Homework answers / question archive / Chapter 6   Organizational Structure and Design 1) Organizational design is defined as the sum of the ways a firm divides its labor into distinct tasks and then coordinates them

Chapter 6   Organizational Structure and Design 1) Organizational design is defined as the sum of the ways a firm divides its labor into distinct tasks and then coordinates them

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Chapter 6   Organizational Structure and Design

1) Organizational design is defined as the sum of the ways a firm divides its labor into distinct tasks and then coordinates them.

 

 

2) Organizational structuring is the process of assessing the organization's strategy and environmental demands and then determining the appropriate organizational design.

 

 

 

3) Organizational charts illustrate an organization's complete structure.

 

 

4) Companies in relatively stable and static environments can use rules effectively to achieve integration.

 

 

 

5) In conditions of high task uncertainty and interdependence, values are a better integrating mechanism than goals.

 

 

 

6) Formal organizations often widen a supervisor's span of control.

 

 

7) The appropriateness of a tall or flat organization is affected more by the internal environment than the external environment.

 

 

 

8) As a rule, formal organizations are highly centralized.

 

 

 

9) In a functional structure, the firm is organized around specific products (or services) or related sets of products (or services).

 

 

 

10) A product structure reduces the duplication of the firm's functional resources.

 

 

11) Multinational firms rarely employ a regional structure.

 

 

 

 

12) A matrix structure consists of two organization structures superimposed on each other.

 

 

 

13) In a low-networked structure, the quantity and magnitude of externally networked activities are limited.

 

 

14) Environmental dynamism is the breadth and depth of differences and similarities in an organization's external environment.

 

 

 

15) A major principle in the relationship between organizational strategy and structure is that the structure should complement and leverage the strategy.

 

 

 

16) Firms with high foreign sales and highly diverse product lines frequently use a matrix structure.

 

 

 

17) If a domestic organization opens an international division, then the products sold by this division typically have broad appeal and there are relatively few customer differences across countries.

 

 

 

 

18) Intensifying globalization has contributed to increased outsourcing; flatter, more flexible organizational structures; and increased integration.

 

 

 

19) A company is likely to use a "local approach" to doing business abroad if the benefits from location-specific differentiation and adaptation are significant and economies of scale are small.

 

 

 

20) Liaison roles are designed to enhance the information flows between two or more groups within an organization.

 

 

 

 

21) Organizational ________ illustrate relationships among an organization's units and lines of authority.

A) charts

B) channels

C) contexts

D) paradigms

 

 

22) ________ is the the process of assessing an organization's strategy and environmental demands and then determining the appropriate organizational structures.

A) Organizational design

B) Organizational chartering

C) Organizational structuring

D) Organization development

 

 

23) ________ is the sum of the ways an organization divides its labor into distinct tasks and then coordinates them.

A) Organization development

B) Organizational design

C) Operations management

D) Organizational structure

 

 

24) When a firm decides to outsource its manufacturing operations, a ________ allows it to maintain close contact with the firms to which it is outsourcing the work.

A) division structure

B) network structure

C) functional structure

D) geographic structure

 

 

 

 

25) The extent to which people in different units within an organization think about different things or about similar things differently is termed as ________.

A) task differentiation

B) interdependence

C) unity of command

D) cognitive differentiation

 

 

 

26) ________ is the extent to which tasks are divided into subtasks and performed by specialists.

A) Decentralization

B) Differentiation

C) Formalization

D) Interdependence

 

 

 

27) Which of the following is the best example of cognitive differentiation?

A) At a civil engineering firm, some engineers specialize in construction engineering, while others specialize in environmental engineering.

B) An auto manufacturer produces a luxury automobile in order to enhance the image of its other vehicles.

C) At a shoe company, the product development department relies on marketing data to generate ideas for promising new products.

D) Accountants think about the organization's overall performance in terms of financial results, whereas marketers view performance in terms of customer satisfaction.

 

 

28) ________ is the extent to which various parts of organizations cooperate and interact.

A) Integration

B) Differentiation

C) Formalization

D) Decentralization

 

 

 

29) ________ occurs when several groups, that are largely independent in their functions, collectively contribute to a common output.

