Deck 17: Organization Design

Question 1

Which statement best summarizes the relationship among size, structure, and technology?

A)Technology influences structure more in large organizations than it does in small ones.
B)Technology influences structure more in small organizations than it does in large ones.
C)Technology has the same influence on structure in small organizations as it does in large ones.
D)Technology has an effect on structure, but not on size.
E)Technology has an effect on size, but not on structure.

Answer 1

B

Question 2

Actual organizational boundaries tend to be

A)relatively unimportant.
B)relatively easy to define.
C)defined on the organizational chart.
D)relatively unchangeable.
E)somewhat elusive, or at least changeable.

Answer 2

E

Question 3

The organizational environment is composed of all of the following except

A)other organizations.
B)the customers.
C)the government.
D)the unemployment rate.
E)the employees.

Answer 3

E

Question 4

Until the 1990s, China and many Asian countries (with the exception of Japan) had

A)global technology variations.
B)continuous process technologies.
C)an unfavorable attitude toward technology.
D)the most advanced technology in the world.
E)nonroutine technologies.

Question 5

Which of the following best describes the contingency approach to organization design?

A)Organizational efficiency and effectiveness can be achieved in many different ways.
B)Managers and employees should work together to design the organization.
C)Managers should gather input from employees regarding organization design, but should make the decision themselves.
D)Organization design should be based only on things managers can change, such as size and technology.
E)Certain organizational structures are designed to work in any situation.

Question 6

All of the following statements are true about organizational downsizing except

A)it often speeds decision making.
B)it has both psychological and sociological impact.
C)it is aimed primarily at reducing corporate staff and middle management.
D)it has consistently achieved good results.
E)it is a popular trend.

Question 7

Chandler's conclusion in the strategy view of organization structure is that

A)structure follows strategy.
B)strategy follows structure.
C)technology affects structure.
D)larger organizations have more complex structures.
E)environmental uncertainty affects structure.

Question 8

An organization's task environment includes

A)political legal factors.
B)sociocultural factors.
C)customers.
D)the organization's employees.
E)technological factors.

Question 9

In contrast to universal approaches to organization design, contingency approaches

A)are dependent on the skills of employees.
B)have eliminated the debate about organizational strategy and structure.
C)prescribe "one best way" to structure the organization.
D)are less applicable to modern organizations.
E)suggest that organizational efficiency can be achieved in several ways.

Question 10

What is an economy of scale?

A)Paying off variable costs as soon as possible
B)Spreading fixed costs over a large number of units
C)Introducing products into as many countries as possible
D)Attracting as many customers as possible
E)Avoiding finance charges by assuming less debt

Question 11

The Aston group found that, compared to larger organizations, smaller organization's technology

A)comprised the strategic imperative.
B)was rare.
C)was almost always a continuous process.
D)reduced the need for leadership.
E)had more direct effects on structure.

Question 12

An environment characterized by high complexity and a highly dynamic rate of change would fall in which classification?

A)Cell #1: low perceived uncertainty
B)Cell #2: moderately low perceived uncertainty
C)Cell #3: moderately high perceived uncertainty
D)Cell #4: high perceived uncertainty
E)Cell #5: extremely high perceived uncertainty

Question 13

Environmental uncertainty exists when managers

A)attempt to simplify the general environment.
B)attempt to stabilize the task environment.
C)have difficulty predicting the impact of environmental factors.
D)relax the constraints on product demand.
E)behave in an unpredictable fashion.

Question 14

Dynamism and complexity combine to create

A)organizational structure.
B)uncertainty.
C)management.
D)the environment.
E)strategy.

Question 15

The most heavily discussed and researched organizing approach within the past thirty years is the approach.

A)structural imperatives
B)human organization
C)strategic choice
D)ideal bureaucracy
E)sociotechnical systems

Question 16

Organizational technology can best be described as

A)the plans and actions taken to meet organizational goals.
B)an organization's ability to adapt to change.
C)the mechanical and intellectual processes that transform inputs into outputs.
D)the fixed costs associated with plants and equipment.
E)the customization of parts.

Question 17

The classifications of small-batch, large-batch, and continuous- process production were established by

A)Thompson.
B)Burns and Stalker.
C)Woodward.
D)Perrow.
E)the Aston studies.

