Professional Documents
Culture Documents
Fom5 Tif05
Fom5 Tif05
An organic organization is one that is highly structured, has many layers and levels of
management and a narrow span of control.
(False; Moderate; p. 172)
10.
A matrix organizational structure fits best with an organization that uses a focused
differentiation strategy.
(False; Challenging; pp. 171-172)
12.
14.
Role conflicts are likely to result from the way that reporting relationships are
organized in a matrix structure.
(True; Moderate; p. 177)
16.
A marketing organization that is structured by customer would break down its territory
into northern, southern, eastern and western regions.
(False; Moderate; p. 170)
17.
Because they report to more than one supervisor, employees in a matrix organization
can experience role confusion and power struggles.
(True; Moderate; p. 178)
22.
An organization with a narrower span of control will have fewer managers and more
direct reports per manager than an organization with a wider span of control.
(False; Moderate; p. 163)
23.
Operational efficiencies can be achieved by reducing the number of layers and levels
of management and increasing the span of control.
(True; Moderate; p. 168)
26.
Organization design decisions are typically made by mid-level managers.
(False; Moderate; p. 160)
123
27.
There is a point at which the diseconomies from division of labor exceed the economic
advantage.
(True; Moderate; p. 1461)
28.
Many organizations are increasing their span of control.
(True; Moderate; p. 163)
29.
Responsibility refers to the rights inherent in a managerial position to give orders and
expect the orders to be obeyed.
(False; Moderate; p. 163)
31.
Authority is related to one's position and has nothing to do with the individual.
(True; Moderate; p. 163)
32.
No one should be held responsible for something over which he or she has no
authority.
(True; Easy; p. 163)
33.
The terms authority and power are frequently confused. Authority is a right based on
the legitimacy of the persons position in the organization. Power is the persons
capacity to influence decisions.
(True; Moderate; p. 166)
36.
Power is defined by one's vertical position and one's distance from the organization's
center.
(True; Moderate; p. 166)
37.
Legitimate power is based on the ability to distribute something that others value.
(False; Challenging; p. 168; Ex. 55)
38.
124
39.
The particular type of customer the organization seeks to reach can also dictate
employee grouping. The typical types of departmentalizations are customer,
geographic, and divisional.
(False; Challenging; pp. 169-170)
40.
An organic structure has many rules with rigid hierarchical relationships and a tall
structure.
(False; Moderate; p. 172; Ex. 57)
41.
Rather than having standardized jobs and regulations, the organic organization's loose
structure allows it to change rapidly as needs require.
(True; Challenging; p. 172)
42.
Organization structure should always precede organization strategy.
(False; Moderate; p. 173)
43.
An organization with employees over 2,000 in number will typically have a very organic
organizational structure.
(False; Moderate; p. 173)
45.
Joan Woodward found that organizational effectiveness was related to the "fit"
between technology and structure.
(True; Moderate; p. 174)
46.
Environment is a major influence on structure.
(True; Easy; p. 174)
47.
The simple structure is most widely used in small businesses where the owner and
manager are the same person.
(True; Moderate; p. 175)
48.
The strength of the functional structure lies in the advantages that accrue from work
specialization.
(True; Moderate; p. 177)
49.
The chief advantage of the divisional structure is that it focuses on results.
(True; Moderate; p. 177)
50.
The unique characteristic of the matrix structure is that employees have only one boss.
(False; Moderate; p. 177)
51.
53.
Jeff Raleigh owns New World Enterprises. His organization is considered a learning
organization because the leaders and employees have developed the capacity to
continuously adapt and change; all members take an active role in identifying and
resolving work-related issues.
(True; Challenging; pp. 179181)
54.
An organization's culture can actually substitute for the rules and regulations that
formally guide employees.
(True; Moderate; p. 182)
________ is the formal right to give orders, make decisions, and see that tasks are
completed.
a. Centralization
b. Authority
c. Responsibility
d. Decentralization
(b; Easy; p. 163)
58.
A _____ span of control is associated with many levels of management, which gives
rise to a _____ organizational structure.
a. wide; tall
b. wide; flat
c. narrow; tall
d. narrow; flat
(c; Moderate; p. 163)
126
61.
Narrow spans of control lead to a _____ organizational structure, whereas wider spans
of control lead to a _____ organizational structure.
a. flat; tall
b. homogenous; diverse
c. short; tall
d. tall; short
(d; Challenging; p. 163)
62.
