are project managers.
Answer: True
46.
Level: 1
A functional manager is a person who is responsible for coordinating the activities of
several departments.
Answer: False
45.
Type: F
A task force is a permanent team designed to solve short-term problems.
Answer: False
44.
Page: 368
In the international arena, coordination is especially important.
Answer: True
43.
Level: 1
Coordination is the quality of collaboration across departments.
Answer: True
42.
Type: F
Competitiveness on a global scale is the biggest advantage of the network approach to
structure.
Answer: True
41.
Page: 365
One of the disadvantages of team approach is that employees often experience conflicts and
dual loyalties.
Answer: True
40.
Level: 1
Level: 1
Page: 372
Type: F
Reengineering, sometimes called business change reengineering, is the radical redesign of
business processes to achieve dramatic improvements in cost, quality, service, and speed.
Answer: False
Level: 2
Page: 372
Type: F
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 273
48.
An organized group of related tasks and activities that work together to transform inputs
into outputs and create value is called a process.
Answer: True
49.
Type: F
Level: 2
Page: 374
Type: F
Level: 2
Page: 375
Type: F
Level: 1
Page: 375
Type: F
Level: 3
Page: 375
Type: F
Level: 2
Page: 375
Type: F
A loose, horizontal structure in a stable environment is inefficient.
Answer: True
57.
Page: 374
A rigid, vertical structure in an uncertain environment prevents the organization form
adapting to change.
Answer: True
56.
Level: 2
A vertical structure that emphasizes specialization and centralization is appropriate when
environmental uncertainty is high.
Answer: False
55.
Type: F
Environmental uncertainty causes decision-makers to have difficulty acquiring good
information and predicting external changes.
Answer: True
54.
Page: 374
When the primary goal is innovation and flexibility, the functional structure is
appropriate.
Answer: False
53.
Level: 1
The pure functional structure is appropriate for achieving internal efficiency goals.
Answer: True
52.
Type: F
With a cost leadership strategy, according to Porter, the organization strives for internal
efficiency.
Answer: True
51.
Page: 372
Two contingency factors affecting structure are strategic goals and the environment.
Answer: True
50.
Level: 1
Level: 2
Page: 375
Type: F
Technology includes the knowledge, tools, techniques, and activities used to transform
organizational inputs into outputs.
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 274
Answer: True
58.
Type: F
Level: 1
Page: 378
Type: F
Level: 1
Page: 378
Type: F
Level: 2
Page: 378
Type: F
Law firms, airlines, advertising firms and amusement parks are examples of service firms.
Answer: True
63.
Page: 378
The level to which complex machinery is involved in the production process at the same
level as people is called the technical complexity.
Answer: False
62.
Level: 1
Mass production involves a type of technology characterized by the production of a large
volume of products with the same specifications.
Answer: True
61.
Type: F
The type of technology that involves mechanization of the entire workflow and nonstop
production is called continual flow production, according to Woodward.
Answer: False
60.
Page: 377
In continuous process production, the entire workflow is mechanized.
Answer: True
59.
Level: 2
Level: 1
Page: 379
Type: F
Consumer technology is technology characterized by intangible outputs and direct contact
between employees and customers.
Answer: False
Level: 2
Page: 380
Type: F
Multiple Choice Questions
1.
______ refers to the deployment of organizational resources to achieve strategic goals.
a.
b.
c.
d.
e.
2.
Planning
Controlling
Organizing
Leading
Strategic management
Answer: c
Level: 1
Page: 350
Type: F
Strategy defines
to do (it) while organizing defines
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 275
to do (it).
a.
b.
c.
d.
e.
how; what
how; why
what; how
what; why
when; what
Answer: c
3.
d.
e.
Level: 1
Page: 351
Type: F
Organization structure is defined as the
a.
b.
c.
d.
e.
visual representation of the organization.
framework in which the organization defined how tasks are divided, resources are
deployed, and departments are coordinated.
division of labor.
unbroken line of authority that links all individuals in the organization.
none of the above.
Answer: b
Level: 1
Page: 351
Type: F
The organization chart
a.
b.
c.
d.
e.
shows the characteristics of the organization's vertical structure.
is a visual representation of the organization's structure.
details the formal reporting relationships that exist within an organization.
all of the above.
a and b only.
Answer: d
6.
Type: F
The set of formal tasks assigned to individuals
The set of formal tasks assigned to departments
The design of systems to ensure effective coordination of employees across
departments
Formal reporting relationships
All of the above are part of organizational structure.
Answer: e
5.
Page: 350
Organizational structure includes which of these?
a.
b.
c.
4.
Level: 2
Level: 2
Page: 351
Type: F
______ is the degree to which organizational tasks are subdivided into individual jobs.
a.
b.
c.
d.
Multitasking
Lines of authority
Work specialization
Autonomy
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e.
Team structure
Answer: c
7.
Level: 2
Page: 352
Type: F
Velma works in the manufacturing department at Ice Sculptures. The work in Velma’s
department is low in task specialization. As a result, Velma
a.
b.
c.
d.
e.
usually performs a single task.
does a variety of tasks and activities.
is often bored.
is rarely challenged.
generally goofs-off.
Answer: b
Level: 2
Page: 352
Type: A
Tyler was recently looking at his company's organization chart in an attempt to discover
who reports to whom. Tyler is studying his organization's
a.
b.
c.
d.
e.
degree of formalization.
amount of differentiation.
degree of centralization.
chain of command.
division of labor.
Answer: d
10.
Type: F
employees perform a single task.
employees perform many tasks.
employees are often highly challenged.
employees are often inefficient.
jobs tend to be large.
Answer: a
9.