Question 18

Which of the following is not a method for assessing the size of an organization?

A)Physical capacity
B)Average stock value in the previous year
C)Value of assets
D)Total number of employees
E)Total sales in the previous year

Question 19

Burns and Stalker proposed that the determines the best method of structuring the organization.

A)alignment of the firm's mission and its goals
B)rate of change in technology
C)level of employee satisfaction
D)intensity of the competition
E)certainty of market conditions

Question 20

Research conducted by Peter Blau and his associates concluded that large size is associated with all of the following except

A)more formalization.
B)a larger span of control.
C)more levels in the hierarchy.
D)greater flexibility.
E)specialization of labor.

Question 21

According to Henry Mintzberg, the ways in which tasks are coordinated include all of the following except

A)by mutual adjustment.
B)by direct supervision.
C)by standardization of worker skills.
D)by developing a simple organizational structure,
E)by work processes.

Question 22

The foundation of the sociotechnical systems approach to organizing is

A)universality.
B)group theory.
C)systems theory.
D)Mintzberg's framework.
E)leadership theory.

Question 23

A mechanistic structure can be characterized by all of the following except

A)it is primarily hierarchical.
B)communication is typically vertical.
C)knowledge is concentrated at the top.
D)it is set up like a network.
E)instructions come from the boss.

Question 24

A key contribution of the strategic choice perspective is that it recognizes that

A)the relationship between strategy and structure may be reciprocal.
B)there is no relationship between strategy and structure.
C)structure determines strategy only in new organizations.
D)strategy follows structure.
E)structure follows strategy.

Question 25

At the most advanced level of multinational activity, a firm might become an international conglomerate.Two companies that are considered at that level are Nestle and .

A)Home Depot
B)Unilever N.V.
C)Wal-Mart
D)Sears Group
E)None of these.

Question 26

An organic structure is characterized by all of the following except

A)it requires commitment to the organization's tasks.
B)knowledge resides where it is most useful.
C)it is set up like a network.
D)communication is typically lateral.
E)membership requires a commitment to the tasks of the organization.

Question 27

Which of the following is not true about a virtual organization?

A)It is a temporary alliance between two or more organizations.
B)A slow response will result in losses.
C)Each organization brings their best capabilities together.
D)It improves project coordination.
E)The organizations band together for a specific venture.

Question 28

Most theories of organization design either take a universal or a contingency approach.

Question 29

Managers must consider the impact of multiple factors on their particular organization and design the organization structure accordingly.These multiple factors include all of the following except

A)sociotechnical systems.
B)strategy.
C)the structural imperatives.
D)simple structure.
E)global considerations.

Question 30

The is everything outside an organization and includes all elements, people, other organizations, economic factors, objects, and events that lie outside the boundaries of the organization.

A)universal approach
B)general environment
C)organizational environment
D)task environment
E)contingency approach

Question 31

The approach views the organization as an open system structured to integrate the two important subsystems: the task and social subsystem.

A)open systems
B)close systems
C)sociotechnical systems
D)autonomous work group
E)organic design

Question 32

The term that is used to identify an organizational structure that is typical of old, very large organizations, divided according to the different markets it serves, is .

A)matrix design.
B)professional bureaucracy.
C)adhocracy design.
D)divisionalized form.
E)simple structure.

Question 33

contends that traditional structures may have too many levels of management arranged in a hierarchy to be efficient and to respond to dynamic changes in the environment.

A)Bill Gates
B)Henry Mintzberg
C)Robert Tomasko
D)Ken DiLullo
E)John Strand

Question 34

John works in an organization with a clear hierarchy of authority, a boss who gives him instructions, and employees who are loyal and obedient.This organization is

A)mechanistic.
B)technological.
C)strategically chosen.
D)Burns and Stalker's.
E)organic.

Question 35

Alice's personal values affect her decisions regarding strategies, which in turn influence the organization's structure.Which of the following perspectives account for these relationships?

A)Technological design
B)Strategic choice
C)Structural imperatives
D)Organic structuring
E)Environmental design

Question 36

A(n) is primarily hierarchical; interactions and communication typically are vertical, instructions come from the boss, knowledge is concentrated at the top, and loyalty and obedience are required to sustain membership.

