Chapter 5 for Students.345205220

Chapter 5: Organizational Structure and Culture

1. Organizational design is the process in which managers change or develop an organization's structure.

Answer: True False Diff: 2 Page Ref: 150

Objective: 5.1

2. There are four basic elements in organizational structure.


Objective: 5.1

3. The original ideas about organizational design formulated by Fayol and Weber are now largely obsolete.


Objective: 5.1

4. When work specialization originally began to be implemented early in the twentieth century, employee

productivity initially rose.


Objective: 5.1

5. Today, most managers see work specialization as a source of ever-increasing productivity.


Objective: 5.1

6. The advantage of work specialization is that it tends to result in high employee motivation and high

productivity.


Objective: 5.1

7. Departmentalization is a how jobs are grouped.


Objective: 5.1

8. Staff authority is the ability to direct the work of any employee who does not have a higher rank in the

organization.


Objective: 5.1

9. Grouping jobs on the basis of major product areas is termed customer departmentalization.


Objective: 5.1

10. Line authority can be exerted only after a manager checks with his or her superior.


Objective: 5.1

11. Unity of command prevents an employee from trying to follow two conflicting commands at once.


Objective: 5.1

12. Power is a right that a manager has when he or she has a higher rank in an organization.


Objective: 5.1

13. When decisions tend to be made at lower levels in an organization, the organization is said to be centralized.


Objective: 5.1

14. Traditional organizations are structured in a pyramid, with the power and authority located in the pyramid's

broad base.


Objective: 5.1

15. The two prevalent organization structure models in today's world are the organic organization and the

inorganic organization.


Objective: 5.2

16. A mechanistic organization is bureaucratic and hierarchical.


Objective: 5.2

17. An organic organization tends to be flexible and have few formal rules.


Objective: 5.2

18. Innovators need the efficiency, stability, and tight controls of a mechanistic structure rather than an organic

structure.


Objective: 5.2

19. The relationship between organizational size and structure tends to be linear.

Answer: True False Diff: 3 Page Ref: 161-162

Objective: 5.2

20. Joan Woodward attempted to view organizational structure from a technological perspective.


Objective: 5.2

21. Woodward concluded that mass production worked best with an organic organization structure.


Objective: 5.2

22. The stability of a mechanistic structure seems to work best in today's dynamic and uncertain business

environment.


Objective: 5.2

23. The strength of a simple system is that everything depends on a single person.


Objective: 5.3

24. A strength of a functional structure is that it avoids duplication.


Objective: 5.3

25. A weakness of the divisional structure is that duplication tends to occur.


Objective: 5.3

26. In a team structure, team members are not held responsible for their decisions.

Answer: True False

Diff: 2 Page Ref: 165

Objective: 5.3

27. In a team structure there is a clear line of managerial authority from top to bottom.


Objective: 5.3

28. When an employee in a matrix structure finishes a project, she goes back to her functional department.


Objective: 5.3

29. Employees in an organization with a matrix design can have two bosses for the same job.


Objective: 5.3

30. A significant advantage of the matrix structure is the clear chain of command from top to bottom of the

organization.