A) Pooled interdependence

B) Cognitive interdependence

C) Sequential interdependence

D) Reciprocal interdependence

 

 

 

30) ________ exists when two or more groups depend on one another for inputs.

A) Formalized interdependence

B) Pooled interdependence

C) Reciprocal interdependence

D) Sequential interdependence

 

 

31) ________ is the degree to which one unit, or one person, must use the work or resources of another unit or person to accomplish tasks.

A) Differentiation

B) Formalization

C) Decentralization

D) Interdependence

 

 

32) ABC Corp. produces widgets. Timely delivery to XYZ Corp. is critical since the widgets are essential to the production of XYZ Corp.'s gadgets. This is an example of ________.

A) pooled interdependence

B) reciprocal interdependence

C) sequential interdependence

D) cross-functional interdependence

 

 

 

33) One of the driving forces behind the integration of tasks is ________.

A) outsourcing

B) interdependence

C) localization

D) unity of command

 

 

 

34) A construction company orders windows from one division of a manufacturing company and roofing from another division of the same company. To meet this customer's overall needs, the manufacturing company should exercise ________ interdependence.

A) intermittent

B) pooled

C) reciprocal

D) sequential

 

 

 

35) Generally, the more ________ that exists within the organization, the more useful ________ are as an integration mechanism.

A) task independence; rules

B) task interdependence; rules

C) task independence; values

D) task independence; goals

 

 

36) As task uncertainty and interdependence increase, ________ are a more effective coordination mechanism than ________.

A) goals; rules

B) rules; goals

C) rules; values

D) goals; values

 

 

 

 

37) What sort of interdependence exists when two or more groups within a company depend upon one another for inputs?

A) pooled

B) intermittent

C) reciprocal

D) sequential

 

 

 

38) A ________ is a person who is either formally or informally designated to coordinate the activities across units or even sometimes across organizations. The role of this person is to build effective relationships between the groups involved.

A) line manager

B) boundary spanner

C) gatekeeper

D) functional manager

 

 

39) The degree to which an organization's new product-development team relies on the market research team for product ideas to investigate is termed as ________.

A) liaisoning

B) centralization

C) interdependence

D) formalization

 

 

40) ________ occurs when the outputs of one group become the inputs of another group.

A) Pooled interdependence

B) Reciprocal interdependence

C) Cross-functional interdependence

D) Sequential interdependence

 

 

41) A manager in the promotion department of a record company would find it most difficult to use ________ for coordination and integration to implement concert cancellations due to weather, travel problems for the band, or any number of other unpredictable factors.

A) rules

B) liaisons

C) goals

D) values

 

 

 

42) In the assembly line of an automobile manufacturer, the car engine is installed first. After this, the product is passed on to the next stage where it is fitted with the hood. The product then goes on to the third step in the process where the wheels are fitted. The above situation, where the finished product of one step becomes the raw material for the next, is an example of ________ interdependence.

A) pooled

B) sequential

C) reciprocal

D) task

 

 

43) Why are "values" an important coordinating mechanism in conditions of high task uncertainty and interdependence?

A) They represent measurable outcomes and specify how to obtain them.

B) Those holding the same values will maintain standard operating procedures.

C) They establish guidelines for behavior and consequences in specific conditions.

D) Those holding the same values will all work toward the same outcomes while maintaining flexibility in how they are accomplished.

 

 

44) What is meant by the term unity of command?

A) the idea that the line of authority should be clear and direct

B) the idea that interdependence within a firm should be kept to a minimum

C) the idea that managers should have a limited span of control

D) the idea that every employee should have one and only one boss

 

 

45) Which of the following is NOT a characteristic of formalization?

A) narrow spans of control

B) clear lines of authority

C) dual chain of command

D) unity of command

 

 

46) The ________ specifies the number of employees reporting to a given supervisor.

A) organizational chart

B) unity of command

C) line of authority

D) span of control

 

 

47) ________ consists of the official and defined structures and systems related to decision making, communication, and control in the organization.

