Deck 7: Creating a Flexible Organization

Question 1

A company designs and creates new toys. Because the toy market is so competitive, this company must incorporate customer feedback quickly in order to launch the next big thing. The firm's product developers in various regions must be able to independently make decisions to get toys rapidly designed and launched for their markets. The firm's organizational design would most likely be built for which of the following?

A) high empowerment, high control
B) high efficiency, low empowerment
C) high responsiveness, high empowerment
D) low efficiency, low responsiveness

Answer 1

C

Question 2

3M has customer innovation centres for corporate customers. These centres, usually located near 3M research facilities, are like showrooms that allow 3M to have a better understanding of what its customers are trying to accomplish. By understanding this, 3M can create products that help its customers. How does 3M likely prioritize organizational design?

A) high efficiency
B) high responsiveness
C) low empowerment
D) high control

Answer 2

B

Question 3

Which term is used to describe the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people?

A) rotation
B) specialization
C) enrichment
D) organization

Answer 3

B

Question 4

The various tasks in Caterpillar's manufacturing plant are arranged so that one worker draws the wiring, another strengthens the wires, a third cuts them, a fourth installs them, and a fifth seals them together. Which of the following does this arrangement exemplify?

A) job redesign
B) job specialization
C) job enrichment
D) job enlargement

Question 5

A high-end department store's employee handbook states, "Use your best judgment in all situations. There will be no additional rules." This store's organizational design likely prioritizes which of the following?

A) high efficiency
B) high control
C) low responsiveness
D) high empowerment

Question 6

An auto-manufacturing company designs its production line to build cars using the minimum amount of resources. However, its product development teams are always scanning the competitive environment, seeking to be the first to market with product improvements. What would be the company's two most important goals in organizational design?

A) high efficiency, high responsiveness
B) high control, low efficiency
C) high efficiency, low responsiveness
D) low responsiveness, high empowerment

Question 7

Costco is able to keep costs down and offer low prices thanks to a no-frill shopping experience. It offers thousands of different products and does take into consideration customer preferences. After realizing the popularity of organic food products, Costco quickly stocked more of these items and created an initiative to help farmers buy land to grow organic crops. How does Costco prioritize efficiency and responsiveness?

A) high efficiency, low responsiveness
B) high efficiency, high responsiveness
C) low efficiency, low responsiveness
D) low efficiency, high responsiveness

Question 8

When a worker has to learn only a specific, highly specialized task, that individual will learn to do it very efficiently. However, this efficiency could eventually become inhibited by job monotony and boredom. This situation could be alleviated through which of the following?

A) job rotation
B) job specialization
C) high organizational control
D) assembly-line production

Question 9

Which of the following is the speed at which the organization can improve its products as a result of customer feedback?

A) efficiency
B) effectiveness
C) responsiveness
D) empowerment

Question 10

Ted finds he has less energy to go to work each day. On average he misses two days a week. Ted may be suffering from boredom and lack of empowerment in his assembly line job, which is one negative side effect of which of the following?

A) job enrichment
B) job enhancement
C) job enlargement
D) job specialization

Question 11

The book The Wealth of Nations, published in the eighteenth century, emphasizes the power of which of the following to increase production output?

A) job rotation
B) job specialization
C) job design
D) assembly-line production

Question 12

An accounting firm performs audits for top corporations to ensure they are following all applicable tax laws. The firm needs to complete this task using a minimum amount of resources and it needs employees to follow specific guidelines for each audit. This firm's organizational design would most likely be built for which of the following?

A) high empowerment, high efficiency
B) high control, low efficiency
C) high efficiency, high control
D) high responsiveness, high empowerment

Question 13

A manufacturing firm produces fire extinguishers at a high volume and low cost for export to markets all over the world. It must maintain precise processes throughout the organization. How would this organization likely prioritize for efficiency and control?

A) low efficiency, low control
B) low efficiency, high control
C) high efficiency, low control
D) high efficiency, high control

Question 14

Which of the following is the ability for management to make decisions and to specify how those decisions will be carried out?

A) control
B) efficiency
C) responsiveness
D) empowerment

Question 15

Which of the following is defined as the degree to which employees make decisions on their own?

