Question 1

An example of ________ is the services rendered by a small group of auditors hired to evaluate the accuracy of a firm's financial statements.
A) mediated technology
B) functional technology
C) small-batch technology
D) assembly-line technology

Accepted Answer

Small-batch technology refers to a production process where products or services are produced in small quantities to meet specific customer requirements. In this example, the auditors are providing customized and personalized services to the firm, which is a characteristic of small-batch technology. The other options, such as mediated technology, functional technology, and assembly-line technology, are not relevant to this example.

Question 2

A company uses mass production to manufacture toilet paper. The organization MOST LIKELY ________.
A) has an organic structure
B) has a mechanistic structure
C) uses nonroutine technology
D) carries high task analyzability

Accepted Answer

Mass production is a highly mechanized process that requires a standardized approach to manufacturing. This suggests that the company has a mechanistic structure that emphasizes efficiency, control, and clear hierarchies to ensure that production is streamlined and standardized.

Question 3

A business owner accepts the importance of the ________ theory. Consequently he has structured his company to fit the factors that affect it the most in an effort to eliminate as much uncertainty as possible.
A) contingency
B) best-fit
C) profit
D) standardized

Accepted Answer

The scenario suggests that the business owner has structured the company based on the factors that affect it the most. This approach aligns with the contingency theory, which suggests that there is no one best way to run a business and the optimal approach depends on the specific situation and context. The goal is to reduce uncertainty by adapting to the unique circumstances of the organization.

Question 4

Organizations using ________ prefer a formal structure because it gives managers the most control over the production process.
A) mass-production technology
B) small-batch technology
C) intensive technology
D) automatic technology

Accepted Answer

Mass-production technology relies on standardized, repetitive processes and machines to produce large volumes of identical products. It requires a formal structure to ensure efficiency and consistency in the production process. This structure gives managers the most control over the production process and facilitates coordination and communication between different departments.

Question 5

A decentralized structure of authority that allows employees to respond to each situation in a more unique fashion is BEST used in ________.
A) automated technology
B) small-batch technology
C) mass-production technology
D) continuous-process technology

Accepted Answer

Small-batch technology involves producing goods in small quantities, which allows for greater flexibility and responsiveness to changes in the market. A decentralized structure of authority would empower employees to make decisions based on their unique knowledge and expertise, which is ideal in this type of production environment. In contrast, mass-production technology and continuous-process technology involve standardized processes and larger production volumes, which require a more centralized approach to management and decision-making. Automated technology, while it may benefit from some level of decentralization, is not as reliant on human decision-making as the other types of production technology.

Question 6

Examples of ________ include typical mass-production or assembly operations.
A) routine technology
B) divisional technology
C) information technology
D) nonroutine technology

Accepted Answer

Routine technology refers to standardized and repetitive processes in production or assembly. Mass production and assembly operations are typical examples of routine technology.

B) Divisional technology refers to the use of specialized knowledge and skills to produce a wide range of products or services within a particular division or department.

C) Information technology involves the use of computers, software, and communication networks to manage and process information.

D) Nonroutine technology involves the use of new or novel technologies, processes, or methods that require significant knowledge and expertise to develop and implement.

Question 7

A clearly defined hierarchy of authority, along with an extensive body of rules and regulations, will be LEAST effective when ________.
A) uncertainty is low
B) the environment is stable
C) resources are readily available
D) decisions must be made quickly

Accepted Answer

A clearly defined hierarchy and extensive rules can slow down decision-making, making it less effective in situations where quick decisions are necessary.

Question 8

________ relies primarily on the skills of people who work together in small groups to produce goods and services.
A) Mass-production technology
B) Small-batch technology
C) Computer-mediated technology
D) Continuous-process technology

Accepted Answer

Small-batch technology relies on small groups of people working together to produce goods or services. This is in contrast to mass-production technology, which relies on large, automated machinery and continuous-process technology, which involves a continuous flow of materials through a system. Computer-mediated technology may play a role in small-batch technology, but it is not the primary reliance.