A) Functionalization

B) Differentiation

C) Formalization

D) Integration

 

 

 

 

48) A ________ span of control throughout an organization will lead to a ________ organization structure with multiple reporting layers.

A) narrow; flat

B) narrow; tall

C) wide; tall

D) wide; diverse

 

 

 

49) ________ organizations tend to be slower at making decisions and responding to changes in the business environment. As a result, these organizations tend to be best suited to stable external environments.

A) Simple and dynamic

B) Static and decentralized

C) Flat and wide

D) Tall and formal

 

 

50) Ken Langley is a production supervisor in an automobile manufacturing firm. After evaluating Ken's managerial capabilities, some members of the senior management feel that average productivity would improve if more workers are assigned to him. However, some managers are skeptical about Ken's ability to handle more workers. Which of the following statements, if true, would support the argument favoring increased span of control?

A) Ken's team consists of highly experienced and skilled labor.

B) The firm is looking to double its production capacity over the next two years.

C) Ken is receiving increasing complaints about interpersonal conflicts within the team.

D) Ken's team is highly dependent on his guidance, even on minor issues.

 

 

 

51) Ken Langley is a production supervisor in an automobile manufacturing firm. After evaluating Ken's managerial capabilities, some members of the senior management feel that average productivity would improve if more workers are assigned to him. However, some managers are skeptical about Ken's ability to handle more workers. Which of the following statements, if true, would weaken the argument favoring increased span of control?

A) Ken has a reputation of handling interpersonal conflicts effectively.

B) Performance reports from the last few years show that teams that were closely monitored had higher productivity.

C) Ken's team consists of highly experienced and skilled labor.

D) Market trends indicate that the demand for automobiles is expected to increase substantially over the next few years.

 

 

 

52) A ________ is one that has multiple layers with significant vertical differentiation.

A) flat organization structure

B) decentralized organization structure

C) tall organization structure

D) simple organization structure

 

 

 

53) Because many organizational environments have become more dynamic, managers often respond by trying to "flatten" their organizational structures, often removing whole levels of hierarchy and people in the process. This process is often referred to as ________.

A) downsizing

B) cost cutting

C) leveling

D) layering

 

 

 

 

54) A narrow span of control is advisable when ________.

A) employees perform similar jobs

B) job are complicated and require managerial input

C) employees are empowered

D) employees are highly skilled and knowledgeable

 

 

 

55) The ________ consists of the unofficial but influential means of communication, decision making, and control that are part of the habitual way things get done in an organization.

A) grapevine

B) informal organization

C) information tunnel

D) interpersonal channel

 

 

 

56) In which of the following organizations is decision-making authority pushed down to its lowest possible level?

A) centralized organizations

B) decentralized organizations

C) integrated organizations

D) informal organizations

 

 

57) Japanese multinational firms tend to operate as ________, announcing decisions from home offices to subsidiaries. European multinational operations tend to operate as ________, pushing decision-making authority to the lowest possible level.

A) centralized organizations; decentralized organizations

B) decentralized organizations; centralized organizations

C) functional organizations; geographic organizations

D) geographic organizations; functional organizations

 

 

58) The term bamboo ceiling refers to ________.

A) the exclusion of host nationals from strategic decision making in centrally controlled Japanese subsidiaries

B) the reluctance of Japanese managers to allow centralized decision making among their subordinates

C) the lack of information flow from the Japanese-owned subsidiaries in foreign countries back to headquarters in Japan

D) the tendency of Japanese firms to delegate decisions more frequently than European or American firms

 

 

 

59) Pfizer, a pharmaceutical company, operates in over 40 countries around the world, and many of the larger-country units enjoy considerable freedom and autonomy. Thus, it can be said that Pfizer exemplifies a(n) ________ mode of decision making.

A) centralized

B) decentralized

C) autocratic

D) unilateral

 

 

60) Japanese companies accomplish much of their decision making, communication, and control through informal, face-to-face meetings between people who do not have formal reporting relationships. This process is referred to as ________.        

A) guanxi

B) tsubukan

C) inhwa

D) nemawasi

 

 

 

 

61) Which of the following structural combinations best depicts the U.S. military?