A) control
B) effectiveness
C) responsiveness
D) empowerment

Question 16

In a furniture factory, one worker cuts the wood according to the design; another glues the furniture together, and another stains and finishes the furniture. This is an example of which of the following?

A) departmentalization
B) decentralization
C) job rotation
D) job specialization

Question 17

A high-end restaurant is all about delighting customers. The chefs and waiters are free to make decisions that satisfy customer needs, even if it requires extra time or cost. Because the restaurant staff is highly talented and experienced, the restaurants owners take a hands-off approach to daily operations. The firm's organizational design would most likely feature which of the following?

A) high efficiency, high responsiveness
B) high control, low efficiency
C) low control, high empowerment
D) low efficiency, low responsiveness

Question 18

Which of the following is a benefit of job specialization?

A) It is more challenging to design equipment.
B) It is easier to train new employees.
C) It enlarges the job.
D) It enriches the job.

Question 19

Which of the following involves the ability to complete a task using the minimum amount of resources?

A) efficiency
B) effectiveness
C) responsiveness
D) empowerment

Question 20

An advertising agency is known for its creative and "outside the box" campaigns. It employs highly talented writers, artists, and art directors to create these campaigns. This agency will most likely organize in order to make which of the following a priority?

A) high efficiency
B) high empowerment
C) low responsiveness
D) high control

Question 21

General Motors has separate divisions for Chevrolet, GMC, and Cadillac vehicles. This is an example of departmentalization by which of the following?

A) function
B) customer
C) product
D) model

Question 22

Kimberly Clark, manufacturer of Kleenex tissues, Huggies diapers, Cottonelle bathroom tissue, and other brands, departmentalizes based on product. One advantage to this type of departmentalization is that Kimberly Clark can do which of the following?

A) simplify its supervision efforts
B) increase efficiency due to duplication of activities
C) respond to market demands quickly
D) deal effectively with unique customer groups

Question 23

Johnson & Johnson has a Consumer group, a Professional group, a Pharmaceutical group, and an Industrial group. Johnson & Johnson has which form of departmentalization?

A) customer
B) function
C) product
D) cost

Question 24

The president of a large semiconductor company discovered that the company was having a problem with product groups working selfishly rather than cooperating with one another. To solve the problem, he combined the company's 12 product groups into three regional management centres. This solution is referred to as departmentalization by which of the following?

A) location
B) function
C) product
D) customer

Question 25

Which of the following is a disadvantage of departmentalization by function?

A) Supervision is very difficult because workers are involved in different types of activities.
B) It tends to emphasize the department rather than the organization as a whole.
C) It causes duplication of the same specialized activities throughout the organization.
D) Coordination is very complex because of the way job duties are distributed.

Question 26

The Patel Company, a small furniture manufacturer, divides its organization into marketing, human resources, accounting, and production departments. This is an example of departmentalization by which of the following?

A) location
B) specialty
C) product
D) function

Question 27

The executive team at a major retailer recently reorganized the company. They decided to departmentalize in a way that would improve responsiveness to the unique demands of customers in different regions of the country. This is especially important because regional preferences are so distinct in their retail category. The company realizes this could create inefficiency because of the duplication of certain activities. In this scenario, the executive team most likely decided to departmentalize by which of the following?

A) customer
B) product
C) specialty
D) location

Question 28

Which of the following is a benefit of job rotation?

A) there is no downtime in employee changeover from one operation to the next
B) it is more efficient because employees develop specialized skills for completing their task
C) it allows employees to develop new skills and stay interested in their jobs
D) initial job training is easier

Question 29

Which of the following is a benefit of job specialization?

A) specialized jobs are more efficient because they eliminate employee changeover time from one operation to the next
B) specialized jobs require retraining staff if there is a modification to production
C) employees are less likely to become bored
D) employees are able to develop new skills and identify roles where they may like to focus

Question 30

A company that is organized by the North Region, the West Region, the East Region, and the Central Region would be departmentalization by which of the following?

A) customer
B) function
C) product
D) location

Question 31

Selena does data entry for a mobile phone company. Her job is to enter the data exactly as they appear in the field reports that are given to her daily. Which of the following best describes Selena's job?

