Deck 8: Designing Adaptive Organizations

Question 1

Marianne is working on a special project. She reports to the project manager as well as her finance manager where her full-time work resides. What organizational structure is Marianne working within?

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

Answer 1

B

Question 2

Which of the following emphasizes jobs and their authority relationships?

A)departmentalization  
B)organizational process  
C)functionalization  
D)organizational structure

Answer 2

D

Question 3

What is the term for the collection of activities that transforms inputs into outputs that customers value?

A)re-engineering  
B)functionalization  
C)organizational structure  
D)organizational process

Answer 3

D

Question 4

Which of the following is characteristic of functional departmentalization?

A)It makes it easier for top managers to assess work-unit performance. 
B)It makes communication and coordination less problematic for managers. 
C)It produces managers with broader experience and expertise. 
D)It enhances coordination between departments.

Question 5

Hallmark has four departments: (1)Flowers and Gifts,(2)Cards and E-cards,(3)Hallmark Collectibles,and (4)Photo Albums and Scrapbooks. Which type of departmentalization does Hallmark use?

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

Question 6

Large accounting agencies typically have separate departments that deal with households,businesses,and governments. Which type of departmentalization do many of these accounting agencies use to better serve the needs of their clients?

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

Question 7

What type of departmentalization organizes work and workers into distinct units responsible for certain business roles or areas of expertise?

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

Question 8

As a consequence of the Industrial Revolution and its emphasis on specialization,institutions providing higher education developed strict sections of the organization that contained specialized functions. This organizational structure was perceived as a way to enhance the accumulation and dissemination of knowledge. Which organizational structure is this?

A)re-engineering  
B)functionalization  
C)departmentalization  
D)functional empowerment

Question 9

A general manager of a manufacturing firm wishes to increase efficiency by reducing duplication throughout the organization. Which form of departmentalization should he adopt?

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

Question 10

Which statement presents a characteristic of functional departmentalization?

A)Functional departmentalization lowers costs by reducing duplication. 
B)Functional departmentalization increases costs by creating duplication. 
C)Functional departmentalization produces managers with broader experience and expertise. 
D)Functional departmentalization produces managers with narrower experience and expertise.

Question 11

Which statement presents a characteristic of functional departmentalization?

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 is a form of matrix departmentalization.

Question 12

What is the definition of the term organizational process?

A)the definition of roles,not activities  
B)the limitations on the adaptivity of an organization  
C)the use of vertical and horizontal departmentalization  
D)the activities whereby inputs are transformed into outputs that customers value

Question 13

What 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

Question 14

A manufacturer of acrylic,latex,and nitrile gloves sells to medical laboratories;to factories where employees handle chemicals;to companies that manufacture micro-tech equipment;and to cleaning services. The manufacturer is organized to better satisfy the needs of each of its four target markets. Which type of departmentalization does the manufacturer use?

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

Question 15

Procter & Gamble has divisions for personal grooming and beauty,house and home,health and wellness,baby and family,and pet nutrition and care. Which type of departmentalization does the company use?

A)functional?   
B)geographic  
C)product  
D)customer

Question 16

Kimberly-Clark is subdivided into organizational units called Kimberly-Clark Health Care,which sells products to hospitals;Kimberly-Clark Professional,which sells to businesses;and Kimberly-Clark Consumer,which sells the company's products to consumers. Which of the following does Kimberly-Clark use?

A)hierarchical functionalization  
B)product departmentalization  
C)a nonlinear organizational structure  
D)customer departmentalization

Question 17

Pierre is the president of his company. He is frustrated that it is difficult to get his managers together. Decision making is slow,and it's hard to get a consensus on what new products the company should introduce. What type of departmentalization does Pierre's company have?

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

Question 18

What is the primary disadvantage of customer departmentalization?