Objective: 5.3

31. When an employee in a project structure finishes a project, he goes back to his original department.


Objective: 5.3

32. Vertical boundaries separate employees by their rank in an organization.


Objective: 5.3

33. Horizontal boundaries separate employees by the amount of power they have in an organization.


Objective: 5.3

34. A virtual organization relies on freelancers who have no permanent status or position in the organization.


Objective: 5.3

35. Managers want to eliminate boundaries in organizations primarily to increase stability and reduce flexibility.


Objective: 5.3

36. Horizontal boundaries separate employees by the specialization of their job.


Objective: 5.3

37. A virtual organization may disintegrate after it finishes its task.


Objective: 5.3

38. All learning organizations share a distinct structure.


Objective: 5.3

39. A company's organizational culture refers to a system of shared political beliefs.


Objective: 5.4

40. Employees learn organizational culture by reading official organization documents and histories.


Objective: 5.4

41. An organization's founder has little influence on its culture.


Objective: 5.4

42. Strong organizational culture can eliminate the need for rules and bylaws.


Objective: 5.4

43. Organizational design requires a manager to ________.

A) change or develop the structure of an organization

B) change the culture of an organization

C) organize groups within an organization

D) change the logo of an organization

Answer: Diff: 1 Page Ref: 150

Objective: 5.1

44. All of the following are part of the process of organizational design EXCEPT ________.

A) determine goals for the organization

B) determine rules for employee behavior

C) decide how specialized jobs should be

D) determine the level at which decisions are made


Objective: 5.1

45. Which of the following are NOT basic elements of organizational structure?

A) work specialization, span of control

B) departmentalization, formalization

C) centralization, decentralization

D) chain of command, line authority


Objective: 5.1

46. Which of the following is synonymous with work specialization?

A) job preference

B) division of labor

C) job discrimination

D) chain of command


Objective: 5.1

47. Which statement accurately defines work specialization?

A) Work specialization clarifies who reports to whom.

B) Individual employees specialize in doing part of an activity rather than the entire activity.

C) It is the degree to which tasks are grouped together.

D) Jobs are ranked relative only to their worth or value to the businesses.


Objective: 5.1

48. Early supporters of work specialization saw it as ________.

A) an immoral way to coerce workers into greater productivity

B) a good way to increase employee morale

C) a source of innovation

D) a reliable way to increase productivity


Objective: 5.1

49. Early users of work specialization early in the twentieth century found that the practice ultimately resulted

in ________.

A) huge and permanent productivity gains

B) better communication among employees

C) bored workers with low morale

D) higher profits and better employee morale


Objective: 5.1

50. Today, managers favor this approach instead of work specialization.

A) Employees perform a broad range of tasks.

B) Partners switch jobs every half hour.

C) Monotonous tasks are shared by all employees.

D) All tasks are performed by all employees.


Objective: 5.1

51. Functional departmentalization groups jobs by ________.

A) products or services they manufacture or produce

B) type of customer they serve

C) tasks they perform

D) territories they serve


Objective: 5.1

52. ________ departmentalization is based on territory or the physical location of employees or customers.

A) Matrix

B) Geographic

C) Functional

D) Product


Objective: 5.1

53. A soap company that features a bath soap department, a laundry detergent department, and a dish soap

department is using which of the following?

A) customer departmentalization

B) process departmentalization

C) functional departmentalization

D) product departmentalization


Objective: 5.1

54. What kind of departmentalization would be in place in a government agency in which there are separate

departm ents that provide services for employers, employed workers, unemployed workers, and the disabled?

A) geographic

B) customer

C) outcome

D) product


Objective: 5.1

55. State motor vehicle offices usually use this kind of departmentalization.

A) process

B) functional

C) product

D) customer


Objective: 5.1

56. The line of authority that extends from the upper levels of management to the lowest levels of the

organization is termed the ________.

A) chain of command

B) chain of responsibility

C) unity of command

D) staff authority


Objective: 5.1

57. The chain of command answers this question.

A) How do I know when the task is complete?

B) Who reports to whom?

C) What are the rules?

D) Where do I go for help?


Objective: 5.1

58. Authority gives an individual the right to do this.

A) command respect

B) obey orders

C) give orders

D) reprimand employees


Objective: 5.1

59. In the chain of command, each person above you ________.

A) has special privileges

B) has no right to give you orders

C) receives higher pay

D) has line authority


Objective: 5.1

60. Staff managers have authority over ________.

A) middle managers

B) the person above them in the chain of command

C) special support employees only

D) line managers


Objective: 5.1

61. Line authority gives a manager the ability to direct the work of ________.

A) any employee in the firm

B) only subordinates one level down

C) any subordinate, after consulting with the next higher level

D) any subordinate


Objective: 5.1

62. ________ prevents a single employee from getting conflicting orders from two different superiors.

