Question 1

Organic structures are highly formalized and centralized.

Accepted Answer

Organic structures are characterized by decentralized decision-making and flatter hierarchies, as opposed to more centralized and formalized structures of mechanistic organizations.

Question 2

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

Accepted Answer

Decentralization is the opposite of concentration. Decentralization involves the dispersion of decision-making power to various levels within the organization, allowing for greater autonomy and flexibility.

Question 3

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 4

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

Accepted Answer

Decentralized organizations give more power and autonomy to employees, allowing for a more fair and transparent decision-making process. This results in employees feeling more valued and included in the organization's decision-making process.

Question 5

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

Accepted Answer

Since dynamic environments require flexibility, adaptability, problem-solving skills, and quick thinking, employees' general mental abilities are crucial for good performance in these environments.

Question 6

Just-in-time production leads to antagonistic relations between Toyota and its suppliers.

Accepted Answer

Just-in-time production is based on close collaboration and coordination between Toyota and its suppliers. The system requires suppliers to deliver components and materials to Toyota's production plants as and when they are needed, without excessive inventory buildup. This leads to a closer relationship between Toyota and suppliers, with a greater focus on mutual trust, communication, and cooperation. The system is designed to minimize waste, reduce costs, and maximize efficiency by ensuring that materials and parts are available exactly when they are needed. While there may be occasional tensions or disagreements between Toyota and its suppliers over issues such as pricing or quality, these are typically resolved through negotiation and compromise, rather than through antagonistic relations.

Question 7

Organic structures are related to higher levels of job satisfaction.

Accepted Answer

Studies have shown that employees in organic structures, which prioritize autonomy, teamwork, and communication, report higher levels of job satisfaction.

Question 8

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

Accepted Answer

A strategic alliance is a partnership between two or more organizations to achieve mutually beneficial goals. While some functions may be outsourced, not all nonessential functions are necessarily outsourced in a strategic alliance.

Question 9

Toyota employees are expected to be experts in what they do.

Accepted Answer

Toyota puts a strong emphasis on developing and maintaining a high level of expertise in their employees. The company has a culture of continuous improvement and encourages its workers to constantly enhance their knowledge and skills in their respective areas of work.

Question 10

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

Accepted Answer

A mechanistic structure is designed for efficiency in a stable environment. This is because the structure is highly hierarchical, with clear lines of authority and standardized procedures for completing tasks. In this type of environment, where the same tasks are repeated over and over, efficiency is key to maximizing productivity and reducing waste. However, in a dynamic or rapidly changing environment, a mechanistic structure may be too rigid and inflexible to adapt to new conditions, making it less effective than a more organic or flexible structure.

Question 11

Matrix organizations violate the unity of command principle.

Accepted Answer

In a matrix organization, employees report to both a functional manager and a project manager, which violates the unity of command principle stating that employees should have only one manager to report to.

Question 12

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 13

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 less need for quick decision-making, flexibility, and innovation, and a centralized structure can ensure consistency and efficiency in operations.

Question 14

Toyota uses a system of continuous improvement and learning.

Accepted Answer

Toyota's management philosophy, known as the Toyota Production System (TPS), focuses on continuous improvement, teamwork, and the elimination of waste to improve overall efficiency and quality. It is a system of learning and continuous improvement, with the goal of providing customers with the best possible products and services while minimizing waste and maximizing efficiency.

Question 15

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

Accepted Answer

The answer of In divisional structures,employees tend to be more...

Question 16

Toyota employees feel a sense of ownership in their company,which is supported by the firm's matrix structure.

Accepted Answer

Toyota's matrix structure encourages employee participation and collaboration, creating a sense of ownership among employees. This sense of ownership is further reinforced by the company's strong culture of continuous improvement and respect for individuals.

Question 17

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 18

A unionized firm has very formalized structures.

Accepted Answer

Unionized firms usually have established formalized structures such as collective bargaining agreements, grievance procedures, and clearly defined roles and responsibilities for union representatives and management.

Question 19

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

Accepted Answer

Matrix organizations involve individuals reporting to multiple managers and working in cross-functional teams. This can create overlapping responsibilities and potential conflicts at various levels, including between managers, teams, and individuals.

Question 20

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

Accepted Answer

Flat structures have less hierarchy and more autonomy, which allows for more creativity and self-actualization opportunities for employees. In contrast, tall structures have more layers of management and rules, which provide more job security and stability for employees.

Quiz 14: Organizational Structure and Change