A)an overemphasis on customer needs  
B)duplication of job functions  
C)difficulties in coordinating across departments  
D)overspecialization of managers and workers

Question 19

Companies such as Sprint and American Express focus on both business clients and consumer clients. Which type of departmentalization have they adopted?

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

Question 20

As a class project,Senora is working with other classmates to create a company that would market NASCAR memorabilia. She is instructed 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

Question 21

Rose is managing the marketing area of a project to introduce a new line of products. Rose and the manager responsible for sales of this new product cannot agree on the launch date. They are meeting today to work out a date that they can both accept. What type of matrix is Rose working within?

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

Question 22

What is the primary disadvantage of geographic departmentalization?

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

Question 23

Commerce Insurance Services has five divisions: personal,core commercial,Main Street business,major commercial,and benefits. The company is also departmentalized along product lines. What type of departmentalization does Commerce Insurance Services use?

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

Question 24

John feels like he is being pulled in all directions. The project manager he reports to wants him in an all-day meeting on Tuesday. The sales manager for his regular functions wants him to meet with an important client on Tuesday. John is not sure what to do. What type of departmentalization is John working within?

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

Question 25

Shelley is part of a special team overseeing the property development of the company's new location. She reports to Brian,the manager of the project,and she continues to report to Reginald,the manager of the area where she works full time. What principle does this matrix organization violate?

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

Question 26

Which of the following statements best describes the chain of command?

A)The chain of command is the vertical line of authority that clarifies who reports to whom. 
B)The chain of command acts at cross-purposes to the unity of command principle. 
C)The chain of command is relevant only in mechanistic organizations. 
D)The chain of command does not permit delegation of authority.

Question 27

Aleeza is managing the financial area of a special project to launch the company in Asia. Aleeza and the transportation manager disagree on how product should be moved between borders. The two are meeting with the senior project manager to resolve this issue. What type of matrix is Aleeza working within?

A)the networked matrix  
B)the synergistic matrix  
C)the complex matrix  
D)the hierarchical matrix

Question 28

Which of the following is characteristic of organizational authority?

A)chain of command  
B)empowerment  
C)behavioural informality  
D)re-engineering

Question 29

An international distribution company has a shipping division,a warehouse division,and a computer hardware and software distribution centre,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;at the same time,his supervisor in the shipping division wants expense accounts submitted monthly. Preparing the expense account form takes at least two hours,and the salesperson wants to devote as much time as possible to sales. Which of the following is the salesperson likely experiencing a problem with?

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

Question 30

Honeywell Inc. reorganized its European operations along customer lines to prepare for a unified European Union. In doing so,it abandoned matrix departmentalization. What was the best reason for Honeywell to have engaged 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 end conflict between product managers in different parts of its matrix

Question 31

Which of the following is a key assumption underlying the chain of command,which refers to the idea that workers should report to just one supervisor?

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

Question 32

Joseph is a supervisor of accounts receivable. He tells a staff member to call a particular customer to inform them they are overdue on a payment. The staff member does not like making these calls but does what he is told. In terms of chain of command,what type of authority does Joseph have?

A)departmental  
B)centralized  
C)functional  
D)line

Question 33

Which type of departmentalization has the primary advantage of allowing companies to efficiently manage large,complex tasks by minimizing duplication?

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

Question 34

Which type of departmentalization often evolves from a simple form to a more complex form due to problems associated with conflicts over schedules,budgets,and available resources (including employees)?

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

Question 35

Robert Strickland works in the legal department at a large consumer products manufacturer. His job is to craft warnings on package labels. Which of the following defines Strickland's work?

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

Question 36

Of all types of departmentalization,which one requires the highest level of management skill for successful implementation?

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

Question 37

Which of the following individuals 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

Question 38

Jennifer Lee works in the public relations department of a large pharmaceutical company. Her job is 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. Which of the following does Lee have?

