Organization Theory And Design 12th Edition by Richard L. Daft - Test Bank

1. Organization design: a. encompasses larger elements that influence structural dimensions, including the organization’s size, technology, environment, culture, and goals. b. gives us the tools to evaluate and understand how and why some organizations grow and succeed while others do not. c. obtains inputs from the external environment, adds value through a transformation process, and discharges products and services back to the environment. d. provides labels to describe the internal characteristics of an organization. ANSWER: b RATIONALE: Feedback: Organization design gives us the tools to evaluate and understand how and why some organizations grow and succeed while others do not. It helps us explain what happened in the past, as well as what might happen in the future, so that we can manage organizations more effectively. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Organization Design in Action KEYWORDS: Bloom’s: Understand 2. _____ refers to economic development that generates wealth and meets the needs of the current generation while saving the environment so future generations can meet their needs as well. a. Centralization b. Formalization c. Contingency d. Sustainability ANSWER: d RATIONALE: Feedback: Many companies are embracing the philosophy of sustainability, which refers to economic development that generates wealth and meets the needs of the current generation while saving the environment so future generations can meet their needs as well. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Organization Design in Action KEYWORDS: Bloom’s: Understand 3. Pendant Inc., a retail chain based in England, has implemented an energy-efficient trucking fleet. It is increasing its use of green materials in buildings, and aims to dispose all the waste of the company by 2025. Which of the following measures is Pendant Inc. focusing its efforts on? a. Going green b. Scientific management c. Contingency d. Centralization ANSWER: a RATIONALE: Feedback: Pendant Inc. is focusing its efforts on going green. Going green has become a new business imperative, driven by shifting social attitudes, new government policies, climate changes, and the information technology that quickly spreads news of a corporation’s negative impact on the environment. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Reflective Thinking TOPICS: Organization Design in Action KEYWORDS: Bloom’s: Apply 4. _____ refers to technologies, skills, and processes for searching and examining massive sets of data to uncover hidden patterns and correlations. a. Scientific management b. Social business c. A social media program d. Big data analytics ANSWER: d RATIONALE: Feedback: Big data analytics refers to technologies, skills, and processes for searching and examining massive sets of data to uncover hidden patterns and correlations. Big data is not just for online companies. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Organization Design in Action KEYWORDS: Bloom’s: Remember 5. Which of the following is a difference between for-profit businesses and nonprofit organizations? a. Financial resources for for-profit businesses come from government appropriations, grants, and donations, while nonprofit organizations are funded by the sale of products or services to customers. b. In for-profit businesses, managers focus on improving an organization’s products and services to increase sales revenues, while in nonprofit organizations, however, services are typically provided to nonpaying clients. c. For-profit businesses are committed to servicing clients with limited funds, while nonprofit organizations have access to unlimited funds to service clients. d. In for-profit businesses, services are typically provided to nonpaying clients, while in nonprofit organizations, services are typically provided to paying clients. ANSWER: b RATIONALE: Feedback: In for-profit businesses, managers focus on improving an organization’s products and services to increase sales revenues. In nonprofits, however, services are typically provided to nonpaying clients, and a major problem for many organizations is securing a steady stream of funds to continue operating. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: What is an Organization? KEYWORDS: Bloom’s: Understand 6. _____ provide labels to describe the internal characteristics of an organization. a. Functional dimensions b. Administrative principles c. Contingency factors d. Structural dimensions ANSWER: d RATIONALE: Feedback: Structural dimensions provide labels to describe the internal characteristics of an organization. They create a basis for measuring and comparing organizations. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Remember 7. _____ encompass larger elements that influence structural dimensions, including an organization’s size, technology, environment, culture, and goals. a. Functional dimensions b. Administrative principles c. Contingency factors d. Structural dimensions ANSWER: c RATIONALE: Feedback: Contingency factors encompass larger elements that influence structural dimensions, including an organization’s size, technology, environment, culture, and goals. They describe the organizational setting that influences and shapes the structural dimensions. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Remember 8. Which of the following is true of contingency factors? a. They describe the organizational setting that influences and shapes the structural dimensions. b. They create a basis for measuring and comparing organizations. c. They provide labels to describe the internal characteristics of an organization. d. They describe who reports to whom and the span of control for each manager. ANSWER: a RATIONALE: Feedback: Contingency factors encompass larger elements that influence structural dimensions, including the organization’s size, technology, environment, culture, and goals. They describe the organizational setting that influences and shapes the structural dimensions. