Deck 15: Designing Effective Organizations

Question 1

A virtual organization demands flexibility,and managers must be able to lead and motivate people in separate locations.

Answer 1

True

Question 2

In organizations,centralization and decentralization are an either-or proposition.

Answer 2

True

Question 3

According to Burns and Stalker,mechanistic organizations are far superior to organic organizations in performance.

Answer 3

False

Question 4

A matrix structure has three or more command structures.

Question 5

A modular organization is based on the idea that not even barriers between organizations are always ideal.

Question 6

A hollow organization results from outsourcing.

Question 7

Organizations tend to be relatively mechanistic or relatively organic.

Question 8

According to organizational theorists,the ideal span of control is 12 years.

Question 9

The horizontal approach to organizational design focuses on functions,products,and customers.

Question 10

In centralized decision making,top management makes all key decisions.

Question 11

Division of labor occurs when a common goal is pursued by individuals performing separate but related tasks.

Question 12

Organizations defined by the traditional approach may have modular,virtual,or hollow structures.

Question 13

Open-systems are capable of self-correction,adaptation,and growth.

Question 14

According to the general systems theory,the outer boundary of an open-system organization is not permeable.

Question 15

Generally,wider the span of control,closer the supervision and higher the administrative costs.

Question 16

In a functional structure,organizations group together activities related to outputs.

Question 17

The distinction between closed and open systems is a matter of degree.

Question 18

Centralized organizations are more adaptive to changing situations.

Question 19

Organic organizations are rigid bureaucracies with strict rules,narrowly defined tasks,and top-down communications.

Question 20

A divisional organization is similar to a hollow organization.

Question 21

In organizations with a functional structure,quality standards can be maintained because supervisors understand what department members do and because people in the same function develop pride in their specialty.

Question 22

Horizontal designs generally improve coordination and communication in organizations.

Question 23

_____ refers to the number of people reporting directly to a given manager.

A) Division of labor
B) Hierarchy of authority
C) Span of control
D) Unity of command
E) Line positions

Question 24

Which of the following is NOT a common denominator of all organizations?

A) Division of labor
B) Decentralized decision making
C) A common goal
D) A hierarchy of authority
E) Coordination of effort

Question 25

Strategic constituencies generally have competing or conflicting interests.

Question 26

According to organization theorists,coordination of effort,a common goal,division of labor,and a hierarchy of authority are factors that constitute a(n):

A) scalar chain of command.
B) organization's denominator.
C) organization's structure.
D) organization's span of control.
E) organization's design.

Question 27

Julie works for an advertising firm,Le Monde,as a creative graphics designer.She reports to the manager of the client relations team and also the manager of the design team.This often leads to conflicting orders.The organization is lacking in:

A) division of labor.
B) span of control.
C) organizational design.
D) unity of command.
E) centralized control.

Question 28

The resource acquisition dimension of organizational effectiveness focuses on "what the organization must excel at."

Question 29

Strategic constituencies' satisfaction is the most widely used effectiveness criterion for organizations.

Question 30

The downside of horizontal structures is that organizations give up expertise and control in functions or operations that are outsourced.

Question 31

According to Chester Barnard,a(n)_____ is "a system of consciously coordinated activities of two or more people".

A) matrix
B) strategic constituency
C) open system
D) organization
E) closed system

Question 32

According to research,command-and-control communication characterizes organic organizations,whereas consultative communication prevails in mechanistic organizations.

Question 33

_____ is achieved through formulation and enforcement of policies,rules,and regulations.

A) Hierarchy of authority
B) Division of labor
C) Unity of command
D) Coordination of effort
E) Span of control

Question 34

In an organization,each employee reports to one manager.This reflects:

A) a mechanistic organization.
B) unity of command.
C) centralized decision making.
D) a wide span of control.
E) an organic organization.

Question 35

An organization chart reflects all of the following EXCEPT:

A) division of labor.
B) line and staff positions.
C) spans of control.
D) corporate strategies.
E) hierarchy of authority.

Question 36

A matrix structure tries to combine the advantages of functional and divisional structures.

Question 37

A functional structure violates the unity of command principle.

Question 38

Historically,managers have maintained the integrity of the hierarchy of authority by adhering to:

A) a wide span of control.
B) matrix structures.
C) the division of labor principle.
D) a narrow span of control.
E) the unity of command principle.

Question 39

Historically,spans of control of _____ were considered best.

