Deck 14: Organizational Structure and Change

Question 1

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.

Answer 1

True

Question 2

Organizational change can be either radical or incremental.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

Tall structures have wider span of control than flat structures.

Question 7

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

Question 8

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

Question 9

A formalized structure leads to faster decision making.

Question 10

Organic structures are highly formalized and centralized.

Question 11

Matrix organizations violate the unity of command principle.

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

Organic structures are related to higher levels of job satisfaction.

Question 17

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.

Question 18

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

Question 19

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

Question 20

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.

Question 21

Employees with a positive self-concept are better at coping with change.

Question 22

The degree to which decision-making authority is concentrated at higher levels in an organization is

A)formalization
B)centralization
C)hierarchical levels
D)departmentalization

Question 23

*When rolling out a change like unlimited vacation time, it's important to mitigate the concerns of

A)customers who are afraid the product will change
B)suppliers who have a different vacation system
C)investors who never take vacation
D)employees who have worked at the organization for a long time and accrued vacation time

Question 24

Cultures low in uncertainty avoidance are comfortable with change.

Question 25

Employees with more complete information are no more committed to the change effort than those who have less than complete information.

Question 26

People do not welcome change whether it is favorable or not to them.

Question 27

*What is the main reason that Kronos changed its organization's culture by allowing unlimited vacation time?

A)managers were tired of tracking employees' time
B)to attract the best people to the organization
C)to compete with international competitors
D)it added a major sales incentives program, so no one would want to take time off

Question 28

During change efforts, the organization should focus on big wins to demonstrate the success of the effort.

Question 29

Convincing the opinion leaders in your organization of the need for organizational change is likely to be a more successful technique to ensure change than trying to get everyone on board at the same time.

Question 30

The first stage in Lewin's Model of planned change is unfreezing.

Question 31

When people react to organizational change negatively, they are absent more often and are more likely to voluntarily leave the company.

Question 32

*In an organization offering unlimited vacation time, employees typically are what percentage in favor/not in favor?

A)95% / 5%
B)60% / 40%
C)30% / 70%
D)75% / 25%

Question 33

*After Kronos implemented the unlimited vacation time policy, the company

A)decided to go private.
B)had a year of record profits.
C)lost over 20% of its employees.
D)became unionized.

Question 34

Those employees who feel they can perform well under a new system will be more committed to change.

Question 35

Organization structure refers to

A)the degree to which decision-making authority is concentrated at higher levels in the organization.
B)how individual and team work within an organization is coordinated.
C)the degree to which policies, procedures, job descriptions and rules are written and explicitly articulated.
D)the number of employees reporting to a single manager.

Question 36

Passive resistance refers to sabotaging the change effort and being outspoken about the negative effects of change.

Question 37

_________ refers to the number of levels within an organization.

A)Hierarchy
B)Departments
C)Structure
D)Centralization

Question 38

Resistance to change is never a positive force for an organization.

Question 39

In an organization, the union contract is very explicit as to employee work rules, the tasks each individual employee will perform, the pay each individual will receive, how each individual can move from one position to another and so on.This organization's structure is an example of a ____________ structure in the organization.

A)centralized
B)departmentalized
C)hierarchical
D)formalized

Question 40

Surveys indicate that resistance to change is one of the top two reasons why change efforts within organizations fail.

Question 41

Formalization

A)can lead to greater innovativeness.
B)enhances employee motivation.
C)provides for quicker decision making.
D)makes employee behavior predictable.

Question 42

Organic structures

A)are related to lower job satisfaction.
B)have formal communication channels.
C)maximize efficiency and minimize costs.
D)are conducive to entrepreneurial activity and general innovativeness.

Question 43

Mechanistic structures

A)are conducive to entrepreneurial activity and general innovativeness.
B)maximize efficiency and minimize costs.
C)enhance intrinsic motivation on the job.
D)are flexible and react well to change.

Question 44

Highly formalized and centralized structures similar to bureaucracies are

A)mechanistic structures.
B)organic structures.
C)matrix structures.
D)product structures.

Question 45

Learning organizations use which of the following approaches to acquire knowledge that they can use to change behavior?

A)conducting formal retrospective meetings.
B)studying customer habits.
C)benchmarking against best industry practices.
D)all of the above.

Question 46

*Which of these is a typical characteristic of a decentralized organization, not a centralized organization?

