Question 1

Define environmental uncertainty and provide a current,real-life example.

Accepted Answer

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Question 2

Explain the paradox in human workplace dynamics that often results in the formation of hybrid structures.

Accepted Answer

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Question 3

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.

Accepted Answer

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

Question 4

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

Accepted Answer

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

Question 5

Who has the greatest span of leadership?

Accepted Answer

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 6

The catalyst for a starfish organization supplies ________.

Accepted Answer

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

Question 7

Ming's catering company is structured as a sole proprietorship.The business has grown and he is hiring more employees and getting high-profile jobs.Ming is worried about the personal impact of potential lawsuits such as an employee getting burned or a refrigerator failing before a huge party.What would you advise Ming to do?

Accepted Answer

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Question 8

In a cross-equity alliance,________.

Accepted Answer

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 9

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.

Accepted Answer

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

Question 10

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

Accepted Answer

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 11

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

Accepted Answer

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

Question 12

Which statement is TRUE?

Accepted Answer

A)  A corporation never needs to worry about double taxation. 
B)  A sole proprietorship never needs to worry about liability. 
C)  An LLC never needs to worry about double taxation. 
D)  A partnership never needs to worry about double taxation.

Question 13

Explain open systems theory and give an example of it at work in the restaurant business.

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Question 14

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?

Accepted Answer

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

Question 15

What is flexible specialization? What is the benefit of this approach? Give an example of how functional specialization can work in manufacturing.

Accepted Answer

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Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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?

Accepted Answer

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 18

Which of the following is a starfish organization?

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

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

Accepted Answer

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

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