A) one to two
B) five to six
C) eight to nine
D) twelve to fourteen
E) sixteen to seventeen

Question 40

In virtual organizations,duplicating functions in each division can add to costs,so this structure may be too expensive for some organizations.

Question 41

Culture is a component of the _____ subsystem in the open-system model.

A) goals and values
B) technical
C) structural
D) managerial
E) psychosocial

Question 42

In the open-system model,elements such as goal setting,planning,and assembling resources are part of the _____ subsystem.

A) input
B) goals and values
C) psychosocial
D) managerial
E) structural

Question 43

Which of the following components will be categorized as a psychosocial subsystem as per the open-system model?

A) Techniques
B) Human resources
C) Knowledge
D) Procedures
E) Philosophy

Question 44

Knowledge,techniques,facilities,and equipment are elements of the _____ subsystem in the open-system model.

A) input
B) goals and values
C) psychosocial
D) technical
E) structural

Question 45

Which of the following organizational structures is based on the idea that barriers between organizations are not always ideal?

A) Mechanistic
B) Functional
C) Divisional
D) Pyramid
E) Modular

Question 46

Which of the following statements is true of open systems?

A) Rigorous planning and control would eliminate environmental uncertainty.
B) The outer boundary of the organization is impermeable.
C) Organizations in these systems cannot self-adjust.
D) Homeostasis and feedback control are important mechanisms for growth.
E) It is a static model of organization.

Question 47

A _____ structure is defined by a traditional approach.

A) hollow
B) modular
C) virtual
D) network
E) matrix

Question 48

A relatively self-sufficient entity is called a(n):

A) cross-functional team.
B) open system.
C) unity of command system.
D) closed system.
E) command-and-control system.

Question 49

Wendell Computers has vice presidents in charge of each functional group and project managers for each make of computer they manufacture.An employee may report to two managers: one in charge of the function they perform and the other in charge of the project they are working on.This illustrates a(n)_____ structure.

A) matrix
B) mechanistic
C) modular
D) virtual
E) organic

Question 50

_____ subsystem is NOT an organizational subsystem in the open-system model.

A) Functional
B) Structural
C) Psychosocial
D) Managerial
E) Technical

Question 51

Products and social benefits comprise the _____ subsystem in the open-system organization.

A) managerial
B) technical
C) structural
D) output
E) psychosocial

Question 52

Sigma Corporation has different departments like manufacturing,sales,accounting,and advertising.It has a _____ structure

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

Question 53

_____ is defined as "the structures of accountability and responsibility used to develop and implement strategies,and the human resource practices and information and business processes that activate those structures."

A) Organizational design
B) Organizational chart
C) Organizational structure
D) Organizational decision
E) Organizational command

Question 54

A(n)_____ system depends on constant interaction with the environment for survival.

A) centralized
B) open
C) mechanistic
D) decentralized
E) closed

Question 55

Which of the following constitute the five principles that are important for designing a horizontal organization?

A) Organize around tasks
B) Have clear-cut hierarchy
C) Divide work according to functions
D) One manager for each function
E) Use teams to manage everything

Question 56

Which of the following is NOT a principle in the design of a horizontal organization?

A) Flatten hierarchy and use teams to manage everything.
B) Organize around tasks rather than workflow processes.
C) Let supplier and customer contact drive performance.
D) Provide required expertise from outside the team as required.
E) Appoint process team leaders to manage internal team processes.

Question 57

Nexus Finance has three major businesses: Nexus Banks,Nexus Insurance,and Nexus Investments.What is the organizational structure used by Nexus Finance?

A) Virtual structure
B) Divisional structure
C) Hollow structure
D) Functional structure
E) Matrix structure

Question 58

Employees at Sol Corporation report to two managers: one in charge of the function they perform and the other in charge of the project they are working on.Which structure is Delta adopting?

A) Modular structure
B) Matrix structure
C) Divisional structure
D) Virtual structure
E) Functional structure

Question 59

In the open system of organizational design,to which subsystem does authority belong?

A) Managerial
B) Technical
C) Structural
D) Inputs
E) Psychosocial

Question 60

All of the following statements are true of line managers EXCEPT:

A) they are generally presidents or directors of a firm.
B) they provide technical advice regarding decisions.
C) they have the authority to make critical decisions.
D) they have no authority over other organizational members.
E) they occupy formal decision-making positions.