________ refers to the concentration of decision authority at the top levels of the
organizational hierarchy.
a. Departmentalization
b. Centralization
c. Formalization
d. Decentralization
(b; Moderate; p. 168)
63.
__________ is the form of departmentalization that groups similar jobs and activities
into departments.
a. A product structure
b. A divisional structure
c. A matrix structure
d. A functional structure
(d; Moderate; p. 176)
127
67.
128
73.
A __________ groups together people who have similar skills and who perform similar
tasks.
a. divisional structure
b. functional structure
c. matrix structure
d. integrated structure
(b; Easy; p. 176)
74.
A(n) _________ groups together people who work on the same product or processes,
serve similar customers, and/or work in the same area or geographic region.
a. divisional structure.
b. informal structure.
c. matrix structure.
d. functional structure.
(d; Moderate; p. 169)
76.
A(n) __________ structure involves creating work units based on product, process,
customer, or geographic territory.
a. functional
b. divisional
c. organic
d. mechanistic
(d; Moderate; p. 169)
77.
__________ structures group together jobs and activities that are performed in the
same region or location.
a. Product
b. Market
c. Geographic
d. Customer
(c; Easy; p. 170)
78.
129
79.
In a consulting firm, the consultants have _____ authority since their work directly
contributes to the bottom line, whereas consultants in a manufacturing firm have
_____ authority because they are used in an advisory capacity.
a. planning; line
b. organizing; staff
c. line; staff
d. controlling; line
(c; Moderate; p. 164)
80.
__________ is the ability to influence the behavior of other people because of one's
capacity to offer rewards, or other desirable outcomes.
a. Legitimate power
b. Expert power
c. Coercive power
d. Reward power
(d; Easy p. 168; Ex. 5-5)
83.
What type of power does a manager exercise when he or she offers pay raises,
bonuses, special assignments, or incentives to subordinates?
a. Legitimate power
b. Reward power
c. Coercive power
d. Expert power
(b; Easy; p. 168; Ex. 5-5)
84.
Which of the following is NOT likely to result from increasing the number of levels and
layers of management in an organization?
a. Overhead costs increase.
b. Decision making can be slowed greatly.
c. Direct contact with the client or customer may be lost.
d. The organization gains additional competitive advantage.
(d; Moderate; p. 163)
130
85.
The wider the span of control, the more the organization will tend to __________.
a. have many levels of management
b. be more costly than organizations with narrower spans of control
c. have flat structures
d. have tall structures
(c; Moderate; p. 163)
87.
The process of _____ involves making decisions about how specialized jobs should be
allocated, the rules to guide employees behaviors, and at what level decisions are to
be made.
a. planning
b. organizing
c. controlling
d. organization design
(d; Moderate; p. 160)
131
91.
A component of organization structure that involves having each discrete step of a job
done by a different individual rather than having one individual do the whole job is
known as
a. work specialization.
b. chain of command.
c. span of control.
d. departmentalization.
(a; Easy; p. 161)
93.
Which of the elements of structure includes making efficient use of workers' diverse
skills?
a. work specialization
b. authority
c. chain of command
d. departmentalization
(a; Moderate; p. 161)
94.
When five differing workers each do one specific job preparing a Big Mac at
McDonald's, they are engaging in
a. work specialization.
b. chain of command.
c. span of control.
d. departmentalization.
(a; Moderate; p. 161)
95.
Which of the following is not a result of work that has become too specialized?
a. fatigue
b. low productivity
c. poor quality
d. lower turnover
(d; Moderate; p. 161)
96.
Terri must constantly report to the department chair as well as her immediate
supervisor. Which of the following is being violated?
a. work specialization
b. chain of command
c. span of control
d. departmentalization
(b; Easy; p. 162)
132
97.
The number of employees a manager can direct efficiently and effectively is known as
which of the following?
a. work specialization
b. chain of command
c. span of control
d. departmentalization
(c; Easy; p. 163)
98.
Which of the following is not a contingency variable that determines the appropriate
span of control for managers?
a. employee training
b. task complexity
c. management style preferences
d. expenses
(d; Moderate; p. 163)
100.
The rights inherent in a managerial position to give orders and expect them to be
obeyed is known as
a. responsibility.
b. span of control.
c. authority.
d. accountability.
(c; Moderate; p. 163)
101.