Page: 351
When work specialization is extensive
a.
b.
c.
d.
e.
8.
Level: 2
Level: 2
Page: 352
Type: A
______ is also referred to as work specialization.
a.
b.
c.
d.
e.
Division of labor
Unity of command
Scalar chain
Esprit de corps
Network approach
Answer: a
Level: 1
Page: 352
Type: F
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 277
11.
Unity of command and the scalar principle are both closely related to the
a.
b.
c.
d.
e.
amount of work specialization in an organization.
degree of formalization.
chain of command.
amount of bureaucracy in the organization.
matrix structure.
Answer: c
12.
Level: 1
Page: 352
Type: F
The formal and legitimate right of a manager to make decisions is
a.
b.
c.
d.
e.
delegation.
responsibility.
authority.
span of management.
leadership.
Answer: c
Level: 1
Page: 352
Type: F
Which of these refers to a clearly defined line of authority in the organization that includes
all employees?
a.
b.
c.
d.
e.
Scalar principle
Unity of command
Work specialization
Division of labor
Span of management
Answer: a
15.
Type: F
Scalar principle
Unity of command
Work specialization
Division of labor
Span of management
Answer: b
14.
Page: 352
Which of these means that each employee is held accountable to only one supervisor?
a.
b.
c.
d.
e.
13.
Level: 2
Level: 1
Page: 352
Type: F
The people with authority and responsibility are subject to reporting and justifying task
outcomes to those above them in the chain of command is called
a.
b.
delegation.
line authority.
Chapter 10 * Designing Adaptive Organizations
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c.
d.
e.
staff authority.
accountability.
hierarchy.
Answer: d
16.
Level: 2
Page: 352
Type: F
Gina wishes to transfer authority and responsibility to her subordinates. This process is
known as
a.
b.
c.
d.
e.
accountability.
coordination.
delegation.
departmentalization.
passing the buck.
Answer: c
Level: 2
Page: 353
Type: A
Which department performs tasks that reflect the organization's primary goals and mission?
a.
b.
c.
d.
e.
Line
Staff
Primary
Functional
Strategic planning
Answer: a
19.
Type: F
It is vested in people, not positions.
Subordinates accept it.
It flows across the horizontal hierarchy.
It emerges from the organizational values.
Individuals are born with this power.
Answer: b
18.
Page: 352
Which of the following characteristics distinguishes authority?
a.
b.
c.
d.
e.
17.
Level: 1
Level: 1
Page: 353
Type: F
______ departments include all of those that provide specialized skills in support of ______
departments.
a.
b.
c.
d.
e.
Line; staff
Staff; line
Primary; functional
Functional; primary
Line; functional
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 279
Answer: b
20.
Page: 353
Type: F
Finance department
Human Resources department
Research and development department
Manufacturing department
Marketing department
Answer: d
Level: 2
Page: 353
Type: A
______ refers to the number of employees reporting to a supervisor.
a.
b.
c.
d.
e.
The line of authority
The span of management
The chain of command
The management chain
Delegation
Answer: b
Level: 1
Page: 353
Type: F
Traditionally, a span of management of about _________ has been recommended.
a.
b.
c.
d.
e.
three
five
fifteen
seven
twenty
Answer: d
24.
Level: 2
Kid Kreations, Inc. manufactures children’s clothes. Which of the following departments
for Kid Kreations can be considered a line department?
a.
b.
c.
d.
e.
23.
Type: F
Strategic planning
Accounting
Manufacturing
Human resources
Research and development
Answer: c
22.
Page: 353
Which of the following typically is NOT considered a staff department?
a.
b.
c.
d.
e.
21.
Level: 2
Level: 2
Page: 353
Type: F
Kevin’s subordinates are highly trained and all perform similar tasks. Nichole’s
subordinates are spread over two locations and she has little available in the way of support
systems. Which of the following statements is most correct?
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 280
a.
b.
c.
d.
e.
Nichole’s span of management can be larger than Kevin’s.
Nichole will have problems with unity of command.
Kevin’s span of management can be larger than Nichole’s.
Kevin has more problems with work specialization.
None of the above.
Answer: c
25.
Level: 2
Page: 355
Type: A
Which of the following factors is NOT associated with larger span of control?
a.
b.
c.
d.
e.
Work performed by subordinates in stable and routine.
Subordinates perform similar work tasks.
Subordinates are located at various different locations.
Subordinates are highly trained and need little direction.
Rules and procedures defining task activities are available.
Answer: c
Level: 3
Page: 355 Type: F
Relative to a flat organizational structure, a tall structure has a _____ span of management
and ________ hierarchical levels.
a.
b.
c.
d.
e.
wide, fewer
narrow, fewer
narrow, wider
narrow, more
wide, more
Answer: d
28.
Type: A
Organization A with eleven hierarchical levels
Organization B with three hierarchical levels
Organization C with eight hierarchical levels
Organization D with six hierarchical levels
Organization E with seven hierarchical levels
Answer: b
27.
Page: 355
Which of the following organizations have a flat structure compared to others?
a.
b.
c.
d.
e.
26.
Level: 3
Level: 2
Page: 355
Type: F
______ is the trend in recent years.
a.
b.
c.
d.
Greater work specialization
Less delegation
Wider spans of management
Narrower spans of management
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 281
e.
Tall structure
Answer: c
29.
Type: F
a high degree of decentralization.
a wide span of management.
a high degree of centralization.
a narrow span of management.
no management.
Answer: a
30.
Level: 2
Page: 355
Type: A
means that decision authority is located near the
a.
b.
c.
d.
e.
of the organization.
