Deck 8: Designing Adaptive Organizations

Question 1

One of the reasons that matrix organizations are difficult to manage is that the organizational structure violates the principle of delegation of authority.

Answer 1

False

Question 2

Under product departmentalization, it is easier for top managers to assess work-unit performance.

Answer 2

True

Question 3

In matrix departmentalization, as in other forms of departmentalization, most employees report to a single boss.

Answer 3

False

Question 4

In spite of their disadvantages, companies continue to create and use specialized jobs because they are very economical.

Question 5

The coordination of departmental activities tends to be more difficult with the geographic approach to departmentalization than with the other approaches.

Question 6

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

Question 7

An organic organization is characterized by broadly defined jobs and responsibility; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge.

Question 8

Specialized jobs are characterized by simple, easy-to-learn steps; low variety; and high repetition.

Question 9

Cross-department coordination tends to be very easy in organizations with functional departmentalization.

Question 10

The two disadvantages associated with product departmentalization are costly duplication and difficulties with cross-departmental coordination.

Question 11

Product departmentalization organizes work and workers into separate units responsible for particular kinds of customers.

Question 12

While organizational structure emphasizes the activities through which work is done in the organization, organizational process emphasizes jobs and their authority relationships.

Question 13

Specialized jobs are generally inefficient.

Question 14

The term task description refers to the number, kind, and variety of tasks that individual workers perform in doing their jobs.

Question 15

Departmentalization is a method of organizing work and workers into separate units responsible for particular business functions or areas of expertise.

Question 16

The most common matrix combines customer and functional forms of departmentalization.

Question 17

Matrix departmentalization is a hybrid structure in which two or more forms of departmentalization, such as the product and functional forms are used together.

Question 18

Organizational structure is the description of the vertical and horizontal configuration of departments, authority, and jobs within a company.

Question 19

Job enlargement and job enrichment mean essentially the same thing.

Question 20

Functional departmentalization organizes work and workers into separate units responsible for particular business functions or areas of expertise.

Question 21

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.

Question 22

Hallmark has four departments. These departments are (1)Flowers and Gifts, (2)Cards and E-cards, (3)Hallmark Collectibles, and (4)Photo Albums and Scrapbooks. Hallmark uses ____ departmentalization.

A)matrix
B)product
C)customer
D)geographic
E)functional

Question 23

All organizations can be categorized clearly as either completely mechanistic or completely organic.

Question 24

A virtual organization is part of a network in which many companies share skills, costs, capabilities, markets, and customers with each other.

Question 25

As a consequence of the Industrial Revolution and its emphasis on specialization, institutions providing higher education developed strict departments that contained specialized functions. This organizational structure was perceived as a way to enhance the accumulation and dissemination of knowledge. Institutions providing higher education have traditionally used ____.

A)reengineering
B)functionalization
C)departmentalization
D)functional empowerment
E)job dissemination

Question 26

Functional departmentalization ____.

A)makes it easier for top managers to assess work-unit performance
B)allows work to be done by highly qualified specialists
C)produces managers with broader experience and expertise
D)enhances coordination between departments
E)encourages interdepartmental communication

Question 27

As a class project, Senora is working with other classmates to create a company that would market NASCAR memorabilia. Senora's teacher has instructed her to use the traditional approach to create the organization's structure. What should Senora do?

A)create an organizational structure with vertical and horizontal configurations
B)use an organizational process to create a matrix design
C)create a virtual organization
D)use the organizational structure to control creativity
E)create a matrix structure that will adhere to the unity of command principle

Question 28

The organizational process ____.

A)defines roles not activities
B)limits the adaptivity of an organization
C)uses vertical and horizontal departmentalization
D)is a traditional method for establishing organizational structures
E)is the collection of activities that transform inputs into outputs that customers value

Question 29

Disadvantages of ____ departmentalization include slower decision making, the development of managers and workers with narrow experience and expertise, and makes it more difficult for cross-departmental coordination.

A)product
B)customer
C)geographic
D)functional
E)hierarchical

Question 30

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

Question 31

Using reciprocal interdependence, work must be performed in succession because one group or job's outputs become the inputs for the next group or job.