Jack has just been promoted to line manager for the assembling plant. Since Jack is
now a manager, which of the following automatically also goes with the title of
manager?
a. respect
b. span of control
c. authority
d. acceptance by the employees
(c; Moderate; p. 163)
102.
133
103.
134
109.
French and Raven identified five sources, or bases, of power. Which of the following is
not included?
a. influence
b. coercive
c. referent
d. expert
(a; Moderate; p. 168; Ex. 5-5)
110.
Power based upon identification with a person who has desirable resources or
personal traits is known as
a. coercive power.
b. legitimate power.
c. expert power.
d. referent power.
(d; Moderate; p. 168; Ex. 55)
113.
Jim has the ability to "dock" paychecks of employees who arrive at work past 9:05 AM.
What kind of power does Jim possess?
a. coercive power
b. legitimate power
c. expert power
d. referent power
(a; Moderate; p. 168; Ex. 55)
114.
Harry is the only person who fully understands the new computer network in the office
area. Whenever someone has questions, he goes to Harry. Harry has _____ power.
a. coercive
b. reward
c. expert
d. referent
(c; Moderate; p. 168; Ex. 55)
135
115.
An office supply firm that has three departments based upon retail, wholesale, and
governmental customers is using which of the following types of departmentalization?
a. functional
b. product
c. customer
d. geographic
(c; Moderate; p. 170)
120.
An organization that has four sales regions, North, Midwest, South, and Southwest is
using _____ departmentalization.
a. functional
b. product
c. customer
d. geographic
(d; Moderate; p. 170)
136
121.
Which of the following is not a contingency variable that affects the appropriate
structure for an organization?
a. strategy
b. size
c. technology
d. sales
(d; Moderate; p. 171)
124.
Julie's organization has a very formal structure with strict lines of communication
where there are many rules and duties are fixed. This is an example of which of the
following?
a. strategic organization
b. mechanistic organization
c. organic organization
d. advocacy
(b; Moderate; p.172; Ex. 57)
126.
137
127.
Which of the following structures is loose and flexible allowing it to change rapidly as
the need arises?
a. strategic organization
b. mechanistic organization
c. organic organization
d. bureaucracy
(c; Moderate; p. 172)
128.
Joan Woodward found that the effectiveness of organizations was related to "fit"
between _____ and structure.
a. personality
b. technology
c. corporate culture
d. product life cycle
(b; Moderate; p. 174)
138
133.
An organization that uses technology which is nonroutine, will probably find which
structure to be most effective?
a. strategic organization
b. mechanistic organization
c. organic organization
d. bureaucracy
(c; Moderate; p. 174)
134.
The simple structure form of organization is fast, flexible, and inexpensive to maintain,
and accountability is clear. It is effective in _____ organizations.
a. mechanistic
b. organic
c. small corporation
d. small
(d; Moderate; p. 175)
137.
Two of the most popular bureaucratic design options grew out of the function and
product departmentalizations. They are called _____ structures.
a. functional and geographic
b. divisional and geographic
c. product and functional
d. functional and divisional
(d; Challenging; pp. 175-176)
138.
139
139.
140
146.
In a team-based structure, _____ make(s) the decisions that affect the team.
a. top management
b. middle management
c. first-line management
d. team members
(d; Moderate; p. 178)
147.
The system or patterns or values, symbols, rituals, myths, and practices that have
evolved over time are an organization's
a. control factors.
b. culture.
c. history.
d. characteristics.
(b; Easy; p. 181)
150.
Managers need fewer formal rules and regulations in an organization with which of the
following?
a. weak culture
b. strong culture
c. tall structure
d. culture never impacts structure
(b; Challenging; p. 182)
141
Scenario-Based Questions
Application of Bases of Power
Jerri is confused. She thought that once she had the title of manager, everyone would
listen to her and accept her authority and power. However, she has noticed other
employees that seem to have power. Whenever someone has a question about the
computer system, they always go to Helen who actually established the current system
they are using. Usually Helen can get things up and running quicker than going to the
support staff for help. Then there is Joe who has a remarkable amount of charm and
charisma. He seems to have a power based simply upon him. Then there is Jill, her
secretary, who has a power entirely of her own. Jill turns in the timecards weekly, and
Jerri has seen her more than once override the time clock and clock somebody in
earlier than they actually arrived or clock out for them when the employee left work
early. When Jerri questioned her about it, Jill just laughed and said that they had been
doing it for years and the time all averaged out. The company allowed no overtime so
any extra time spent after work was not compensated. Jerri sometimes wonders if she
has any power at all.
