Deck 12: Managing Organization Design

Question 1

Differentiation is the degree to which various subunits must work together in a coordinated fashion.

Answer 1

False

Question 2

Exxon Mobil is an example of an organization that uses large-batch technology.

Answer 2

False

Question 3

Corporations with unrelated diversification are more likely to use M-form design.

Answer 3

False

Question 4

The divisional (M-Form)design is based on unrelated diversification.

Question 5

A strength of Likert's System design is that it finds one best way to design an organization.

Question 6

A manager at Johnson & Johnson has considerable discretion over how work is performed and how problems are solved.Johnson & Johnson is mechanistic.

Question 7

According to Burns and Stalker,firms that use an organic design are the most successful firms in a stable environment.

Question 8

The appropriate degree of specialization can vary,but not the appropriate span of management.

Question 9

The bureaucratic model is the model of organization design consistent with the human relations movement that stresses attention to developing work groups and concern with interpersonal processes.

Question 10

Organic organizations do not go through the organization life cycle.

Question 11

Organization design is a means to implement strategies and plans to achieve organizational goals.

Question 12

Business-level strategies affect the design of individual businesses within the organization,but not the overall organization.

Question 13

Orange County Choppers makes custom motorcycles.It uses continuous-process technology.

Question 14

The divisional (M-Form)design is used by an organization with a set of unrelated businesses.

Question 15

Under the H-form arrangement,the members and units in the organization are grouped into functional departments such as marketing and production.

Question 16

One of the primary strengths of a bureaucratic form of organization structure is how it prevents favoritism.

Question 17

A cost leadership strategy would necessitate a centralized organization design.

Question 18

Organizations that select a prospecting business strategy would want to use a bureaucratic design in order to control the rapid changes occurring in the organization.

Question 19

Organizational design is the building block.Job design is how the blocks are put together.

Question 20

Woodward considered continuous-process technology simple compared to large-batch technology.

Question 21

Employees at Recordings for the Blind and Dyslexic met at a minor league baseball game to do an offsite meeting and enjoy a relaxed,friendly environment Which bureaucratic characteristic does this violate?

A)Too many rules
B)No specialization of labor
C)No clear chain of command
D)A narrow span of management
E)An appropriate social distance between supervisor and subordinate

Question 22

Weber viewed the bureaucratic form of organization as all of the following EXCEPT

A)logical.
B)rational.
C)efficient.
D)personal.
E)the one best way.

Question 23

The most important issue for international organization design is how to design the firm to most effectively deal with international forces and compete in global markets.

Question 24

Which of the following statements is NOT an accurate reflection of the relationship between organizations and organization design?

A)Organization design is used to manage the total organization.
B)Once an organization is designed, the organization changes little.
C)Organization design for large organizations is extremely complex compared to that for smaller organizations.
D)Organization design is the overall pattern of the structural components that make up an organization.
E)Organization design is influenced by many of the same factors that influence an organization's structure.

Question 25

When a patient in critical condition enters the emergency room,the skills of numerous people are geared toward saving the individual's life.Sometimes this isn't possible,and as a result,the personnel look to each other for emotional support.Subordinates and supervisors are close friends because they understand the emotional traumas that the others have experienced.According to Weber's bureaucratic model

A)the ER is operating properly because business social distance is not maintained.
B)the division of labor and job specialization would negate the ER's synergy.
C)ER employees are more productive due to the caring environment.
D)the contingency approach should be applied for each patient's treatment.
E)None of these choices

Question 26

Which of the following statements does NOT describe a shortcoming of bureaucratic organizations?

A)With bureaucratic organizations, social processes are ignored.
B)Organizational efficiency is reduced in a bureaucratic organization.
C)There is extensive use of division of labor in a bureaucratic organization.
D)With bureaucratic organizations, assumptions about employee loyalty are unrealistic.
E)Bureaucratic organizations tend to be rigid and inflexible.