Question 61

Nous Corp.has been trying to infiltrate the market in China.It sets up its operations in China in partnership with a local firm,Xei-Ling LLC.Which structure is Nous Corp.most likely to have?

A) Matrix
B) Divisional
C) Mechanistic
D) Virtual
E) Functional

Question 62

Generally,_____ are more adaptive to changing situations.

A) decentralized organizations
B) strategic constituencies
C) mechanistic structures
D) centralized organizations
E) closed systems

Question 63

An organic organization is expected to have _____ communication.

A) lateral
B) directive
C) horizontal
D) downward
E) participative

Question 64

As organizations turn ____,the intrinsic motivation of their members decreased.

A) organic
B) modular
C) virtual
D) mechanistic
E) functional

Question 65

In _____ organizations,the communication pattern was seen to be command-and-control.

A) modular
B) mechanistic
C) virtual
D) functional
E) organic

Question 66

Drone Systems is a company that makes concept cars which are of three main types: fuel efficient,SUVs,and wind-powered.It is divided on the basis of this criterion.What is its advantage?

A) It helps the company to save money.
B) Workers have more time to do what they can do best.
C) Employees do not have to solve varied problems.
D) The company can move faster in case of competition.
E) There are high quality standards maintained by supervisors.

Question 67

A _____ organization identifies partners with the needed talents and negotiates an agreement in which the participants typically work in separate facilities.

A) modular
B) virtual
C) centralized
D) functional
E) divisional

Question 68

A _____ organization results from strategic application of the trend toward outsourcing.

A) matrix
B) hollow
C) pyramid
D) horizontal
E) functional

Question 69

An organization wherein all major decisions are made by its middle- and lower-level managers is said to be a:

A) divisional structure.
B) strategic constituency.
C) decentralized organization.
D) mechanistic structure.
E) functional structure.

Question 70

A Peruvian retail company has a rigid bureaucracy,with narrowly defined tasks,strict rules,and top-down communication processes.It is said to be a(n)_____ organization.

A) organic
B) mechanistic
C) virtual
D) hollow
E) modular

Question 71

Which type of organizational structure is extremely valuable in industries where even small errors can have catastrophic consequences?

A) Hollow
B) Organic
C) Virtual
D) Decentralized
E) Mechanistic

Question 72

A _____ organization,like a hollow organization,uses outsourcing.

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

Question 73

In order to respond to a temporary but exceptional market opportunity,a company creates an entity along with two other companies.The facilities are separate,but employees in these offices remotely connect and collaborate to tap the potential opportunity.Which organizational structure does this new entity have?

A) Hollow structure
B) Virtual structure
C) Divisional structure
D) Modular structure
E) Matrix structure

Question 74

A pharmaceutical company,Medico,Inc.,decides that it can excel at developing new patents,owing to its design talent and knowledge of the market.It then outsources all noncore processes like logistics and accounting to other companies.What is the resulting organizational structure?

A) Matrix
B) Divisional
C) Hollow
D) Functional
E) Virtual

Question 75

An organization with flexible networks of multitalented individuals who perform a variety of tasks is a(n):

A) centralized organization.
B) organic organization.
C) closed system.
D) functional organization.
E) mechanistic organization.

Question 76

Torque,Inc.,is unable to meet quality requirements for a particular component it uses in the manufacture of cars.It approaches another firm to develop the component to ensure that the quality is not affected for efficient integration into the car.What organization structure does Torque,Inc.,follow?

A) Divisional structure
B) Modular structure
C) Virtual structure
D) Hollow structure
E) Mechanistic structure

Question 77

A Mexican food packaging company,Jalapenos,Inc.,has suffered some heavy losses recently.It has decided to eliminate senior management roles and is having self-managed teams handle the decision making.It is using a(n)_____ decision making process.

A) centralized
B) directive
C) analytical
D) specialized
E) decentralized

Question 78

What disadvantage will a divisionally structured organization have?

A) Increased costs due to function duplication.
B) Lack of decision-making flexibility.
C) Violation of the unity of command principle.
D) Increased difficulty in coordinating employee efforts.
E) Ill-suited for a stable environment.

Question 79

A company that outsources parts of the actual product it manufactures has a _____ organizational structure.

A) hollow
B) functional
C) pyramid
D) modular
E) matrix

Question 80

According to the _____ approach to organization design,companies tend to be more effective when they are structured to fit the demands of the situation.

A) hollow
B) divisional
C) functional
D) contingency
E) mechanistic