152.
Helen has the ability to influence her coworkers to work harder because she has very
strong problem-solving skills. Helen possesses ___________.
A) legitimate power
B) expert power
C) coercive power
D) referent power
(b; Moderate; p. 146; Ex. 5-5)
154.
Jerris boss, Ralph, is the vice president of information systems for the company. He
has the ability to influence the behavior of other people because they identify with him;
he demonstrates a sense of fairness and a strong commitment to the companys
mission. He has
A) legitimate power.
B) expert power.
C) coercive power.
D) referent power.
(d; Moderate; p. 1468; Ex. 55)
142
155.
143
162.
Application of Departmentalization
John is aware that the structure of his organization must change in order to compete
more effectively in today's global market. However, he is not sure which structure
would work best for his company. His company is currently organized around an
accounting, human resource, sales, purchasing, and manufacturing departments.
However, there are other choices available. He has considered reorganizing around
their primary products, which are frames, silk flowers, dried flowers, art supplies, craft
supplies, and material. However, equally important are the differing clientele they
serve, who are homemakers that do arts/crafts, interior decorators, large institutions,
and professional consultants. Since the business is growing, they now have stores
across the United States primarily in the Northwest, Midwest, South, and Southwest
areas. Plus, his customers seldom shop for just one type of item. Frequently they
purchase not only the flowers, but also the vases and other supplies that are needed in
order to complete the arrangement, which means oftentimes shopping in most of the
areas in the store.
163.
What is one of the most popular ways to group activities/departmentalize that John
could model after?
a. functional
b. product
c. customer
d. geographic
(a; Easy; p. 176)
164.
Which of the following structures would be used if the grouping were done by frames,
silk flowers, dried flowers, art supplies, craft supplies, and material?
a. functional departmentalization
b. product departmentalization
c. customer departmentalization
d. geographic departmentalization
(b; Moderate; p. 170)
144
166.
Which of the following structures would be used if the grouping of activities were
centered on homemakers, interior decorators, institutions, and consultants?
a. functional departmentalization
b. product departmentalization
c. customer departmentalization
d. geographic departmentalization
(c; Moderate; p. 170)
167.
Which of the following departmental structures would be used if the grouping were
based on the areas served in the United States?
a. functional departmentalization
b. product departmentalization
c. customer departmentalization
d. geographic departmentalization
(d; Moderate; p. 1570)
168.
Which of the following departmental structures would be used if the grouping were
based on work or customer flow?
a. functional departmentalization
b. process departmentalization
c. customer departmentalization
d. geographic departmentalization
(b; Moderate; p. 170)
145
170.
Mr. Johnson's company probably needs to change from a(n) _________ structure to a
_____________ structure.
a. mechanistic; organic
b. organic; mechanistic
c. organic; matrix
d. mechanistic; bureaucracy
(a; Challenging; pp. 171172)
172.
The large size of the company and the use of routine technology are indicators that
which type of structure would be most effective?
a. strategic organization
b. mechanistic organization
c. organic organization
d. matrix
(b; Challenging; pp. 171-172)
173.
Which of the following contingency variables had the biggest impact on the need for
changes in Mr. Johnson's organization?
a. size
b. technology
c. environment
d. management
(c; Challenging; p. 172)
Name and briefly describe the difference between centralization and decentralization
146
175.
Describe the two types of basic organization design (mechanistic and organic forms).
The mechanistic organization (or bureaucracy) was the natural result of combining the six
elements of structure. The chain-of-command principle ensured the existence of a formal
hierarchy of authority. By keeping the span of control small, this created tall, impersonal
structures. There is a high degree of work specialization creating simple, routine, and
standardized jobs.
The organic form is a highly adaptive form that is a direct contrast to the mechanistic one. The
organic organizations loose structure allows it to change rapidly as needs require. In this type
of organization, employees tend to be professionals who are technically proficient and trained
to handle diverse problems. They need very few formal rules and little direct supervision. The
organic organization tends to be decentralized. A mechanistic or bureaucratic design
emphasizes vertical control with rigid hierarchical relationships, top down control and
communication, centralized authority, highly formalized work rules and policies, and
specialized, narrowly defined jobs. An organic organization design focuses on change and
flexibility by emphasizing horizontal relationships involving teams, departments or divisions,
and provisions to coordinate those lateral units.
(Moderate; pp. 171-172)
176.
