Deck 4: Basic Challenges of Organizational Design

Question 1

An organization that differentiates too much will experience higher costs in terms of the amount of time spent on coordinating activities.

Answer 1

True

Question 2

Lawrence and Lorsch studied the following three industries: plastics, food processing, and car manufacturing.

Answer 2

False

Question 3

In a complex organization, both the division of labor and differentiation are high.

Answer 3

True

Question 4

The simplest integrating mechanism is simply direct contact between people in different subunits.

Question 5

Mechanistic structures usually have a high level of formalization.

Question 6

An organization that integrates too much will experience higher costs in terms of the amount of time spent on coordinating activities.

Question 7

In a simple organization, differentiation is low because division of labor is low.

Question 8

TheB.A.R. and Grille is a good example of the challenges differentiation poses.

Question 9

Differentiation entails establishing and controlling the division of labor.

Question 10

Lawrence and Lorsch found that subunits in an organization respond to subparts of the environment.

Question 11

Employees are encouraged to use their judgment in making decisions in a mechanistic structure.

Question 12

The primary difference between a task force and a team is that a task force is designed to be temporary.

Question 13

Formalization is more appropriate in an environment that requires high levels of mutual adjustment.

Question 14

Subunit orientation is the tendency to view one's role in the organization strictly from the perspective of one's own subunit, or department.

Question 15

Organic structures promote flexibility.

Question 16

If an organization has a high degree of integration, then it should have a low degree of differentiation.

Question 17

To prevent subunit orientation, management should have clear job descriptions in place.

Question 18

Integration is the way in which a company allocates people and resources to organizational tasks.

Question 19

External rules often become internalized norms.

Question 20

The organization is very status conscious in a mechanistic structure.

Question 21

Which of the following is an adaptive function?

A) Public relations
B) Sales
C) Engineering
D) Long-range planning

Question 22

A ________ is a subunit composed of a group of people, working together, who possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs.

A) role
B) function
C) hierarchy
D) norm

Question 23

As theB.A.R. and Grille Restaurant grew, Bob and Amanda did not:

A) allocate resources to tasks.
B) perform all the tasks themselves.
C) increase the division of labor.
D) allocate people to tasks.

Question 24

In a complex organization, differentiation is ________ and division of labor is ________ .

A) low/high
B) low/low
C) high/low
D) high/high

Question 25

Which of the following functions helps an organization control its relations with its environment and its stakeholders?

A) Production
B) Support
C) Managerial
D) Adaptive

Question 26

A ________ is a classification of people according to authority and rank.

A) team
B) norm
C) hierarchy
D) role

Question 27

The Burns and Stalker research supports the notion that in a rapidly changing environment, top managers should make all major decisions because they have the experience and expertise.

Question 28

At theB.A.R and Grille Restaurant, Bob and Amanda took turns cooking and waiting on tables. This type of organization is ________ .

A) complex
B) simple
C) specialized
D) coordinated

Question 29

________ is the power to hold people accountable for their actions and to make decisions concerning the use of resources.

A) Control
B) Authority
C) Differentiation
D) Function

Question 30

The two main subunits that develop in an organization are:

A) functions and divisions.
B) marketing and R&D.
C) organizational roles and functions.
D) horizontal differentiation and vertical differentiation.

Question 31

Which of the following functions manages the conversion process?

A) Production
B) Maintenance
C) Managerial
D) Support

Question 32

Which of the following is not a maintenance function?

A) Market research
B) Janitorial services
C) Engineering
D) Personnel

Question 33

In a simple organization, differentiation is and the division of labor is ________ .

A) low/high
B) low/low
C) high/high
D) high/low

Question 34

McDonald's has made its organizational structure more organic.

Question 35

________ are task-related behaviors required of a position in an organization.

A) Norms
B) Controls
C) Organizational roles
D) Rules

Question 36

A subunit of people who possess similar skills or use the same kind of techniques to perform their jobs are termed a(n) ________ subunit.

A) function
B) department
C) division
D) task

Question 37

An organizational chart is a drawing that primarily depicts ________.

A) socialization
B) differentiation
C) integration
D) standardization

Question 38

McDonald's solved most of its organizational problems by becoming more organic.

Question 39

________ is the process by which an organization allocates people and resources to organizational tasks and establishes the task and authority relationships to reach goals.