Question 27

The two universal approaches to organization design that represent the foundation of what we know about organization design are

A)classical and scientific.
B)administrative and classical.
C)bureaucratic and behavioral.
D)bureaucratic and scientific.
E)behavioral and administrative.

Question 28

A small-town police force has six patrol officers,two radio dispatch operators,two supervisors,and one police chief.At any time,three patrol officers,one radio operator,and one supervisor are on duty.The police chief works from 8 a.m.to 5 p.m.Because of the size of the organization,a patrol officer can expect to deal with cases of vandalism,car theft,shoplifting,assault and battery,domestic disputes,broken traffic signals,and auto wrecks during a typical shift.Which of the following statements describes a problem that occurs because the police force does not use a bureaucratic organization design?

A)Its organization is rigid and inflexible.
B)Appropriate social distances are maintained.
C)Assumptions about employee loyalty are unrealistic.
D)Its organizational efficiency is much less than it could be.
E)Officers must work in a dynamic environment.

Question 29

In a bureaucracy,rules,division of labor,and hierarchies of authority

A)affect goal setting.
B)restrict the flow of information.
C)increase the number of lateral relationships.
D)improve organizational efficiency.
E)reduce the need to process information.

Question 30

The matrix designs enhance flexibility because teams can be created,redefined,and dissolved as needed.

Question 31

The behavioral model paralleled the emergence of

A)the classical management school.
B)the human relations movement.
C)quantitative management theory.
D)the development of contingency theory.
E)the development of systems theory.

Question 32

Weber's guidelines for bureaucratic design include

A)functional departmentalization.
B)a contingency approach to management.
C)a human relations approach to management.
D)a clear chain of command.
E)All of these choices

Question 33

An organization that uses two overlapping bases of departmentalization has a hybrid structure.

Question 34

The Landon Corporation has three divisions that are very closely related and functional departments for personnel and information systems.Landon is using a hybrid design.

Question 35

Organization ____ refers to the manner in which an organization's structural components are arranged to manage the total organization.

A)design
B)structure
C)development
D)behavior
E)management

Question 36

Which of the following statements does NOT describe a characteristic of Weber's bureaucracy?

A)It tends to be rigid and inflexible.
B)It works better in stable environments.
C)It was the starting point for later organization design research.
D)It created labor unions.
E)It stated employees should be protected from arbitrary dismissal.

Question 37

Virtual organizations rely almost exclusively on project-type units with little or no functional authority.

Question 38

The matrix organization design violates Fayol's principle of unity of command,which states that each subordinate should report to one and only one superior.

Question 39

A System 1 organization is most like

A)a matrix design.
B)an organic design.
C)a formal bureaucracy.
D)a hybrid design.
E)a dictatorship.

Question 40

Employees at Blackrock had a mustache growing contest.It cost $20 to enter and $20 to be a judge.After a month the winner was announced and the money donated to the winner's choice of charity.Which bureaucratic characteristic does this violate?

A)Too many rules
B)No specialization of labor
C)No clear chain of command
D)A narrow span of management
E)An appropriate social distance between supervisor and subordinate

Question 41

Which of the following is NOT a factor in the situational view of organization design?

A)Control
B)Size
C)Technology
D)The environment
E)Organizational life cycle

Question 42

Which of the following industries uses large-batch technology?

A)The diamond industry
B)Fashion designers
C)Furniture manufacturers
D)Builders of sports arenas
E)All of these choices

Question 43

When Kellogg's makes cereal and cereal bars,it uses ____ technology.

A)continuous-process
B)unit
C)specialization
D)large-batch
E)niche

Question 44

According to Woodward's findings relative to technology and organization design,the most successful mass-production firms adopt a(n)

A)free-form design.
B)System 4 design.
C)organic structure.
D)matrix structure.
E)bureaucratic structure.

Question 45

Which of the following statements about Likert's approach is FALSE?

