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Chapter 08
Test Bank
True / False Questions

1. Productivity expert Odette Pollar recommends that managers delegate (1) emergencies and (2) confidential matters, and (3) personnel-related
matters.
FALSE

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Delegation

Feedback: Odette Pollar recommends that managers should not delegate an emergency, which is a crisis for which there is little time for solution.
Managers should also not delegate tasks that are confidential or that involve the evaluation, discipline, or counseling of subordinates.

2. An organizational structure is a set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks
about, and reacts to its environments.
FALSE

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-01 Describe how managers align vision and strategies with the organization's culture and structure.
Topic: Organizational Culture

Feedback: A set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its
environments is its organizational culture or corporate culture. Organizational structure is a formal system of task and reporting relationships that
coordinate and motivates an organization's members so that they can work together to achieve the organization's goals.

3. A company's organizational structure is its formal and informal marketing systems of goods, services, ideas, and customer relationships.
FALSE

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-01 Describe how managers align vision and strategies with the organization's culture and structure.
Topic: Organizational Structure

Feedback: Organizational structure is a formal system of task and reporting relationships that coordinate and motivate an organization's members so
that they can work together to achieve the organization's goals.

4. A company with a market culture has a strong internal focus, and it concentrates on developing the business and marketing plans, as well as helping
employees market their product(s).
FALSE

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Market Culture

Feedback: A market culture has a strong external focus and values stability and control. Because market cultures are focused on the external
environment and driven by competition and a strong desire to deliver results, customers, productivity, and profits take precedence over employee
development and satisfaction.

5. Dave, a graphic designer with Development Advertising, enjoys working for the company because of the flexibility of its management and its culture,
which encourages risk taking, innovation, and creativity. Dave gets quick answers from his boss, which allows him and Development Advertising to
quickly respond to changes in the marketplace. Development Advertising is an example of an adhocracy culture.
TRUE

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply

8-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Difficulty: 3 Hard
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Adhocracy Culture

Feedback: An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products by being
adaptable, creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of
getting things done.

6. Thrifty Bank has an external focus, concentrating on strategic planning, risk taking, and flexibility over stability. Thrifty Bank has a hierarchy
culture.
FALSE

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Adhocracy Culture
Topic: Hierarchy Culture

Feedback: Hierarchy culture has an internal focus and values stability and control over flexibility. Companies with this kind of culture are apt to have a
formalized, structured work environment aimed at achieving effectiveness through a variety of control mechanisms that measure efficiency, timeliness,
and reliability in the creation and delivery of products. Thrifty bank has an adhocracy culture, which has an external focus and values creativity.

7. Changing organizational culture is essentially a teaching process, a process in which members instruct each other about the organization's preferred
values, beliefs, expectations, and behaviors.
TRUE

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-03 Describe the process of culture change in an organization.
Topic: Organizational Culture Change

Feedback: Changing organizational culture is essentially a teaching process—that is, a process in which members instruct each other about the
organization's preferred values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12
mechanisms: formal statements; slogans and sayings; rites and rituals; stories, legends, and myths; leader reactions to crises; role modeling, training,
and coaching; physical design; rewards, titles, promotions, and bonuses; organizational goals and performance criteria; measurable and controllable
activities; organizational structure; and organizational systems and procedures.

8. The AFL-CIO is an example of a for-profit organization, and the March of Dimes is an example of a nonprofit organization.
FALSE

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.
Topic: Organizational Structure

Feedback: Mutual-benefit organizations (such as the AFL-CIO) are voluntary collectives whose purpose is to advance members' interests (examples:
unions, trade associations). Nonprofit organizations (such as the March of Dimes) are formed to offer services to some clients, not to make a profit
(examples: hospitals, colleges). For-profit organizations are formed to make money, or profits, by offering products or services (examples: Microsoft,
Dell Computer, Delta Airlines).

9. When Angela, a new nurse was hired at Mercy Hospital, the HR manager gave her a handout containing a chart that showed a family-tree-like pattern
of boxes and lines. This document, which shows the formal lines of authority and the organization's official positions and work specializations, at the
hospital is called an organization chart.
TRUE

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.
Topic: Organizational Structure

Feedback: An organization chart is a box-and-lines illustration showing the formal lines of authority and the organization's official positions or work
specializations. This is the family-treelike pattern of boxes and lines posted on workplace walls and given to new hires (see Figure 8.4).

10. The arrangement of having discrete parts of a task done by different people is known as division of labor.
8-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
TRUE

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Organizational Structure

Feedback: The arrangement of having discrete parts of a task done by different people is known as division of labor.

11. Tom's Hardware has a simple organizational structure. There are no levels of middle management, because all employees report to the owner, Tom,
or to his assistant managers. Tom's Hardware has a thin organizational structure.

FALSE

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Hierarchy of Authority

Feedback: An organization is said to be flat when there are only a few levels with wide spans of control. Like other flat organizations, Tom's Hardware
has an organizational structure with few or no levels of middle management between top managers and those reporting to them.

12. Two advantages of decentralization are that (1) managers are encouraged to solve their own problems, and (2) decisions are made more quickly,
increasing the organization's flexibility and efficiency.
TRUE

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Decentralized Authority

Feedback: An advantage of decentralized authority is that managers are encouraged to solve their own problems rather than to buck the decision to a
higher level. In addition, decisions are made more quickly, which increases the organization's flexibility and efficiency.

13. Fine Oil uses an organizational structure that includes both functional divisions (such as marketing and HR) and a divisional chain of command
(such as the chemical and petroleum products divisions). For example, Glen, a salesperson for Fine Oil, reports to both the marketing manager and the
petroleum products manager as he starts to develop the Shell Oil account. Fine Oil uses a matrix structure.
TRUE

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-06 Describe the seven organizational structures.
Topic: Divisional Structure

Feedback: In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command
structures: vertical and horizontal. Thus, a marketing person might report to both the vice president of marketing and to the project manager.

14. While figuring out how to save money for a bride who is having financial problems, Paula, the catering manager of Oh Happy Day, asked her
assistant, "What do you think is the best menu to offer under these particular circumstances? How can we offer the bride and groom's guests a great meal
within their budget?" Paula and her assistant are using the contingency approach.
TRUE

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-07 Identify the factors that affect the design of an organization's structure.
Topic: Contingency Design

Feedback: The process of fitting the organization to its environment is called contingency design. The manager following the contingency approach
simply asks, "What method is the best to use under these particular circumstances?"

15. Lena works as an order-taker at Fast Burger, a fast-food restaurant. She does not cook food, or even package the final order, but she does input the
order and takes payment. Lena reports directly to the shift manager, and she seldom interacts with the general manager. Fast Burger is an example of a

8-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mechanistic organization.
TRUE

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-07 Identify the factors that affect the design of an organization's structure.
Topic: Mechanistic Organization

Feedback: In a mechanistic organization, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.
Mechanistic organizations, then, are bureaucratic, with rigid rules and top-down communication. Fast Burger is a mechanistic organization.

16. Routine tasks and paperwork, as well as jobs that help your subordinates grow, are
A. tasks that a manager should not delegate, according to Odette Pollar.
B. tasks that should be delegated, according to Maslow.
C. tasks that a manager should delegate, according to Odette Pollar.
D. tasks that should not be delegated, according to Maslow.
E. tasks that a manager should never delegate, according to Frank Gilbreth.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Delegation

Feedback: Productivity expert Odette Pollar recommends that you delegate tasks that help your subordinates grow, as well as routine tasks and
paperwork. Let your employees solve their own problems whenever possible. Let them try new things so they will grow in their jobs.

17. "To do more in a day, ____," according to productivity expert Odette Pollar.
A. do not delegate, but be more focused
B. you must do more—not do everything faster
C. you must do more—not do everything slower
D. hire more employees
E. you must do less—not do everything faster

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Delegation

Feedback: According to productivity expert Odette Pollar, "To do more in a day, you must do less—not do everything faster."

18. Adam, the owner of Adam's Roofing, was talking to a visitor in his office, telling her that "We are a fun-loving group that believes in teamwork and
a family atmosphere at work, which significantly affects our work outcomes. Plus, we do things together outside of work. This is the 'social glue' that
binds the members of our company together." Adam was referring to his company's

A. mission statement.
B. organizational culture.
C. code of ethics.
D. diversity plan.
E. analytics.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-01 Describe how managers align vision and strategies with the organization's culture and structure.
Topic: Organizational Culture

Feedback: Organizational culture, or corporate culture, is the set of shared, taken-for-granted implicit assumptions that a group holds and that
determines how it perceives, thinks about, and reacts to its various environments. Corporate culture is the "social glue" that binds members of the
organization together. Just as a human being has a personality—such as fun-loving, warm, uptight, competitive—so an organization has a "personality."
And that is culture.

19. Jean-Paul, the store manager at an H&M outlet, was speaking with Patty, his new assistant manager, about the store's system of job relationships; he
also explained whom she will report to and who will report to her. Jean-Paul said, "This structure is one of the things that motivates our employees to
work together to achieve our company's goals." Jean-Paul was telling Patty about the store's
8-4
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
A. organizational structure.
B. organizational culture.
C. code of ethics.
D. diversity plan.
E. values statement.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-01 Describe how managers align vision and strategies with the organization's culture and structure.
Topic: Organizational Structure

Feedback: Organizational structure is a formal system of task and reporting relationships that coordinates and motivates an organization's members so
that they can work together to achieve the organization's goals.