A) formal and decentralized

B) informal and decentralized

C) formal and centralized

D) informal and centralized

 

 

 

62) A bank organizes itself around the basic services it provides: personal banking, corporate and business banking, and rural banking. Each service group has its own finance, marketing, operations, and human resource management departments. The bank is using a ________.

A) functional structure

B) product structure

C) division structure

D) matrix structure

 

 

 

63) In a product structure, each product is treated as a ________; that is, the expenses related to a product are subtracted from the revenues generated by selling it.

A) profit center

B) cost center

C) core competency

D) functional division

 

 

64) Which of the following is true about functional structures?

A) It is one of the most complex structures.

B) It increases the duplication of the firm's functional resources.

C) It facilitates specialization of the firm's functional knowledge.

D) It leads to a broad view of the organization's overall goals.

 

 

65) Which of the following is a characteristic of a product structure?

A) It maximizes economies of scale for functional areas.

B) It increases coordination among different product groups.

C) It reduces organizational responsiveness to market changes.

D) The performance of the firm's products is typically easier to evaluate.

 

 

66) In which of the following ways are product and customer structures similar?

A) They both increase companies' ability to leverage global scale economies.

B) They both increase the international orientation of all managers.

C) They both boost responsiveness to changing market conditions.

D) They both result in ambiguous lines of authority.

 

 

67) Multinational firms usually use ________ structures when customer needs for a given product are similar throughout the international markets in which the firm participates.

A) global product

B) functional

C) divisional

D) multiproduct

 

 

68) A ________ facilitates the use of modular products, each of which is different but which contain some of the same parts. Thus, modular parts are produced and assembled in different ways to produce several different products.

A) regional structure

B) customer structure

C) matrix structure

D) division structure

 

 

 

69) Which of the following is true about a divisional structure?

A) Organizing various product families within a division can increase functional duplication.

B) It reduces economies of scale for the firm's functional activities.

C) Cross-regional coordination within product families and within the division is often easier.

D) It ensures that division objectives are well aligned with corporate objectives.

 

 

 

70) Which of the following is true regarding the customer structure?

A) It reduces the duplication of functional resources.

B) It decreases the firm's responsiveness to actions taken by competitors.

C) It often makes it difficult to coordinate between customer units and corporate objectives.

D) It is suitable when customers' needs and preferences are homogeneous.

 

 

71) Which of the following is a weakness of the regional structure?

A) It reduces the firm's responsiveness to unique changes in the market.

B) It usually fosters a weak sense of accountability for performance among regional managers.

C) It reduces the duplication of functional resources across regions.

D) It often creates cross-regional coordination difficulties.

 

 

72) One of the major weaknesses of the ________ structure is that it often inhibits coordination and communication among different regions.

A) customer

B) functional

C) geographic

D) product

 

 

 

 

73) An advantage of the regional structure is that ________.

A) it usually fosters a strong sense of accountability for performance among managers

B) it reduces the likelihood of conflict and coordination difficulties

C) it reduces the duplication of functional resources across regions

D) it fosters competitive behavior among regions

 

 

 

74) A ________ consists of two organizational structures superimposed on each other. As a consequence, one person essentially reports to two bosses.

A) divisional structure

B) functional structure

C) matrix structure

D) regional structure

 

 

 

75) Companies that advocate unity of command would be least likely to adopt which organizational structure?

A) customer

B) division

C) functional

D) matrix

 

 

76) A matrix structure ________.

A) is best suited to a changing and complicated business environment

B) simplifies the process of performance evaluation

C) increases organizational responsiveness to environmental changes

D) fosters a strong sense of accountability for performance among managers

 

 

 

77) A major disadvantage of a matrix structure is that ________.

A) it limits the flow of information throughout the organization

B) it reduces the quality of decision making

C) it does not make optimum use of a firm's human resources

D) it often makes performance evaluations more complex

 

 

78) Which of the following statements characterizes a firm that operates within a "high-networked" structure?

A) It uses outside organizations for only a limited number of minor value chain activities.

B) It has little contact with firms to which work has been outsourced.