Centralization, bottom
Decentralization, top
Centralization, top
Centralization, middle
None of the above
Answer: c
Level: 2
Page: 355
Type: F
Change and uncertainty in the environment are usually associated with
a.
b.
c.
d.
e.
work specialization.
decentralization.
centralization.
tight vertical control.
division of labor.
Answer: b
32.
Page: 355
Jack and Jill work at Glacier Point, Inc. Although they both work on the assembly line, they
have the authority to make many decisions about their job. Glacier Point can be said to
have
a.
b.
c.
d.
e.
31.
Level: 2
Level: 2
Page: 355
Type: F
______ is the basis for grouping positions into departments and departments into the total
organization.
a.
b.
c.
d.
e.
Departmentalization
Centralization
Decentralization
Formalization
Specialization
Answer: a
Level: 2
Page: 356
Type: F
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 282
33.
The functional, ______, and ______ are traditional approaches that rely on the chain of
command to define departmental groupings and reporting relationships along the hierarchy.
a.
b.
c.
d.
e.
divisional, teams
divisional, matrix
matrix, teams
matrix, networks
teams, networks
Answer: b
34.
Level: 1
Page: 356
Type: F
Which of the following is not an approach to structural design that reflects different uses of
the chain of command?
a.
b.
c.
d.
e.
Matrix approach
Team-based approach
Process approach
Divisional approach
Network approach
Answer: c
Level: 2
Page: 356
Type: F
Brittany’s department is made up of people with similar skills and work activities. Her
organization uses the __________ approach to departmentalization.
a.
b.
c.
d.
e.
team-based
horizontal matrix
divisional
vertical functional
process
Answer: d
37.
Type: F
Functional
Divisional
Traditional divisions
Teams
Geographic-based
Answer: d
36.
Page: 356
______ is a contemporary approach to structural design in departmentalization.
a.
b.
c.
d.
e.
35.
Level: 2
Level: 2
Page: 358
Type: A
White Cotton Corporation has a finance department, a marketing department, and a
production department. White Cotton
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 283
a.
b.
c.
d.
e.
uses a functional structure.
has a geographic structure.
uses a divisional structure.
uses product-based structure.
uses a matrix structure.
Answer: a
38.
Level: 2
Page: 359
Type: A
Organ Rentals Corporation has been having numerous problems. Communication across
departments is poor and decisions are backing up at the top of the organization. Organ
Rentals uses a __________ structure.
a.
b.
c.
d.
e.
geographic
product
functional
matrix
team-based
Answer: c
Level: 2
Page: 359
Type: A
When departments are grouped together on the basis of organizational outputs, the
organization is using a
a.
b.
c.
d.
e.
functional structure.
matrix structure.
divisional structure.
network structure.
team-based structure.
Answer: c
41.
Type: A
along divisional lines.
along functional lines.
based on the team approach.
based on the network approach.
none of the above.
Answer: b
40.
Page: 358
Silver Moon has wide spans of management, centralized decision making, and poor
coordination across departments. It is likely structured
a.
b.
c.
d.
e.
39.
Level: 2
Level: 1
Page: 359
Type: F
Sonia works in one of seven research and development departments at Tara’s Terrace, Inc.
This would suggest that Tara’s Terrace has a
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 284
a.
b.
c.
d.
e.
functional structure.
divisional structure.
wide span of control.
high degree of centralization.
matrix structure.
Answer: b
42.
Level: 2
Page: 359
Type: F
Self-contained unit structure is a term used for
a.
b.
c.
d.
e.
divisional structure.
functional structure.
term structure.
matrix structure.
network structure.
Answer: a
Level: 1
Page: 359
Type: F
Relative to the functional structure, the divisional structure
a.
b.
c.
d.
e.
encourages decentralization.
has a higher degree of work specialization.
has a more pronounced division of labor.
has excellent coordination within functions.
results in an efficient use of resources.
Answer: a
45.
Type: A
functional structure is necessary.
matrix structure is a requirement.
divisional structure is essential.
team approach should be avoided.
divisional structure is inefficient.
Answer: c
44.
Page: 359
In very large companies, according to your text, a
a.
b.
c.
d.
e.
43.
Level: 2
Level: 2
Page: 359
Type: F
All functions in a specific country or region report to the same division manager in ______
divisions.
a.
b.
c.
d.
e.
functional
matrix
geographic-based
teams
networks
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 285
Answer: c
46.
Level: 2
Page: 361
Type: F
A formal chain of command for both functional and divisional relationships is provided by
the _________ approach to structure.
a.
b.
c.
d.
e.
horizontal matrix
vertical functional
divisional
product
team-based
Answer: a
Level: 2
Page: 361
Type: F
Clark works at the Watches, Inc. He has two bosses, one a functional manager and the
other a divisional manager. Watches, Inc. has a
a.
b.
c.
d.
e.
functional structure.
divisional structure.
geographic structure.
matrix structure.
product structure.
Answer: d
49.
Type: F
functional
divisional
matrix
product-based
process-based
Answer: c
48.
Page: 359
Global companies often use a ________ structure to achieve simultaneous coordination of
products across countries.
a.
b.
c.
d.
e.
47.
Level: 1
Level: 2
Page: 361
Type: A
The team approach to departmentalization is a response to
a.
b.
c.
d.
e.
lack of participative teams.
centralized decision-making.
the competitive global environment.
All of the above.
a and b only.
Answer: d
Level: 2
Page: 362
Type: F
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 286
50.
______ are brought together as a formal department in the organization.
a.
b.
c.
d.
e.
Cross-functional teams
Permanent teams
Formal teams
Ad-hoc teams
Task teams
Answer: b
51.
Level: 2
Page: 363
Type: F
Kane works for a large company. Recently, his organization began to contract out such
functions as training, engineering, and computer service. This approach is consistent with a
a.
b.
c.
d.
e.
functional structure.
team structure.
divisional structure.
network structure
service structure.
