Deck 9: Organizing for a Complex World: Structure and Design

Question 1

________ refers to the way in which an organization is set up with respect to division of labor,who has authority,and resource allocation.

A) Organizational design
B) Organizational structure
C) Structural design
D) Structural system

Answer 1

B

Question 2

A sole proprietor is personally responsible for all of his or her company's debts.

Answer 2

True

Question 3

The chain of command in an organization refers to who reports to whom.

Answer 3

True

Question 4

Decentralized decision making tends to be slower than centralized decision making.

Question 5

A shareholder in a corporation is personally responsible for all of his or her company's debts.

Question 6

Organizational structure refers to the way labor,communication,authority,and resources are coordinated to accomplish goals.

Question 7

An organic organization tends to be more vertical than a mechanistic organization.

Question 8

A team member in a matrix structure may need to report to two different bosses with different agendas.

Question 9

A major benefit of clear vertical structures is that information sharing up and down the chain of command can be efficient.

Question 10

Starfish organizations tend to be hierarchical.

Question 11

Strategy always determines structure in an organization.

Question 12

Responsibility within an organization refers to the legitimate right to direct the actions of another person.

Question 13

Craigslist is a good example of a spider organization.

Question 14

A manager who is responsible for a small number of workers has a large span of leadership.

Question 15

Spider organizations feature centralized decision making.

Question 16

A mechanistic organization tends to have more job specialization than an organic organization.

Question 17

Accountability is an individual's willingness to report success or failure regarding expected job outcomes to his or her manager or other superiors in the chain of command.

Question 18

Job specialization tends to reduce tedium in the workplace for routine jobs.

Question 19

An owner of an LLC is always doubly-taxed on income.

Question 20

You would expect a public relations company to be more adaptive than a manufacturing company.

Question 21

Empowerment of employees tends to ________ of leadership spans in today's workplace.

A) decrease the size
B) increase the size
C) change the quality
D) maintain the size

Question 22

A manager who supervises a large number of people has a ________.

A) low span of control
B) high empowerment
C) low span of leadership
D) large span of leadership

Question 23

Managers who metaphorically envision their organization as a culture typically focus on ________.

A) the health and well-being of the organization
B) productivity
C) human relations
D) ethical concerns

Question 24

Managers who metaphorically envision their organization as a machine typically focus on ________.

A) the health and well-being of the organization
B) productivity
C) human relations
D) ethical concerns

Question 25

Companies with a traditional hierarchical structure tend to be ________ organizations.

A) spiral
B) starfish
C) spider
D) star

Question 26

In an organization with ________ decision making,________ make important decisions.

A) centralized; employees often
B) decentralized; managers exclusively
C) decentralized; employees seldom
D) centralized; employees seldom

Question 27

An organic organization is characterized by a high level of ________.

A) formality
B) routine job functions
C) specialization
D) flexibility

Question 28

You would expect a marketing firm to be ________ than a manufacturing firm.

A) more specialized
B) more centralized
C) more adaptive
D) less adaptive

Question 29

Which of the following is a key advantage of centralized decision making?

A) speed
B) increased employee commitment to the organization
C) more highly skilled employees
D) organization-wide consistency

Question 30

In an organization with ________ decision making,________ make important decisions.

A) centralized; employees exclusively
B) decentralized; managers exclusively
C) decentralized; employees often
D) centralized; employees often

Question 31

The chain of command in an organization refers to ________.

A) who reports to whom
B) who is responsible for meeting goals
C) how the organization is linked to the outside world
D) the overall leader of the organization

Question 32

Adaptive companies with decentralized structure tend to be ________.

A) spider organizations
B) organizations with high job specialization
C) starfish organizations
D) inefficient organizations

Question 33

In general,individuals who are located in which part of the hierarchy have more authority?

A) top
B) bottom
C) middle
D) the outer points

Question 34

An organization is a group of people who unite to carry out activities that are designed to ________.

A) attain goals and make a profit
B) make a profit and reward shareholders
C) improve social welfare and attain goals
D) attain goals and accomplish a mission

Question 35

The primary function of an organizational hierarchy is to define ________.

A) formal authority
B) formal responsibility
C) informal responsibility
D) informal accountability

Question 36

Which of the following is a key advantage of decentralized decision making?

A) speed
B) consistency
C) clearer accountability
D) less responsibility

Question 37

A spider organization is ________,while a starfish organization is ________.

A) centralized; unified
B) decentralized; centralized
C) decentralized; unorganized
D) centralized; decentralized

Question 38

A mechanistic organization is characterized by high levels of ________.