A) low specialization, low empowerment
B) low specialization, high empowerment
C) high specialization, low empowerment
D) high specialization, low efficiency

Question 32

A company's location, product, function, and customer are common bases for which of the following?

A) departmentalization
B) span of management
C) job specialization
D) job design

Question 33

If General Mills has a Cereal Division and a Snack Foods Division, it would be departmentalizing on the basis of which of the following?

A) population
B) customer
C) function
D) product

Question 34

A computer manufacturer is first divided into the following groups: Consumers, Small Business, Large Business, and Educational Institutions. Within each of these divisions, management is organized into finance, operations, marketing, and human resources. This company is organized first by customer, and then by which of the following?

A) model
B) function
C) product
D) location

Question 35

If a new company desires to departmentalize in a way that will simplify supervision and facilitate clear lines of communication, it will most likely departmentalize by which of the following?

A) product
B) location
C) customer
D) function

Question 36

Phil is the art director for a video game production company. He works with the writers, graphic artists, and programmers to bring the team's ideas to life. Although the theme of each game is set by the executive team, Phil is able to take that basic theme in just about any direction he chooses. Which of the following best describes Phil's job?

A) low specialization, low empowerment
B) low specialization, high empowerment
C) high specialization, high empowerment
D) high specialization, low efficiency

Question 37

TD Bank has one group of loan officers who handle consumer loans and another group who work with commercial loans for business. Grouping work units this way is known as departmentalization by which of the following?

A) function
B) customer
C) product
D) specialty

Question 38

Which type of departmentalization can lead to slow decision making and can result in "silos" where employees tend to stress the needs of the department over the needs of the whole organization?

A) customer
B) function
C) product
D) location

Question 39

Which of the following involves grouping jobs and people into manageable units?

A) departmentalization
B) centralized organization
C) bureaucratic structuring
D) informal organizing

Question 40

Employees at a chemical factory are systematically moved every two weeks among three different departments in the organization. What is this practice called?

A) job empowerment
B) job specialization
C) job enlargement
D) job rotation

Question 41

The pattern of delegation throughout an organization determines the extent to which the organization can be described as which of the following?

A) using a wide span or narrow spa.
B) functional or customer based
C) location or product based
D) centralized or decentralized

Question 42

Priya is a manager in an organization where a great deal of interaction is required between herself and her small staff. This is because problems requiring her involvement arise frequently. Priya is likely to have which of the following?

A) a wide span of management
B) little authority to delegate
C) departmentalization by product
D) a narrow span of management

Question 43

A clothing design company fully delegates authority to regional divisions in each part of the country. What is the likely effect on the organization?

A) more control, more responsive
B) more control, less responsive
C) less control, less empowerment
D) less control, more empowerment

Question 44

A high-volume manufacturing firm concentrates decisions at the top of the organization. What is the likely effect on the organization?

A) higher efficiency, lower employee empowerment
B) higher responsiveness, lower employee empowerment
C) lower efficiency, higher employee empowerment
D) lower responsiveness, lower efficiency

Question 45

Which term denotes the number of workers who report directly to one manager?

A) authority
B) the span of management
C) accountability
D) centralization

Question 46

The more a company needs to be innovative and responsive, the more likely the company will do which of the following?

A) decentralize the organization
B) choose functional departmentalization
C) centralize the organization
D) reduce delegation of authority

Question 47

Mark left his position as a Hudson's Bay store manager after two years. He complained of burnout from having too many roles and tasks for one position-even though he had plenty of staff working for him. Mark probably never learned to use which of the following tools?

A) segmentation
B) function
C) control
D) delegation

Question 48

Which type of organization allows a company to make decisions more quickly and implement them right away, increasing efficiency and market responsiveness?

A) taller
B) higher
C) flatter
D) specialized

Question 49

Which of the following involves assigning part of your work, and the authority required to do that work, to someone else?

A) delegation
B) responsibility
C) authorization
D) accountability

Question 50

A biotechnology company is constantly faced with important decisions that are likely to have severe consequences for the future of the company. They need to make efficient, fast decisions that set the direction of the company. The top managers should do which of the following?