Answer: d
Level: 2
Page: 363
Type: A
In the ______ approach, a manufacturing company uses outside suppliers to provide entire
chunks of a product, which are then assembled into a final product by a handful of workers.
a.
b.
c.
d.
e.
network
modular
virtual organization
team
matrix
Answer: b
54.
Type: F
The diversification approach
The team approach
The network approach
The BCG approach
The functional approach
Answer: c
53.
Page: 363
Which of these is an organization structure that divides the major functions of the
organization into separate companies?
a.
b.
c.
d.
e.
52.
Level: 1
Level: 2
Page: 365
Type: F
All of the following are advantages of a functional structure EXCEPT
a.
economies of scale.
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b.
c.
d.
e.
excellent coordination between functions.
in-depth skill specialization and development.
high quality technical problem solving.
career progress within functional departments.
Answer: b
55.
Level: 2
Page: 366
Type: F
Patty works in an organization where coordination across organizational units is poor and
the units perceived themselves to be in competition with one another for organizational
resources. These characteristics are consistent with which of the following structures?
a.
b.
c.
d.
e.
A matrix structure
A functional structure
A divisional structure
A team-based structure
A network structure
Answer: c
Level: 2
Page: 367
Type: A
All of the following are advantages of a divisional structure EXCEPT
a.
b.
c.
d.
e.
high concern for customers' needs.
fast response, flexibility in an unstable environment.
emphasis on overall product and division goals.
development of general management skills.
there is little duplication of services across divisions.
Answer: e
58.
Type: F
resulting economies of scale.
enlarged tasks for employees.
easy pinpointing of responsibility for product problems.
development of general management skills.
flexibility in an unstable environment.
Answer: a
57.
Page: 366
An advantage of functional structures is the
a.
b.
c.
d.
e.
56.
Level: 3
Level: 2
Page: 367
Type: F
______ is an advantage of the divisional structure.
a.
b.
c.
d.
e.
Concern for customers' needs is high
There is little duplication of services across divisions
There is good coordination across divisions
Top management retains tight control of the organization
There is no competition for corporate resources
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Answer: a
59.
Page: 367
Type: A
it generates a large amount of conflict.
managers spend much time resolving conflict.
the confusion caused by the dual chain of command.
the power imbalance that can result between the sides of the matrix.
enlarged tasks for employees.
Answer: e
Level: 2
Page: 367
Type: F
Advantages of the matrix structure include
a.
b.
c.
d.
e.
it increases employee participation.
it makes efficient use of human resources.
it works well in a changing environment.
it develops both general and specialist management skills.
all of the above.
Answer: e
Level: 2
Page: 367
Type: F
______ is/are an advantage of team structure.
a.
b.
c.
d.
e.
Increased barriers among departments
Unplanned decentralization
Time and resources spent on meetings
Less response time, quicker decisions
All of the above
Answer: d
63.
Level: 2
All of the following are the major disadvantages of the matrix structure EXCEPT
a.
b.
c.
d.
e.
62.
Type: F
Unity of direction
Unity of command
Work specialization
Division of labor
Span of management
Answer: b
61.
Page: 367
The matrix structure violates which of the following principles of management?
a.
b.
c.
d.
e.
60.
Level: 2
Level: 2
Page: 367
Type: F
The use of teams may lead to too much
a.
division of labor.
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b.
c.
d.
e.
decentralization.
authority and responsibility in top management's hands.
formalization.
narrow span of management.
Answer: b
64.
Level: 2
Page: 368
Type: F
Recent workplace design trends such as hoteling and free-address offices are a result of
which approach?
a.
b.
c.
d.
e.
Matrix approach
Team approach
Virtual approach
Modular approach
Network approach
Answer: c
Level: 2
Page: 368
Type: F
______ happens as organizations grow.
a.
b.
c.
d.
e.
Positions and departments are deleted
Management layers are eliminated to save cost
Managers have to find ways to tie different departments
Top management becomes more autocratic
None of the above
Answer: c
67.
Type: F
a lack of hands-on control.
the possibility of losing an important part of the organization.
weakened employee loyalty.
all of the above.
a and c only.
Answer: d
66.
Page: 368
Disadvantages of the network approach include
a.
b.
c.
d.
e.
65.
Level: 2
Level: 2
Page: 368
Type: F
Coordination is defined as
a.
b.
c.
d.
e.
the ability of the organization to produce timely products.
the quality of collaboration across departments.
differentiation.
the quantity of goods produced by the organization.
all of the above.
Chapter 10 * Designing Adaptive Organizations
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Answer: b
68.
Level: 1
coordination.
planning.
motivating.
leading.
controlling.
Answer: a
Level: 2
lines, coordination is required.
Level: 2
Page: 369
Type: F
The outcome of information and cooperation is
a.
b.
c.
d.
e.
organization.
planning.
coordination.
differentiation.
controlling.
Answer: c
Level: 2
A task force is a
a.
b.
c.
d.
e.
Page: 369
Type: F
committee formed to solve a specific problem.
standing
permanent
temporary
all of the above
none of the above
Answer: c
72.
Type: A
functional
divisional
team
all of the above
a and b only
Answer: d
71.
Page: 369
When the organization is structured along
a.
b.
c.
d.
e.
70.
Type: F
Jewelry Creations Corporation is designed along functional lines. New product
development is very slow and the process is plagued by many problems. One of the
problems is that the people in marketing never communicate with the people in
production. This is an example of poor
a.
b.
c.
d.
e.
69.