A) Structure
B) Management
C) Differentiation
D) Strategy

Question 40

Personnel is a ________ function.

A) support
B) managerial
C) production
D) maintenance

Question 41

Direct contact is an integrating mechanism that:

A) gives one functional manager the authority to tell another functional manager how to solve a problem.
B) involves a vice president meeting directly with two functional managers to resolve their problem.
C) is more complex than an integrating role.
D) entails two functional managers meeting to solve a common problem.

Question 42

One manager has responsibility for coordinating the Diaper and Baby Soap divisions to enhance marketing activities. Which of the following integrating mechanisms is being used in this example?

A) Liaison role
B) Direct contact
C) Integrating role
D) Hierarchy of authority

Question 43

Which is not a part of horizontal differentiation?

A) Specialization
B) Division of labor
C) Increased productivity
D) Centralization

Question 44

Which of the following integrating mechanisms are listed from simplest to most complex?

A) Liaison roles, integrating roles, teams, task forces
B) Direct contact, liaison roles, task forces, teams
C) Liaison roles, integrating roles, task forces, teams
D) Liaison roles, direct contact, teams, integrating roles

Question 45

A waiter sets up a meeting with the cook to discuss why the food keeps taking so long to cook. This integrating mechanism is called ________.

A) hierarchy of authority
B) direct contact
C) integrating role
D) task force

Question 46

Production is concerned about reducing costs in the short-term whereas R&D is concerned about innovation, which is long-term. This is an example of ________.

A) educational differences
B) standardization
C) subunit orientation
D) integration

Question 47

A restaurant has so much conflict between the cooks and the wait staff that they hire a supervisor to handle communication between the two functions. They have created a(n) ________.

A) task force
B) integrating role
C) direct contact
D) level in the hierarchy

Question 48

One important difference between an integrating role and a liaison role is:

A) the liaison role is a formal position inside one of the departments and the integrating role is informal.
B) the integrating role is a formal position inside one of the departments and the liaison role is informal.
C) the integrating role is located outside the departments that are being coordinated.
D) the liaison role is a more complex integrating mechanism.

Question 49

Which of the following integrating mechanisms is/are independent of the subunits or divisions being integrated?

A) Liaison roles
B) Integrating roles
C) Task forces
D) Teams

Question 50

________ causes functions or divisions to develop subunit orientations.

A) Horizontal differentiation
B) Integration
C) Vertical differentiation
D) Authority

Question 51

A committee is formed to find new ways to recycle cans in a container company. This integrating mechanism is called ________.

A) direct contact
B) hierarchy of authority
C) integrating role
D) task force

Question 52

The relationship between teams and task forces as integrating mechanisms is that:

A) task forces involve many departments and teams involve only a few departments.
B) task forces are formally assigned and teams evolve.
C) task forces are used for routine problems and teams are created to solve specific problems.
D) teams are permanent task forces.

Question 53

Subunit orientations are the result of differences in:

A) the personalities of organizational managers.
B) official goals.
C) perspectives of time frames and goals among departments.
D) external environments among departments.

Question 54

At theB.A.R. & Grille restaurant, Bob and Amanda noticed conflicts between the cooks and the waitstaff. Both sides were acting as if they were the most important to the success of the restaurant. The cooks noted that "without us, we wouldn't have customers," while the waitstaff touted it's excellent service as the reason for success. This is an example of ________.

A) subunit orientation
B) integrating mechanisms that are too complex
C) the downside of vertical differentiation
D) integrating mechanisms that are too simple

Question 55

Determining the number of levels to have in the hierarchy is part of ________ .

A) mutual adjustment
B) horizontal differentiation
C) vertical differentiation
D) standardization

Question 56

An important implication of high differentiation in an organization is that:

A) controlling the environment will be difficult.
B) the hierarchy of authority will be the most important integrating mechanism.
C) coordination between departments will be difficult.
D) the organization will be more organic.

Question 57

Which of the following is the simplest integrating mechanism?

A) Task force
B) Liaison role
C) Direct contact
D) Hierarchy of authority

Question 58

A waiter sets up a meeting with his boss to see if he can meet with the cook and find out why the food keeps taking so long to cook. This integrating mechanism is called ________.

A) a liaison role
B) hierarchy of authority
C) task force
D) direct contact

Question 59

Grouping tasks into roles is part of ________.