Question 9

________ is based primarily on the use of automated machines that are programmed to perform the same operations time and time again.
A) Process technology
B) Functional technology
C) Information technology
D) Mass-production technology

Accepted Answer

Mass-production technology is based primarily on the use of automated machines that are programmed to perform the same operations time and time again. This type of technology is commonly used in manufacturing industries to produce large quantities of standardized products quickly and efficiently.

Question 10

A company operating within a network structure focuses on one functional activity in which it excels, such as product design, and then outsources the rest of its other functional activities to other companies.

Accepted Answer

This statement describes a characteristic of a network structure. In a network structure, a company focuses on one primary function and outsources other functional activities to other companies. This allows the company to specialize and excel in its area of expertise while relying on others to handle other necessary functions.

Question 11

When the business environment is ________, an organization is MOST LIKELY to decentralize authority and empower its employees to make operating decisions.
A) stable
B) uncertain
C) unknown
D) transparent

Accepted Answer

When the business environment is uncertain, there is a higher level of risk and unpredictability. To remain competitive, organizations may choose to decentralize authority and empower employees to make operating decisions, allowing for quicker and more flexible responses to changing conditions. In a stable business environment, a more centralized approach may be preferred to maintain consistency and control. The unknown or transparent business environment does not necessarily indicate a need for decentralization.

Question 12

________ is the formal system of task and job reporting relationships that determines how employees use resources to achieve the organization's goals.
A) Organizational behavior
B) Organizational culture
C) Organizational structure
D) Organizational formulation

Accepted Answer

Organizational structure is the formal system of task and job reporting relationships within an organization. It sets the framework for how employees use resources and work together to achieve the organization's goals. Organizational behavior refers to the study of how individuals and groups interact within an organization, while organizational culture refers to the shared values, beliefs, and practices that shape an organization's identity. Organizational formulation is not a commonly used term in management, and is not relevant to the question.

Question 13

Which of the following is NOT a major category of contingencies affecting organizational design?
A) location
B) technology
C) human resources
D) environment

Accepted Answer

The major categories of contingencies affecting organizational design are technology, human resources, and environment. Location is not typically considered a significant factor in organizational design.

Question 14

Designing an organizational structure is becoming increasingly complex in today's rapidly changing global world.

Accepted Answer

With the rise of globalization and technological advancements, organizations are facing new challenges and opportunities that require them to be more adaptable and flexible in their structures. The increasing complexity of the business environment is also driving the need for organizations to adopt more collaborative and network-based structures, which can be more difficult to design and implement.

Question 15

Examples of nonroutine technology include all of the following EXCEPT ________.
A) scientists developing new products in a research and development laboratory
B) emergency room personnel cooperating to respond to each patient's condition
C) the members of a SWAT team responding to a threatening situation
D) crewmembers in a fast-food restaurant making the food

Accepted Answer

The other examples (A, B, and C) involve situations that require specialized knowledge, skills, and decision-making, and may also involve the use of advanced technology. In contrast, making fast food involves following standard procedures and using basic equipment that requires minimal training, and can be considered routine technology.

Question 16

According to Charles Perrow, ________ is the degree to which programmed solutions are available to people or functional groups to solve the problems they encounter.
A) task variety
B) task specificity
C) task analyzability
D) task characterization

Accepted Answer

Task analyzability refers to the degree to which problems can be broken down into components and solved through standardized procedures, rules, or algorithms. A high level of task analyzability implies that problems are routine, well-defined, and easily solvable using existing knowledge or techniques. This contrasts with low levels of task analyzability, which typically involve non-routine, complex, and ambiguous problems that require creativity, innovation, and judgment to resolve.

