Question 1

Moore's law says the overall complexity of computer circuits will double every 18 months with no increase in costs,so firms will rapidly change their technology.

Accepted Answer

Moore's law states that the number of transistors on a microchip will double approximately every two years, leading to increased computing power and decreased cost per transistor. This has resulted in rapid technological advancements in the field of computing.

Question 2

Organic structures are related to higher levels of job satisfaction.

Accepted Answer

Organic structures are characterized by flexibility, decentralized decision-making and a focus on teamwork and collaboration. These characteristics have been linked to higher levels of autonomy and job satisfaction among employees.

Question 3

A strategic alliance is a type of boundaryless organization where all nonessential functions are outsourced.

Accepted Answer

A strategic alliance is a partnership formed between two or more organizations to pursue a set of agreed-upon goals while remaining separate entities. While some functions may be shared, not all nonessential functions are necessarily outsourced.

Question 4

While manufacturing jobs have been outsourced,knowledge-based jobs are safe from outsourcing.

Accepted Answer

Knowledge-based jobs such as software development and customer service are increasingly being outsourced to countries with lower labor costs. While some knowledge-based jobs, such as research and development, may be less likely to be outsourced due to the need for proximity to the company's operations, the general statement that knowledge-based jobs are safe from outsourcing is false.

Question 5

If a firm is operating in a stable environment,the centralized organizational structure may lead to the most efficient operations.

Accepted Answer

In a stable environment, there is little need for rapid decision-making or flexibility. Therefore, a centralized organizational structure, where decisions are made at the top and implemented downward, may be the most efficient way to operate. However, in a dynamic or uncertain environment, a decentralized structure may be more effective.

Question 6

Employees working in dynamic environments depend on their general mental abilities for good performance.

Accepted Answer

In dynamic environments, employees need to think on their feet, adapt quickly to new situations and solve problems. These abilities are largely dependent on their general mental abilities such as cognitive flexibility, creativity, and logical reasoning. Therefore, their general mental abilities play a crucial role in their performance.

Question 7

Conflict at various levels is a potential issue for matrix organizations.

Accepted Answer

Matrix organizations often involve multiple reporting lines and overlapping responsibilities, which can create tension and conflict among employees, teams, and departments. Communication breakdowns, unclear decision-making processes, and conflicting priorities can further exacerbate these conflicts. Therefore, conflict management and resolution strategies are essential for the smooth functioning of matrix organizations.

Question 8

Employees feel that decentralized organizations provide greater levels of procedural fairness.

Accepted Answer

Decentralized organizations empower employees to make more decisions and have greater control over their work, which can lead to a perception of greater fairness in the distribution of power and decision-making.

Question 9

A formalized structure leads to faster decision making.

Accepted Answer

A formalized structure often involves more layers of bureaucracy and clear, established procedures that must be followed, which can slow down the decision-making process as decisions have to go through more approvals and channels.

Question 10

Functional structures are most effective for companies with large product lines.

Accepted Answer

Functional structures are best suited for organizations with a single or limited range of products or services, as they focus on specialized functions such as marketing, finance, and production. Companies with large product lines often benefit from a divisional structure, which allows for focus on specific product categories.

Question 11

Tall structures have wider span of control than flat structures.

Accepted Answer

Tall structures have a narrower span of control, meaning each manager supervises a smaller number of subordinates, compared to flat structures where managers have a wider span of control with more subordinates each.

Question 12

The biggest advantage of a mechanistic structure,especially in a stable environment,is its efficiency.

Accepted Answer

In a stable environment, a mechanistic structure allows for clear role definitions, standardized processes, and centralized decision making, all of which contribute to efficiency.

Question 13

Matrix organizations violate the unity of command principle.

Accepted Answer

Matrix organizations have multiple managers and reporting lines for employees, which can lead to conflicting priorities and instructions. This violates the unity of command principle, which states that each employee should have only one direct supervisor to avoid confusion and ensure clear accountability.

Question 14

A learning organization is one where acquiring knowledge and changing behavior as a result of the newly acquired knowledge is part of the organization's design.

Accepted Answer

A learning organization is defined as one that is committed to continuously acquiring and sharing knowledge at all levels in order to achieve its goals. This involves making learning a part of the organization's culture and design, so that it becomes a habitual part of how work is done.

Question 15

Change is more likely to occur in firms that are performing poorly because successful firms keep doing what they have done to make them successful.

Accepted Answer

When a firm is performing poorly, there is more pressure to change and find new methods or strategies to improve. On the other hand, successful firms may be resistant to change because they may view their current methods as effective and don't want to risk changing something that has already proven to work.

Question 16

Organic structures are highly formalized and centralized.

Accepted Answer

Organic structures are characterized by decentralized decision-making and less formalized rules and procedures. They tend to be more flexible and adaptable to changing circumstances.

Question 17

Decentralization is the concentration of decision making at higher levels in the organization.

Accepted Answer

Decentralization is the opposite of concentration of decision making. It involves delegating decision making authority to lower levels in the organization.

Question 18

Flat structures are better at satisfying employee self-actualization needs while tall structures are better at satisfying employee security needs.

Accepted Answer

Self-actualization needs relate to personal growth and development, which are better met in a flat structure that offers more opportunities for creativity and autonomy. On the other hand, security needs relate to stability and job security, which are better met in a tall structure that offers clear hierarchical structure and stability in job roles.

Question 19

In divisional structures,employees tend to be more specialists than generalists.

Accepted Answer

In divisional structures, employees are often more generalists because they work across various functions within a division, unlike in functional structures where they tend to specialize in specific areas.

Question 20

Organizational change can be either radical or incremental.

Accepted Answer

Organizational change can be either radical (sudden and major) or incremental (gradual and small).

Quiz 14: Organizational Structure and Change