20. According to the competing values framework, the four types of ______ are clan, adhocracy, market, and hierarchy.
A. organizational values
B. industry cultural standards
C. organizational norms
D. value statements
E. organizational cultures

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Organizational Culture

Feedback: According to the competing values framework, organizational cultures can be classified into four types: (1) clan, (2) adhocracy, (3) market,
and (4) hierarchy (see Figure 8.2).

21. Insurance company Acuity has a clan culture; employees have generous perks and are empowered to participate in a way in the company that is fun.
The end results are profitability and an enviably low 2% turnover rate. A clan culture has a(n)
A. internal focus and values flexibility.
B. strong external focus and values stability and control.
C. external focus and values flexibility.
D. internal focus and values stability and control.
E. continual focus on efficiency, cost cutting, and outsourcing.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Clan Culture

Feedback: A clan culture has an internal focus and values flexibility rather than stability and control.

22. Online retailer Amazon relies heavily on a hierarchy culture to manage its vast and complex shipping processes. ___________ are part of Amazon's
hierarchy culture.
A. An internal focus and values stability and control
B. A strong external focus and values stability and control
C. An external focus and values flexibility
D. An internal focus and values innovation and creativity
E. A continual focus on efficiency, cost cutting, and outsourcing

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Hierarchy Culture

Feedback: A hierarchy culture has an internal focus and values stability and control over flexibility.

23. Juan, the owner of Quality Catering, is driven by competition. He is very focused on meeting deadlines and quality, and on delivering the results that
customers want. He pushes his managers to continually exceed their productivity goals, and he stresses that profits take precedence over employee
development and satisfaction. Juan feels "there is not enough time for training." However, his employees are regularly rewarded for their success in
meeting company goals. Quality Catering has a(n) ____ culture.
8-5
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
A. clan
B. target-driven
C. adhocracy
D. market
E. hierarchy

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Market Culture

Feedback: A market culture has a strong external focus and values stability and control. Uber has a "champions mind-set." The company uses an
approach called "principled competition" to establish itself in new markets, developing a base of enthusiastic new riders and drivers and using that
grassroots support to fend off opposition.

24. Employees and customers are treated like a family at Bayou Seafood Café. Paul and Betsey, the owners, work to encourage unity to increase their
employees' job satisfaction and commitment. At their café, Paul and Betsey have built a(n)
A. market culture.
B. goal-driven agenda.
C. bureaucracy culture.
D. clan culture.
E. adhocracy culture.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Clan Culture

Feedback: A clan culture has an internal focus and values flexibility rather than stability and control. Like a family-type organization, it encourages
collaboration among employees, striving to encourage cohesion through consensus and job satisfaction and to increase commitment through employee
involvement. Clan organizations devote considerable resources to hiring and developing their employees, and they view customers as partners.

25. Phillip, owner of Technology Sales, said, "We have to focus on our customers and how can we beat the competition, so we have to be flexible." He
encourages his R&D department to develop innovative products and focuses on being quick to respond to market changes. Technology Sales has a(n)
A. market culture.
B. goal-driven agenda.
C. adhocracy culture.
D. clan culture.
E. focused approach.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Adhocracy Culture

Feedback: An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products by being
adaptable, creative, and quick to respond to changes in the marketplace. Adhocracy cultures are well suited for start-up companies, those in industries
undergoing constant change, and those in mature industries that are in need of innovation to enhance growth.

26. Elly and Sylvia, owners of Gaia Organic Foods, do not have a formal policy about dress code and work procedures because they see their company
as a family place that is enjoyable to work for. Elly and Sylvia believe that if you treat employees like family, the company will do well and grow. _____
are the core beliefs that represent the core values of Gaia Organic Foods' culture.
A. A code of ethics
B. Basic assumptions
C. Espoused values
D. Rites and rituals
E. Observable artifacts

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Organizational Culture

8-6
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Feedback: Basic assumptions, which are not observable, represent the core values of an organization's culture. They are those that are taken for granted
and, as a result, are difficult to change.

27. _______ are the rituals and ceremonies of a company, as well as the manner of dress, awards, myths and stories told about a company.
A. Observable artifacts of organizational culture
B. Espoused values of organizational culture
C. Enacted values of organizational culture
D. Basic assumptions about organizational culture
E. Invisible artifacts of that industry's culture and values

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Organizational Culture

Feedback: At the most visible level, organizational culture is expressed in observable artifacts, which are physical manifestations such as manner of
dress, awards, myths and stories about the company, rituals and ceremonies, and decorations, as well as visible behavior exhibited by managers and
employees.

28. Espoused values are _____. For example, Hewlett-Packard stresses the "HP Way," a collegial, egalitarian culture that gave as much authority and
job security to employees as possible.
A. a narrative based on true events, which emphasize a particular value
B. physical manifestations of organizational culture
C. the values and norms actually exhibited in the community
D. explicitly stated values and norms preferred by an organization
E. profit and cost expectations stated in the business plan

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Organizational Culture

Feedback: Espoused values are the explicitly stated values and norms preferred by an organization, as may be put forth by the firm's founder or top
managers.

29. Symbols, stories, heroes, and rites and rituals are ways in which ____ is (are) most often transmitted to employees.
A. plans
B. goals
C. objectives
D. culture
E. ethics

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Organizational Culture

Feedback: Culture is transmitted to employees in several ways, most often through such devices as symbols, stories, heroes, and rites and rituals.

30. IKEA employees are inspired to work hard by an anecdote from their Swedish founder, Invar Kamprad, who told how he was berated by his father
for failing repeatedly to get out of bed to milk the cows on his family's farm. Then one day he got an alarm clock. "‘Now by jiminy, I'm going to start a
new life,' he determined, setting the alarm for twenty to six and removing the ‘off button.'" Invar Kamprad is an example of a(n)
A. trend.
B. fable.
C. hero.
D. urban legend.
E. key employee.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Organizational Culture
8-7
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Feedback: A hero is a person whose accomplishments embody the values of the organization. The accomplishments of heroes, past and present, are put
forth to motivate other employees to do the right thing.

31. Rites and rituals are ____. For example, employees of New Belgium Brewery in Fort Collins, Colorado, get a free brewery-hopping trip to Belgium
after being employed by the company for five years.
A. company values included in the code of ethics
B. the activities and ceremonies that celebrate important occasions and accomplishments in the organization's life
C. objects, acts, or the quality that conveys meaning to others
D. a narrative based on true events that emphasize a particular value
E. company expectations for employees, such as working hard, ethically, and honestly

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Organizational Culture

Feedback: Rites and rituals are the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the
organization's life.

32. Danilo has been working for Metropolitan Taxi for three months. He expected that his job would be to drive around the city, pick up fares, and drop
them off at their desired locations, but in his first few days on the job he realized that the job entails much more. He must keep his taxi cab clean and
neat, and some days he will be stationed at the shop and go to people's houses to pick them up and bring them to the local airport. Within a few months,
he has learned that taxi drivers often express frustration with the people they call "civilians"—that is, non–taxi drivers, whose driving skills they
complain about incessantly. In his first few months on the job, ________ describes what Danilo is undergoing.
A. a symbolic ritual
B. values training
C. hierarchical indoctrination
D. fit analysis
E. organizational socialization

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Organizational Culture

Feedback: Organizational socialization is the process by which employees learn the values, norms, and required behaviors that permit them to
participate as members of an organization. Converting from outsider into organizational insider may take weeks or even years.

33. Which of the following is an accurate conclusion based on a recent meta-analysis of more than 38,000 organizational units and 616,000 individuals?
A. An organization's culture does not matter.
B. An organization's financial performance (profit and revenue growth) is strongly related to organizational culture.
C. Employees have more positive work attitudes when working in organizations with clan cultures.
D. Quality and innovation are most closely related to hierarchical cultures.
E. Adhocracy cultures produce higher customer satisfaction and market share.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Organizational Culture

Feedback: A recent meta-analysis of organizations and individuals determined that (1) an organization's culture matters, (2) employees have more
positive work attitudes when working in organizations with clan cultures, (3) clan and market cultures are more likely to deliver higher customer
satisfaction and market share, (4) operational outcomes, quality, and innovation are more strongly related to clan, adhocracy, and market cultures than
to hierarchical cultures, and (5) an organization's financial performance (profit and revenue growth) is not strongly related to organizational culture.

34. Hewlett-Packard founders David Packard and William Hewlett created a close-knit organizational culture that gave a lot of responsibility to
employees and fostered innovation within the company. ______ are individual responsibility and the importance of innovation.
A. Espoused values
B. Focused values
C. Enacted values
D. Analytics
E. A diverse perspective

8-8
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Espoused Values

Feedback: Espoused values are the explicitly stated values and norms preferred by an organization, as may be put forth by the firm's founder or top
managers. Another example: CVS Health decided not to continue selling cigarettes because selling such an unhealthy product was heavily out of sync
with a company that was trying to sell itself as a health care giant.

35. Making formal statements, engaging in rites and rituals, utilizing employee training and coaching, demonstrating how a leader reacts to a crises,
being a role model, and giving rewards, promotions, and bonuses are some of the teaching methods that organizations can utilize to
A. write a strategic plan.
B. perform competitive analysis.
C. effect corporate change.
D. conduct formal market research.
E. follow legal requirements.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-03 Describe the process of culture change in an organization.
Topic: Organizational Culture Change

Feedback: Changing organizational culture is a teaching process in which organizational members teach each other about the organization's preferred
values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms: formal statements;
slogans and sayings; rites and rituals; stories, legends, and myths; leader reactions to crises; role modeling, training, and coaching; physical design;
rewards, titles, promotions, and bonuses; organizational goals and performance criteria; measurable and controllable activities; organizational structure;
and organizational systems and procedures.