A) integration
B) formalization
C) horizontal differentiation
D) vertical differentiation

Question 60

A salesperson reports to the sales manager of a computer company. This integrating mechanism is ________.

A) task force
B) hierarchy of authority
C) team
D) liaison role

Question 61

________ is the process by which organizational members learn the norms of the organization.

A) Mutual adjustment
B) Standardization
C) Socialization
D) Integration

Question 62

IBM experienced coordination and communication problems due to ineffective ________.

A) formalization
B) differentiation
C) standardization
D) integration

Question 63

________ is the process through which people use their judgment rather than standardized rules to address problems, guide decision making, and promote coordination.

A) Standardization
B) Formalization
C) Centralization
D) Mutual adjustment

Question 64

One disadvantage of decentralization is that:

A) the decision-making process is inflexible.
B) it may be hard to motivate managers.
C) it may be hard to coordinate activities.
D) top managers may neglect strategic decision making.

Question 65

The opposite of standardization is ________.

A) de-standardization
B) decentralization
C) mutual adjustment
D) customization

Question 66

________ means that the authority to make important decisions about organizational resources and new projects is delegated to managers at all levels in the hierarchy.

A) Standardization
B) Decentralization
C) Centralization
D) Direct contact

Question 67

Which of the following would be least appropriate for a company that desires flexibility?

A) Decentralization
B) An organic structure
C) Mutual adjustment
D) Standardization

Question 68

An advantage of decentralization is that it:

A) allows top managers to keep the organization focused on organizational goals.
B) simplifies the coordination process.
C) may increase the motivation of managers.
D) ensures predictable behavior.

Question 69

________ allows top managers to keep an organization focused on organizational goals.

A) Horizontal differentiation
B) Decentralization
C) Mutual adjustment
D) Centralization

Question 70

Company XYZ is missing many new opportunities because employees do not take responsibilities or risks. What is the primary design challenge facing this organization?

A) Balancing centralization and decentralization
B) Establishing levels of horizontal and vertical differentiation
C) Coordinating the formal and informal organization
D) Balancing differentiation and integration

Question 71

An advantage of centralization is that it:

A) allows top managers to keep the organization focused on organizational goals.
B) encourages flexibility.
C) gives top managers time to focus on strategic decision making.
D) increases the motivation of middle managers.

Question 72

When individuals use their own judgment rather than relying on rules, it is called ________.

A) decentralization
B) empowerment
C) standardization
D) mutual adjustment

Question 73

A large computer manufacturer makes complex products such as notebook computers and multimedia software. This company uses direct contact and the hierarchy of authority to coordinate and control activities. What design challenge does this organization face?

A) Balancing centralization and decentralization
B) Balancing standardization and mutual adjustment
C) Balancing differentiation and integration
D) Coordinating the informal and formal organizations

Question 74

________ is the process of coordinating various tasks, functions, and divisions to work together and not be at cross-purposes.

A) Integration
B) Organizational behavior
C) Supervision
D) Subunit orientation

Question 75

A disadvantage of centralization is that:

A) it is hard to predict employees' behavior.
B) it makes coordination difficult.
C) top managers may neglect strategic decision making about future organizational activities such as deciding on which strategy to use to expand globally.
D) top managers may neglect operational decision making about day-to-day activities such as hiring.

Question 76

A regular customer went to a retail store that required two forms of identification to process a check. Because the customer had only one form of identification, the clerk refused to accept the check, and this action resulted in lost business. What is the design challenge this organization faces?

A) Balancing centralization and decentralization
B) Balancing differentiation and integration
C) Coordinating the informal and formal organizations
D) Balancing standardization and mutual adjustment

Question 77

________ is conformity to specific models  defined by sets of rules and norms that are considered proper in a given situation.

A) Integration
B) Management
C) Standardization
D) Differentiation

Question 78

Which of the following integrating mechanisms is most appropriate for an organization that has low differentiation?

A) Teams
B) Integrating roles
C) Direct contact
D) Task forces

Question 79

________ is the extent to which an organization depends on rules and procedures.

A) Formalization
B) Horizontal differentiation
C) Socialization
D) Vertical differentiation

Question 80

________ means that the authority to make important decisions is retained by managers at the top of the hierarchy.

A) Centralization
B) Decentralization
C) Integration
D) Coordination