Question 32

Kimberly-Clark is subdivided into organizational units called Kimberly-Clark Health Care, which provides products to hospitals, Kimberly-Clark Professional, which sells to businesses, and Kimberly-Clark Consumer, which sells the company's products to customers. From this information, you know that Kimberly-Clark uses ____.

A)hierarchical functionalization
B)departmentalization
C)a nonlinear organizational structure
D)a product layout
E)product formatting

Question 33

While ____ emphasizes jobs and their authority relationships, ____ emphasizes the activities through which work gets done in the organization.

A)departmentalization; functionalization
B)organizational process; organizational structure
C)interorganizational process; intraorganizational process
D)intraorganizational process; interorganizational process
E)organizational structure; organizational process

Question 34

____ departmentalization is defined as organizing work and workers into separate units responsible for particular business functions or areas of expertise.

A)Functional
B)Customer
C)Matrix
D)Product
E)Hierarchical

Question 35

A manufacturer of acrylic and latex gloves sells to medical laboratories, to factories where employees handle chemicals, to companies that manufacture micro-tech equipment, and to cleaning services. Because it is organized to better satisfy the needs of each of its four target markets, the manufacturer uses ____ departmentalization.

A)matrix
B)product
C)customer
D)geographic
E)functional

Question 36

Which of the following is NOT a characteristic of functional departmentalization?

A)Functional departmentalization allows work to be done by highly qualified specialists.
B)Functional departmentalization lowers costs by reducing duplication.
C)Functional departmentalization produces managers with broader experience and expertise.
D)Functional departmentalization complicates coordination between departments.
E)Functional departmentalization organizes workers into separate units responsible for performing particular business functions.

Question 37

____ is a general term that refers to subdividing work and workers into separate organizational units that are responsible for completing particular tasks.

A)Organizational layout
B)Organizational process
C)Departmentalization
D)Job formatting
E)Functionalization

Question 38

____ is the collection of activities that transform inputs into outputs that customer's value.

A)Reengineering
B)Functionalization
C)Organizational structure
D)Production positioning
E)Organizational process

Question 39

One of the advantages of a virtual organization is the fact that it allows member companies to share costs.

Question 40

Which of the following statements about functional departmentalization is true?

A)Functional departmentalization allows work to be done by highly qualified specialists.
B)Functional departmentalization increases costs by reducing duplication.
C)Functional departmentalization complicates communication and coordination for departmental managers.
D)Functional departmentalization requires the same kinds of functional departments in any company.
E)Functional departmentalization is also called free-form specialization.

Question 41

Which of the following statements about matrix departmentalization is true?

A)Most employees in an organization that uses matrix departmentalization report to two bosses.
B)With matrix departmentalization, there tends to be more cross-functional interaction among employees than in other types of departmentalization.
C)With matrix departmentalization, there needs to be significant coordination between functional and project managers.
D)The most common matrix combines product and functional departmentalization.
E)All of these statements about matrix departmentalization are true.

Question 42

Honeywell Inc. reorganized its European operations along customer lines to prepare for a unified European Union. In doing so, it abandoned matrix departmentalization. Why would Honeywell engage in such restructuring?

A)to create pools of resources
B)to empower its employees
C)to better adhere to the management philosophy of staff authority
D)to improve its ability to handle complex tasks
E)to end conflict between product managers in different parts of its matrix

Question 43

Organizational authority is traditionally characterized by ____.

A)chain of command
B)empowerment
C)behavioral informality
D)reengineering
E)all of these

Question 44

Because of problems associated with conflicts over schedules, budgets, and available resources (including employees), ____ departmentalization often evolves from a simple form to a more complex form.

A)hierarchical
B)functional
C)customer
D)product
E)matrix

Question 45

In a(n)____, managers from different parts of the matrix report to matrix managers who help them sort out problems and conflicts.

A)networked matrix
B)synergistic matrix
C)complex matrix
D)hierarchical matrix
E)organic matrix

Question 46

With ____ departmentalization, most employees report to two bosses.

A)geographic
B)matrix
C)product
D)customer
E)functional

Question 47

Which of the following types of departmentalization does NOT have a problem with the duplication of resources?