36. Della, the new CEO of Sky Advertising, has been with the firm for over 25 years. She was picked by the board to turn the 85-year-old agency
around, because it had lost its edge in the Internet age. To infuse new life and energy into the agency, Della wants to bring back some old ideas that
previously worked at Sky. She plans on having managers and veteran employees instruct each other about the organization's values, beliefs, and
expectations; telling stories about some of the company legendary ad campaigns; coming up with a slogan that summarizes Sky's abilities in a simple
and memorable phrase; and having quarterly ceremonies where creativity and innovation are rewarded. The things that Della wants to do are all
examples of
A. a value stabilizing plan.
B. decentralizing authority.
C. embedding culture.
D. MBO.
E. TQM.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-03 Describe the process of culture change in an organization.
Topic: Organizational Culture Change

Feedback: Changing organizational culture is a teaching process in which organizational members teach each other about the organization's preferred
values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms: formal statements;
slogans and sayings; rites and rituals; stories, legends, and myths; leader reactions to crises; role modeling, training, and coaching; physical design;
rewards, titles, promotions, and bonuses; organizational goals and performance criteria; measurable and controllable activities; organizational structure;
and organizational systems and procedures.

37. According to Chester I. Barnard's classic definition, an organization is a


A. formal system of task and reporting relationships that coordinate and motivate employees.
B. means to increase collaboration and cooperation among groups of people.
C. set of shared, taken-for-granted implicit assumptions that a group holds.
D. system of consciously coordinated activities or forces of two or more people.
E. type of analytical tool used for planning.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.

8-9
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Topic: Organizational Structure

Feedback: According to Chester I. Barnard's classic definition, an organization is a system of consciously coordinated activities or forces of two or more
people. By this definition, a crew of two coordinating their activities to operate a commercial tuna fishing boat is just as much an organization as the
entire Bumble Bee Tuna Company with its thousands of employees.

38. Organizations that are formed to offer services to clients and not make a profit are ____, whereas, ________ are those organizations that are formed
to make money, or profits, by offering products or services.
A. for-profit organizations; nonprofit organizations
B. unions; associations
C. nonprofit organizations; associations
D. co-ops; for-profit organizations
E. nonprofit organizations; for-profit organizations

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.
Topic: Organizational Structure

Feedback: A nonprofit organization is formed to offer services to some clients, not to make a profit (examples: Goodwill Industries, the Red Cross).
For-profit organizations are formed to make money, or profits, by offering products or services.

39. Dr. Gomez is retiring as a doctor in private practice. He wants to start a(n) __________, Doctor Help, that will provide low-income individuals in
the United States with medical assistance at no cost.
A. for-profit organization
B. union
C. mutual-benefit organization
D. nonprofit organization
E. co-op

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.
Topic: Organizational Structure

Feedback: A nonprofit organization is formed to offer services to some clients, as the Humane Society does, not to make a profit.

40. _______ are voluntary collectives with the purpose of advancing their members' interests. One example of such a collective is the Teamsters Union.
A. Clan cultures
B. Nonprofit organizations
C. Volunteer co-ops
D. For-profit organizations
E. Mutual-benefit organizations

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.
Topic: Organizational Structure

Feedback: Mutual-benefit organizations are voluntary collectives whose purpose is to advance members' interests (examples: unions, trade
associations).

41. Examples of ______ are the AFL-CIO (a union) and the National Federation of Independent Business are both voluntary groups with the purpose of
advancing member interests.
A. mutual-benefit organizations
B. nonprofit organizations
C. volunteer co-ops
D. for-profit organizations
E. trade alliances

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.
8-10
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Topic: Organizational Structure

Feedback: Mutual-benefit organizations are voluntary collectives whose purpose is to advance members' interests (examples: unions, trade
associations).

42. ________ is(are) another way of describing a vertical hierarchy.


A. An upward graph
B. An X-Y chart
C. A chain of command
D. A network structure
E. Corporate steps

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.
Topic: Hierarchy of Authority

Feedback: The vertical hierarchy is also known as the chain of command.

43. Having realistic expectations and thinking about the kind of manager you want to be, not forgetting to manage upward and sideways as well as
downward, getting guidance from other managers, and resisting isolation is good advice for those who are
A. starting a networking group within an organization.
B. developing a training and development program.
C. developing a diversity or synergy plan.
D. starting retirement.
E. transitioning upward in an organization.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.
Topic: Hierarchy of Authority

Feedback: For those who are transitioning upward in an organization, good advice is to (1) have realistic expectations and think about the kind of
manager you want to be, (2) don't forget to manage upward and sideways as well as downward, (3) get guidance from other managers, and (4) resist
isolation.

44. ________ in an organization is the division of labor. For example, in a publishing company, there are people who acquire manuscripts (sponsoring
editors), people who edit manuscripts (developmental editors), and people who turn manuscripts into printed books (production editors).
A. The coordination of individual efforts into a group or organization-wide effort
B. The common purpose that unifies employees
C. An organizational structure with few or no levels of middle management
D. A structure where employees report to no more than one manager
E. The arrangement of having discrete parts of a task done by different people

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Hierarchy of Authority

Feedback: Division of labor, also known as work specialization, is the arrangement of having discrete parts of a task done by different people.

45. __________ is also known as division of labor.


A. A task chart
B. A horizontal hierarchy
C. An organizational graph
D. Work specialization
E. Chain of command

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Hierarchy of Authority

8-11
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Feedback: Division of labor is also known as work specialization.

46. A hierarchy of authority is ____. Most military organizations are known for having a strong hierarchy of authority.
A. also known as a division of labor
B. a control mechanism for making sure the right people do the right things at the right time
C. a diversity structure used in planning with recruiting, selection, and hiring
D. also known as work specialization
E. the arrangement of having discrete parts of a task done by different people

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Hierarchy of Authority

Feedback: The hierarchy of authority, or chain of command, is a control mechanism for making sure the right people do the right things at the right time.
If coordinated effort is to be achieved, some people (namely, managers) need to have more authority, or the right to direct the work of others.

47. Tomás, a sales associate in the furniture department of the Larkspur Department Store, reports to Carolina, the furniture department manager. This
morning, Carolina asked Tomás to change the price tags on the desk chairs. While working on this task, David, the computer department manager, told
Tomás that he wanted him to unload some computers. Tomás is confused about what to do because under the principle of unity of command,
A. employees should report to no more than one manager.
B. Tomás will need to determine how he can multitask.
C. employees can report to two managers, so Tomás needs to decide whose directions to follow.
D. Tomás can refuse to do both tasks.
E. Tomás needs to decide which manager has more power.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.
Topic: Hierarchy of Authority

Feedback: A principle stressed by early management scholars was that of unity of command, in which an employee should report to no more than one
manager to avoid conflicting priorities and demands.

48. Alana, the children's department manager at Shoe Mart, has eight employees in her department, also known as her _________. All of eight of these
employees report directly to her.
A. area of responsibility
B. span of direction
C. span of control
D. hierarchy of authority
E. management depth

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.
Topic: Span of Control

Feedback: The span of control, or span of management, refers to the number of people reporting directly to a given manager.

49. _____ are the two kinds of spans of control.


A. Tall and short
B. Flat and broad
C. Tall and hollow
D. Hierarchy and nonhierarchy
E. Narrow and wide

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.
Topic: Span of Control

Feedback: There are two kinds of spans of control, narrow (or tall) and wide (or flat).

8-12
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50. Maria, the CEO of EnviroSystems, has only three people reporting to her: the vice president of marketing, vice president of HR, and vice president
of accounting. Maria has a
A. narrow span of control.
B. small unity of command.
C. wide span of control.
D. focused span of control.
E. broad span of influence.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.
Topic: Span of Control

Feedback: When a manager has a limited number of people reporting directly to her, she has a narrow span of control.

51. During weekly conference calls, Mary, a restaurant manager for a national chain of restaurants, and the other managers in her district explain to their
district manager the reasons for different decisions; they also explain why certain costs and sales were higher or lower than they were the previous week.
_______ is the explanation of their decisions and work results.
A. Accountability
B. A stepped decision
C. A hierarchy of authority
D. Touching
E. Power

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.
Topic: Organizational Structure

Feedback: Accountability means managers must report and justify work results to the managers above them.

52. ________ enables a manager to make decisions, give orders, and utilize resources. For example, the manager of a local pizzeria has the right to hire
and fire drivers based on their punctuality, performance, and customer-service ratings.
A. Power
B. A clan culture
C. A hierarchy of power
D. Touching
E. Authority

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Organizational Structure

Feedback: Authority refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources. Authority is
distinguished from power, which is the extent to which a person is able to influence others so they respond to orders.

53. Jim was recently promoted to the position of dining room supervisor at The Crab Shack, and he is now responsible for making decisions on
numerous matters in the dining room and giving orders to the serving staff. At the same time, Jim has the obligation to perform the many new tasks
assigned to him as a supervisor, such as overseeing the closing work and the cleaning of the dining room. Jim's obligations are known as his
A. hierarchy.
B. power.
C. beliefs.
D. authority.
E. responsibility.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Organizational Structure

Feedback: Responsibility is the obligation you have to perform the tasks assigned to you. The higher level the manager, the more responsibility he or

8-13
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
she has.

54. Patricia, the manager of Prime Health Club, was telling her new trainer that "I have many decisions to make in a day, and as the club manager,
during the course of a week, I have to give orders to most of the 35 employees. Then there is my budget and the club resources, which I oversee."
Patricia's _______ gives her the right to make decisions, give orders, and utilize resources.
A. responsibility
B. authority
C. power
D. delegation
E. work specialization

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Organizational Structure

Feedback: Authority refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources.