Page: 369
Level: 2
Page: 370
Type: F
Jamie was recently assigned to a committee whose task is to research new product
Chapter 10 * Designing Adaptive Organizations
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opportunities. Once this group generates a list of six or seven viable options, it will be
disbanded. This group is also known as a
a.
b.
c.
d.
e.
team.
standing committee.
permanent committee.
task force.
none of the above.
Answer: d
73.
Level: 1
Page: 371
Type: F
Amanda is responsible for coordinating the efforts of several different departments.
Which of the following titles best describes her position?
a.
b.
c.
d.
e.
Department manager
Middle manager
First-level supervisor
Project manager
Chairman of the board
Answer: d
Level: 2
Page: 371
Typically, project managers have authority over
a.
b.
c.
d.
e.
Type: A
but not over
assigned to it.
people, the project.
the project, people.
resources, the project.
people, other resources.
finances, products
Answer: b
76.
Type: A
department manager
line manager
project manager
middle manage
moderating manager
Answer: c
75.
Page: 370
A ______individual responsible for coordinating the activities of several departments.
a.
b.
c.
d.
e.
74.
Level: 2
Level: 2
Page: 371
Type: F
leads to strong coordination across functional areas and greater flexibility in
responding to changes in the environments.
a.
Reengineering
Chapter 10 * Designing Adaptive Organizations
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b.
c.
d.
e.
Layoffs
Downsizing
A temporary committee
An ad hoc committee
Answer: a
77.
The purpose of
a.
b.
c.
d.
e.
is to organize resources to accomplish organizational goals.
Level: 2
Page: 374
Type: F
Strategy
Environment
Interdependence
Production technology
Competitor’s structure
Answer: e
Level: 2
Page: 374
Type: F
Organization structure is influenced by which contingency factor(s)?
a.
b.
c.
d.
e.
Strategy
Environment
Technology
Interdependence
All of the above
Answer: e
80.
Type: F
______ is NOT a contingency factor that influences an organization's structure.
a.
b.
c.
d.
e.
79.
Page: 372
strategy
motivation
structure
control
leadership
Answer: c
78.
Level: 1
Level: 1
Page: 374
Type: F
A pure functional structure is most appropriate for achieving
a.
b.
c.
d.
e.
innovation.
differentiation.
internal efficiency goals.
flexibility.
all of the above.
Answer: c
Level: 2
Page: 374
Type: F
Chapter 10 * Designing Adaptive Organizations
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81.
A(n) ______ is most consistent with a strategy of stability.
a.
b.
c.
d.
e.
team based structure
organic structure
matrix structure
functional structure
learning structure
Answer: d
82.
Level: 2
Page: 375
Type: F
A rapidly changing, uncertain environment causes which of the following to occur?
a.
b.
c.
d.
e.
There will be increased differences between organizational departments.
The organization needs increased coordination to keep departments working
together.
The organization must adapt to change.
All of the above.
a and c only.
Answer: d
Level: 1
Page: 375-376 Type: F
Which of the following structures works best in an uncertain organizational environment?
a.
b.
c.
d.
e.
A tight structure
A mechanistic structure
A horizontal structure
A functional structure
A vertical structure
Answer: c
85.
Type: F
cost leader.
efficient.
flexible.
stable.
All of the above.
Answer: c
84.
Page: 375
The pure functional structure does not enable the organization to be
a.
b.
c.
d.
e.
83.
Level: 2
Level: 2
Page: 375
Type: F
Which of the following structures works best in a stable organizational environment?
a.
b.
A loose organizational structure
A vertical structure
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c.
d.
e.
An organic structure
A horizontal structure
a and c only
Answer: b
86.
Level: 3
Page: 375
Type: A
Makai’s Marketing Mix (MMM) does not use its resources wisely. The employees at
MMM spend too much time in meetings and not enough time focusing on the task at
hand. MMM’s management should consider changing the organizational structure from
to
.
a.
b.
c.
d.
e.
horizontal, vertical
team based, horizontal
vertical, team based
mechanistic, rigid
team-based, network
Answer: a
Level: 3
Page: 375
Type: A
Which of the following structures is an incorrect fit in an unstable organizational
environment?
a.
b.
c.
d.
e.
A horizontal structure
A vertical structure
A loose organizational structure
An organic structure
All of the above.
Answer: b
89.
Type: F
Eagle’s structure is too loose.
Eagle’s structure is too horizontal.
Eagle uses a vertical structure.
All of the above.
a and b only.
Answer: c
88.
Page: 375
Eagle Distributors is continually hampered by an inability to adapt to an unstable
environment. Which of the following is a plausible explanation as to why?
a.
b.
c.
d.
e.
87.
Level: 2
Level: 2
Page: 375
Type: F
Which of the following is an incorrect fit in a stable organizational environment?
a.
b.
c.
A tight structure
A rigid structure
A functional structure
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d.
e.
A horizontal structure
A vertical structure
Answer: d
90.
Level: 1
Page: 377
Type: F
A type of technology that involves the production of a few goods designed to customer
specifications is
a.
b.
c.
d.
e.
continuous process production.
mass production.
small batch production.
routine service production.
hi-tech production.
Answer: c
Level: 1
Page: 378
Type: F
A type of technology characterized by the production of a large volume of products with
the same specification is called
a.
b.
c.
d.
e.
mass production.
flexible manufacturing.
continuous process production.
small-batch production.
unit production.
Answer: a
93.
Type: F
Technology
Small-batch production
Continuous processing
Technical jargon
Service attitude
Answer: a
92.
Page: 375
__________ includes the knowledge, tools, techniques, and activities used to transform
organizational inputs and outputs.
a.
b.
c.
d.
e.
91.