A) Unity of command

B) Staff authority

C) Line authority

D) Chain of command


Objective: 5.1

63. The importance of unity of command has diminished in today's workplace because of its tendency to be

________.

A) ethically questionable

B) inflexible

C) chauvinistic and dictatorial

D) too decisive


Objective: 5.1

64. Which of the following statements is true?

A) Both power and authority are rights.

B) Authority is a right.

C) Power is a right.

D) Authority is one's ability to influence decisions.


Objective: 5.1

65. ________ is the obligation or expectation to perform a duty.

A) Span of control

B) Chain of command

C) Unity of command

D) Responsibility


Objective: 5.1

66. The personal secretary of a top manager may have ________.

A) power and authority

B) power but not authority

C) line authority but not staff authority

D) authority but not power


Objective: 5.1

67. Which of the following statements is true?

A) Authority and power are identical.

B) Power is a type of authority.

C) Authority is a type of power.

D) Power is determined by horizontal position in an organization.


Objective: 5.1

68. As represented in a power cone, power is based on ________.

A) vertical position and distance from the center

B) vertical position only

C) horizontal position only

D) distance from the center only

Answer: Diff: 3 Page Ref: 156-157

Objective: 5.1

69. As represented in a hierarchical organization diagram, authority is based on ________.

A) horizontal position only

B) horizontal and vertical position

C) distance from the center only

D) vertical position only


Objective: 5.1

70. A construction site supervisor who sees an impending thunderstorm and tells workers to go home is

demonstrating ________.

A) responsibility

B) staff delegation

C) provisional accountability

D) line authority


Objective: 5.1

71. ________ is the power that rests on the leader's ability to punish or control.

A) Expert power

B) Reward power

C) Referent power

D) Coercive power


Objective: 5.1

72. A bank manager who passes out bonuses at the end of the year is exercising this.

A) expert power

B) reward power

C) coercive power

D) referent power


Objective: 5.1

73. Your firm's attorney has ________ power when giving legal advice.

A) expert

B) legitimate

C) coercive

D) status


Objective: 5.1

74. ________ is the power that arises when a person is close to another person who has great power and

authority.

A) Referent power

B) Reward power

C) Expert power

D) Legitimate power


Objective: 5.1

75. When a top manager decides to hire an individual over the objections of her staff she is exercising which

kind of power?

A) coercive

B) referent

C) legitimate

D) expert


Objective: 5.1

76. The traditional view holds that managers should not directly supervise more than ________ subordinates.

A) seven or eight

B) nine or ten

C) three or four

D) five or six


Objective: 5.1

77. Modern managers find that they can ________ if their employees are experienced, well-trained, and

motivated.

A) eliminate their span of control

B) decrease their span of control

C) increase their span of control

D) fluctuate their span of control


Objective: 5.1

78. A traditional "top down" organization is ________ organization.

A) a largely decentralized

B) an absolutely decentralized

C) an absolutely centralized

D) a largely centralized


Objective: 5.1

79. ________ reflects the degree to which decision making is distributed through out the hierarchy rather than

concentrated at the top.

A) Centralization

B) Decentralization

C) Span of Control

D) Concentration


Objective: 5.1

80. In recent years, organizations have become more ________ to be responsive to a dynamic business

environment.