A)functional
B)geographic and matrix
C)product and customer
D)customer and functional
E)geographic

Question 48

In terms of the chain of command, ____ authority is the right to command immediate subordinates, while ____ authority is the right to advise but not command others who are not subordinates.

A)departmental; functional
B)centralized; decentralized
C)functional; expert
D)internal; external
E)line; staff

Question 49

With divisions that focus on business clients and consumer clients, companies like Sprint, American Express, and others are examples of ____ departmentalization.

A)boundaryless
B)product
C)customer
D)functional
E)matrix

Question 50

Large accounting agencies typically have separate departments that deal with households, businesses, and governments. This allows them to better serve the needs of their clients, by using ____ departmentalization.

A)matrix
B)product
C)customer
D)geographic
E)functional

Question 51

Robert Strickland works in the legal department at a large consumer products manufacturer. It is his job to craft warnings on package labels. This is Strickland's ____.

A)line function
B)boundary-spanning role
C)chain of command role
D)staff function
E)personal empowerment role

Question 52

Commerce Insurance Services has five divisions. They are personal; core commercial; Main Street business; major commercial; and benefits. The company is also departmentalized along product lines. Commerce Insurance Services uses ____ departmentalization.

A)boundaryless
B)product
C)customer
D)functional
E)matrix

Question 53

The primary disadvantage of geographic departmentalization is ____.

A)the absence of cross-departmental coordination
B)broken chains of command
C)spans of control that are too wide
D)the lack of empowerment
E)duplication of resources

Question 54

The primary advantage of ____ departmentalization is the fact that it allows companies to manage large, complex tasks efficiently by minimizing duplication.

A)product
B)functional
C)matrix
D)geographic
E)functional

Question 55

____ departmentalization is notorious for confusion and conflict between project managers in different areas of the organization.

A)Matrix
B)Functional
C)Customer
D)Product
E)Geographic

Question 56

Of all types of departmentalization, ____ departmentalization requires the highest level of management skill for successful implementation.

A)geographic
B)customer
C)matrix
D)product
E)functional

Question 57

A(n)____ is a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources directly.

A)simple matrix
B)networked matrix
C)empathetic matrix
D)matrix of convenience
E)synergistic matrix

Question 58

As a result of their structures, matrix organizations automatically violate the principle of ____.

A)line authority
B)unity of command
C)delegation of authority
D)degree of centralization
E)staff authority

Question 59

Procter & Gamble has divisions for personal and beauty, house and home, health and wellness, baby and family, and pet nutrition and care. These divisions indicate that the company uses ____ departmentalization.

A)functional
B)geographic
C)product
D)customer
E)strategic business unit (SBU)

Question 60

The primary disadvantage of customer departmentalization is ____.

A)an over-emphasis on customer needs
B)duplication
C)difficulties in coordinating across departments
D)overspecialization of managers and workers
E)an inability to solve problems for specific customers

Question 61

The marketing manager of a company that manufactures church furniture has been given the job of increasing corporate profits by 5 percent during the upcoming year. The manager decided to give his assistant the full responsibility and authority for developing a mailing campaign to target churches on the Mississippi Gulf Coast. In other words, the marketing manager has ____.

A)implemented feedback controls
B)created a staff position
C)embraced the matrix organizational philosophy
D)delegated the task
E)created a win-win relationship

Question 62

According to an Indian Cardinal by the name of Varkey Vithayathil, the greatest weakness of the Catholic Church is the way papal authority is exercised without the participation of those concerned. His eminence Cardinal Vithayathil is criticizing the fact that the Catholic Church relies on ____.

A)centralization of authority
B)standardization
C)top management reciprocity
D)job specialization
E)decentralization

Question 63

Where standardization is important, it is appropriate to ____.

A)centralize authority
B)decentralize authority
C)emphasize line authority
D)have a flat organizational structure
E)evaluate interdependence

Question 64

Which of the following positions most likely performs a staff function?