Level: 2
Level: 1
Page: 378
Type: F
Body Builders, Inc. produces a standard product for a mass market. Its manufacturing
department is very dependent on machines and prides itself on the large number of
products it can produce. What type of workflow technology does Body Builders have?
a.
b.
c.
d.
Continuous process production
Mass production
Small batch production
Routine service production
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e.
Unit production.
Answer: b
94.
Level: 2
Page: 378
Type: F
Which of the following is NOT one of the basic types of workflow technology identified
by Woodward?
a.
b.
c.
d.
e.
Large batch
Continuous process production
Intermediate batch
Small batch
All of the above were identified by Woodward.
Answer: c
Level: 1
Page: 378
Type: F
The degree to which machinery is involved in the production to the exclusion of people is
called
a.
b.
c.
d.
e.
productivity.
technical complexity.
production structure.
people friendly structure.
none of the above.
Answer: b
97.
Type: A
continuous process production.
mass production.
small batch production.
routine production.
unit production.
Answer: a
96.
Page: 378
According to Woodward, the most sophisticated and complex form of production
technology is
a.
b.
c.
d.
e.
95.
Level: 2
Level: 1
Page: 378
Type: F
______ has the highest level of technical complexity
a.
b.
c.
d.
e.
Small batch production
Continuous process production
Flexible manufacturing
Mass production
Routine manufacturing
Answer: b
Level: 2
Page: 378
Type: F
Chapter 10 * Designing Adaptive Organizations
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98.
Which of the following has the lowest level of technical complexity?
a.
b.
c.
d.
e.
Small batch production
Continuous process production
Flexible manufacturing
Mass production
Routine manufacturing
Answer: a
99.
Type: F
Tangible technology
Direct technology
Service technology
Complex technology
Flexible manufacturing
Answer: c
Level: 1
Page: 380
Type: F
Which of the following is characterized by use of the Internet and other digital processes
to conduct or support business online?
a.
b.
c.
d.
e.
Small batch technology
Continuous technology
Tangible technology
Service technology
Digital technology
Answer: e
101.
Page: 378
can be defined as technology characterized by intangible outputs and direct
contact between employees and customers.
a.
b.
c.
d.
e.
100.
Level: 2
Level: 2
Page: 380
Type: F
JoAnna Banana’s accounting firm uses __________ technology to be flexible and
decentralized in a fast paced world that demands a focus on horizontal processes rather
than departmental functions.
a.
b.
c.
d.
e.
batch
digital
continuous
tangible
manufacturing
Answer: b
Level: 2
Page: 380
Type: A
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 298
Scenario Questions
Scenario—Xavier King
Xavier is a veteran manager with Pixel International, Inc. (PII). Recently PII purchased a small
business in the printing industry. Xavier has been assigned the task of managing this new
acquisition and is currently deciding how best to design its structure. Currently, employees are
assigned to one of three departments, including sales, production, and legal defense.
1.
In determining Xavier’s span of management, she should consider all of the following
EXCEPT
a.
b.
c.
d.
e.
Is the work performed by subordinates stable and routine?
Do subordinates perform similar tasks?
Are rules and procedures defining task activities available?
Do Xavier’s personal preferences and style favor a larger or small span?
All of the above.
Answer: e
2.
Type: A
The analysis of whether the new division should be centralized or decentralized should
include all of the following EXCEPT
a.
b.
c.
d.
e.
the level of change and uncertainty in the environment.
corporate history and culture.
the threat of crisis or the risk of company failure.
the structure of competitors and customers.
all of the above should be included.
Answer: d
3.
Current departmentalization of Xavier’s new division can be characterized primarily as
a.
b.
c.
d.
e.
vertical functional.
divisional.
horizontal matrix.
team-based.
none of the above.
Answer: a
4.
Type: A
Type: A
If Xavier organizes with a horizontal matrix structure, some potential advantages that he
could anticipate include all of the following, EXCEPT
a.
a more efficient use of resources.
Chapter 10 * Designing Adaptive Organizations
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b.
c.
d.
e.
greater flexibility and adaptability to a changing environment.
development of both general and specialist management skills.
decreased need for coordination among managers.
all of the above are potential advantages.
Answer: d
Type: A
Scenario—Jennifer Ray
The challenge from increased competition led Jennifer Ray, president of Paint Applications, to
move to an approach using computers to automate and integrate manufacturing components such
as robots, machines, product design, and engineering analysis. Paint Applications has a structure
with few rules, decentralization, a small ratio of administrators to workers and a team oriented
organic approach. The company's products are enjoying high acceptance from the market and
growth is constant.
5.
With an increase in environmental uncertainty, which of the following events should
Jennifer NOT anticipate?
a.
b.
c.
d.
e.
Departments will have greater differences.
To keep departments working together, the organization needs increased
coordination.
Integrating managers will need to be hired to respond to the adaptation.
The organization must maintain a flexible, responsive posture toward the
environment.
All of the above should be anticipated.
Answer: c
6.
Type: A
The category of technology most representative of Jennifer’s company is
a.
b.
c.
d.
e.
unit and Small Batch.
large Batch and Mass.
nonroutine service.
flexible manufacturing.
none of the above.
Answer: d
Type: A
Short Answer Questions
1.
The deployment of organizational resources to achieve strategic goals is known as
_______.
Answer: organizing
Page: 350
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 300
2.
The framework in which the organization defines how tasks are divided, resources are
deployed, and departments are coordinated is called
.
Answer: organization structure
3.
The visual representation of an organization's structure is called the
Answer: organization chart
4.
Page: 352
Page: 352
The ______ refers to a clearly defined line of authority in the organization that includes
all employees.
Answer: scalar principle
9.