A) informality
B) nonroutine job functions
C) specialization
D) flexibility

Question 39

Open systems theory states that an organization and its environment ________.

A) are in constant conflict
B) constantly change one another
C) have no influence on one another
D) are never in conflict

Question 40

________ is defined as the obligation to complete a task in an organization.

A) Accountability
B) Leadership
C) Responsibility
D) Managing up

Question 41

In a ________ structure,a single team member is likely to report to two different bosses.

A) divisional
B) matrix
C) dimensional
D) hybrid

Question 42

In which legal structure for organizations are owners sometimes responsible for the company's assets or debts?

A) sole proprietorship
B) S corporation
C) corporation
D) LLC

Question 43

Which legal structure for organizations avoids double taxation,and has 100 or fewer shareholders?

A) S corporation
B) partnership
C) sole proprietorship
D) corporation

Question 44

Which of the following is NOT considered a starfish organization?

A) Craigslist
B) Sears
C) Alcoholics Anonymous
D) Wikipedia

Question 45

Job specialization is linked to ________.

A) managing up
B) span of control
C) division of labor
D) accountability

Question 46

Licensing involves paying a fee for the use of a company's ________.

A) equipment
B) manufacturing plant
C) sources for raw materials
D) intellectual property

Question 47

In which legal structure for organizations can owners not avoid double taxation?

A) S corporation
B) partnership
C) corporation
D) LLC

Question 48

The catalyst for a starfish organization supplies ________.

A) money and support
B) technical know-how
C) mobilizing energy
D) many small, useful ideas

Question 49

In which legal structure for organizations are owners always responsible for the company's assets or debts?

A) sole proprietorship and LLC
B) partnership or LLC
C) sole proprietorship and partnership
D) sole proprietorship, partnership, and LLC

Question 50

Tall,hierarchical organizations are likely to have ________.

A) a high level of job specialization
B) a low level of job specialization
C) more workers who are generalists
D) fewer workers who are specialists

Question 51

A typical problem with product departmentalization is ________.

A) redundancy
B) silo mentality
C) increased production costs
D) lack of accountability

Question 52

Which of the following is a multinational corporation?

A) Google
B) Tommy's Cab Service
C) World Wildlife Fund
D) W.W. Erickson, Electrical Contracting

Question 53

Which of the following is a starfish organization?

A) Walmart
B) Ford Motor Company
C) Chase Manhattan Bank
D) Craigslist

Question 54

In which legal structure for organizations are owners never responsible for the company's assets or debts?

A) sole proprietorship
B) partnership
C) corporation
D) LLC

Question 55

A company that is owned by a larger company,but operates independently,is called a ________.

A) wholly owned affiliate
B) holding company
C) sub-company
D) company property

Question 56

Silo mentality tends to occur in an organization with a(n)________ structure.

A) divisional
B) fluid
C) flat
D) organic

Question 57

The main advantage for an LLC is that it ________.

A) avoids liability
B) avoids double taxation
C) avoids all taxation of income under $100,000
D) allows choice of taxation classification

Question 58

In a cross-equity alliance,________.

A) one company takes over another
B) two companies exchange partial ownership shares
C) companies trade products but not ownership
D) two companies exchange complete ownership shares

Question 59

Which of the following is an NGO (non-governmental organization)?

A) Costco
B) AutoZone
C) World Wildlife Fund
D) Frank Pepe Pizzeria

Question 60

What type of organizational structure is indicated by a strict chain of command?

A) horizontal
B) tall
C) slanted
D) inefficient

Question 61

Ignacio is an expert in motivation.Speaking at a luncheon for business executives,he says that a key strategy to motivate employees is empowering them.This will result in more ________ decision making.

A) equitable
B) progressive
C) centralized
D) decentralized

Question 62

Paul runs a cutting machine with routine processes at a tool-and-die factory.Which of the following guides his job?

A) cooperative decision making
B) standard operating procedures
C) managing up
D) span of control

Question 63

A chain of large warehouse stores has separate teams devoted to clothing,groceries,appliances,and electronics.This is an example of ________.

A) process departmentalization
B) matrix structure
C) product departmentalization
D) network structure

Question 64

Patricia,a recent college graduate,is a junior architect at a downtown firm.After several months,she has become frustrated because even the simplest design change on a project must pass through four levels of management for approval.This is an example of ________.

A) centralized decision making in a matrix
B) inefficiency in a hierarchical organization
C) inefficiency in an organic organization
D) decentralized decision making in an adaptive organization

Question 65

Who has the greatest span of leadership?