55. Ralph, the manager of a busy hardware store, knows that he needs to entrust many of his tasks to managers and other employees. _____ is this
process of assigning tasks to lower-level managers and employees. Ralph follows the 70% rule, which states that he should assign tasks to employees
who can perform each task at least 70% as well as Ralph can.
A. Handing
B. Outputting
C. Span of control
D. Delegation
E. Accountability

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Delegation

Feedback: Delegation is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.

56. _____ is the process of assigning managerial authority and responsibility to lower-level managers and employees.
A. Authority
B. Planning
C. Delegation
D. A power trip
E. Control

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Delegation

Feedback: Delegation is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.

57. During a meeting, Tammy, a branch manager for USA Bank, pointed to the corporate organization chart on the wall. Tammy remarked that "These
people provide advice, recommendations, and research for us, and they are indicated with a dotted line. Laura (our CEO) and the vice presidents of our
organization are up here, indicated on the organization chart by a solid line vertical line." _______ are indicated on the organization chart by a solid line
____, and ______ are indicated by a dotted line.
A. Line managers; temporary personnel
B. Line managers; personnel in training
C. Staff personnel; vital personnel
D. Line managers; part-time personnel
E. Line managers; staff personnel

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Organizational Structure

8-14
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Feedback: Staff personnel have authority functions; they provide advice, recommendations, and research to line managers (example: specialists such as
legal counsels). Staff positions are indicated on the organization chart by a dotted line (usually a horizontal line). Line managers have authority to make
decisions and usually have people reporting to them (examples: the president, the vice presidents, the director of personnel, and the head of accounting).
Line positions are indicated on the organization chart by a solid line (usually a vertical line).

58. Astrid, a customer service representative with NorthTel Wireless Services, was asked by one of her customers if NorthTel would be interested in
joining the chamber of commerce to meet potential customers and increase its contacts in the local business community. Astrid believes this is a very
good idea and approached her manager, DeShawn, about becoming a chamber member. DeShawn said to Astrid, "Because the cost of membership is
over $500 and you will have to leave the office to attend meetings, I will have to get approval from management above me." NorthTel is an example of
an organization with
A. decentralized authority.
B. unity of command.
C. work specialization.
D. centralized authority.
E. line managers.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Centralized Authority

Feedback: With centralized authority, important decisions are made by higher-level managers.

59. With ______, important decisions are made by middle-level and supervisory-level managers.
A. decentralized authority
B. upper authority
C. focused power
D. centralized authority
E. higher-management influence

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Decentralized Authority

Feedback: With decentralized authority, important decisions are made by middle-level and supervisory-level managers.

60. Artem, the president of Instructor Services, told one of his new hires that "Managers at this company are encouraged to solve their own problems
rather than buck the decision to a higher level, and decisions are made more quickly, which increases our organization's flexibility and efficiency." The
key benefits of _______ are the advantages that Artem related to his new hires.
A. centralized authority
B. management accountability
C. management responsibility
D. decentralized authority
E. work specialization

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Decentralized Authority

Feedback: An advantage in having decentralized authority is that managers are encouraged to solve their own problems rather than buck the decision to
a higher level. In addition, decisions are made more quickly, which increases the organization's flexibility and efficiency.

61. Organizational design is concerned with an organization developing


A. the best structures of costs and efficiency that an organization uses to meet goals.
B. optimal structures of accountability and responsibility to execute its strategies.
C. important decisions that are suggested by employees.
D. new MBO goals.
E. the most favorable methods of accomplishing both the diversity and synergy plans.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember

8-15
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Difficulty: 1 Easy
Learning Objective: 08-06 Describe the seven organizational structures.
Topic: Organizational Structure

Feedback: Organizational design is concerned with designing the optimal structures of accountability and responsibility that an organization uses to
execute its strategies. We may categorize organizational designs as three types: (1) traditional designs, (2) horizontal designs, and (3) designs that open
boundaries between organizations.

62. Tech Geeks, a sole proprietorship that uses contract labor, has all of its authority centralized in a single person (the owner), a flat hierarchy, few
rules, and low work specialization. Tech Geeks is an organization with a
A. team-based design.
B. simple structure.
C. hollow structure.
D. functional structure.
E. horizontal design.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-06 Describe the seven organizational structures.
Topic: Simple Structure

Feedback: An organization with a simple structure has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization.

63. The structure of Sandal Mart consists of people with similar specialties put together in formal groups, such as the marketing, accounting, and human
resource departments. Sandal Mart has a _____ structure.
A. simple
B. focused
C. hollow
D. functional
E. centralized

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-06 Describe the seven organizational structures.
Topic: Functional Structure

Feedback: In a functional structure, people with similar occupational specialties are put together in formal groups. This is a quite commonplace
structure, seen in all kinds of organizations, for-profit and nonprofit. (See Figure 8.7.)

64. Time Warner has different divisions for magazines, movies, recordings, cable television, and so on. The Warner Bros. part of the empire alone has
divisions spanning movies and television, a broadcast network, retail stores, theaters, amusement parks, and music. Time Warner is an example of an
organization with ____ divisions.
A. geographic
B. common
C. product
D. merchandise
E. customer

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-06 Describe the seven organizational structures.
Topic: Divisional Structure

Feedback: Product divisions group activities around similar products or services.

65. IT Technology has designed its corporate structure with divisions based on their location. For example, there are the Southern and Northern
Divisions, and globally there are the European Division and the Asian Division. IT Technology is an example of a structure with
A. geographic divisions.
B. matrix partitions.
C. customer divisions.
D. common area divisions.
E. product divisions.

AACSB: Knowledge Application

8-16
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-06 Describe the seven organizational structures.
Topic: Divisional Structure

Feedback: Geographic divisions group activities around defined regional locations.

66. Ford Motor Co. has separate divisions for passenger cars, for large trucks, and for farm products. Ford is an example of an organization with
A. geographic divisions.
B. customer divisions.
C. matrix partitions.
D. a decentralized management structure.
E. a global corporate culture.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-06 Describe the seven organizational structures.
Topic: Divisional Structure

Feedback: Customer divisions tend to group activities around common customers or clients, such as types of products.

67. Organizations using a matrix structure


A. contain multiple overlapping command structures, in which all employees report to three or more managers.
B. centralize authority into a single person.
C. contain two command structures, in which some people report to two bosses.
D. establish a hierarchy in which employees report to only one supervisor.
E. utilize teams or workgroups with few lines of authority.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-06 Describe the seven organizational structures.
Topic: Matrix Structure

Feedback: In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command
structures, vertical and horizontal. For example, a marketing person may report to both the vice president of marketing and to the project manager.

68. Quality Paper Products utilizes a structure that includes functional divisions, such as accounting and production, and a divisional chain of command,
such as the home products and office divisions. For example, Mariana, a salesperson, reported to both her sales manager and the office products
manager when she first started working on the city of Springfield account. Quality Paper Products has a
A. geographic-divisional structure.
B. matrix structure.
C. team-based approach.
D. modular structure.
E. hollow structure.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-06 Describe the seven organizational structures.
Topic: Matrix Structure

Feedback: In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command
structures, vertical and horizontal.

69. The Safety Committee, a temporary team at the Annapolis Tool & Die Corporation, was established to make the factory floor a safer place.
Members of the committee still work in their departments full-time, but they meet twice a month for a few hours as a committee. The Safety Committee
is an example of a ____ within an organization.
A. vertical design
B. modular design
C. multipurpose design
D. common purpose
E. horizontal design

AACSB: Knowledge Application


Accessibility: Keyboard Navigation

8-17
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-06 Describe the seven organizational structures.
Topic: Horizontal Design

Feedback: In a horizontal design, teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by
breaking down internal boundaries. Team members still have their full-time functional work responsibilities and often still formally report to their own
managers above them in the functional-division hierarchy.

70. With a hollow structure, the organization


A. is a rigid nonadaptive structure.
B. groups activities around similar products or services.
C. has a central core of key functions and outsources others to vendors who are less expensive or faster.
D. is often called a horizontal organization.
E. assembles product chunks, or modules, provided by outside contractors.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-06 Describe the seven organizational structures.
Topic: Boundaryless Organization

Feedback: In the hollow structure, often called the network structure, the organization has a central core of key functions and outsources other functions
to vendors who can do them cheaper or faster (see Figure 8.11).

71. With a modular structure, a firm _____. An example of the modular structure is the massive 787 Dreamliner project, in which Boeing contracted
with many suppliers, each responsible for one component or assembly, which were then integrated to make the aircraft.
A. is a company outside a company that is created specifically to respond to an exceptional market opportunity
B. assembles portions of product provided by outside contractors
C. is an organization whose members are geographically apart, usually working via e-mail
D. has a central core of key functions and outsources production
E. consists of a company with many divisions

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-06 Describe the seven organizational structures.
Topic: Boundaryless Organization

Feedback: In a modular structure, a firm assembles product chunks, or modules, provided by outside contractors.

72. Sally, Greg, Juan, and Amar are working on a project for a customer that is aimed at cutting the client's electrical costs. The four members of this
workgroup are located throughout the Midwest, and they are utilizing the phone, e-mail, and collaborative computing to complete this project. This
workgroup is an example of a
A. modular group.
B. cross-focus group.
C. geographic team.
D. matrix team.
E. virtual organization.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-06 Describe the seven organizational structures.
Topic: Boundaryless Organization

Feedback: The virtual organization is one whose members are geographically apart, usually working with e-mail and other forms of information
technology while often appearing to customers and others to be a single, unified organization with a real physical location.