A)employee exhaustion
B)positive emotional climate
C)more efficient operations
D)negative employee attitudes

Question 47

Which of the following is a good piece of advice to give to individuals who have multiple bosses in a matrix structured organization?

A)Set a schedule so that you work with one manager on certain days and the other manager on the other days.
B)Keep conflicts you are experiencing to yourself.
C)Make sure all managers are familiar with your overall workload.
D)Avoid situations where you have multiple managers as they produce more conflict than benefits.

Question 48

Functional structures

A)are most effective when an organization has a large number of products.
B)are most effective in dynamic environments.
C)tend to facilitate the effective performance of employees with general mental abilities.
D)are cost-effective structures for the human resource and information technology departments of most companies.

Question 49

An organization where all the nonessential functions are outsourced is a

A)strategic alliance.
B)modular organization.
C)matrix organization.
D)learning organization.

Question 50

Tall structures provide

A)employees greater levels of role ambiguity.
B)employees with greater self-actualization need satisfaction.
C)employees with greater security need satisfaction.
D)managers with a greater span of control.

Question 51

Organic structures

A)are those that resemble a bureaucracy and are highly formalized and centralized.
B)cross a functional structure with a product structure.
C)are flexible and decentralized structures with low levels of formalization where communication lines are more fluid.
D)are how individual and team work within an organization are coordinated.

Question 52

An organization that eliminates traditional barriers between departments as well as barriers between the organization and the external environment is a

A)matrix organization.
B)functional organization.
C)boundaryless organization.
D)divisional organization.

Question 53

Two or more companies that find an area of collaboration and combine their efforts to create a partnership beneficial to both parties is a

A)strategic alliance.
B)modular organization.
C)matrix organization.
D)learning organization.

Question 54

The company was organized into the detergent area, the dishwashing soap area, and the health and beauty aid area.This firm has a

A)divisional structure.
B)functional structure.
C)mechanistic structure.
D)matrix structure.

Question 55

In which of the following firms is formalization likely to occur?

A)small, local pizza shop
B)advertising agency
C)unionized manufacturing firm
D)nonunion heavy construction firm

Question 56

Flat structures

A)have narrow spans of control.
B)provide lower levels of self-actualization than tall structures.
C)provide opportunities for greater role clarity for employees.
D)provide limited advancement opportunities.

Question 57

Centralized organizations

A)tend to have faster, more efficient decision making.
B)attract more job candidates.
C)put less pressure on higher level managers.
D)can lead to large cost savings in purchasing operations.

Question 58

The company is organized into accounting, marketing, human resource management, and production departments.This firm has a

A)divisional structure.
B)functional structure.
C)product structure.
D)matrix structure.

Question 59

Which of the following statements regarding the matrix structure is correct?

A)The matrix structure increases the frequency of informal communication but decreases the frequency of formal communication.
B)The matrix structure is a response to uncertainty and dynamism in the environment.
C)Matrix structures adhere to the unity of command principle.
D)Matrix structures require managers to be more independent than in traditional structures.

Question 60

Unity of command refers to

A)a centralized organizational structure.
B)the situation in which each employee reports to a single manager.
C)a matrix organizational structure.
D)a strong organizational vision from executive leadership.

Question 61

The practice of outsourcing as a response to the globalization of business has created which of the following changes for organizations?

A)A reduction in the reliance on skilled workers.
B)A need to deal with employee stress.
C)A need to decentralize the organizational structure.
D)A need to restructure employee communication channels.

Question 62

Which of the following is a reason people resist change?

A)low job satisfaction
B)low agreeableness
C)feelings of certainty
D)fear of failure

Question 63

*Centralized operations are typically more efficient and cost-effective, while decentralized operations are typically

A)more customer service oriented and employee friendly
B)more responsive to investors needs
C)better equipped to deal with a crisis
D)more productive

Question 64

*Which of these is NOT a way to seek advancement at an organization with a flat structure?

A)mentor other employees
B)seek a lateral move
C)work closely with your direct supervisor
D)redefine role at the company

Question 65

Which of the following statements regarding factors of change in the organization is accurate?

A)Rapid developments in technology force a firm to change its technology to keep up.
B)Manufacturing jobs have been outsourced, but knowledge-based jobs are largely safe from such movement.
C)Though 50% of all small businesses fail, those that succeed often do not become large, complex organizations.
D)Changes in market conditions or the economy may cause companies to be resistant to change.