A) one of two U.S. Senators from California, a state with a population of over 35 million
B) the governor of New York, a state with over 20 million people
C) one of 435 U.S. Representatives in a nation with just over 300 million people
D) one of 80 members in the California State Assembly

Question 66

Kimanee has been working as a designer for a line of hip-hop clothes.He expected the company would have a loose,youthful vibe,but was surprised to find a very hierarchical structure that seems to stifle creativity.Kimanee suggests that the company form small design teams to spur innovation.His idea would make the company more ________.

A) organic
B) mechanistic
C) vertical
D) ethical

Question 67

Marta was recently named president of a natural cosmetics company.Despite having a cheerful demeanor,most of her friends would say she is a control freak - and Marta would agree.Which of the following would Marta prefer?

A) flat organizations
B) centralized decision making
C) decentralized decision making
D) organic organizations

Question 68

The Walt Disney Corporation owns about a 40% stake in the History Channel,an 80% stake in ESPN,and a 100% interest in the Disney Channel.Which statement is TRUE?

A) The Walt Disney Corporation has a cross-equity alliance with ESPN and the Disney Channel.
B) The Walt Disney Corporation has two wholly owned affiliates: ESPN and the Disney Channel.
C) The Walt Disney Corporation has an equity alliance with the History Channel, and the Disney Channel is a wholly owned affiliate of the Walt Disney Corporation.
D) The Walt Disney Corporation has a cross-equity alliance with the ESPN, and the Disney Channel is a franchise of the Walt Disney Corporation.

Question 69

Nikki has just been hired as director of financial operations for a footwear company.Her employee orientation packet includes a copy of the company's ethical guidelines,which she must read and sign before starting work.This document address Nikki's ________ on the job.

A) authority
B) accountability
C) responsibility
D) leadership

Question 70

You are director of transportation for a large Midwestern city,overseeing a staff of 1,200 unionized public-sector employees.What type of organization do you work for?

A) private foundation
B) not-for-profit organization
C) governmental organization
D) corporation

Question 71

Wanda is part of the customer service team for a company.Every week the team meets with senior management to report on feedback received from customers and recommend changes that address customer concerns.Based on this situation,which adjective best describes Wanda's company?

A) tall
B) adaptive
C) centralized
D) hybrid

Question 72

Hideo,an organization design consultant,was hired by a large software company to help improve operational efficiency.Hideo tells the president that he may be able to eliminate one complete level in the company hierarchy.This is likely to ________.

A) decrease the span of leadership
B) increase the span of leadership
C) eliminate the span of leadership
D) eliminate the chain of command

Question 73

From an open systems theory perspective,________.

A) an organization is constantly changing its environment, but the environment does not change the organization
B) the environment is constantly changing the organization, but the organization does not change the environment
C) both the organization and the environment are constantly changing one another
D) the organization and the environment are unrelated

Question 74

Gina has successfully led three companies during her career,and is a big fan of flat organizational structures that empower employee teams.Gina believes this approach is effective because people ________ typically make the best decisions.

A) with the most authority
B) with the most experience
C) who are farthest from the work
D) who are closest to the work

Question 75

Environmental uncertainty is NOT typically caused by ________.

A) political instability
B) low levels of competition
C) social changes
D) technological changes

Question 76

You are president of a company with 38 brick-and-mortar flower shops.The board has decided the company should expand into e-commerce.You tell your vice-presidents about the shift in strategy.They will in turn pass the word down through the ________ to lower level managers,supervisors,and employees.

A) chain of command
B) value chain
C) division of labor
D) matrix

Question 77

Ben and Kelly are working on an organization design for their new company.While Ben prefers a traditional hierarchy,Kelly envisions "flat" teams within a "tall" organization.What does Kelly prefer?

A) matrix structure
B) departmentalized structure
C) traditional structure
D) hybrid structure

Question 78

A document that outlines the major tasks and responsibilities of a cashier is a ________.

A) job description
B) role analysis
C) job brief
D) task description

Question 79

Betty is attending a one-day retreat with her company's management team.The group is exploring questions such as "How do our values affect our actions?" and "Do we have a clear,shared sense of purpose?" What would be a good name for this retreat?

A) Is Our Company a Well-Oiled Machine?
B) Organizational Culture Examined
C) We Work in a Living Organism
D) Where Is Your (Company) Brain?

Question 80

Tito loves his job because he is part of a fairly autonomous and independent work team.In fact,there are many such teams in the organization.Which of the following best describes the structure of Tito's company?

A) starfish
B) spider
C) S-corporation
D) tall