C) It owns and executes most of its primary and support value chain activities.

D) It has more value chain activities networked to external organizations than it owns and executes internally.

 

 

 

79) ________ is the practice of taking a significant activity within the organization and contracting that activity out to an independent party.

A) Insourcing

B) Outsourcing

C) Homeshoring

D) Networking

 

 

 

80) SLPL Limited adheres to a strategy that allows managers to focus on core competencies or the activities that are most likely to yield competitive advantage. In doing so, SLPL outsources most of the activities in its value chain to other companies, retaining just a few elements. From the above example, it can be concluded that SLPL has a ________ structure.

A) high-networked

B) divisional

C) matrix

D) global product

 

 

 

81) One of the greatest potential advantages of using a ________ is that it allows managers to focus on core competencies.

A) product structure

B) network structure

C) regional structure

D) functional structure

 

 

 

82) Which of the following is a core category of environmental complexity?

A) quality

B) stability

C) technology

D) strategy

 

 

 

 

83) "White water" environments are ________.

A) stable

B) formal

C) dynamic

D) stationary

 

 

84) Computer software companies compete against a wide array of competitors and must continually struggle to lead, or even stay abreast of, industry changes. Thus, we may say that software companies exist in ________ and ________ external environments.

A) complex; static

B) complex; dynamic

C) simple; static

D) simple; dynamic

 

 

85) Indian Railways enjoys a monopoly in the country with regard to rail transportation as there is no other player in this segment. Based on this, it can be concluded that Indian Railways enjoys a fairly simpler ________ environment as compared to the numerous road transport service providers in the country.

A) geographic

B) technology

C) competitor

D) supplier

 

 

 

 

86) Over the past 30 years, significant advancements have been made in technology, R&D, and applications relating to the IT industry. This factor can be attributed to ________ contributing to the overall uncertainty of the environment in the IT industry.

A) advanced formalization

B) the network structure

C) informalization

D) environmental dynamism

 

 

87) A firm with ________ would most likely use global product divisions to manage foreign sales.

A) high foreign sales and high product diversification

B) high foreign sales and low product diversification

C) low foreign sales and high product diversification

D) low foreign sales and low product diversification

 

 

 

88) A mining company supplies materials such as sand, gravel, and lime to the local building trade. It has few export sales. What is the most likely structure that this firm will use to manage international sales?

A) a matrix structure

B) global product divisions

C) a geographic structure

D) an international division

 

 

 

 

89) Firms with ________ and ________ usually employ a geographic structure to manage international sales.

A) low foreign sales; low product diversification

B) high foreign sales; low product diversification

C) low foreign sales; high product diversification

D) high foreign sales; high product diversification

 

 

 

90) The international division of a domestic organization ________.

A) typically has its own production facility

B) has its own marketing, finance, sales, and accounting departments

C) often customizes its products to suit local preferences

D) is not dependent on other divisions for products and support

 

 

91) When designing an organizational structure for an international environment, management must choose between a ________, which integrates activities on a coordinated worldwide basis, and a ________, which differentiates activities in each country served.

A) global approach; local approach

B) product approach; customer approach

C) functional approach; network approach

D) decentralized approach; centralized approach

 

 

 

92) ________ are individuals who are designated to act as a bridge between different areas, such as quality or manufacturing processes.

A) Enablers

B) Liaisons

C) Gatekeepers

D) Fact-finders

 

 

93) Compare organizational structure and organizational design.

 

94) What is an organizational chart?

 

95) Describe the concept of "differentiation" in an organization.

 

 

96) Describe the types of interdependence that exist among organizational units.

 

 

 

 

97) Explain the concepts of unity of command and span of control.

 

 

 

98) What can be said about decision making in centralized organizations and decentralized organizations? How do centralization and decentralization relate to formalization?

 

 

 

99) What is a product structure? What are its advantages and disadvantages?

 

100) What role does outsourcing play in a networked organization?

 

 

101) What factors, or core categories, impact environmental complexity?

 

 

102) Within the context of the increasingly international environment in which organizations compete, contrast the global approach and the local approach to business.