73. Raul, a salesperson for the Lovely Landscapes landscaping company, is working with a longtime customer who is interested in either cutting back
on the services or getting a better price due to the tight economy. Raul tells his manager, "I want to take care of the customer with the best value. So what
do you think is the best package to offer in this situation?" Raul and his manager are trying to utilize the
A. contingency design.
B. streamlined design.
C. focused spending approach.
D. boundaryless approach.
E. mechanistic design.

8-18
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-07 Identify the factors that affect the design of an organization's structure.
Topic: Contingency Design

Feedback: The process of fitting the organization to its environment is called contingency design. Managers taking a contingency approach must
consider environmental factors as well as the links between strategy, culture, and structure.

74. Peter, the owner of Happy Burger, is involved in the company's daily decisions and has established procedures for every task. The company rules are
clearly specified in the handbook, and Peter also believes in close supervision of all employees. Happy Burger is a(n) _______ organization.
A. informal
B. mechanistic
C. organic
D. decentralized
E. non-hierarchical

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-07 Identify the factors that affect the design of an organization's structure.
Topic: Contingency Design

Feedback: In a mechanistic organization, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.

75. Phone Tech, a global phone company, frequently needs to respond quickly to fast-changing consumer tastes with its smartphones. Therefore, Phone
Tech has fewer rules and procedures than most organizations, and networks of employees are encouraged to cooperate and respond quickly to
unexpected tasks and changes in technology. Phone Tech is utilizing a(n) ____ structure.
A. organic
B. inflexible
C. mechanistic
D. hierarchical
E. inelastic

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-07 Identify the factors that affect the design of an organization's structure.
Topic: Organic Organization

Feedback: In an organic organization, authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to
cooperate and respond quickly to unexpected tasks.

76. According to Lawrence and Lorsch, the stability of an organization's environment determines the degree of
A. synergy needed in an organization.
B. differentiation and efficiency needed.
C. differentiation or integration that is appropriate.
D. profitability that is vital.
E. marketing and integration that is profitable.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-07 Identify the factors that affect the design of an organization's structure.
Topic: Differentiation

Feedback: The stability of the environment confronting the parts of the organization, according to Lawrence and Lorsch, determines the degree of
differentiation or integration that is appropriate.

77. The more subunits into which an organization breaks down, the
A. more unified it becomes.
B. less differentiated it becomes.
C. lower the productivity.
D. higher the costs.
E. more highly differentiated it becomes.

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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-07 Identify the factors that affect the design of an organization's structure.
Topic: Differentiation

Feedback: Differentiation is the tendency of the parts of an organization to disperse and fragment. This impulse toward dispersal arises because of
technical specialization and division of labor. The more subunits into which an organization breaks down, the more highly differentiated it becomes.

78. Specialists work together to achieve ________ in a highly integrated organization.


A. assimilation
B. a common goal
C. differentiation
D. decentralization
E. centralization

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-07 Identify the factors that affect the design of an organization's structure.
Topic: Integration

Feedback: Integration is the tendency of the parts of an organization to draw together to achieve a common purpose. In a highly integrated organization,
the specialists work together to achieve a common goal.

79. The scientists, nurses, and doctors who work for Medical Technology, an organization that researches the cure for several diseases, work together
for a common goal of ending these illnesses. Medical Technology provides an example of
A. diversity.
B. contingency design.
C. differentiation.
D. integration.
E. autocratic structure.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-07 Identify the factors that affect the design of an organization's structure.
Topic: Integration

Feedback: Integration is the tendency of the parts of an organization to draw together to achieve a common purpose. In a highly integrated organization,
the specialists work together to achieve a common goal. One of the means for achieving this is the use of cross-functional teams.

80. A formal chain of command, the standardization of rules and procedures, and the use of cross-functional teams and computer networks so that there
is frequent communication and coordination of the parts are the means for achieving
A. higher sales through analytics.
B. a common goal through integration.
C. lower costs through efficiency.
D. higher profits through goal setting.
E. differentiation through specialization.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-07 Identify the factors that affect the design of an organization's structure.
Topic: Integration

Feedback: The means of achieving a common goal are a formal chain of command, the standardization of rules and procedures, and the use of
cross-functional teams and computer networks so that there is frequent communication and coordination of the parts.

81. This question has two parts; be sure to answer both. First, define organizational culture and summarize the four types of corporate culture in the
competing values framework. Second, consider the case of The Fireman's Friend, a national chain that sells firefighting equipment and supplies. Due to
major competition from abroad, management of the The Fireman's Friend is under constant pressure to monitor costs and keep its prices under a certain
level. The company is very strictly organized, with the CEO making all of the major decisions. At each store, the manager is responsible for ensuring
that any products ordered by fire departments are delivered the same day. Each store manager is also responsible for continuous quality control by
reading reports on the effectiveness and safety of every item sold in the store. What type of culture does The Fireman's Friend most likely have?

Organizational culture, sometimes called corporate culture, is the set of shared, taken-for-granted implicit assumptions that a group holds and that
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formerly received. It proves also that the old childlike faith in miracles
is still possible even in our generation. Christian Science struts in
robes of prosperity in my bailiwick, and its followers pain and annoy
me only by their cheerful assumption that they have just discovered
God.
Smith’s plight becomes, then, more serious the more we ponder his
case; but the plight of the church is not less grave to those who,
feeling that Christianity has still its greatest work to do, are anxious
for its rejuvenation. As to whether the church should go to Smith, or
Smith should seek the church, there can be no debate. Smith will not
seek the church; it must be on the church’s initiative that he is
restored to it. The Layman’s Forward Movement testifies to the
awakened interest of the churches in Smith. As I pen these pages I
pick up a New York newspaper and find on the pages devoted to
sports an advertisement signed by the Men and Religion Forward
Movement, calling attention to the eight hundred and eighty
churches, Protestant and Catholic, and the one hundred and seven
synagogues in the metropolis,—the beginning, I believe, of a
campaign of advertising on sporting pages. I repeat, that I wish to
belittle no honest effort in any quarter or under any auspices to
interest men in the spiritual life; but I cannot forbear mentioning that
Smith has already smiled disagreeably at this effort to catch his
attention. Still, if Smith, looking for the baseball score, is reminded
that the church is interested in his welfare, I am not one to sit in the
scorner’s seat.

V
A panacea for the ills of the church is something no one expects to
find; and those who are satisfied with the church as it stands, and
believe it to be unmenaced by danger,—who see the Will of God
manifested even in Smith’s disaffection, will not be interested in my
opinion that, of all the suggestions that have been made for the
renewal of the church’s life, church union, upon the broadest lines,
directed to the increase of the church’s efficiency in spiritual and
social service, is the one most likely to bring Smith back to the fold.
Moreover, I believe that Smith’s aid should be invoked in the
business of unification, for the reason that on patriotic grounds, if no
other, he is vitally concerned in the welding of Christianity and
democracy more firmly together. Church union has long been the
despair and the hope of many sincere, able, and devoted men, who
have at heart the best interests of Christendom, and it is impossible
that any great number of Protestants except the most bigoted
reactionaries can distrust the results of union.
The present crisis—for it is not less than that—calls for more
immediate action by all concerned than seems imminent. We have
heard for many years that “in God’s own time” union would be
effected; and yet union is far from being realized. The difficulty of
operating through councils and conventions is manifest. These
bodies move necessarily and properly with great deliberation. Before
the great branches of Protestantism have reconciled their
differences, and agreed upon a modus vivendi, it is quite possible
that another ten or twenty years may pass; and in the present state
of the churches, time is of the essence of preservation and security.
While we await action by the proposed World Conference for the
consideration of questions touching “faith and order,” much can be
done toward crystallizing sentiment favorable to union. A letter has
been issued to its clergy by the Episcopal Church, urging such
profitable use of the interval of waiting; and I dare say the same spirit
prevails in other communions. A purely sentimental union will not
suffice, nor is the question primarily one for theologians or
denominational partisans, but for those who believe that there is
inherent in the method and secret of Jesus something very precious
that is now seriously jeopardized, and that the time is at hand for
saving it, and broadening and deepening the channel through which
it reaches mankind.