A)line authority  
B)mechanistic authority  
C)empowerment obligations  
D)staff authority

Question 39

Delmar works in the sales department of a toy manufacturer. Delmar has several very large retail customers that he spends the majority of time making sure they are well taken care of. What type of function would Delmar's activities be associated with?

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

Question 40

Which of the following is an advantage of matrix departmentalization?

A)Most employees in an organization that uses matrix departmentalization report to one boss. 
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 is reduced coordination between functional and project managers. 
D)The most common matrix combines geographic and product departmentalization.

Question 41

Which of the following actions is appropriate where standardization is important?

A)centralize authority  
B)decentralize authority  
C)emphasize line authority  
D)ensure a flat organizational structure

Question 42

In one job design approach,the number of different tasks that a worker performs within one job is increased,and workers are given the authority and control to make meaningful decisions about their work. Which of the following is associated with this approach?

A)job rotation and job enlargement  
B)job specialization and job enrichment  
C)job specialization and job rotation  
D)job enlargement and job enrichment

Question 43

Admitting a need for better communication,higher management tethers subordinates to their jobs and appoints newly hired employees who specialize in establishing liaison relationships. Which type of organization does this scenario describe?

A)centralized  
B)mechanistic  
C)departmentalized  
D)organic

Question 44

Which term most closely refers to assigning direct authority and responsibility to a subordinate to fulfill tasks for which the manager is normally responsible?

A)a job description  
B)staff functionality  
C)delegation of authority  
D)decentralization

Question 45

The CEO of an electronics company stated that an organizational chart was inapplicable in his organization and "a dangerous method of thinking." According to this CEO,the first requirement of management is to make the fullest use of the capacities of its members;any individual's job should be as little defined as possible,so that it can "shape itself" to the person's special abilities and initiative. Which type of organization does this company more than likely have?

A)centralized  
B)mechanistic  
C)departmentalized  
D)organic

Question 46

Which of the following is characterized by simple,easy-to-learn steps,little variety,and much repetition?

A)job consistency  
B)job specialization  
C)task re-engineering  
D)standardization

Question 47

Which of the following determines the number,kind,and variety of tasks that individual workers perform in their roles?

A)standardization  
B)task mapping  
C)job design  
D)job specialization

Question 48

An organization is characterized by broadly defined jobs and responsibilities;loosely defined,frequently changing roles;decentralized authority;and horizontal communication based on task knowledge. Which of the following best describes its nature?

A)centralized  
B)mechanistic  
C)departmentalized  
D)organic

Question 49

The Toronto Blue Jays are owned by media conglomerate Rogers Communications. The team's president and general manager report to Rogers's senior leadership team,but rarely have to seek approval before making trades or signing free agents. Which term best describes this situation?

A)centralization  
B)standardization  
C)top management empowerment  
D)decentralization

Question 50

Which of the following can job specialization result in?

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

Question 51

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 has decided to give his assistant the full responsibility and authority for developing a mailing campaign to target churches on the Mississippi Gulf Coast that were damaged or destroyed by Hurricane Katrina. The manager is making this individual accountable for the campaign's success. What has the marketing manager done?

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

Question 52

Robin works in customer service of a department store. She handles returned products. For most products,if they are returned in original packaging,are undamaged,and the customer has the bill,Robin will accept the return for a full refund. However,for camping gear,the policy is no returns and no exceptions. What term describes how Robin handles returned products?

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

Question 53

Boxing Canada has moved its head office and training facilities to Montreal from various locations across the country. Which of the following best represents the principle Boxing Canada is relying upon?

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

Question 54

Which of the following is characteristic of decentralization?

A)It leads to faster decision making and more satisfied customers and employees. 
B)It tends to stymie employee capabilities. 
C)It pertains most to large companies. 
D)It has proven to be more appropriate where standardization is important.

Question 55

In certain organizations,the normal procedure for dealing with any matter lying outside the boundaries of one individual's functional responsibility is handled one of two ways. One is to refer it to the point in the system where such responsibility is known to reside. Failing that,the matter is brought before one's superior. What type of organization is described?

