Deck 7: Designing Adaptive Organizations

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

According to SPOTLIGHT ON SKILLS in Chapter 7,the attempt by top management to decentralize decision making often gets bogged down because middle managers are unable to delegate.

Question 5

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

Question 6

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

Question 7

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

Question 8

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 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

The flip side of the authority coin is responsibility.

Question 16

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

Question 17

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

Question 18

According to SPOTLIGHT ON SKILLS in Chapter 7,managers are most comfortable making familiar decisions.

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

The divisional structure encourages decentralization.

Question 25

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 26

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 27

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

Question 28

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

Question 29

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

Question 30

Certainty in the environment is usually associated with decentralization.

Question 31

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

Question 32

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

Question 33

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 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

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

Question 41

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

Question 42

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

Question 43

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

Question 44

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

Question 45

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

Question 46

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

Question 47

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

Question 48

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

Question 49

Coordination is especially important in the international arena.

Question 50

The modular approach is similar to virtual networking.

Question 51

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

Question 52

Reengineering is the outcome of information and cooperation.

Question 53

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

Question 54

Because the focus of reengineering is on function rather than process,reengineering generally leads to a shift away from a strong horizontal structure to one emphasizing stronger vertical coordination.

Question 55

Coordination is the quality of collaboration across departments.

Question 56

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

Question 57

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

Question 58

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

Question 59

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

Question 60

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

Question 61

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

Question 62

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

Question 63

Digital technology encourages boundarylessness,where information and work activities flow freely among various organizational participants.

Question 64

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 65

A payroll clerk reports to a chief accountant,who in turn reports to the vice president,who in turn reports to the company president. This is an example of chain of command.

Question 66

Large non-profit organizations such as the United Way and Girl Scouts of the USA are known to operate using a matrix structure.

Question 67

Small-batch production is distinguished by standardized production runs.

Question 68

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 69

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

Question 70

For companies to operate effectively,the amount of centralization or decentralization should fit the firm's strategy.

Question 71

When work specialization is extensive,employees specialize in a single task. Jobs tend to be small,but they can be performed efficiently.

Question 72

The acceptance theory of authority argues that managers have authority because of the positions they hold,not the people in those positions.

Question 73

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

Question 74

The distinctive feature of the project manager position is that the person is not a member of one of the departments being coordinated.

Question 75

Technical complexity is the difference between small-batch production,mass production,and continuous process production.

Question 76

In the United States and Canada,the trend over the past 30 years has been toward greater centralization of organizations.

Question 77

According to research,a fundamental principle is that work can be performed more efficiently if employees use no work specialization.

Question 78

Intangible output refers to organizations where employees and customers interact directly in the production of products and services.

Question 79

Traditional views of organizational design recommend a span of management of about 7 to 10 subordinates per manager.

Question 80

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