Page: 351
When each employee is held accountable to only one supervisor, it is called ______.
Answer: unity of command
8.
Page: 351
The
is an unbroken line of authority that links all persons in an organization
and shows who reports to whom.
Answer: chain of command
7.
Page: 351
The degree to which organizational tasks are subdivided into individual jobs is called
.
Answer: work specialization
6.
.
Division of labor is also known as _______.
Answer: work specialization
5.
Page: 350
Page: 352
The three characteristics of authority are that it must be ______, ______, and ______.
Answer: vested in organizational positions not people; accepted by subordinates; flowing
down the vertical hierarchy.
Page: 352
10.
is the formal and legitimate right of a manager to make decisions, issue
orders, and allocate resources to achieve organizationally desired outcomes.
Answer: Authority
11.
Page: 352
is the duty to perform the task or activity an employee has been assigned.
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 301
Answer: Responsibility
12.
means that the people with authority and responsibility are subject to
reporting and justifying task outcomes to those above them in the chain of command.
Answer: Accountability
13.
Page: 353
______ departments perform tasks that reflect the organization’s primary goal and
mission, while ______ departments include all those that provide specialized skills in
support of ______ departments.
Answer: Line; staff; line
15.
The
With
Page: 355
, decision authority is pushed downward to lower organization levels.
Answer: decentralization
19.
Page: 355
A(n) ______ structure has an overall narrow span and more hierarchical levels.
Answer: tall
21.
Page: 355
_______ means that decision authority is located near the top of the organization.
Answer: Centralization
20.
Page: 353
A(n) ___ structure has a wide span, is horizontally dispersed, and has fewer
hierarchical levels.
Answer: Flat
18.
Page: 353
is the number of employees reporting to a supervisor.
Answer: span of management
17.
Page: 353
means that people in management positions have formal authority to
direct and control immediate subordinates
Answer: Line authority
16.
Page: 352
is the process managers use to transfer authority and responsibility to
positions below them in the hierarchy.
Answer: Delegation
14.
Page: 352
Page: 355
List the five approaches to departmentalization.
Chapter 10 * Designing Adaptive Organizations
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Answer: Vertical functional, divisional, horizontal matrix, teams, and network.
Page: 356
22.
In the ______ approach of structural design, departments are independent, contracting
services to the central hub for a profit.
Answer: network
23.
Page: 357
A(n) _______ structure is the grouping of positions into departments based on similar
skills, expertise, and resource use.
Answer: functional
24.
Page: 358
The
structure occurs when departments are grouped together based on
organizational outputs.
Answer: divisional
25.
Page: 359
The divisional structure is sometimes called a ______, ______, or ______.
Answer: product structure; program structure; self-contained unit structure
Page: 359
26.
An alternative for assigning divisional responsibility is to group company activities by
______.
Answer: geographic region
27.
Page: 359
List three disadvantages of the divisional structure.
Answer:
Choose three of the following -- duplication of resources across divisions, less technical
depth and specialization in divisions, poor coordination across divisions, less top
management control, and competition for corporate resources.
Page: 366
28.
The
, combines aspects of both functional and divisional structures
simultaneously, in the same part of the organization.
Answer: matrix approach
29.
Page: 360
_______ teams consist of employees from various functional departments who are
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 303
responsible to meet as a team and resolve mutual problems.
Answer: Cross-functional
30.
Page: 363
The
structure means that the firm subcontracts many of its major functions to
separate companies and coordinates their activities from a small headquarters
organization.
Answer: network
31.
Page: 363
A(n) ______ organization has few full-time employees and temporarily hires outside
specialists who form teams to work on specific opportunities, and then disbands when
objectives are met.
Answer: virtual
32.
Page: 363
The ______ approach is when a manufacturing company uses outside suppliers to provide
large components of the product, which are then assembled into a final product by a few
workers.
Answer: modular
33.
Page: 365
List the advantages of the network structure.
Answer:
Global competitiveness, workforce flexibility/challenge, and reduced administrative
overhead.
Page: 366
34.
The quality of collaboration across departments is known as _______.
Answer: coordination
35.
Page: 369
A(n) _______ is a temporary team designed to solve a short-term problem involving
several departments.
Answer: task force
36.
Page: 370
A(n) __________ is a person who is responsible for coordinating the activities of several
departments for the completion of a specific project.
Answer: project manager
37.
Page: 371
A(n)
is a person who is responsible for coordinating the activities of several
departments for the completion of a specific project.
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 304
Answer: project manager
38.
__________ is the radical redesign of business processes to achieve dramatic
improvements in cost, quality, service, and speed.
Answer: Reengineering
39.
Page: 371
Page: 372
List the three contingency factors that influence organization structure.
Answer: Strategy, environment, technology,.
Page: 374
40.
A(n) _______ structure is most appropriate when the external environment is stable.
Answer: vertical
41.
Page: 375
includes the knowledge, tools, techniques, and activities used to transform
organizational inputs into outputs.
Answer: technology
42.
Page: 377
A type of technology that involves the production of goods in batches of one or a few
products designed to customer specifications is called
.
Answer: small batch production
43.
_______ technology is distinguished by standardized production runs.
Answer: Mass production
44.
Page: 378
means the degree to which machinery is involved in the production to the
exclusion of people.
Answer: Technical complexity
46.
Page: 378
A type of technology involving mechanization of the entire workflow and nonstop
production is called
.
Answer: continuous process production
45.
Page: 378
Page: 378
Technology that is characterized by intangible outputs and direct contact between
employees and customers is called __________.
Answer: service technology
Page: 380
Chapter 10 * Designing Adaptive Organizations
Test Bank * Page 305
Essay Questions
1.