A)centralized  
B)mechanistic  
C)departmentalized  
D)organic

Question 56

Nigel works for a high-tech company that has a dynamic working environment. Nigel's job title is technical support but he really works in all areas of operations. He rarely knows what he will be doing from day to day and enjoys the ability to make decisions to solve problems as they arise. What type of organization does Nigel work in?

A)organic  
B)mechanistic  
C)matrix  
D)functional

Question 57

Large hospitals purchase more than 15,000 individual products on a routine basis. One challenge for a hospital's purchasing department is that the various hospital departments use different product descriptions and classifications for the same item. One purchasing manager plans to institute a hospital-wide purchasing policy that gives a specific code to each item. In doing so,what is the purchasing manager engaging in?

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

Question 58

The Ryerson University Library is organized in a hierarchy with six unit heads reporting to a chief librarian. The units are archives,audiovisual/interlibrary loans,library access services,reference and information,systems,and technical services. Within these units are 15 librarians and 47 full-time library staff. One tool 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. Which of the following was the Ryerson University Library using?

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

Question 59

Josephine notices that one of her better workers seems less enthusiastic about her work. Josephine adds different tasks to the job to hopefully reduce the boredom the worker is feeling. What did Josephine engage in to alter the worker's job?

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

Question 60

When managers delegate work,three transfers occur. Two of the transfers are responsibility and authority. What is the third?

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

Question 61

Workers perceive their work to have meaning and perceive themselves to be competent,having an impact,and capable of self-determination. What is the term for this feeling of intrinsic motivation?

A)reciprocity  
B)motivational assertion  
C)autonomy  
D)empowerment

Question 62

In the automobile industry,three car manufacturers and a variety of suppliers and distributors have formed a network to create economies in production through outsourcing. The goal is to cut as much as $3,000 from the costs of producing one car. Which type of organization is described?

A)matrix  
B)functional  
C)modular  
D)virtual

Question 63

Which type of organization outsources all remaining business activities to outside companies,suppliers,specialists,or consultants except for the core business activities that it can perform better,faster,and cheaper than others?

A)a modular organization  
B)a hierarchical organization  
C)a boundaryless organization  
D)an organizational network

Question 64

During any disaster,leaders need to give their employees a sense that everyone is participating in the relief effort. Gap gave its employees the authority to transfer their paid time off to some 1,300 employees affected by Hurricane Katrina. What did Gap use to allow its employees to gain a feeling of intrinsic motivation?

A)standardization  
B)sequential interdependence  
C)pooled interdependence  
D)empowerment

Question 65

Which type of organization is part of a network in which many companies share skills,costs,capabilities,markets,and customers with one another?

A)modular  
B)virtual  
C)matrix  
D)electronic

Question 66

Deirdre has a well-defined job. Deirdre knows exactly what each day will be like. If she ever needs help or runs into a problem she goes to Monica,her supervisor,for guidance. What type of organization does Deirdre work in?

A)organic  
B)mechanistic  
C)matrix  
D)functional

Question 67

Anthony feels that he should focus on what he does well,which is coaching executives to be more productive. Rather than trying to do all the marketing,accounting,and other administrative functions himself,he hires professionals do these for him. What type of organization did Anthony convert his business into?

A)modular  
B)virtual  
C)boundaryless  
D)network

Question 68

What are the three types of task interdependence?

A)pooled,delegated,and systematic  
B)delegated,integrated,and combined  
C)sequential,delegated,and pooled  
D)reciprocal,pooled,and sequential

Question 69

In essence,how does re-engineering change organizations?

A)by increasing reciprocal interdependence  
B)by decreasing the use of autonomy  
C)by increasing pooled interdependence  
D)by decreasing delegation

Question 70

Which type of organization is always changing in composition?