VI
In the end, unity, if it ever take practical form, must become a local
question. This is certainly true in so far as the urban field is
concerned, and I may say in parenthesis that, in my own state, the
country churches are already practicing a kind of unification, in
regions where the automobile and the interurban railway make it
possible for farm and village folk to run into town to church. Many
rural churches have been abandoned and boarded up, their
congregations in this way forming new religious and social units. I
suggest that in towns and cities where the weaknesses resulting
from denominational rivalry are most apparent, the problems of
unification be taken up in a purely local way. I propose the
appointment of local commissions, representative of all Protestant
bodies, to study the question and devise plans for increasing the
efficiency of existing churches, and to consider ways and means of
bringing the church into vital touch with the particular community
under scrutiny. This should be done in a spirit of absolute honesty,
without envy, hatred, or malice. The test of service should be applied
relentlessly, and every religious society should make an honest
showing of its conditions and needs.
Upon the trial-balance thus struck there should be, wherever
needed, an entirely new redistribution of church property, based
wholly upon local and neighborhood needs. For example, the
familiar, badly housed, struggling mission in an industrial centre
would be able at once to anticipate the fruits of years of labor,
through the elimination of unnecessary churches in quarters already
over-supplied. Not only should body and soul be cared for in the
vigorous institutional church, the church of the future, but there is no
reason why the programme should not include theatrical
entertainments, concerts, and dances. Many signs encourage the
belief that the drama has a great future in America, and the
reorganized, redistributed churches might well seize upon it as a
powerful auxiliary and ally. Scores of motion-picture shows in every
city testify to the growing demand for amusement, and they conceal
much mischief; and the public dance-house is a notorious breeder of
vice.
Let us consider that millions of dollars are invested in American
churches, which are, in the main, open only once or twice a week,
and that fear of defiling the temple is hardly justification for the small
amount of actual service performed by the greater number of
churches of the old type. By introducing amusements, the
institutional church—the “department church,” if you like—would not
only meet a need, but it would thus eliminate many elements of
competition. The people living about a strong institutional church
would find it, in a new sense, “a church home.” The doors should
stand open seven days in the week to “all such as have erred and
are deceived”; and men and women should be waiting at the portals
“to comfort and help the weak-hearted; and to raise up those who
fall.”
If in a dozen American cities having from fifty thousand to two or
three hundred thousand inhabitants, this practical local approach
toward union should be begun in the way indicated, the data
adduced would at least be of importance to the convocations that
must ultimately pass upon the question. Just such facts and figures
as could be collected by local commissions would naturally be
required, finally, in any event; and much time would be saved by
anticipating the call for such reports.
I am familiar with the argument that many sorts of social service are
better performed by non-sectarian societies, and we have all
witnessed the splendid increase of secular effort in lines feebly
attacked and relinquished, as though with a grateful sigh, by the
churches. When the Salvation Army’s trumpet and drum first
sounded in the market-place, we were told that that valiant
organization could do a work impossible for the churches; when the
Settlement House began to appear in American cities, that, too, was
undertaking something better left to the sociologist. Those
prosperous organizations of Christian young men and women,
whose investment in property in our American cities is now very
great, are, also, we are assured, performing a service which the
church could not properly have undertaken. Charity long ago moved
out of the churches, and established headquarters in an office with
typewriter and telephone.
If it is true that the service here indicated is better performed by
secular organizations, why is it that the power of the church has
steadily waned ever since these losses began? Certainly there is
little in the present state of American Protestantism to afford comfort
to those who believe that a one-day-a-week church, whose
apparatus is limited to a pulpit in the auditorium, and a map of the
Holy Land in the Sunday-school room, is presenting a veritable,
living Christ to the hearts and imaginations of men.
And on the bright side of the picture it should be said that nothing in
the whole field of Christian endeavor is more encouraging or
inspiring than an examination of the immense social service
performed under the auspices of various religious organizations in
New York City. This has been particularly marked in the Episcopal
Church. The late Bishop Potter, and his successor in the
metropolitan diocese, early gave great impetus to social work, and
those who contend that the church’s sole business is to preach the
Word of God will find a new revelation of the significance of that
Word by a study of the labors of half a dozen parishes that exemplify
every hour of every day the possibilities of efficient Christian
democracy.
The church has lost ground that perhaps never can be recovered.
Those who have established secular settlements for the poor, or
those who have created homes for homeless young men and
women, can hardly be asked to “pool” and divide their property with
the churches. But, verily, even with all the many agencies now at
work to ameliorate distress and uplift the fallen, the fields continue
white already to the harvest, and the laborers are few. With the
church revitalized, and imbued with the spirit of utility and efficiency
so potent in our time, it may plant its wavering banner securely on
new heights. It may show that all these organizations that have
sapped its strength, and diminished the force of its testimony before
men, have derived their inspiration from Him who came out of
Nazareth to lighten all the world.

VII
The reorganization of the churches along the line I have indicated
would work hardship on many ministers. It would not only mean that
many clergymen would find themselves seriously disturbed in
positions long held under the old order, but that preparation for the
ministry would necessarily be conducted along new lines. The
training that now fits a student to be the pastor of a one-day-a-week
church would be worthless in a unified and socialized church.
“There are diversities of gifts”; but “it is the same God which worketh
all in all.” In the departmental church, with its chapel or temple fitly
adorned, the preaching of Christ’s message would not be done by a
weary minister worn by the thousand vexatious demands upon a
minister’s time, but by one specially endowed with the preaching gift.
In this way the prosperous congregation would not enjoy a monopoly
of good preaching. Men gifted in pastoral work would specialize in
that, and the relationship between the church and the home, which
has lost its old fineness and sweetness, would be restored. Men
trained in that field would direct the undertakings frankly devised to
provide recreation and amusement. Already the school-house in our
cities is being put to social use; in the branch libraries given by Mr.
Carnegie to my city, assembly-rooms and kitchens are provided to
encourage social gatherings; and here is another opportunity still
open to the church if it hearken to the call of the hour.
In this unified and rehabilitated church of which I speak,—the every-
day-in-the-week church, open to all sorts and conditions of men,—
what would become of the creeds and the old theology? I answer
this first of all by saying that coalition in itself would be a supreme
demonstration of the enduring power and glory of Christianity. Those
who are jealous for the integrity of the ancient faith would manifestly
have less to defend, for the church would be speaking for herself in
terms understood of all men. The seven-day church, being built upon
efficiency and aiming at definite results, could afford to suffer men to
think as they liked on the virgin birth, the miracles, and the
resurrection of the body, if they faithfully practiced the precepts of
Jesus.
This busy, helpful, institutional church, welcoming under one roof
men of all degrees, to broaden, sweeten, and enlighten their lives,
need ask no more of those who accept its service than that they
believe in a God who ever lives and loves, and in Christ, who
appeared on earth in His name to preach justice, mercy, charity, and
kindness. I should not debate metaphysics through a barred wicket
with men who needed the spiritual or physical help of the church,
any more than my neighbor, Smith, that prince of good fellows,
would ask a hungry tramp to saw a cord of wood before he gave him
his breakfast.
Questions of liturgy can hardly be a bar, nor can the validity of
Christian orders in one body or another weigh heavily with any who
are sincerely concerned for the life of the church and the widening of
its influence. “And other sheep I have, which are not of this fold:
them also I must bring, and they shall hear my voice; and they shall
become one flock, one shepherd.” I have watched ministers in
practically every Christian church take bread and break it, and bless
the cup, and offer it in the name of Jesus, and I have never been
able to feel that the sacrament was not as efficacious when received
reverently from one as from another.
If wisdom and goodness are God, then foolish, indeed, is he who
would “misdefine these till God knows them no more.” The unified
seven-day church would neglect none of “the weightier matters of
the law, justice and mercy and faith,” in the collecting of tithe of mint
and anise and cummin. It would not deny its benefits to those of us
who are unblest with deep spiritual perception, for it is by the grace
of God that we are what we are. “I will pray with the spirit, and I will
pray with the understanding also: I will sing with the spirit and I will
sing with the understanding also. Else if thou bless with the spirit,
how shall he that filleth the place of the unlearned say the Amen at
thy giving of thanks, seeing he knoweth not what thou sayest?”
“Hath man no second life?—Pitch this one high!
Sits there no judge in Heaven our sins to see?—
More strictly, then, the inward judge obey!
Was Christ a man like us? Ah, let us try
If we, then, too, can be such men as he!”
Somewhere there is a poem that relates the experience of a certain
humble priest, who climbed the steeple of his church to commune
more nearly with God. And, as he prayed, he heard the Voice
answering, and asked, “Where art thou, Lord?” and the Lord replied,
“Down here, among my people!”
The Tired Business Man
The Tired Business Man

I
SMITH flashed upon me unexpectedly in Berlin. It was nearly a year
ago, just before the summer invasion of tourists, and I was reading
the letters of a belated mail over my coffee, when I was aroused by
an unmistakable American voice demanding water. I turned and
beheld, in a sunny alcove at the end of the restaurant, my old friend
Smith who had dropped his newspaper for the purpose of arraigning
a frightened and obtuse waiter for his inability to grasp the idea that
persons in ordinary health, and reasonably sane, do, at times, use
water as a beverage. It was not merely the alarmed waiter and all his
tribe that Smith execrated: he swept Prussia and the German Empire
into the limbo of lost nations. Mrs. Smith begged him to be calm,
offering the plausible suggestion that the waiter couldn’t understand
a word of English. She appealed to a third member of the breakfast
party, a young lady, whose identity had puzzled me for a moment. It
seemed incredible that this could be the Smiths’ Fanny, whom I had
dandled on my knee in old times,—and yet a second glance
convinced me that the young person was no unlikely realization of
the promise of the Fanny who had ranged our old neighborhood at
“home” and appalled us, even at five, by her direct and pointed
utterances. If the child may be mother to the woman, this was that
identical Fanny. I should have known it from the cool fashion in
which she dominated the situation, addressing the relieved waiter in
his own tongue, with the result that he fled precipitately in search of
water—and ice, if any, indeed, were obtainable—for the refreshment
of these eccentric Americans.
When I crossed to their table I found Smith still growling while he
tried to find his lost place in the New York stock market in his London
newspaper. My appearance was the occasion for a full recital of his
wrongs, in that amusing hyperbole which is so refreshing in all the
Smiths I know. He begged me to survey the table, that I might enjoy
his triumph in having been able to surmount local prejudice and
procure for himself what he called a breakfast of civilized food. The
continental breakfast was to him an odious thing: he announced his
intention of exposing it; he meant to publish its iniquity to the world
and drive it out of business. Mrs. Smith laughed nervously. She
appeared anxious and distraught and I was smitten with pity for her.
But there was a twinkle in Miss Smith’s eye, a smile about her pretty
lips, that discounted heavily the paternal fury. She communicated,
with a glance, a sense of her own attitude toward her father’s
indignation: it did not matter a particle; it was merely funny, that was
all, that her father, who demanded and commanded all things on his
own soil, should here be helpless to obtain a drop of cold water with
which to slake his thirst when every one knew that he could have
bought the hotel itself with a scratch of the pen. When Smith asked
me to account for the prevalence of hydrophobia in Europe it was
really for the joy of hearing his daughter laugh. And it is well worth
anyone’s while to evoke laughter from Fanny. For Fanny is one of
the prettiest girls in the world, one of the cleverest, one of the most
interesting and amusing.