Question 66

Which of the following statements regarding change is accurate?

A)Organizational change is the movement of an organization from one state of affairs to another.
B)Organizational change takes on limited forms.
C)Organizational change has little to do with people management.
D)Organizational change is rarely successful.

Question 67

Which of the following statements regarding reasons employees resist change is correct?

A)People may not welcome the change currently proposed, but they do not usually place those changes into any past context, so former unsuccessful changes have little impact on the situation.
B)People resist change even if it is personally beneficial to them.
C)People are less likely to resist a change that is big in scope and has far reaching consequences.
D)People resist change that negatively impacts their influence and power in the firm.

Question 68

Which of the following statements regarding resistance to change is correct?

A)All change attempts have to overcome the resistance of people.
B)Resistance to change is the first step in Lewin's model of change.
C)When people react negatively to change, they are absent less often.
D)When people react negatively to change, they experience negative emotions, but are no more likely to leave the firm than they would be in a firm that was not undergoing organizational change.

Question 69

Which of the statements is true regarding workplace demographics and their impact on change?

A)An older workforce that chooses retirement may cause an increase in valuable knowledge for firms.
B)More older workers in the workforce will create a need for new types of benefits.
C)Demographic shifts in the workforce will likely cause flexible work hours and job sharing to diminish as older people like the structure of set hours of work.
D)An older workforce will result in a change demographically, but little else.

Question 70

Being disturbed by changes without voicing your opinion is

A)active resistance.
B)passive resistance.
C)enthusiastic support.
D)compliance.

Question 71

All of the following statements regarding reasons employees resist change are correct EXCEPT

A)those who feel they can perform well under a new system will be more committed than those who have lower confidence in their ability to perform.
B)we are creatures of habit.
C)feelings of uncertainty create stress.
D)people with a negative self-concept view change as an opportunity.

Question 72

Compliance refers to

A)going along with proposed changes with little enthusiasm.
B)the most negative reaction to a proposed change.
C)defending the change and encouraging others to give their support to the change as well.
D)being disturbed by changes without voicing those opinions.

Question 73

Georgio just returned from a meeting where his boss informed everyone of the new procedures to use in requesting reimbursement for travel.Georgio says, "I just figured out how to fill the other one out and now they are changing things.Oh, well, what are you going to do?" This is what kind of a reaction to change?

A)enthusiastic support
B)active resistance
C)compliance
D)passive resistance

Question 74

Which of the following is an external force that is creating change for organizations?

A)technology
B)workforce demographics
C)market conditions
D)all of the above

Question 75

Andy is vehemently opposed to the restructuring of the jobs in his department in the manufacturing firm.He decides that since no one is listening to what he has to say he will get their attention by damaging each of the parts he is making for tomorrow's shipment.This is an example of what kind of change reaction?

A)enthusiastic support
B)passive resistance
C)active resistance
D)compliance

Question 76

*Which of these is NOT a characteristic of a matrix organization?

A)unity of command
B)coordination between managers
C)improved response time for customer demands
D)improved communication within the organization

Question 77

Which of the following statements is true regarding performance and organizational change?

A)More successful firms find it easier to change than those performing poorly.
B)'Nothing fails like success' is a saying with little accuracy when it comes to organizational change.
C)Change in upper level management is a motivator for organizational level change.
D)Successful companies often have special practices in place to keep the organization working toward the status quo.

Question 78

The new CEO of XYZ Corporation has developed a plan that will call for the restructuring of the organization from a functional structure to a matrix one.In his meeting with his subordinates, manager Ervin says, "This will be great.You will still work for this area and me, but you will have variety in that you will also all be reporting to a second manager for various projects to which you will be assigned.This new structure will only help grow this company." This is what kind of a reaction to change?

A)compliance
B)enthusiastic support
C)active resistance
D)passive resistance

Question 79

The most negative reaction to a proposed change attempt is

A)enthusiastic support.
B)active resistance.
C)passive resistance.
D)compliance.

Question 80

Marta has been a part-time faculty member at the university for nine years.She has been teaching two to three writing courses a semester.Last month, the dean held a meeting where he announced that next academic year, part-time instructors would be limited to teaching only two classes during the entire year.Marta is very upset and tells her husband, "I may look into teaching at the community college next year but don't let anyone at the university know." This is an example of what kind of change reaction?

A)passive resistance
B)enthusiastic support
C)compliance
D)active resistance