A)organic structure
B)mechanistic structure
C)matrix structure
D)simple structure
E)machine bureaucracy

Question 37

The strategy concept has been refined to include as a key factor in determining the structure of an organization.

A)the role of the top management decision maker
B)technology
C)organizational goals
D)environmental factors
E)upper management

Question 38

Levi-Strauss International is responsible for the company's business activities in all of the following areas except

A)Europe.
B)Canada.
C)Middle East.
D)Latin America.
E)Asia.

Question 39

A(n) typifies large, well-established organizations, where work is high specialized and formalized, and decision making is usually concentrated at the top.

A)mechanistic structure
B)machine bureaucracy
C)open system
D)virtual organization
E)adhocracy structure

Question 40

The benefits of a matrix organization include all of the following except

A)it is flexible.
B)it can provide coordinated responses to pressures.
C)power struggles may occur.
D)it improves project coordination.
E)it improves communication.

Question 41

Size, environment, and strategy have been identified as structural imperatives.

Question 42

The general environment includes all of the specific organizations, groups, and individuals that influence the organization.

Question 43

The simple structure characterizes large, well-established companies in simple, stable environments.

Question 44

The structure of small organizations is more influenced
by technology than is the structure of large organizations.

Question 45

Organizational technology consists of mechanical, but not intellectual, processes that are used to create inputs.

Question 46

Chandler concluded that "strategy follows structure."

Question 47

Economies of scale are an advantage of small organizations.

Question 48

A virtual organization is a temporary alliance between two or more organizations that band together to accomplish a specific venture.

Question 49

Organizational downsizing is a popular technique for reducing middle management and corporate staff.

Question 50

The assembly line is a good example of long-linked technology.

Question 51

Mintzberg believed that fit among parts is the most important consideration in designing an organization.

Question 52

The professional bureaucracy relies on standardization of skills as the primary means of coordination.

Question 53

Most organizations rely on a single technology.

Question 54

The machine bureaucracy is typical of small, fairly new companies that are operating in a complex, unstable environment.

Question 55

It is necessary to determine the boundary of the organization in order to understand where the environment begins.

Question 56

The organizational environment consists of everything outside the boundaries of the organization.

Question 57

The matrix organizational design attempts to combine two different designs to gain the benefits of each design.

Question 58

In the adhocracy organizational design, decision making is spread throughout the organization, and power is in the hands of experts.

Question 59

The contingency approach has been criticized as unrealistic.

Question 60

The structural imperatives approach to organization design follows a contingency perspective.

Question 61

According to Mintzberg, coordination by simply means that workers use informal communication to coordinate with one another.

Question 62

A approach suggests that there are several ways to achieve an outcome and that the best way to do it depends on one of several factors.

Question 63

Contemporary organizational designs have three dominant themes.

Question 64

Large-batch production is also known as production.

Question 65

The perspective of organizational design includes the role of the top management decision maker.

Question 66

of scale are an advantage of large organizations.

Question 67

Rethinking the organization is a process for restructuring that throws out traditional assumptions that organizations should be structured with boxes and horizontal and vertical lines.

Question 68

The approach to organization design has been the most discussed and researched perspective in the past thirty years.

Question 69

The typical is usually established to foster innovation, something to which the other four types of structures are not particularly well suited.

Question 70

A consists of the plans and actions necessary to achieve organizational goals.

Question 71

In a structure, the organization has little specialization and formalization, and its overall structure is organic.

Question 72

Organizational consists of the mechanical and intellectual processes that transform inputs into outputs.

Question 73

The organizational comprises all the elements outside the boundaries of the organization.

Question 74

Many cultures still take a traditional view of organization structure not unlike the approaches used in the United States during the days of classical organization theory.

Question 75

The is typically found in young organizations engaged in highly technical fields in which the environment is complex and dynamic.

Question 76

In a bureaucracy, decision making is decentralized and takes place where the expertise is.

Question 77

Chandler observed that structure follows .

Question 78

The three structural imperatives are , technology, and environment.

Question 79

The classic example of the form is General Motors, which, in a reorganization in the 1920s, adopted a design that created divisions for each major car model.

Question 80

In a bureaucracy, work is highly specialized and formalized, and decision making is usually concentrated at the top.