Deck 9: Designing Adaptive Organizations

Question 1

The number of employees reporting to a supervisor is his or her span of management.

Answer 1

True

Question 2

The principle of unity of command suggests that managers within an organization should reach agreement on the goals and objectives of the organization.

Answer 2

False

Question 3

The framework in which the organization defines how tasks are divided, resources are deployed and departments are coordinated is called organizational structure.

Answer 3

True

Question 4

Authority is the right to use resources, make decisions and issue orders in an organization.

Question 5

The trend in recent years has been toward narrower spans of control as a way to facilitate delegation.

Question 6

Strategy defines what to do; organizing defines how to do it.

Question 7

Organizing defines what to do while strategy defines how to do it.

Question 8

A structure graph is a visual representation of an organization's structure, showing communication and lines of power.

Question 9

The idea that organizations develop a well-defined line of authority in the organization that includes all employees is suggested by the virtual network approach.

Question 10

According to MANAGER'S SHOPTALK in Chapter 9, the attempt by top management to decentralize decision making often gets bogged down because middle manager are unable to delegate.

Question 11

The flip side of the authority coin is responsibility.

Question 12

The duty to perform the task or activity an employee has been assigned is called accountability.

Question 13

According to MANAGER'S SHOPTALK in Chapter 9, managers are most comfortable making familiar decisions.

Question 14

Staff departments perform tasks that reflect the organization's primary goal and mission.

Question 15

A relatively few hierarchical levels and a correspondingly narrow span of management refers to a flat structure.

Question 16

Most organizations today discourage managers to delegate authority to the lower levels given the challenges to meet customer needs and adapt to the environment.

Question 17

People in management positions have formal authority to direct and control immediate subordinates.

Question 18

The deployment of organizational resources to achieve strategic goals refers to organizing.

Question 19

Despite the apparent advantages of specialization, many organizations are moving away from this principle.

Question 20

The right to advise, recommend, and counsel in the staff specialists' area of expertise is included in staff authority.

Question 21

In a virtual network approach to structure, the organization becomes a small broker and departments are independent contracting services to the broker for a profit.

Question 22

The confusion and frustration caused by the dual chain of command is the major problem of the matrix structure.

Question 23

Aspects of both functional and divisional structures simultaneously in the same part of the organization are combined in the virtual network approach.

Question 24

The horizontal structure provides traditional control within functional departments, and the vertical structure provides coordination across departments.

Question 25

Because the chain of command converges at the top, the functional structure provides a way to decentralize decision making and provide unified direction from all managers.

Question 26

At Fox End, people are grouped together in departments by common skills and work activities, including a sales department and a production department. This is an example of vertical functional approach.

Question 27

Quick response to external changes is an advantage of vertical functional structure.

Question 28

The basis for grouping positions into departments and departments into the total organization is referred to as departmentalization.

Question 29

The functional structure is sometimes called a product, a program, or self-contained unit structure.

Question 30

The functional structure offers a way to decentralize decision making and provide direction from the teams in the field.

Question 31

In a geographic-based structure, all functions in a specific country or region report to the same division manager.

Question 32

Two contemporary approaches to departmentalization are the use of teams and groups.

Question 33

The divisional structure encourages decentralization.

Question 34

A cross-functional team normally has two or more groups of employees who are in continuing conflict because of a difference in goals and values.

Question 35

Divisions are created, in functional structures, as self-contained units with separate functional departments for each division.

Question 36

Certainty in the environment is usually associated with decentralization.

Question 37

A tall structure is a management structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels.

Question 38

At Creative Expressions, departments are grouped together into separate self-contained groups based on common products and product lines. This is an example of departmental approach.

Question 39

In a matrix approach to departmentalization, two chains of command exist, with top priority given to the team managers.

Question 40

The overseer of both the product and functional chains of command, responsible for the entire matrix is the matrix boss.

Question 41

Flexibility and competitiveness on a global scale are the biggest advantage of the virtual network approach to structure.

Question 42

The nature of the virtual network structure means that the subcontractor becomes a permanent part of and an internal division of the organization.

Question 43

One major disadvantage of the virtual network approach is the lack of hands-on control.

Question 44

The matrix approach can be highly effective in a complex, rapidly changing environment in which the organization needs to be flexible and adaptable.

Question 45

According to estimates, only 10 percent of reengineering efforts fail to reach their intended goals.