Question 17

________ is the number of new or unexpected problems or situations that a person or functional group encounters while performing tasks or jobs.
A) Task variety
B) Task specificity
C) Task analyzability
D) Task characterization

Accepted Answer

Task variety refers to the number of new or unexpected problems or situations that a person or functional group encounters while performing tasks or jobs. Therefore, option A is the best choice. Option B (Task specificity) refers to how clearly defined or structured the task is. Option C (Task analyzability) refers to how easily a task can be broken down into smaller, simpler components. Option D (Task characterization) is not a well-defined term in this context.

Question 18

An accountant begins working for a new company. She is placed with other accountants and is very thankful to be working with them. She has learned many procedures and efficient techniques from the other accountants. This BEST demonstrates that functional structures have ________.
A) social facilitation advantages
B) coordination advantages
C) motivational advantages
D) creativity disadvantages

Accepted Answer

Functional structures group employees by functional specialties, such as accounting, marketing, and production. This grouping allows employees with similar skills and expertise to share best practices and coordinate their work more efficiently, resulting in coordination advantages.

Question 19

________ is the process of making the specific choices about how to arrange the tasks and job relationships that comprise the organizational structure.
A) Organizational formulation
B) Organizational design
C) Organizational culture
D) Organizational enhancement

Accepted Answer

Organizational design is the process of making the specific choices about how to arrange the tasks and job relationships that comprise the organizational structure. It involves decisions about the division of labor, coordination and integration of activities, and the allocation of resources in order to achieve the organization's goals and objectives.

Question 20

Technology refers to the ________.
A) system of interrelated jobs that motivate workers to contribute their skills and knowledge toward the achievement of organizational goals
B) combination of skills, knowledge, tools, machines, computers, and equipment used in the design, production, and distribution of goods and services
C) attitudes, values, and norms that allow organizational members to best manage specific environmental forces
D) adjustments that occur between functions in a differentiated organization

Accepted Answer

Technology refers to the various tools, machines, equipment, and computer systems used by organizations to design, produce, and distribute goods and services. It encompasses both physical and digital components and is a critical factor that drives innovation, productivity, and competitiveness in the marketplace.

Quiz 16: Organizational Design and Structure

An example of ________ is the services rendered by a small group of auditors hired to evaluate the accuracy of a firm's financial statements.

A company uses mass production to manufacture toilet paper. The organization MOST LIKELY ________.

A business owner accepts the importance of the ________ theory. Consequently he has structured his company to fit the factors that affect it the most in an effort to eliminate as much uncertainty as possible.

Organizations using ________ prefer a formal structure because it gives managers the most control over the production process.

A decentralized structure of authority that allows employees to respond to each situation in a more unique fashion is BEST used in ________.

Examples of ________ include typical mass-production or assembly operations.

A clearly defined hierarchy of authority, along with an extensive body of rules and regulations, will be LEAST effective when ________.

________ relies primarily on the skills of people who work together in small groups to produce goods and services.

________ is based primarily on the use of automated machines that are programmed to perform the same operations time and time again.

A company operating within a network structure focuses on one functional activity in which it excels, such as product design, and then outsources the rest of its other functional activities to other companies.

When the business environment is ________, an organization is MOST LIKELY to decentralize authority and empower its employees to make operating decisions.

________ is the formal system of task and job reporting relationships that determines how employees use resources to achieve the organization's goals.

Which of the following is NOT a major category of contingencies affecting organizational design?

Designing an organizational structure is becoming increasingly complex in today's rapidly changing global world.

Examples of nonroutine technology include all of the following EXCEPT ________.

According to Charles Perrow, ________ is the degree to which programmed solutions are available to people or functional groups to solve the problems they encounter.

________ is the number of new or unexpected problems or situations that a person or functional group encounters while performing tasks or jobs.

An accountant begins working for a new company. She is placed with other accountants and is very thankful to be working with them. She has learned many procedures and efficient techniques from the other accountants. This BEST demonstrates that functional structures have ________.

________ is the process of making the specific choices about how to arrange the tasks and job relationships that comprise the organizational structure.

Technology refers to the ________.