A)It holds that the bureaucratic model has numerous drawbacks.
B)It advocates a System 4 design.
C)It is flexible and varies from one manager to another.
D)It characterizes eight processes.
E)It paralleled the human relations school of management.

Question 46

The technology that is most effective with a System 4 design is ____ technology.

A)small-batch
B)large-batch
C)continuous-process
D)both small-batch and continuous-process
E)both large-batch and continuous-process

Question 47

Which of the following is NOT a process characterized by Likert?

A)Leadership
B)Decision making
C)Planning
D)Controlling
E)Communication

Question 48

Which of the following exemplifies the definition of technology in the text?

A)Converting iron ore into steel
B)Creating a work of art from paint and canvas
C)Creating a website for a business start up
D)Transforming lumber into fine furniture
E)All of these choices

Question 49

Volkswagen makes automobiles.It uses ____ technology.

A)large-batch
B)continuous-process
C)unit
D)System 4
E)mass-customization

Question 50

____ are internal organizational factors that can influence the organization design selection.

A)Organization size and the organizational environment
B)Slack resources and technology employed
C)Technology employed and the organizational environment
D)Organization size and the technology employed
E)Slack resources and size

Question 51

Which of the following BEST describes the situational view of organization design?

A)The appropriate organization design should be based on the behaviorist perspective.
B)The appropriate organization design uses the bureaucratic model.
C)The appropriate organization design depends on the circumstances.
D)The appropriate organization design is similar to System 4.
E)The appropriate organization design uses the hybrid approach.

Question 52

A System 4 design emphasizes

A)open and extensive interaction processes.
B)supportive relationships.
C)group decision making.
D)high-performance goals.
E)All of these choices

Question 53

The best-known and most important behavioral approach to organization design is

A)Weber's bureaucracy.
B)the divisional form.
C)Woodward's simple structure.
D)Likert's System 4.
E)the linking pin approach.

Question 54

Automakers build prototype vehicles first.This requires ____ technology.

A)large-batch
B)continuous-process
C)standardized
D)small-batch
E)mass-production

Question 55

Facebook creates social networks.It uses ____ technology.

A)large-batch
B)unit
C)continuous-process
D)transformation
E)small-batch

Question 56

With ____ technology,products are produced in small quantities and made to customers' specifications.

A)large-batch
B)continuous-process
C)standardized
D)unit
E)mass-production

Question 57

Google creates web search results.It uses ____ technology.

A)large-batch
B)unit
C)continuous-process
D)transformation
E)small-batch

Question 58

Starbucks assembles and serves coffee and snacks.They use ____ technology.

A)large-batch
B)continuous-process
C)standardized
D)unit or small-batch
E)mass-production

Question 59

Which of the following statements comparing System 4 and Weber's bureaucracy is MOST accurate?

A)Both neglect the goal of organizational efficiency.
B)Both tend to be flexible and fluid.
C)Both are universal approaches to organization design.
D)Both developed from the classical school of management thought.
E)Both support design based on the current environment.

Question 60

Staples print shop prints whatever the customer requests.What class of technology does it use?

A)Downsized
B)Unit production
C)Mass production
D)Continuous process
E)Decentralized

Question 61

Speedo operates in a fairly stable environment,Burns and Stalker would agree that the ____ design would be best for Speedo.

A)mechanistic
B)organic
C)matrix
D)System 3
E)hybrid

Question 62

Trump Organization produces beauty pageants and builds commercial real estate.There appears to be little need for ____ between these units.

A)integration
B)responsibility
C)flexibility
D)centralization
E)technology

Question 63

The Siemens sectors are industry,energy,healthcare,and infrastructure and cities,which all require strong engineering.Siemens uses related diversification.The divisions are

A)integrated.
B)relatively stable.
C)mechanistic.
D)differentiated.
E)autonomous.

Question 64

To be successful,Glamour magazine must respond to the latest fads and inform their readers of upcoming trends in fashion.This need for flexibility indicates that a(n)____ design is appropriate.