Question 46

In today's environment, organizations with stronger horizontal designs typically perform better.

Question 47

A project manager is a person responsible for coordinating the activities of several departments for the completion of a specific project.

Question 48

A permanent team designed to solve short-term problems refers to a task force.

Question 49

Reengineering basically means preserving the past by establishing the sequence of activities by how work was done.

Question 50

The modular approach is similar to virtual networking.

Question 51

Permanent teams are groups of employees are organized in a way similar to a formal department.

Question 52

The divisional structure fosters excellent coordination within divisions, but coordination across divisions is often poor.

Question 53

The radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed is called reengineering, or sometimes called business change reengineering.

Question 54

One of the disadvantages of team approach is that employees often experience conflicts and dual loyalties.

Question 55

An organized group of related tasks and activities that work together to transform inputs into outputs and create value is called a process.

Question 56

Reengineering is the outcome of information and cooperation.

Question 57

Coordination is the quality of collaboration across departments.

Question 58

In divisional approach, coordination across divisions is great; whereas coordination within divisions is often poor.

Question 59

Coordination is especially important in the international arena.

Question 60

The structure of an organization is not complete without designing the horizontal as well as the vertical dimensions of structure.

Question 61

When work specialization is extensive

A) employees perform a single task.
B) employees perform many tasks.
C) employees are often highly challenged.
D) employees are often inefficient.
E) jobs tend to be large.

Question 62

The functional structure is appropriate when the primary goal is innovation and flexibility.

Question 63

Strategy defines ____ to do (it) while organizing defines ____ to do (it).

A) how; what
B) how; why
C) what; how
D) what; why
E) when; what

Question 64

Organization structure is defined as the

A) visual representation of the organization.
B) framework in which the organization defined how tasks are divided, resources are deployed, and departments are coordinated.
C) division of labor.
D) unbroken line of authority that links all individuals in the organization.
E) none of these.

Question 65

Flexible authority expectations typically would fit with horizontal organizing, such as managing teams, projects, and reengineering.

Question 66

Organizational structure includes which of these?

A) The set of formal tasks assigned to individuals
B) The set of formal tasks assigned to departments
C) The design of systems to ensure effective coordination of employees across departments
D) Formal reporting relationships
E) All of these are part of organizational structure.

Question 67

A loose, horizontal structure in a stable environment is inefficient.

Question 68

Permissive expectations typically would fit in a traditional vertical structure with fixed rules and a clear hierarchy of authority.

Question 69

The organization chart

A) shows the characteristics of the organization's vertical structure.
B) is a visual representation of the organization's structure.
C) details the formal reporting relationships that exist within an organization.
D) all of these.
E) both shows the characteristics of the organization's vertical structure and is a visual representation of the organization's structure.

Question 70

A rigid, vertical structure in an uncertain environment prevents the organization form adapting to change.

Question 71

With a cost leadership strategy, the organization attempts to develop innovative products unique to the market.

Question 72

Two contingency factors affecting structure are strategic goals and the environment.

Question 73

Which of the following refers to the deployment of organizational resources to achieve strategic goals?

A) Planning
B) Controlling
C) Organizing
D) Leading
E) Strategic management

Question 74

The pure functional structure is appropriate for achieving internal efficiency goals.

Question 75

____ is also referred to as work specialization.

A) Division of labor
B) Unity of command
C) Scalar chain
D) Esprit de corps
E) virtual network approach

Question 76

Louise works in the manufacturing department at Ice Sculptures. The work in Louise's department is low in task specialization. As a result, Louise

A) usually performs a single task.
B) does a variety of tasks and activities.
C) is often bored.
D) is rarely challenged.
E) generally goofs-off.

Question 77

Jacob was recently looking at his company's organization chart in an attempt to discover who reports to whom. Jacob is studying his organization's

A) degree of formalization.
B) amount of differentiation.
C) degree of centralization.
D) chain of command.
E) division of labor.

Question 78

A vertical structure that emphasizes specialization and centralization is appropriate when environmental uncertainty is high.

Question 79

When an organization uses a differentiation strategy, it strives for internal efficiency.

Question 80

Which of the following refers to the degree to which organizational tasks are subdivided into individual jobs?

A) Multitasking
B) Lines of authority
C) Work specialization
D) Autonomy
E) Team structure