A) decentralize decision-making authority
B) appoint lawyers to make business decisions
C) train first-line managers to make these decisions
D) exercise centralized decision-making authority

Question 51

Suppose you work in a customer service call centre for a local cable company. Your job is to answer calls from customers who have a variety of questions or problems. You have been well trained to handle a variety of calls and have access to a computer program where you can search for solutions to issues you have not yet encountered. You would expect what kind of span of management to exist at the call centre?

A) wide
B) tall
C) flat
D) short

Question 52

Jabeena has owned a small consulting business for over five years. The company is currently experiencing high growth and is expanding not only in physical locations but also in services offered. Jabeena is likely to employ which type of authority at her company?

A) wide
B) centralized
C) empowered
D) decentralized

Question 53

The managers at a large soft-drink company prefer that employees be grouped with others doing the same activity, as this simplifies supervision. However, they are concerned that this slows decision making and may cause employees to emphasize the needs of their own departments. This company is most likely departmentalized by which of the following?

A) function
B) customer
C) product
D) specialty

Question 54

Which of the following is a common characteristic of a centralized organization?

A) democratic decision making
B) decision making by top-level managers
C) placing decision making near the customer
D) authority placed at lower levels

Question 55

Which of the following companies operates with centralized authority because its priorities are to maintain a strong consistent image throughout the organization and to be efficient?

A) GE (General Electric)
B) Disney
C) McDonald's
D) Google

Question 56

A company that seeks to maintain a consistent image throughout the organization and focus on efficiency likely has which of the following?

A) customer departmentalization
B) a flat organizational structure
C) centralized authority
D) product departmentalization

Question 57

The top management at a chain of coffee shops makes all of the decisions and delegates very little authority. What is the likely effect on the organization?

A) more control, more responsive
B) more control, less responsive
C) less control, less empowerment
D) less control, more empowerment

Question 58

A television production company fully delegates authority to those working on each production project. What is the likely effect on the organization?

A) more control, more empowerment
B) less control, less empowerment
C) more efficiency, more empowerment
D) less control, more empowerment

Question 59

What is being represented when it is noted that the head of marketing supervises 12 people in her department?

A) degree of specialization
B) level of authority
C) span of management
D) degree of centralization

Question 60

Because Hudson's Bay operates in a complex and dynamic environment, its store managers are given significant freedom to run their stores. This indicates that executive leaders at Hudson's Bay headquarters do which of the following?

A) centralize decision making
B) deemphasize lower-level management training
C) deemphasize lower-level management accountability
D) decentralize authority

Question 61

A company whose managers supervise employees with a wide range of responsibilities and skills would likely have which of the following?

A) functional departmentalization
B) a narrow span of management
C) a low level of specialization
D) a flat organizational height

Question 62

Brandon, a branch manager for a large car rental company, reports to an area manager who oversees Brandon's store as well as five other stores. The area manager then reports to a regional rental manager who oversees a total of six area managers. Brandon may feel frustrated that he lacks the resources he needs to properly manage his branch, given that his company has which type of organizational structure?

A) matrix
B) line
C) line-and-staff
D) matrix

Question 63

A restaurant wait staff that reports to a floor manager who reports to the restaurant manager is a clear example of what type of organizational structure?

A) matrix
B) line
C) line-and-staff
D) network

Question 64

George is a regional sales manager for Unisys, a large manufacturer of computer systems. Like most sales managers at Unisys, George is responsible for a fairly small team of salespeople throughout his region, and he must interact with them frequently to solve problems. Which of the following descriptions is most characteristic of Unisys and its sales managers?

A) wide span of management and flat organizational height
B) narrow span of management and flat organizational height
C) wide span of management and tall organizational height
D) narrow span of management and tall organizational height

Question 65

Daphne, a sales representative, is placed in a group with an engineer from operations, a human resource specialist, and a financial manager to develop new uses for the company's existing products. The company believes this form of collaboration will lead to increased innovation. What type of group is Daphne part of?

A) standing committee
B) task force
C) cross-functional team
D) multifaceted work group

Question 66

Paul works in an organizational structure where the lines of communication are very clear; however, managers often feel isolated and lack the resources needed to achieve company goals. Paul most likely works in which type of organizational structure?