A) decentralized

B) mechanistic

C) structured

D) centralized


Objective: 5.1

81. In today's decentralized business world, ________ the most important strategic decisions.

A) nonmanagerial employees

B) top managers still primarily make

C) lower-level managers

D) middle managers make


Objective: 5.1

82. All of the following are characteristics of a highly formalized organization EXCEPT ________.

A) minimum number of rules

B) a standardized way of doing things

C) little discretion for employees

D) explicit job descriptions


Objective: 5.1

83. Today's managers are moving away from formalization and trying to be this.

A) more rigorous

B) more strict

C) less permissive

D) more flexible


Objective: 5.1

84. Today's managers expect employees to ________.

A) ignore rules for the most part

B) use discretion when it comes to following rules

C) make their own rules

D) faithfully follow rules even when it may harm the organization


Objective: 5.1

85. A(n) ________ organization has a high degree of specialization, formalization, and centralization.

A) learning

B) organic

C) horizontal

D) mechanistic


Objective: 5.2

86. Which of the following would likely be found in mechanistic organizations?

A) empowered employees

B) wide span of control

C) standardized jobs

D) decentralized responsibility


Objective: 5.2

87. A(n) ________ organization is able to change rapidly as needs require.

A) hierarchical

B) organic

C) vertical

D) mechanistic


Objective: 5.2

88. Which term best describes an organic organization?

A) pyramid-shaped

B) hierarchical

C) fixed

D) flexible


Objective: 5.2

89. Which word best characterizes a mechanistic organization?

A) informal

B) hierarchical

C) collaborative

D) adaptable


Objective: 5.2

90. Strategy, size, technology, and the degree of uncertainty in the environment together make up what are

called ________.

A) control factors

B) contingency variables

C) structure variables

D) probable factors


Objective: 5.2

91. Together, contingency variables determine the ________.

A) success of an organization

B) size of an organization

C) structure of an organization

D) culture of an organization


Objective: 5.2

92. A company that is pursuing a cost leadership strategy would be most likely to have this kind of structure.

A) mechanistic

B) matrix-project

C) virtual

D) team


Objective: 5.2

93. A company that is trying to be a leader in innovation within its industry would be most likely to have this

kind of structure.

A) organic

B) functional

C) simple

D) mechanistic


Objective: 5.2

94. Larger organizations tend to have ________ than smaller organizations.

A) less centralization

B) more specialization

C) fewer rules and regulations

D) less departmentalization


Objective: 5.2

95. As an organization grows to a size of over 2,000 employees, it finds it hard to avoid becoming more

________.

A) organic

B) informal

C) mechanistic

D) adaptable


Objective: 5.2

96. Joan Woodward conducted pioneering studies on how this affected the structure of companies.

A) technology

B) values

C) ethics

D) corporate culture


Objective: 5.2

97. Woodward found that if horizontal differentiation in an organization was low, this structure worked best.

A) mechanistic

B) organic

C) traditional

D) inorganic


Objective: 5.2

98. Woodward concluded that a mechanistic structure worked best for a firm that used ________.

A) unit production

B) process production

C) quality production

D) mass production


Objective: 5.2

99. In Woodward's study, this type of production combined high vertical differentiation and low horizontal

differentiation.

A) mass production

B) process production

C) technological production

D) unit production


Objective: 5.2

100. The greater the environmental uncertainty, the more an organization needs to become ________.

A) organic

B) mechanistic

C) high-tech

D) stable

Answer:


Objective: 5.2

101. Global competition forces firms to ________.

A) become lean, fast, and flexible

B) become more hierarchical

C) think locally

D) build up enormous cash reserves


Objective: 5.2

102. Traditional organizational designs tend to be more mechanistic and include ________.

A) functional, divisional, and vertical structures

B) simple, complex, and divisional structures

C) simple, functional, and divisional structures

D) simple, functional, and dysfunctional structures


Objective: 5.3

103. A simple structure is ________ like a mechanistic organization, but ________ like an organic organization.

A) decentralized; formal

B) centralized; informal

C) centralized; formal

D) informal; decentralized


Objective: 5.3

104. What is a strength of a simple structure?

A) Employees are grouped with others who have similar tasks.

B) There are cost-saving advantages from specialization.

C) Power and authority are widely distributed.

D) Accountability is clear.


Objective: 5.3

105. What is a weakness of a simple structure?

A) Reliance on a single person is risky.

B) Functional specialists become insulated and have little understanding of what other units are doing.