A)the supervisor of the loading dock
B)the organization's receptionist
C)the vice president of marketing
D)a member of the office cleaning crew
E)a shift supervisor

Question 65

Jennifer Lee works in the public relations department of a large pharmaceutical company. It is her job to write speeches for the company's top managers, to issue press and video releases, to host plant tours, and to be involved in community affairs. Lee has ____.

A)line authority
B)mechanistic authority
C)empowerment obligations
D)staff authority
E)linear power

Question 66

A(n)____ function is an activity that contributes directly to creating or selling the company's products.

A)staff
B)line
C)mechanistic
D)organic
E)charted

Question 67

Like most large U.S. hospitals, University Health Care System spends an enormous amount on patient supplies. The hospital has more than 15,000 individual products that are purchased on a routine basis. Its purchasing manager instituted a hospital-wide purchasing policy that gave a specific code to each individual item. In other words, the purchasing manager engaged in ____.

A)consistency planning
B)organizational autonomy
C)standardization
D)problem empowerment
E)procedural planning

Question 68

The Ryerson University Library is organized in a hierarchy with six unit heads reporting to a chief librarian. Within these units are fifteen librarians and forty-seven full-time library staff. One of the tools used in the organizational development of the library was to systematically move employees from one job to another to give them an opportunity to learn and use different skills. The Ryerson University Library used ____.

A)task aggregation
B)job specialization
C)job enlargement
D)employee specialization
E)job rotation

Question 69

The chain of command ____.

A)is the horizontal line of authority that indicates at which level of management an individual belongs
B)acts at cross-purposes to the unity of command principle
C)is only relevant in mechanistic organizations
D)does not permit delegation of authority
E)is described by none of these

Question 70

An organization that has increased the number of different tasks that a worker performs within one particular job has engaged in ____.

A)task aggregation
B)job specialization
C)job enlargement
D)employee specialization
E)job rotation

Question 71

____ is the process of solving problems by consistently applying the same rules, procedures, and processes.

A)Consistency planning
B)Organizational autonomy
C)Standardization
D)Problem empowerment
E)Procedural planning

Question 72

____ determines the number, kind, and variety of tasks that individual workers perform in their jobs.

A)Standardization
B)Task mapping
C)Job design
D)Job specialization
E)An organizational chart

Question 73

When managers delegate work, three transfers occur. The three transfers are responsibility, authority, and ____.

A)utility
B)synergy
C)reciprocity
D)accountability
E)empathy

Question 74

____ is characterized by simple, easy-to-learn steps; low variety; and high repetition.

A)Job consistency
B)Job specialization
C)Task reengineering
D)Standardization
E)Task homogeneity

Question 75

One of the key assumptions underlying the chain of command is ____, which means that workers should report to just one supervisor.

A)delegation of command
B)empowerment
C)synergistic authority
D)unity of command
E)centralization of authority

Question 76

Job specialization can result in ____.

A)high job satisfaction
B)employee boredom
C)low employee turnover
D)complicated job designs
E)low absenteeism

Question 77

Decentralization ____.

A)leads to faster decision making and more satisfied customers and employees
B)tends to stymie employee capabilities
C)is characteristic of large companies
D)is more appropriate where standardization is important
E)is accurately described by all of these

Question 78

____ involves assigning direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible.

A)A job description
B)Staff functionality
C)Delegation of authority
D)Decentralization
E)An organization chart

Question 79

An international distribution company has a shipping division, a warehouse division, a computer hardware and software distribution center, as well as, a marketing research department, a human resources department, and an accounting department. A salesperson who works in the shipping division is told by the accounting department that he must turn in a weekly expense account. His supervisor in the shipping division wants expense accounts submitted monthly. The salesperson is likely experiencing a problem with ____.

A)line authority
B)delegation of authority
C)centralization
D)chain of command
E)organizational synergy

Question 80

An Indian Catholic Cardinal's call for local church leaders to have more power and for papal authority to be distributed to lower levels within the Catholic hierarchy has elicited agreement from other church leaders in India. He also asserted that bishops should not have "to run to Rome for everything" and that canon law should be modified to allow the pope to share his authority. Vithayathil is calling for ____.

A)centralization
B)standardization
C)top management empowerment
D)job specialization
E)decentralization