Compare and contrast authority, responsibility, accountability, and delegation.
ANSWER:
Authority is defined as the formal and legitimate rights of a manager to make decisions,
issue orders, and allocate resources. Responsibility is the duty to perform the task that has
been assigned. Many argue that authority and responsibility go hand-in-hand, i.e., in order
for someone to fulfill their responsibility, they must have an equivalent level of authority.
Accountability means that those with authority and responsibility are subject to reporting
and justifying task outcomes to those higher in the chain of command. Accountability
brings authority and responsibility together. The principle of delegation allows managers
to transfer authority and responsibility to those lower in the organizational hierarchy.
Delegation should increase an organization's flexibility by allowing people "on the spot"
to make decisions.
Level: 3
2.
Page: 352-353
Briefly explain the concept of line and staff departments and authority.
ANSWER:
Line departments perform tasks that reflect the organization's primary task and mission.
Staff departments include all those departments that provide specialized skills in support
of line departments. In a typical production firm, line departments make and sell the
product, while staff departments might include accounting and human resource
management. Line authority means that people in management positions have the formal
power to direct immediate subordinates. Staff authority is the right to advise,
recommend, and counsel in the staff specialist's area of expertise.
Level: 2
3.
Page: 353
List the factors that are associated with less supervisor involvement and thus larger spans
of control.
ANSWER:
(1) Work performed by subordinates is stable and routine. (2) Subordinates perform similar
work tasks. (3) Subordinates are concentrated in a single location. (4) Subordinates are
highly trained and need little direction in performing tasks. (5) Rules and procedures
defining task activities are available. (6) Support systems and personnel are available for
the manager. (7) Little time is required in nonsupervisory activities such as coordination
with other departments or planning. (8) Managers’ personal preferences and styles favor a
large span.
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Level: 2
4.
Page: 353-355
Define span of management and explain if there is an ideal span of management.
ANSWER:
The span of management, or span of control, is the number of employees who report
directly to one supervisor. There is not an ideal span of management. The number
depends upon several characteristics of the situation including the nature of the work
done by the subordinates, the locations where the work is done, the training and education
of the workers, the level of definition of the task, the time available to the manager, and
the manager's personal preferences and style.
Level: 2
5.
Page: 353-355
Identify the three factors that typically influence centralization versus decentralization.
ANSWER:
(1) Greater change and uncertainty in the environment are usually associated with
decentralization. (2) The amount of centralization or decentralization should fit in the
firm’s strategy. (3) In times of crisis of company failure, authority may be centralized at the
top.
Level: 2
6.
Page: 355-356
What is the horizontal matrix approach to departmentalization and what are its main
advantages?
ANSWER:
A horizontal matrix structure utilizes functional and divisional chains of command
simultaneously in the same part of the organization. This structure has dual lines of
authority and purposely violates the principle of unity of command. Major advantages
include: (1) more efficient use of human resources because specialists can be transferred
from one division to another; (2) increased adaptability; (3) increased management skills;
(4) greater interdisciplinary cooperation; and (5) enlarged tasks for employees.
Level: 2
7.
Page: 360-362; 366
What is(are) the difference(s) between cross-functional and permanent teams?
ANSWER:
Cross-functional teams consist of employees from various functional departments who
are responsible to meet as team and resolve mutual problems. Team members typically
still report to their functional departments, but they also report to the team, one member
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of whom may be the leader. Permanent teams are groups of employees who are brought
together similar to a formal department. Each team brings together employees from all
functional areas focused on a specific task or project. Emphasis is on horizontal
communication and information sharing because representatives from all functions are
coordinating their work and skills to complete a specific organizational task.
Level: 2
8.
Page: 363
What is the team approach to departmentalization and what are its main disadvantages?
ANSWER:
There are at least two different types of teams. Cross-functional teams consist of
employees from various functional departments who are responsible to meet as team and
resolve mutual problems. While team members still report to their functional manager,
they will also report to the team, perhaps to a team leader. Permanent teams consist of
groups of employees who are brought together as a formal department. Similar to a
divisional structure, although much smaller in the number of employees involved,
permanent teams are often the result of reengineering. Disadvantages of the team
structure include dual loyalties and conflict, the time and resources spent on meetings,
and unintended/ineffective decentralization, which may occur because team members do
not have the conceptual skills to be effective.
Level: 2
9.
Page: 363; 366
Define task forces and project management.
ANSWER:
A task force is a temporary team or committee designed to solve a short-term problem
involving several department A project manager is a person who is responsible for
coordinating the activities of several departments for the completion of a specific project.
Level: 1
10.
Pages: 370-371
Describe reengineering and what it involves.
ANSWER:
Reengineering, sometimes called business process reengineering, is the radical redesign
of business processes to achieve dramatic improvements in cost, quality, service, and
speed. Reengineering involves a shift to a horizontal structure based on teams. Basically,
it means starting over, throwing out all the notions of how work was done and deciding
on how it can best be done now.
Level: 2
Pages: 372
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11.
An uncertain environment causes three things to happen in an organization. What are
they?
ANSWER:
The three organizational results of environmental uncertainty are (1) increased differences
occurring among departments, (2) the organization needs increased coordination to keep
departments working together, and (3) the organization must adapt to change.
Level: 2
12.
Page: 375-376
Name and briefly describe Woodward's three categories for production firms, based upon
their production technology.
ANSWER:
The first category is small batch and unit production, producing goods in batches of one
or a few products designed to customer specifications. It often uses traditional skilled
craftwork. The second category is large batch and mass production, producing a large
volume of products with the same specifications. It often uses assembly lines. The third
group is continuous process production, involving mechanization of the entire work flow
and non-stop production.
Level: 3
Page: 378
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