Question 1

In the context of interorganizational processes, which of the following is true of virtual organizations?

Accepted Answer

Virtual organizations use a broker to create and assemble knowledge, skills, and resources from different companies for customers. This allows them to be more flexible and adaptable than traditional organizations, as they are not tied to a single set of resources or capabilities. While their operating costs may be higher in some cases, this is not a defining characteristic of virtual organizations. Additionally, virtual organizations are not necessarily tightly linked to a single central company (as in the case of modular organizations).

Question 2

In the context of interorganizational processes, which of the following is a disadvantage of modular organizations?

Accepted Answer

A disadvantage of modular organizations in the context of interorganizational processes is that they may have a loss of control over key business activities as they outsource them to other companies. This means that they might not have direct control over the quality, efficiency, or timeliness of the outsourced services. This loss of control may also decrease the organization's ability to respond to changes in the marketplace or customer needs.

Question 3

Empowering workers means permanently passing decision-making authority and responsibility from managers to workers.

Accepted Answer

Empowering workers means giving them more control over their work processes and allowing them to make decisions that affect their work. This involves transferring decision-making authority and responsibility from managers to workers on a permanent basis.

Question 4

In a decentralized organization, workers closest to problems are authorized to make the decisions necessary to solve the problems on their own.

Accepted Answer

Decentralized organizations give decision-making power to workers who are closest to the problems. This empowers them to take necessary actions and solve the issues without seeking approval from higher authorities.

Question 5

Minimal managerial skills are required to make a network of independent organizations work well together in a virtual organization.

Accepted Answer

Despite being independent, a virtual organization requires strong managerial skills to foster communication, coordinate work, align goals, and ensure accountability. The manager must create a collaborative culture, establish procedures for decision-making and conflict resolution, motivate individuals and teams, and ensure successful project completion. Without these essential managerial skills, a virtual organization is likely to fail.

Question 6

A virtual organization is an organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants.

Accepted Answer

The answer of A virtual organization is an organization that...

Question 7

In the context of interorganizational processes, which of the following is a difference between modular organizations and virtual organizations?

Accepted Answer

The answer of In the context of interorganizational processes, which...

Question 8

The primary advantage of matrix departmentalization is that it does not require high level of coordination to manage ongoing projects.

Accepted Answer

The statement is false. Matrix departmentalization requires a high level of coordination as it involves employees belonging to different departments and functional areas working together on a project. Successful coordination is essential in ensuring that the project meets its objectives and is completed on time and within budget.

Question 9

Phillip is a mechanical engineer who works for an automobile company. He is assigned projects that require intensive designing and planning before its initiation. This is an example of job rotation.

Accepted Answer

Job rotation refers to an HR practice where employees are shifted from one job role to another within the organization to enhance their skills and knowledge. However, the given scenario does not fit the definition of job rotation as Phillip is not shifting between different job roles, but rather working on different projects within his designated role.

Question 10

Staff functions are activities that directly contribute to creating and selling a company's products, whereas line functions are activities that support staff functions.

Accepted Answer

The statement is incorrect. Line functions are activities that directly contribute to creating and selling a company's products, whereas staff functions are activities that support line functions.

Question 11

The third transfer that occurs with delegation of authority is that the manager gives the subordinate full authority over the budget, resources, and personnel needed to do a job.

Accepted Answer

The answer of The third transfer that occurs with delegation...

Question 12

The working relationships between modular organizations and outside companies tend to be more stable and longer lasting than the relationships found among the virtual companies in a network alliance.

Accepted Answer

Modular organizations have a more centralized structure and established relationships with external companies, leading to a greater degree of stability in their partnerships. In contrast, virtual companies in a network alliance are typically more loosely structured and may have more dynamic relationships with other companies, which could lead to shorter-term partnerships.

Question 13

Empowerment can lead to changes in organizational processes because meaning, competence, impact, and self-determination produce empowered employees who take active rather than passive roles in their work.

Accepted Answer

Empowerment gives employees a sense of autonomy and control over their work, leading them to take more initiative and be more engaged in the organization. This can lead to changes in organizational processes as empowered employees may suggest new ideas for improving efficiency, communication, or team dynamics. Overall, empowerment is a positive force in driving organizational improvement and growth.

Question 14

Danielle is a receptionist at Stanlam Corp. In addition to her daily tasks, Courtney, Danielle's boss, asks her to prepare financial statements for a few small companies that Stanlam owns. This is an example of job rotation.

Accepted Answer

Job rotation involves employees rotating through different roles or departments to gain a variety of skills and experiences. Preparing financial statements is an additional task, not a rotation to a different role.

Question 15

The chain of command is a vertical line of responsibility that clarifies which task has to be performed by whom.

Accepted Answer

The answer of The chain of command is a vertical...

Quiz 9: Designing Adaptive Organizations