C) Pursuit of functional goals can cause managers to lose sight of what is best for the overall organization.

D) Duplication of activities and resources increases costs and reduces efficiency.


Objective: 5.3

106. This is a key characteristic in an organization with a functional structure.

A) little specialization

B) adaptability

C) departmentalization

D) flexibility


Objective: 5.3

107. This is a weakness of a functional structure.

A) favoring functional goals over organizational goals

B) favoring organizational goals over functional goals

C) overemphasizing organizational goals

D) failing to attain functional goals


Objective: 5.3

108. Avoiding redundancy is a strength of which structure?

A) functional

B) simple

C) divisional

D) corporate


Objective: 5.3

109. In a ________ structure each business unit has complete autonomy to reach its goals.

A) simple

B) divisional

C) functional

D) matrix


Objective: 5.3

110. A media company that has separate, autonomous companies for movies, TV, Internet, and print journalism

is most likely a ________ structure.

A) functional

B) matrix

C) simple

D) divisional


Objective: 5.3

111. Having separate payroll departments in each division of a divisional structure is an example of which of the

following?

A) duplication, because a single payroll department could do the job

B) efficiency, because payroll departments compete

C) effectiveness, because separate payroll departments create jobs

D) efficiency, because separate payroll departments can share methods of operation


Objective: 5.3

112. As the number of employees in an organization grows, structure tends to become more ________.

A) decentralized

B) informal

C) bureaucratic

D) relaxed


Objective: 5.3

113. Looking for ways to make their organization more flexible and innovative, today's managers may choose this

kind of structure.

A) simple

B) team

C) divisional

D) functional


Objective: 5.3

114. In a team structure, ________.

A) no one has the authority to make decisions

B) there is a clear line of managerial authority

C) authority comes from top managers only

D) there is no clear line of managerial authority


Objective: 5.3

115. In a team structure, team members ________.

A) make decisions and are accountable for their decisions

B) are subject to decisions made by their supervisors

C) can influence decisions made by top managers

D) make decisions only after first checking with management


Objective: 5.3

116. All of the following are necessary for successful team structure EXCEPT ________.

A) team members with cross-functional skills

B) well-trained team members

C) a fair and well-run team-based pay plan

D) team members with years of management experience


Objective: 5.3

117. In a ________, employees are recruited from functional departments to work on a specific project for a

limited time period.

A) matrix structure

B) product structure

C) team structure

D) divisional structure


Objective: 5.3

118. In a matrix structure, a group member will typically report to ________.

A) both a project manager and functional department head

B) a functional department head only

C) a project manager only

D) Group members are fully autonomous in a matrix structure, so they don't report to anyone.


Objective: 5.3

119. When a group member in a matrix structure finishes a project, she ________.

A) starts looking for a new job

B) enters a pool of available employees from the entire organization

C) stays with the group to take on a new project

D) returns to her functional department


Objective: 5.3

120. By giving employees two direct superiors, a matrix structure violates this key element of organizational

design.

A) decentralization

B) chain of command

C) unity of command

D) span of management


Objective: 5.3

121. A key difference between a team structure and a matrix structure is that a team structure ________ while a

matrix structure does not.

A) works on projects

B) holds group members accountable

C) has fairly permanent groups or teams

D) empowers group members


Objective: 5.3

122. In a project structure, when employees finish a project they ________.

A) return to their regular work

B) return to a different division

C) move on to another project

D) return to their department


Objective: 5.3

123. In an orchestra, a horizontal boundary exists between which of the following?

A) the string section and the audience

B) the conductor and the audience

C) the string section and the horn section

D) the string section and the conductor


Objective: 5.3

124. In an orchestra, a vertical boundary exists between which of the following?

A) the horn section and the percussion section

B) the string section and the conductor

C) the string section and the horn section

D) the percussion section and the string section


Objective: 5.3

125. Boundaryless organizations try to eliminate ________ within their organization.

A) vertical hierarchy only

B) horizontal specialization only

C) horizontal specialization and vertical hierarchy

D) vertical specialization only


Objective: 5.3

126. A virtual organization is essentially ________ who come together for a particular project.

A) a group of employees from a single company

B) a team of employees from different departments of a company

C) a group of free agents

D) a group of top managers and CEOs

Answer:


Objective: 5.3

127. How does a virtual organization save on costs?

A) by eliminating all administrative duties

B) by hiring people who specialize in what they do

C) by hiring fewer people than they need and making them work much longer hours

D) by keeping only a small permanent staff for administrative purposes only


Objective: 5.3

128. A ________ subcontracts part of a project out to outside suppliers.

A) network organization

B) boundary organization

C) matrix structure

D) virtual organization


Objective: 5.3

129. A building contractor follows the network organization model when he does which of the following?

A) hires three workers to help with framing

B) gives orders to workers

C) does the framing and tiling by himself

D) farms out the plumbing to a plumbing firm


Objective: 5.3

130. A learning organization develops the capability to ________.

A) attract new employees who have special knowledge

B) add new training programs to keep employees up to date

C) continuously learn, adapt, and change

D) accept the conventional wisdom of the industry


Objective: 5.3

131. A learning organization requires employees to ________.

A) encode information to prevent competitors from stealing ideas

B) make all ideas public

C) share information and collaborate with one another

D) collaborate with competitors


Objective: 5.3

132. All of the following are characteristic of learning organizations EXCEPT ________.

A) managers who serve as facilitators

B) a strong sense of community

C) a collaborative environment

D) fear of making mistakes


Objective: 5.3

133. Organizational learning can't take place without ________.

A) a clear chain of command

B) a stable structure or hierarchy

C) a shared vision of the future

D) complete privacy for employees


Objective: 5.4

134. The culture of an organization is analogous to the ________ of an individual.

A) skills

B) motivation

C) personality

D) ability


Objective: 5.4

135. Which of the following phrases best characterizes the culture of an organization?

A) how things are done around here

B) guidelines for where this organization is going

C) our official code of conduct

D) the most efficient way to do things


Objective: 5.4

136. Which of the following is NOT a common way in which corporate cultures are transmitted to employees?

A) informal rituals

B) symbols

C) stories

D) formal culture meetings


Objective: 5.4

137. Sony Corporation's focus on product innovation is an example of which of the following dimensions of

organizational culture?

A) member identity

B) risk tolerance

C) people focus

D) conflict tolerance


Objective: 5.4

138. Which of the following is NOT considered to be a characteristic of organizational culture?

A) aggressiveness and competitiveness

B) attitudes about taking risks

C) purchasing policies

D) attention to detail


Objective: 5.4

139. The original source of an organization's culture usually reflects the vision and attitudes of ________.

A) contemporaries who are admired by the organization

B) the organization's founders

C) the current president or CEO of the organization

D) the organization's original employees


Objective: 5.4

140. What does the story of 3M employee Art Fry inventing the Post-It Note to make church hymns communicate

to 3M employees?

A) that workers never stop working

B) that church is important

C) that workers need to take a day off

D) that creativity is important


Objective: 5.4

141. All of the following show why corporate rituals can be valuable in a corporate culture EXCEPT ________.

A) rituals symbolize key ideas that are important in the culture

B) rituals intimidate and silence critics of the corporate culture.

C) rituals help initiate new employees into the culture

D) rituals reinforce corporate values


Objective: 5.4

142. Which of the following most accurately reflects the difference between strong cultures and weak cultures?

A) Strong cultures tend to encourage employee innovation, while weak cultures do not.

B) Strong cultures have less of an influence on employee behavior than do weak cultures.

C) Weak cultures are found in most successful organizations, whereas strong cultures are relatively rare.

D) Company values are more deeply held and widely shared in strong cultures than in weak cultures.


Objective: 5.4

Documents

Chapter 5 for Students.345205220