II
As we lingered at the table (water with ice having arrived and the
Stars and Stripes flying triumphantly over the pitcher), I was brought
up to date as to the recent history of the Smiths. As an old neighbor
from home they welcomed me to their confidence. The wife and
daughter had been abroad a year with Munich as their chief base.
Smith’s advent had been unexpected and disturbing. Rest and
change having been prescribed, he had jumped upon a steamer and
the day before our encounter had joined his wife and daughter in
Berlin. They were waiting now for a conference with a German
neurologist to whom Smith had been consigned—in desperation, I
fancied—by his American doctor. Mrs. Smith’s distress was as
evident as his own irritation; Miss Fanny alone seemed wholly
tranquil. She ignored the apparent gravity of the situation and
assured me that her father had at last decided upon a long vacation.
She declared that if her father persisted in his intention of sailing for
New York three weeks later, she and her mother would accompany
him.
While we talked a cablegram was brought to Smith; he read it and
frowned. Mrs. Smith met my eyes and shook her head; Fanny
frugally subtracted two thirds of the silver Smith was leaving on the
tray as a tip and slipped it into her purse. It was a handsome trinket,
the purse; Fanny’s appointments all testified to Smith’s prosperity
and generosity. I remembered these friends so well in old times,
when they lived next door to me in the Mid-Western town which
Smith, ten years before, had outgrown and abandoned. His income
had in my observation jumped from two to twenty thousand, and no
one knew now to what fabulous height it had climbed. He was one of
the men to reckon with in the larger affairs of “Big Business.” And
here was the wife who had shared his early struggles, and the child
born of those contented years, and here was Smith, with whom in
the old days I had smoked my after-breakfast cigar on the rear
platform of a street car in our town, that we then thought the “best
town on earth,”—here were my old neighbors in a plight that might
well tax the renowned neurologist’s best powers.
What had happened to Smith? I asked myself; and the question was
also in his wife’s wondering eyes. And as we dallied, Smith fingered
his newspaper fretfully while I answered his wife’s questions about
our common acquaintances at “home” as she still called our
provincial capital.
It was not my own perspicacity but Fanny’s which subsequently
made possible an absolute diagnosis of Smith’s case, somewhat
before the cautious German specialist had announced it. From data
supplied by Fanny I arrived at the conclusion that Smith is the “tired
business man,” and only one of a great number of American Smiths
afflicted with the same malady,—bruised, nerve-worn victims of our
malignant gods of success. The phrase, as I shall employ it here,
connotes not merely the type of iron-gray stock broker with whom we
have been made familiar by our American drama of business and
politics, but his brother (also prematurely gray and a trifle puffy under
the eyes) found sedulously burning incense before Mammon in
every town of one hundred thousand souls in America. I am not sure,
on reflection, that he is not visible in thriving towns of twenty-five
thousand,—or wherever “collateral” and “discount” are established in
the local idiom and the cocktail is a medium of commercial and
social exchange. The phenomena presented by my particular Smith
are similar to those observed in those lesser Smiths who are the
restless and dissatisfied biggest frogs in smaller puddles. Even the
farmers are tired of contemplating their glowing harvests and
bursting barns and are moving to town to rest.

III
Is it possible that tired men really wield a considerable power and
influence in these American States so lately wrested from savagery?
Confirmation of this reaches us through many channels. In politics
we are assured that the tired business man is a serious
obstructionist in the path of his less prosperous and less weary
brethren engaged upon the pursuit of happiness and capable of
enjoying it in successes that would seem contemptibly meagre to
Smith. Thousands of Smiths who have not yet ripened for the
German specialists are nevertheless tired enough to add to the
difficulty of securing so simple a thing as reputable municipal
government. It is because of Smith’s weariness and apathy that we
are obliged to confess that no decent man will accept the office of
mayor in our American cities.
In my early acquaintance with Smith—in those simple days when he
had time to loaf in my office and talk politics—an ardent patriotism
burned in him. He was proud of his ancestors who had not withheld
their hand all the way from Lexington to Yorktown, and he used to
speak with emotion of that dark winter at Valley Forge. He would
look out of the window upon Washington Street and declare, with a
fine sweep of the hand, that “We’ve got to keep all this; we’ve got to
keep it for these people and for our children.” He had not been
above sitting as delegate in city and state conventions, and he had
once narrowly escaped a nomination for the legislature. The industry
he owned and managed was a small affair and he knew all the
employees by name. His lucky purchase of a patent that had been
kicked all over the United States before the desperate inventor
offered it to him had sent his fortunes spinning into millions within ten
years. Our cautious banker who had vouchsafed Smith a reasonable
guarded credit in the old days had watched, with the mild cynical
smile peculiar to conservative bank presidents, the rapid enrollment
of Smith’s name in the lists of directors of some of the solidest
corporations known to Wall Street. It is a long way from Washington
Street to Wall Street, and men who began life with more capital than
Smith never cease marveling at the ease with which he effected the
transition. Some who continue where he left them in the hot furrows
stare gloomily after him and exclaim upon the good luck that some
men have. Smith’s abrupt taking-off would cause at least a
momentary chill in a thousand safety-vault boxes. Smith’s patriotism,
which in the old days, when he liked to speak of America as the
republic of the poor, and when he knew most of the
“Commemoration Ode” and all of the “Gettysburg Address” by heart,
is far more concrete than it used to be. When Smith visits
Washington during the sessions of Congress the country is informed
of it. It is he who scrutinizes new senators and passes upon their
trustworthiness. And it was Smith who, after one of these
inspections, said of a member of our upper chamber that, “He’s all
right; he speaks our language,” meaning not the language of the
“Commemoration Ode” or the “Gettysburg Address,” but a recondite
dialect understood only at the inner gate of the money-changers.

IV
No place was ever pleasanter in the old days than the sitting-room of
Smith’s house. It was the coziest of rooms and gave the lie to those
who have maintained that civilization is impossible around a register.
A happy, contented family life existed around that square of
perforated iron in the floor of the Smiths’ sitting-room. In the midst of
arguments on life, letters, the arts, politics, and what-not, Smith
would, as the air grew chill toward midnight, and when Mrs. Smith
went to forage for refreshments in the pantry, descend to the cellar to
renew the flagging fires of the furnace with his own hands. The
purchase of a new engraving, the capture of a rare print, was an
event to be celebrated by the neighbors. We went to the theatre
sometimes, and kept track of the affairs of the stage; and lectures
and concerts were not beneath us. Mrs. Smith played Chopin
charmingly on a piano Smith had given her for a Christmas present
when Fanny was three. They were not above belonging to our
neighborhood book and magazine club, and when they bought a
book it was a good one. I remember our discussions of George
Meredith and Hardy and Howells, and how we saved Stockton’s
stories to enjoy reading them in company around the register. A trip
to New York was an event for the Smiths in those days as well as for
the rest of us, to be delayed until just the right moment for seeing the
best plays, and an opera, with an afternoon carefully set apart for the
Metropolitan Museum. We were glad the Smiths could go, even if the
rest of us couldn’t; for they told us all so generously of their
adventures when they came back! They kept a “horse and buggy,”
and Mrs. Smith used to drive to the factory with Fanny perched
beside her to bring Smith home at the end of his day’s work.
In those days the Smiths presented a picture before which one might
be pardoned for lingering in admiration. I shall resent any
suggestions that I am unconsciously writing them down as American
bourgeois with the contemptuous insinuations that are conveyed by
that term. Nor were they Philistines, but sound, wholesome, cheerful
Americans, who bought their eggs direct from “the butterman” and
kept a jug of buttermilk in the ice-box. I assert that Smiths of their
type were and are, wherever they still exist, an encouragement and
a hope to all who love their America. They are the Americans to
whom Lincoln became as one of Plutarch’s men, and for whom
Longfellow wrote “The Children’s Hour,” and on whom Howells
smiles quizzically and with complete understanding. Thousands of
us knew thousands of these Smiths only a few years ago, all the way
from Portland, Maine, to Portland, Oregon. I linger upon them
affectionately as I have known and loved them in the Ohio Valley, but
I have enjoyed glimpses of them in Kansas City and Omaha,
Minneapolis and Detroit, and know perfectly well that I should find
them realizing to the full life, liberty, and the pursuit of happiness in
many other regions,—for example, with only slight differences of
background, in Richmond, Virginia, and Burlington, Vermont. And in
all these places some particular Smith is always moving to Chicago
or Boston or New York on his way to a sanatorium or Bad Neuheim
and a German specialist! Innumerable Smiths, not yet so prosperous
as the old friend I encountered in Berlin, are abandoning their flower-
gardens and the cozy verandas (sacred to neighborhood
confidences on the long summer evenings) and their gusty registers
for compact and steam-heated apartments with only the roof-garden
overhead as a breathing-place.
There seems to be no field in which the weary Smith is not
exercising a baneful influence. We have fallen into the habit of laying
many of our national sins at his door, and usually with reason. His
hand is hardly concealed as he thrusts it nervously through the
curtains of legislative chambers, state and national. He invades city
halls and corrupts municipal councils. Even the fine arts are
degraded for his pleasure. Smith, it seems, is too weary from his
day’s work to care for dramas
“That bear a weighty and a serious brow,
Sad, high, and working, full of state and woe.”
He is one of the loyalest patrons of that type of beguilement known
as the “musical comedy,” which in its most engaging form is a
naughty situation sprinkled with cologne water and set to waltz time.
Still, if he dines at the proper hour at a Fifth Avenue restaurant and
eats more and drinks more than he should (to further the hardening
of his arteries for the German specialist), he may arrive late and still
hear the tune every one on Broadway is whistling. The girl behind
the book-counter knows Smith a mile off, and hands him at once a
novel that has a lot of “go” to it, or one wherein “smart” people
assembled in house-parties for week-ends, amuse themselves by
pinning pink ribbons on the Seventh Commandment. If the
illustrations are tinted and the first page opens upon machine-gun
dialogue, the sale is effected all the more readily. Or, reluctant to
tackle a book of any sort, he may gather up a few of those
magazines whose fiction jubilantly emphasizes the least noble
passions of man. And yet my Smith delighted, in those old days
around the register, in Howells’s clean, firm stroke; and we were
always quoting dear Stockton—“black stockings for sharks”—“put
your board money in the ginger jar.” What a lot of silly, happy,
comfortable geese we were!
It seems only yesterday that the first trayful of cocktails jingled into a
parlor in my town as a prelude to dinner; and I recall the scandalous
reports of that innovation which passed up and down the maple-
arched thoroughfares that give so sober and cloistral an air to our
residential area. When that first tray appeared at our elbows, just
before that difficult moment when we gentlemen of the provinces,
rather conscious at all times of our dress-coats, are wondering
whether it is the right or left arm we should offer the lady we are
about to take in, we were startled, as though the Devil had invaded
the domestic sanctuary and perched himself on the upright piano.
Nothing is more depressing than the thought that all these Smiths,
many of whose fathers slept in the rain and munched hard-tack for a
principle in the sixties, are unable to muster an honest appetite, but
must pucker their stomachs with a tonic before they can swallow
their daily bread. Perhaps our era’s great historian will be a stomach
specialist whose pages, bristling with statistics and the philosophy
thereof, will illustrate the undermining and honeycombing of our
institutions by gin and bitters.