A)modular  
B)boundaryless  
C)decentralized  
D)virtual

Question 71

What is the term for a fundamental rethinking and radical redesign of business processes to achieve huge improvements in critical performance measures,such as cost,quality,service,and speed?

A)pooling interdependence  
B)reciprocating interdependence  
C)re-engineering  
D)repositioning

Question 72

An organization is characterized by specialized jobs and responsibilities;precisely defined,unchanging roles;and a rigid chain of command based on centralized authority and vertical communication. Which of the following describes the organization?

A)modular  
B)departmentalized  
C)standardized  
D)mechanistic

Question 73

A PROS cooperative is a recognized association of park,recreation,open space,and related entities united voluntarily to achieve through collaboration what can't be achieved through individual and independent action. PROS cooperatives conserve the diversity of valued resources and recreation opportunities to benefit individuals,communities,the economy,and the environment. Which organizational type does a PROS cooperative exemplify?

A)modular  
B)boundaryless  
C)decentralized  
D)virtual

Question 74

LexisNexis realized that its ability to serve new Web-based customers was severely strained. Thousands of small and midsize law firms represented a huge business opportunity for the company's legal-information services,but they often had to wait 48 hours to have their Web accounts activated after signing up. For smaller firms seeking to buy documents in small quantities,often to apply to pending cases,such a delay was intolerable. Clearly,LexisNexis needed to revamp its customer sign-up and order-fulfillment processes,which were designed for large law firms and the ordering of hardcover legal tomes. Which of the following would LexisNexis most likely use to radically change its business practices?

A)standardization  
B)micro-adaptation  
C)sequential independence  
D)re-engineering

Question 75

In recent years,the Air Force Weather Agency (AFWA)has undergone a radical change in how it determines and shares local weather conditions with pilots. Before,the local-base weather station was responsible for warnings,and the quality of the information varied. Now AFWA provides the same high standard of weather information to all pilots. What process did the AFWA go through?

A)customization  
B)micro-adaptation  
C)sequential independence  
D)re-engineering

Question 76

A military expert described the way military forces were organized for Operation Desert Storm as "pooled interdependence." Several branches of the military took part in the operation. What does this information suggest about the workings of the military branches?

A)The branches independently contributed to the success of the campaign. 
B)The branches worked with each other in a give-and-take manner. 
C)The branches performed identical tasks. 
D)The branches accepted the fact that one group's output was another group's input.

Question 77

Why do about 70 percent of all re-engineering projects fail?

A)because of how the process affects people in the workplace  
B)because the process requires a change in the organization's vision  
C)because staff personnel must be given line authority to implement re-engineering  
D)because satisfactory benchmarks cannot be located

Question 78

Novo Nordisk is a European manufacturer of pharmaceuticals. Rikke Nedergaard Bischoff,a clinical-development scientist,contends that Novo upholds the standards expected of public institutions without the stifling bureaucracy. She says,"There's a great deal of empowerment at Novo Nordisk." What does Novo Nordisk provide Nedergaard Bischoff with?

A)a rigid chain of command  
B)a mechanistic work environment  
C)feelings of intrinsic motivation  
D)re-engineering opportunities

Question 79

Zara clothing stores has developed a system that can order new fashions and deliver them to the store in only three weeks. The system begins inside the store via Internet communications between store manager and headquarters. As soon as a manager notices that a certain item is selling especially well,the manager can send a new order out from the store and give suggestions for new colours and designs. Next,designers and managers receive the information and match it with suggestions from other Zara store managers. Designers then draw up the new styles and send the patterns to Zara factories in Spain,where they are made. The clothes reach Zara's stores within 48 hours. What is Zara using to pass information to the next person in the line of development?

A)standardization  
B)sequential interdependence  
C)pooled interdependence  
D)manager empowerment

Question 80

Which of the following is an approach to managing inter-organizational processes?

A)matrix organizations  
B)modular organizations  
C)flat organizations  
D)hierarchical organizations