The matrix structure combines the advantages of functional specialization with the focus and
accountability that product departmentalization provides. See Exhibit 5-10, which illustrates
the matrix structure of an aerospace firm.
1. The unique characteristic of the matrix is that employees in this structure have at
least two bosses: their functional departmental manager and their product or
project managers. Project managers have authority over the functional members
who are part of that managers team.
2. Authority is shared between the two managers. Typically, the project manager is
given authority over project employees relative to the projects goals. Decisions
such as promotions, salary recommendations, and annual reviews remain the
functional managers responsibility.
3. To work effectively, project and functional managers must communicate and
coordinate.
4. The primary strength of the matrix is that it can facilitate coordination of a multiple
set of complex and interdependent projects while still retaining the economies that
result from keeping functional specialists grouped together.
5. The major disadvantages of the matrix are in the confusion it creates and its
propensity to foster power struggles.
(Moderate; pp. 177-178)
147
177.
Line authority entitles a manager to direct the work of an employee. Staff authority functions to
support, assist, advise, and generally reduce some of the informational burdens of those with
line authority.
(Moderate; pp. 163-165)
179.
Authority comes from the position, not the person. Power is the ability of an individual to
influence decisions, which may not be reflected in their level of authority. French and Raven
suggested five bases of power: reward, coercive, legitimate, referent, and expert.
(Moderate; pp. 163-166)
180.
Functional
Product
Customer
Geographic
Process
(Easy; p. 169; Ex. 56)
181.
Culture is basically the personality of the organization and includes all values, symbols, rituals,
myths, and practices that have evolved over time. Strong culture can preclude the necessity of
many rules and regulations.
(Moderate; p. 181)
148
Briefly describe the advantages and disadvantages of the functional, divisional and
matrix types of organizational structures. When would you use one over the other?
(Moderate; pp. 176178)
The functional structure offers the advantages that accrue from specialization. The divisional
structure has a greater focus on results but suffers from duplication of activities and
resources. The matrix structure combines the advantages of functional specialization with the
focus and accountability that product departmentalization provides.
185.
Advantageseconomies of scale; skills developed through repetition; pay workers for level of
skill; and training is easier and less expensive.
Disadvantagescan result in human diseconomies, which lead to fatigue, stress, boredom,
low productivity, higher turnover, and increased absences.
(Moderate; pp. 161-162)
186.
149
187.
Briefly explain the three distinct technologies found in Joan Woodwards studies. What
conclusions did she reach?
Unit production describes the production of items in units or small batches. Mass production
describes large batch manufacturing. Process production is the most technically complex
group and included continuous-process production. She concluded that the process or
methods that transform an organizations inputs into outputs differ by their degree of
routineness. The more routine the technology, the more standardized and mechanistic the
structure can be. Organizations with more nonroutine technology are more likely to have
organic structures.
(Challenging; p. 174)
188.
What is a matrix structure? What is its primary strength? What are its major
disadvantages?
Comprehensive Essays
189.
A mechanistic structure would have rigid hierarchical relationships, fixed duties, many rules,
formalized communication channels, centralized decision authority, and taller structures.
While an organically structured firm would be less hierarchical, more collaborative (both
vertical and horizontal), adaptable duties, few rules, information communication, decentralized
decision authority, and a fewer layers and levels of management. The mechanistic structure
would be least effective except perhaps in the production department where the actual
products are packaged. The organic and decentralized forms would be more effective
because these structures facilitate greater collaboration, low formalization, informal
communication, decentralization, flexible jobs, and teamwork.
(Moderate; p. 172; Ex. 57)
190.
150
191.
Describe the impact that strategy, size, technology, and environment have on
structure.
Strategy should precede structure. Structure must agree with the strategy chosen. The larger
the size of the organization, the more formal the structure. Nonroutine technology needs a
more organic structure in order to be most effective. Global, dynamic, ever-changing
environment requires a more organic structure in order for organizations to retain their
competitive advantage. Culture comes from the company founders and is relatively stable.
(Challenging; pp. 172-174)
192.
Globalization of markets and competitors has played a major role. Changes in technology
have also contributed to this movement, such as advances in computer power, intelligent
software, and telecommunications. Each of these supports e-commerce and the information
network that makes the virtual workplace possible. Boundaryless organizations attempt to
support the trend of eliminating vertical, horizontal, and inter-organizational barriers.
(Moderate; p. 179)
151