V
The most appalling thing about us Americans is our complete
sophistication. The English are children. An Englishman is at no
moment so delightful as when he lifts his brows and says “Really!”
The Frenchman at his sidewalk table watches the world go by with
unwearied delight. At any moment Napoleon may appear; or he may
hear great news of a new drama, or the latest lion of the salon may
stroll by. Awe and wonder are still possible in the German, bred as
he is upon sentiment and fairy-lore: the Italian is beautifully
credulous. On my first visit to Paris, having arrived at midnight and
been established in a hotel room that hung above a courtyard which
I felt confident had witnessed the quick thrusts of Porthos, Athos,
and Aramis, I wakened at an early hour to the voice of a child singing
in the area below. It has always seemed to me that that artless song
flung out upon the bright charmed morning came from the very heart
of France! France, after hundreds of years of achievement,
prodigious labor, and staggering defeat, is still a child among the
nations.
Only the other day I attended a prize-fight in Paris. It was a gay affair
held in a huge amphitheatre and before a great throng of spectators
of whom a third were women. The match was for twenty rounds
between a Frenchman and an Australian negro. After ten rounds it
was pretty clear that the negro was the better man; and my lay
opinion was supported by the judgment of two American journalists,
sounder critics than I profess to be of the merits of such contests.
The decision was, of course, in favor of the Frenchman and the
cheering was vociferous and prolonged. And it struck me as a fine
thing that that crowd could cheer so lustily the wrong decision! It was
that same spirit that led France forth jauntily against Bismarck’s
bayonets. I respect the emotion with which a Frenchman assures me
that one day French soldiers will plant the tri-color on the
Brandenburg Gate. He dreams of it as a child dreams of to-morrow’s
games.
But we are at once the youngest and the oldest of the nations. We
are drawn to none but the “biggest” shows, and hardly cease
yawning long enough to be thrilled by the consummating leap of
death across the four rings where folly has already disproved all
natural laws. The old prayer, “Make me a child again just for to-
night,” has vanished with the belief in Santa Claus. No American
really wants to be a child again. It was with a distinct shock that I
heard recently a child of five telephoning for an automobile in a town
that had been threatened by hostile Indians not more than thirty
years ago. Our children avail themselves with the coolest
condescension of all the apparatus of our complex modern life: they
are a thousand years old the day they are born.
The farmer who once welcomed the lightning-rod salesman as a
friend of mankind is moving to town now and languidly supervising
the tilling of his acres from an automobile. One of these vicarious
husbandmen, established in an Indiana county seat, found it difficult
to employ his newly acquired leisure. The automobile had not proved
itself a toy of unalloyed delight, and the feet that had followed
unwearied the hay rake and plow faltered upon the treads of the
mechanical piano. He began to alternate motor flights with more
deliberate drives behind a handsome team of blacks. The eyes of
the town undertaker fell in mortal envy upon that team and he sought
to buy it. The tired husbandman felt that here, indeed, was an
opportunity to find light gentlemanly occupation, while at the same
time enjoying the felicities of urban life, so he consented to the use
of his horses, but with the distinct understanding that he should be
permitted to drive the hearse!

VI
If we are not, after all, a happy people, in the full enjoyment of life
and liberty, what is this sickness that troubleth our Israel? Why
huddle so many captains within the walls of the city, impotently
whining beside their spears? Why seek so many for rest while this
our Israel is young among the nations? “Thou hast multiplied the
nation and not increased the joy; they joy before thee according to
the joy in harvest and as men rejoice when they divide the spoil.”
Weariness fell upon Judah, and despite the warnings of noble and
eloquent prophets she perished. It is now a good many years since
Mr. Arnold cited Isaiah and Plato for our benefit to illustrate his belief
that with us, as with Judah and Athens, the majority are unsound.
And yet from his essay on Numbers—an essay for which Lowell’s
“Democracy” is an excellent antidote—we may turn with a feeling of
confidence and security to that untired and unwearying majority
which Arnold believed to be unsound. Many instances of the
soundness of our majority have been afforded since Mr. Arnold’s
death, and it is a reasonable expectation that, in spite of the
apparent ease with which the majority may be stampeded, it
nevertheless pauses with a safe margin between it and the
precipice. Illustrations of failure abound in history, but the very rise
and development of our nation has discredited History as a prophet.
In the multiplication of big and little Smiths lies our only serious
danger. The disposition of the sick Smiths to deplore as unhealthy
and unsound such a radical movement as began in 1896, and still
sweeps merrily on in 1912, never seriously arrests the onward march
of those who sincerely believe that we were meant to be a great
refuge for mankind. If I must choose, I prefer to take my chances
with the earnest, healthy, patriotic millions rather than with an
oligarchy of tired Smiths. Our impatience of the bounds of law set by
men who died before the Republic was born does not justify the
whimpering of those Smiths who wrap themselves in the grave-
clothes of old precedents, and who love the Constitution only when
they fly to it for shelter. Tired business men, weary professional men,
bored farmers, timorous statesmen are not of the vigorous stuff of
those
“Who founded us and spread from sea to sea
A thousand leagues the zone of liberty,
And gave to man this refuge from his past,
Unkinged, unchurched, unsoldiered.”
Our country’s only enemies are the sick men, the tired men, who
have exhausted themselves in the vain pursuit of vain things; who
forget that democracy like Christianity is essentially social, and who
constitute a sick remnant from whom it is devoutly to be hoped the
benign powers may forever protect us.

VII
It was a year ago that I met my old friend Smith, irritable, depressed,
anxious, in the German capital. This morning we tramped five miles,
here among the Vermont hills where he has established himself.
Sound in wind and limb is my old neighbor, and his outlook on life is
sane and reasonable. I have even heard him referring, with
something of his old emotion, to that dark winter at Valley Forge, but
with a new hopefulness, a wider vision. He does not think the
American Republic will perish, even as Nineveh and Tyre, any more
than I do. He has come to a realization of his own errors and he is
interested in the contemplation of his own responsibilities. And it is
not the German specialist he has to thank for curing his weariness
half so much as Fanny.
Fanny! Fanny is the wisest, the most capable, the healthiest-minded
girl in the world. Fanny is adorable! As we trudged along the road,
Smith suddenly paused and lifted his eyes to a rough pasture slightly
above and beyond us. I knew from the sudden light in his face that
Fanny was in the landscape. She leaped upon a wall and waved to
us. A cool breeze rose from the valley and swept round her. As she
poised for a moment before running down to join us in the road,
there was about her something of the grace and vigor of the Winged
Victory as it challenges the eye at the head of the staircase in the
Louvre. She lifted her hand to brush back her hair,—that golden
crown so loved by light! And as she ran we knew she would neither
stumble nor fall on that rock-strewn pasture. When she reached the
brook she took it at a bound, and burst upon us radiant.
It had been Fanny’s idea to come here, and poor, tired, broken,
disconsolate Smith, driven desperate by the restrictions imposed
upon him by the German doctors, and only harassed by his wife’s
fears, had yielded to Fanny’s importunities. I had been so drawn into
their affairs that I knew all the steps by which Fanny had effected his
redemption. She had broken through the lines of the Philistines and
brought him a cup of water from that unquenchable well by the gate
for which David pined and for which we all long when the evil days
come. The youth of a world that never grows old is in Fanny’s heart.
She is to Smith as a Goddess of Liberty in short skirt and sweater,
come down from her pedestal to lead the way to green pastures
beside waters of comfort. She has become to him not merely the
spirit of youth but of life, and his dependence upon her is complete. It
was she who saved him from himself when to his tired eyes it
seemed that
“All one’s work is vain,
And life goes stretching on, a waste gray plain,
With even the short mirage of morning gone,
No cool breath anywhere, no shadow nigh
Where a weary man might lay him down and die.”

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