A)organic
B)System 1
C)hybrid
D)matrix
E)mechanistic

Question 65

Which of the following is NOT one of the stages of the organizational life cycle?

A)Maturity
B)Decline
C)Youth
D)Birth
E)Midlife

Question 66

Discount retailers like Michael's rely on economies of scale.They use ____ technology.

A)large-batch
B)unit
C)continuous-process
D)transformation
E)small-batch

Question 67

According to the work of Lawrence and Lorsch,in organization design

A)the more unstable the environment, the less the firm should differentiate.
B)the more differentiated a firm, the greater the requirement for integration.
C)each unit of an organization faces its own peculiar environment.
D)organic designs are almost invariably more effective, regardless of the environment.
E)there is little relationship between the environment and the appropriate organization design.

Question 68

As it was developed by Burns and Stalker,the ____ design is most like System 4.

A)conglomerate
B)organic
C)matrix
D)hybrid
E)functional

Question 69

The Aston studies found that as organization size increases

A)centralization increases.
B)specialization decreases.
C)fewer standing plans are used.
D)the link between technology and organization design breaks down.
E)there is a tendency to change to process technology.

Question 70

Which of the following statements about the organizational life cycle is TRUE?

A)Life cycle tends to be related to size.
B)The final stage for an organization may be one of decline or stability.
C)The organization design needed for various stages of an organization's life cycle will be different.
D)Life cycle is a situational element that has been found to affect the appropriate organization design.
E)All of these choices

Question 71

The Aston studies found basic generalizations.Which of the following is NOT one of them?

A)Large organizations tend to have more job specialization than smaller organizations
B)Large organizations tend to have more SOPs than small organizations
C)Large organizations tend to have more regulations than smaller organizations
D)Large organizations tend to have more decentralization than small organizations
E)Large organizations tend to have more job satisfaction than smaller organizations

Question 72

Kansas State University operates in a relatively stable environment.According to the work of Burns and Stalker,which form of organization design is most appropriate for the university?

A)Organic
B)System 4
C)Hybrid
D)Matrix
E)Mechanistic

Question 73

Which of the following is NOT a characteristic of organic organizations?

A)Open communication
B)High level of specialization
C)Low level of standardization
D)Cooperation
E)Unstable external environment

Question 74

As described by Burns and Stalker,mechanistic organizations are most like

A)bureaucracies.
B)organizational networks.
C)System 4 organizations.
D)matrix organizations.
E)hybrid organizations.

Question 75

Microsoft is experiencing gradual growth,with most of it happening internationally.It is an example of an organization in the ____ stage.

A)maturity
B)decline
C)youth
D)birth
E)midlife

Question 76

Lawrence and Lorsch used what two primary dimensions to characterize organizations?

A)Dimension and flexibility
B)Stability and uncertainty
C)Integration and differentiation
D)Autonomy and responsibility
E)Organic and mechanistic

Question 77

As organizations move through the stages of the organizational life cycle from birth to maturity,they do NOT

A)tend to increase in size.
B)become more mechanistic.
C)devote more attention to planning.
D)reduce the size of their staff component.
E)become more decentralized.

Question 78

In a stable environment organizations tend to be

A)bureaucratic.
B)mechanistic.
C)System 1.
D)differentiated
E)All of these choices

Question 79

Not long ago,there was no such thing as a dot-com company,but because of rapid technological evolution,many dot-com companies have been created,have been briefly successful,and have failed in a relatively short period.Those that have remained have had to be responsive to changes in their ever-changing external environments.As a rule,you would expect dot-com companies to have a(n)____ design.

A)organic
B)System 1
C)hybrid
D)matrix
E)mechanistic

Question 80

Woodward found that successful firms employing small-batch and continuous-process technologies are similar to which of the following organization designs?

A)System 1
B)System 4
C)Matrix design
D)Mechanistic design
E)Bureaucracy