A) network
B) wide
C) specialized
D) line

Question 67

Drake works on a cross-functional team in a matrix organization. He is a member of the finance department, and his boss is the VP of Finance, but Drake's team is run by a project manager. What is the downside to this matrix structure?

A) managers may feel isolated and lack resources
B) there is increased flexibility and collaboration
C) lines of communication may be blurred and conflicts are harder to solve
D) the staff managers have no authority over line employees

Question 68

Which of the following types of organizational structure works best for medium- and large- sized organizations and provides managers with specialists?

A) line
B) line-and-staff
C) cross-functional
D) matrix

Question 69

Monica manages a cross-functional team that is responsible for designing the company's product strategy for Asia. She works with staff from marketing, operations, and R&D, all working together. What is most likely true about this type of structure?

A) Lines of communication are very clear.
B) There is increased flexibility and collaboration.
C) Each person has specialized support from a staff manager.
D) Conflicts will be easier to solve.

Question 70

An analyst in the corporate finance department at TD Bank has been assigned to an interdepartmental project involving a major client. He must report to two different supervisors-the project manager and the manager of his department. What is this form of organizational structure called?

A) network
B) matrix
C) line
D) line-and-staff

Question 71

Jackson Inc. is a bicycle and cycling product manufacturer. Sales have been declining in the last several years, and executives have determined that the company has produced too many different products and lacks focus. As a result, executives wish to reorganize in an effort to revitalize the company. Efficiency and control will be the company's focus as they move to cut costs and streamline product lines. Additionally, executives feel it is important to restrict decision making to key functional managers who will communicate decisions to their subordinates. What type of organizational design would best fit this company?

A) centralized with line structure
B) centralized with network structure
C) decentralized with departmentalization by location
D) decentralized with wide span of management

Question 72

Generally speaking, a narrow span of management implies that the height of the organization will be tall. What does a wide span of management imply that the height of the organization will be?

A) tall
B) flat
C) short
D) long

Question 73

An online retailer of unique home decor items has a unique company culture. Employees are expected to be creative, to innovate and create change, and to deliver excellent customer service. Customer service associates take new product suggestions from customers and work with designers and production team members to make some of the customer suggestions a reality. As a result, the company is highly responsive to customers, and employees are highly empowered. Which of the following aspects of organizational design would fit best at this company?

A) centralized with a line and staff structure
B) centralized with a matrix structure
C) decentralized with a matrix structure
D) decentralized with a line and staff structure

Question 74

Allie's company is managed by skilled and talented professionals. She wants the company to be highly responsive and employees to be highly empowered-even if it means sacrificing efficiency. Innovation is key in their industry, which means collaboration is crucial at the company. Which of the following aspects of organizational design would best fit Allie's company?

A) decentralized with matrix structure
B) decentralized with functional departmentalization
C) centralized with line structure
D) centralized with high job variety

Question 75

Which of the following is most characteristic of line structure in an organization?

A) flexibility that allows an organization to adjust quickly
B) raises morals and nurtures creativity
C) teams that may be temporary or disbanded upon an accomplished mission
D) quick decision making and clear lines of communication

Question 76

John just became CEO of a large company that manufactures the same basic type of product as other companies in this industry. As a result, the organization's priorities are efficiency and control-because profit margins are very low in the industry. Which of the following aspects of organizational design would best fit John's company?

A) decentralized and flat
B) centralized with matrix structure
C) centralized with line structure
D) decentralized with matrix structure

Question 77

A manager with few subordinates is said to have a span of control that is which of the following?

A) narrow
B) flat
C) tall
D) wide

Question 78

A manager is most likely to spend considerable time supervising and working with each person on his or her team in an organization that has which of the following?

A) narrow span of management and tall organizational height
B) narrow span of management and flat organizational height
C) wide span of management and tall organizational height
D) wide span of management and flat organizational height

Question 79

A software design firm has many knowledgeable employees who are able to make decisions in order to best meet their clients' needs. Which of the following likely describes this organization?

A) a tall span of management and a narrow organizational height
B) a narrow span of management and a flat organizational height
C) a wide span of management and a tall organizational height
D) a wide span of management and a flat organizational height