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Understand 9. _____ pertains to the amount of written documentation in an organization. a. Centralization b. Specialization c. Decentralization d. Formalization ANSWER: d RATIONALE: Feedback: Formalization pertains to the amount of written documentation in an organization. Documentation includes procedures, job descriptions, regulations, and policy manuals. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Remember 10. _____ is the degree to which organizational tasks are subdivided into separate jobs. a. Centralization b. Specialization c. Decentralization d. Formalization ANSWER: b RATIONALE: Feedback: Specialization is the degree to which organizational tasks are subdivided into separate jobs. Specialization is sometimes referred to as the division of labor. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Remember 11. _____ describes who reports to whom and the span of control for each manager. a. Organizational technology b. Scientific management c. Hierarchy of authority d. Administrative principles ANSWER: c RATIONALE: Feedback: Hierarchy of authority describes who reports to whom and the span of control for each manager. The hierarchy is related to span of control (the number of employees reporting to a supervisor). POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Remember 12. _____ refers to the number of distinct departments or activities within an organization. a. Complexity b. Specialization c. Decentralization d. Formalization ANSWER: a RATIONALE: Feedback: Complexity refers to the number of distinct departments or activities within an organization. Complexity can be measured along three dimensions: vertical, horizontal, and spatial. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Remember 13. _____ complexity is the number of levels in the hierarchy of an organization. a. Spatial b. Vertical c. Lateral d. Horizontal ANSWER: b RATIONALE: Feedback: Complexity can be measured along three dimensions: vertical, horizontal, and spatial. Vertical complexity is the number of levels in the hierarchy. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Remember 14. _____ complexity is the degree to which an organization’s departments and personnel are dispersed geographically. a. Spatial b. Vertical c. Lateral d. Horizontal ANSWER: a RATIONALE: Feedback: Complexity can be measured along three dimensions: vertical, horizontal, and spatial. Spatial complexity is the degree to which an organization’s departments and personnel are dispersed geographically. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Remember 15. _____ refers to the tools, techniques, and actions used to transform inputs into outputs. a. Organization design b. Organizational performance c. Organizational technology d. Organizational behavior ANSWER: c RATIONALE: Feedback: Organizational technology refers to the tools, techniques, and actions used to transform inputs into outputs. It concerns how the organization actually produces the products and services it provides for customers and includes such things as flexible manufacturing, advanced information systems, and the Internet. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Remember 16. _____ refers to the amount of resources used to achieve an organization’s goals. a. Effectiveness b. Contingency c. Sustainability d. Efficiency ANSWER: d RATIONALE: Feedback: Efficiency refers to the amount of resources used to achieve an organization’s goals. It is based on the quantity of raw materials, money, and employees necessary to produce a given level of output. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Remember 17. _____ is the degree to which an organization achieves its goals. a. Effectiveness b. Contingency c. Sustainability d. Efficiency ANSWER: a RATIONALE: Feedback: Efficiency refers to the amount of resources used to achieve an organization’s goals. Effectiveness is a broader term, meaning the degree to which the organization achieves its goals. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Remember 18. _____ primarily focus on the design and functioning of an organization as a whole. a. Structural dimensions b. Administrative principles c. Contingency factors d. Functional dimensions ANSWER: b RATIONALE: Feedback: Whereas scientific management focused primarily on the technical core—on work performed on a shop floor—administrative principles looked at the design and functioning of an organization as a whole. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Evolution of Organization Design KEYWORDS: Bloom’s: Remember 19. _____ emphasize designing and managing organizations on an impersonal, rational basis through such elements as clearly defined authority and responsibility, formal recordkeeping, and uniform application of standard rules. a. Structural dimensions b. Administrative principles c. Contingency factors d. Bureaucratic organizations ANSWER: d RATIONALE: Feedback: Bureaucratic organizations emphasize designing and managing organizations on an impersonal, rational basis through such elements as clearly defined authority and responsibility, formal recordkeeping, and uniform application of standard rules. Although the term bureaucracy has taken on negative connotations in today’s organizations, bureaucratic characteristics worked extremely well for the needs of the Industrial Age. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Evolution of Organization Design KEYWORDS: Bloom’s: Remember 20. A(n) _____ design means that an organization is much looser, free-flowing, and adaptive. a. organic b. specialized c. vertical d. mechanistic ANSWER: a RATIONALE: Feedback: An organic design means that an organization is much looser, free-flowing, and adaptive. Rules and regulations often are not written down or, if written down, are flexibly applied. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Contrast of Organic and Mechanistic Designs KEYWORDS: Bloom’s: Remember 21. Subzero Enterprises is a publishing company based in the United States of America. The company has 70 employees. Information flows in all directions within and across departments and hierarchical levels. The rules and regulations at Subzero Enterprises are flexibly applied. Subzero Enterprises follows a(n) _____ design. a. vertical b. specialized c. organic d. mechanistic ANSWER: c RATIONALE: Feedback: Subzero Enterprises follows an organic design. An organic design means that an organization is much looser, free-flowing, and adaptive. Rules and regulations often are not written down or, if written down, are flexibly applied. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Reflective Thinking TOPICS: The Contrast of Organic and Mechanistic Designs KEYWORDS: Bloom’s: Apply 22. Which of the following contingency factors will influence whether an organization is more effective with a primarily mechanistic organization design? a. Service technology b. Large size c. Adaptive culture d. Innovation strategy ANSWER: b RATIONALE: Feedback: Various contingency factors will influence whether an organization is more effective with a primarily mechanistic or a primarily organic design. Large size, efficiency strategy, stable environment, rigid culture, manufacturing technology are the typical contingency factors that will influence whether the organization is more effective with a primarily mechanistic organization design. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Contrast of Organic and Mechanistic Designs KEYWORDS: Bloom’s: Understand 23. Which of the following contingency factors will influence whether an organization is more effective with a primarily organic design? a. Manufacturing technology b. Stable environment c. Adaptive culture d. Efficiency strategy ANSWER: c RATIONALE: Feedback: Various contingency factors will influence whether an organization is more effective with a primarily mechanistic or a primarily organic design. Small size, innovation strategy, changing environment, adaptive culture, service technology are the typical contingency factors that will influence whether the organization is more effective with a primarily organic organization design. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Contrast of Organic and Mechanistic Designs KEYWORDS: Bloom’s: Understand 24. At Infosoft Solutions, employees are encouraged to take care of their problems by working with one another and with customers, using their discretion to make decisions. From this information, it can be understood that Infosoft Solutions is a _____ organization. a. decentralized b. centralized c. mechanistic d. bureaucratic ANSWER: a RATIONALE: Feedback: Infosoft Solutions is a decentralized company. With decentralization, decision-making authority is pushed down to lower organizational levels. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Reflective Thinking TOPICS: The Contrast of Organic and Mechanistic Designs KEYWORDS: Bloom’s: Apply 25. A _____ is a narrowly defined piece of work assigned to a person. a. task b. role c. job d. designation ANSWER: a RATIONALE: Feedback: A task is a narrowly defined piece of work assigned to a person. With a mechanistic design, tasks are broken down into specialized, separate parts, as in a machine, with each employee performing activities according to a specific job description. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Contrast of Organic and Mechanistic Designs KEYWORDS: Bloom’s: Remember 26. A _____ has discretion and responsibility, allowing a person to use his or her judgment and ability to achieve an outcome or meet a goal. a. task b. role c. structure d. system ANSWER: b RATIONALE: Feedback: A role is a part in a dynamic social system. A role has discretion and responsibility, allowing a person to use his or her judgment and ability to achieve an outcome or meet a goal. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Contrast of Organic and Mechanistic Designs KEYWORDS: Bloom’s: Remember 27. Which of the following types of communication is emphasized by mechanistic organizations? a. Lateral communication b. Spatial communication c. Horizontal communication d. Vertical communication ANSWER: d RATIONALE: Feedback: Mechanistic organizations emphasize vertical communication up and down the hierarchy. Top managers pass information downward to employees about goals and strategies, job instructions, procedures, and so forth, and in turn ask that employees provide information up the hierarchy concerning problems, performance reports, financial information, suggestions and ideas, and so forth. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Contrast of Organic and Mechanistic Designs KEYWORDS: Bloom’s: Remember 28. Which of the following types of communication is emphasized by organic organizations? a. Lateral communication b. Spatial communication c. Horizontal communication d. Vertical communication ANSWER: c RATIONALE: Feedback: In an organic organization, there is greater emphasis on horizontal communication, with information flowing in all directions within and across departments and hierarchical levels. The widespread sharing of information enables all employees to have complete information about the company so they can act quickly. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Contrast of Organic and Mechanistic Designs KEYWORDS: Bloom’s: Remember 29. _____ is the micro approach to organizations because it focuses on the individuals within organizations as the relevant units of analysis. a. Organizational behavior b. Organization design c. Organization theory d. Organizational culture ANSWER: a RATIONALE: Feedback: Organizational behavior is the micro approach to organizations because it focuses on the individuals within organizations as the relevant units of analysis. Organizational behavior examines concepts such as motivation, leadership style, and personality and is concerned with cognitive and emotional differences among people within organizations. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Framework for the Book KEYWORDS: Bloom’s: Remember 30. Which of the following is a difference between organization design and organizational behavior? a. Organization design focuses on individuals within organizations, while organizational behavior analyzes the whole organization as a unit. b. Organization design is concerned with cognitive and emotional differences among people within organizations, while organizational behavior is concerned with the differences in structure and behavior at the organization level of analysis. c. Organization design is concerned with lower management, while organizational behavior is concerned with top- and middle-management. d. Organization design might be considered the sociology of organizations, while organizational behavior is the psychology of organizations. ANSWER: d RATIONALE: Feedback: Organization design might be considered the sociology of organizations, while organizational behavior is the psychology of organizations. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Framework for the Book KEYWORDS: Bloom’s: Understand 31. The growing global interdependence means that the environment for companies has become less complex and competitive. a. True b. False ANSWER: False RATIONALE: Feedback: The growing global interdependence creates new advantages, but it also means that the environment for companies has become extremely complex and extremely competitive. Customers want low prices for quality goods and services, and the organizations that can meet that demand will win. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Organization Design in Action KEYWORDS: Bloom’s: Understand 32. Outsourcing firms in low-wage countries can often do work for 50 to 60 percent more than companies based in the United States. a. True b. False ANSWER: False RATIONALE: Feedback: Outsourcing firms in low-wage countries can often do work for 50 to 60 percent less than companies based in the United States, for instance, so U.S. firms that provide similar services have to search for new ways to compete or go into new lines of business. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Organization Design in Action KEYWORDS: Bloom’s: Understand 33. Social media programs decrease efficiency and productivity and facilitate slower operations. a. True b. False ANSWER: False RATIONALE: Feedback: Social media programs, including a company’s online community pages, wikis for virtual collaboration, social media sites such as Facebook or LinkedIn, video channels such as YouTube, microblogging platforms such as Twitter, and company online forums, can improve efficiency, increase productivity, and facilitate faster and smoother operations by improving communication and collaboration within and across firms. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Organization Design in Action KEYWORDS: Bloom’s: Understand 34. Social media can build stronger, more authentic relationships between managers and employees. a. True b. False ANSWER: True RATIONALE: Feedback: Social media technology is being used by companies to build relationships with customers. It can build stronger, more authentic relationships between managers and employees. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Organization Design in Action KEYWORDS: Bloom’s: Understand 35. Big data analytics can only be employed by online companies. a. True b. False ANSWER: False RATIONALE: Feedback: Big data is not just for online companies. Walmart collects more than 2.5 petabytes of data every hour from customer transactions and uses those data to make better decisions. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Organization Design in Action KEYWORDS: Bloom’s: Remember 36. Organizations are social entities that are only linked to the internal environment. a. True b. False ANSWER: False RATIONALE: Feedback: Organizations are (1) social entities that (2) are goal-directed, (3) are designed as deliberately structured and coordinated activity systems, and (4) are linked to the external environment. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: What is an Organization? KEYWORDS: Bloom’s: Remember 37. An organization is a building or a set of policies and procedures. a. True b. False ANSWER: False RATIONALE: Feedback: An organization is not a building or a set of policies and procedures; organizations are made up of people and their relationships with one another. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: What is an Organization? KEYWORDS: Bloom’s: Remember 38. An organization exists when people interact with one another to perform essential functions that help attain goals. a. True b. False ANSWER: True RATIONALE: Feedback: An organization is not a building or a set of policies and procedures; organizations are made up of people and their relationships with one another. An organization exists when people interact with one another to perform essential functions that help attain goals. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: What is an Organization? KEYWORDS: Bloom’s: Remember 39. An organization obtains inputs from the external environment, adds value through a transformation process, and discharges products and services back to the environment. a. True b. False ANSWER: True RATIONALE: Feedback: An organization obtains inputs from the external environment, adds value through a transformation process, and discharges products and services back to the environment. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: What is an Organization? KEYWORDS: Bloom’s: Understand 40. Managers in nonprofits direct most of their activities toward earning money for the company and its owners. a. True b. False ANSWER: False RATIONALE: Feedback: The primary difference between for-profit businesses and nonprofit organizations is that managers in businesses direct their activities toward earning money for the company and its owners, whereas managers in nonprofits direct much of their effort toward generating some kind of social impact. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: What is an Organization? KEYWORDS: Bloom’s: Understand 41. Managers in nonprofits direct much of their effort toward generating some kind of social impact. a. True b. False ANSWER: True RATIONALE: Feedback: The primary difference between managers of nonprofits and managers of businesses is that managers in businesses direct their activities toward earning money for the company and its owners, whereas managers in nonprofits direct much of their effort toward generating some kind of social impact. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: What is an Organization? KEYWORDS: Bloom’s: Understand 42. Financial resources for government and charity nonprofits typically come from the sale of products or services to customers rather than from government appropriations, grants, and donations. a. True b. False ANSWER: False RATIONALE: Feedback: Financial resources for government and charity nonprofits typically come from government appropriations, grants, and donations rather than from the sale of products or services to customers. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: What is an Organization? KEYWORDS: Bloom’s: Understand 43. In businesses, managers focus on improving the organization’s products and services to increase sales revenues. a. True b. False ANSWER: True RATIONALE: Feedback: In businesses, managers focus on improving the organization’s products and services to increase sales revenues. In nonprofits, however, services are typically provided to nonpaying clients, and a major problem for many organizations is securing a steady stream of funds to continue operating. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: What is an Organization? KEYWORDS: Bloom’s: Understand 44. Managers in nonprofit organizations market their services to attract not only clients (customers) but also volunteers and donors. a. True b. False ANSWER: True RATIONALE: Feedback: Managers in nonprofit organizations also deal with many diverse stakeholders and must market their services to attract not only clients (customers) but also volunteers and donors. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: What is an Organization? KEYWORDS: Bloom’s: Understand 45. Large universities tend to be low on formalization a. True b. False ANSWER: True RATIONALE: Feedback: Large universities, for example, tend to be high on formalization because they have several volumes of written rules for such things as registration, dropping and adding classes, student associations, dormitory governance, and financial assistance. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Understand 46. If specialization is low, each employee performs only a narrow range of tasks. a. True b. False ANSWER: False RATIONALE: Feedback: If specialization is extensive, each employee performs only a narrow range of tasks. If specialization is low, employees perform a wide range of tasks in their jobs. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Understand 47. When spans of control are narrow, the hierarchy tends to be tall. a. True b. False ANSWER: True RATIONALE: Feedback: When spans of control are narrow, the hierarchy tends to be tall. When spans of control are wide, the hierarchy of authority will be shorter. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Understand 48. Vertical complexity is the number of departments or occupational specialties existing horizontally across an organization. a. True b. False ANSWER: False RATIONALE: Feedback: Vertical complexity is the number of levels in the hierarchy. Different organizational levels possess different stores of knowledge and expertise. Horizontal complexity is the number of departments or occupational specialties existing horizontally across an organization. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Remember 49. When decision making is kept at the top level, an organization is decentralized. a. True b. False ANSWER: False RATIONALE: Feedback: When decision making is kept at the top level, an organization is centralized. When decisions are delegated to lower organizational levels, it is decentralized. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Remember 50. Scientific management focuses primarily on design and functioning of an organization as a whole. a. True b. False ANSWER: False RATIONALE: Feedback: Whereas scientific management focuses primarily on the technical core—on work performed on the shop floor—administrative principles looks at the design and functioning of an organization as a whole. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Evolution of Organization Design KEYWORDS: Bloom’s: Understand 51. With decentralization, decision-making authority is pushed up to higher organizational levels. a. True b. False ANSWER: False RATIONALE: Feedback: With decentralization, decision-making authority is pushed down to lower organizational levels. In a highly organic organization, knowledge and control of activities are located with employees rather than with supervisors or top executives. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Contrast of Organic and Mechanistic Designs KEYWORDS: Bloom’s: Understand 52. In an organic organization, there is greater emphasis on vertical communication. a. True b. False ANSWER: False RATIONALE: Feedback: In an organic organization, there is greater emphasis on horizontal communication, with information flowing in all directions within and across departments and hierarchical levels. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Contrast of Organic and Mechanistic Designs KEYWORDS: Bloom’s: Understand 53. Organizational behavior is concerned with people aggregated into departments and organizations and with the differences in structure and behavior at the organization level of analysis. a. True b. False ANSWER: False RATIONALE: Feedback: Organization theory and design is a macro examination of organizations because it analyzes the whole organization as a unit. Organization design is concerned with people aggregated into departments and organizations and with the differences in structure and behavior at the organization level of analysis. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Framework for the Book KEYWORDS: Bloom’s: Understand 54. Organization design is directly relevant to top- and middle-management concerns and partly relevant to lower management. a. True b. False ANSWER: True RATIONALE: Feedback: Organization design might be considered the sociology of organizations, while organizational behavior is the psychology of organizations. Organization design is directly relevant to top- and middle-management concerns and partly relevant to lower management. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Framework for the Book KEYWORDS: Bloom’s: Understand 55. Top management is concerned with major departments, such as marketing or research, and must decide how the department relates to the rest of an organization. a. True b. False ANSWER: False RATIONALE: Feedback: Organization design might be considered the sociology of organizations, while organizational behavior is the psychology of organizations. Organization design is directly relevant to top- and middle-management concerns and partly relevant to lower management. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Framework for the Book KEYWORDS: Bloom’s: Understand 56. What is a social business? Discuss in detail the advantages of social media programs. ANSWER: Social business refers to using social media technologies for interacting with and facilitating communication and collaboration among employees, customers, and other stakeholders and is one of the most current challenges managers face. Social media programs, including a company’s online community pages, wikis for virtual collaboration, social media sites such as Facebook or LinkedIn, video channels such as YouTube, microblogging platforms such as Twitter, and company online forums, can improve efficiency, increase productivity, and facilitate faster and smoother operations by improving communication and collaboration within and across firms. In addition, social media technology is being used by companies to build relationships with customers. It can build stronger, more authentic relationships between managers and employees. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Organization Design in Action KEYWORDS: Bloom’s: Understand 57. Differentiate between for-profit businesses and nonprofit firms. ANSWER: The primary difference between for-profit businesses and nonprofit firms is that managers in businesses direct their activities toward earning money for the company and its owners, whereas managers in nonprofits direct much of their effort toward generating some kind of social impact. Financial resources for government and charity nonprofits typically come from government appropriations, grants, and donations rather than from the sale of products or services to customers. In businesses, managers focus on improving the organization’s products and services to increase sales revenues. In nonprofits, however, services are typically provided to nonpaying clients, and a major problem for many organizations is securing a steady stream of funds to continue operating. Nonprofit managers, committed to serving clients with limited funds, must focus on keeping organizational costs as low as possible and demonstrating a highly efficient use of resources. Moreover, for-profit firms often compete with nonprofits for limited donations through their own philanthropic fundraising efforts. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: What is an Organization? KEYWORDS: Bloom’s: Understand 58. Briefly discuss the contingency factors of an organization. ANSWER: Contingency factors include size, organizational technology, the external environment, goals and strategy, and organizational culture. a. Size can be measured for the organization as a whole or for specific components, such as a plant or division. b. Organizational technology refers to the tools, techniques, and actions used to transform inputs into outputs. c. The environment includes all elements outside the boundary of the organization. d. The organization’s goals and strategy define the purpose and competitive techniques that set it apart from other organizations. e. An organization’s culture is the underlying set of key values, beliefs, understandings, and norms shared by employees. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Understand 59. Discuss in detail the stakeholder approach. ANSWER: Achieving effectiveness is not always a simple matter because different people want different things from an organization. For customers, the primary concern is high-quality products and services provided in a timely manner at a reasonable price, whereas employees are mostly concerned with adequate pay, good working conditions, and job satisfaction. Managers carefully balance the needs and interests of various stakeholders in setting goals and striving for effectiveness. This is referred to as the stakeholder approach, which integrates diverse organizational activities by looking at various organizational stakeholders and what they want from the organization. A stakeholder is any group within or outside of the organization that has a stake in the organization’s performance. The satisfaction level of each group can be assessed as an indication of the organization’s performance and effectiveness. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Dimensions of Organization Design KEYWORDS: Bloom’s: Understand 60. What is scientific management? How is it used? ANSWER: Pioneered by Frederick Winslow Taylor, scientific management emphasizes scientifically determined jobs and management practices as the way to improve efficiency and labor productivity. Taylor proposed that workers “could be retooled like machines, their physical and mental gears recalibrated for better productivity.” He insisted that management itself would have to change and emphasized that decisions based on rules of thumb and tradition should be replaced with precise procedures developed after careful study of individual situations. To use this approach, managers develop precise, standard procedures for doing each job, select workers with appropriate abilities, train workers in the standard procedures, carefully plan work, and provide wage incentives to increase output. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Evolution of Organization Design KEYWORDS: Bloom’s: Understand 61. What is a mechanistic design? ANSWER: A mechanistic design means that an organization is characterized by machine-like standard rules, procedures, and a clear hierarchy of authority. Organizations are highly formalized and are also centralized, with most decisions made at the top. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Contrast of Organic and Mechanistic Design KEYWORDS: Bloom’s: Remember 62. Differentiate between specialized tasks and empowered roles. ANSWER: A task is a narrowly defined piece of work assigned to a person. With a mechanistic design, tasks are broken down into specialized, separate parts, as in a machine, with each employee performing activities according to a specific job description. A role, in contrast, is a part in a dynamic social system. A role has discretion and responsibility, allowing a person to use his or her judgment and ability to achieve an outcome or meet a goal. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Contrast of Organic and Mechanistic Design KEYWORDS: Bloom’s: Understand 63. Discuss how communication takes place in mechanistic and organic organizations. ANSWER: Mechanistic organizations emphasize vertical communication up and down the hierarchy. Top managers pass information downward to employees about goals and strategies, job instructions, procedures, and so forth, and in turn ask that employees provide information up the hierarchy concerning problems, performance reports, financial information, suggestions and ideas, and so forth. In an organic organization, there is greater emphasis on horizontal communication, with information flowing in all directions within and across departments and hierarchical levels. The widespread sharing of information enables all employees to have complete information about the company so they can act quickly. In addition, organic organizations maintain open lines of communication with customers, suppliers, and even competitors to enhance learning capability. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: The Contrast of Organic and Mechanistic Design KEYWORDS: Bloom’s: Understand 64. Describe the levels of analysis of an organization. ANSWER: Each organization is a system that is composed of various subsystems. Organization systems are nested within systems, and one level of analysis has to be chosen as the primary focus. Four levels of analysis normally characterize organizations. The individual human being is the basic building block of organizations. The human being is to the organization what a cell is to a biological system. The next higher system level is the group or department. These are collections of individuals who work together to perform group tasks. The next level of analysis is the organization itself. An organization is a collection of groups or departments that combine into the total organization. Organizations themselves can be grouped together into the next higher level of analysis, which is the interorganizational set and community. The interorganizational set is the group of organizations with which a single organization interacts. Other organizations in the community make up an important part of an organization’s environment. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Framework for the Book KEYWORDS: Bloom’s: Remember 65. What is organization theory and design? ANSWER: Organization theory and design is a macro examination of organizations because it analyzes a whole organization as a unit. Organization design is concerned with people aggregated into departments and organizations and with the differences in structure and behavior at the organization level of analysis. Organization design might be considered the sociology of organizations, while organizational behavior is the psychology of organizations. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Framework for the Book KEYWORDS: Bloom’s: Remember 1. Which of the following is not a key component in the definition of organization structure? a. Organization structure includes the design systems to ensure effective communication, coordination, and integration of effort across departments. b. Organization structure identifies the tasks, functions, and processes for each department and position within the organization. c. Organization structure identifies the grouping together of individuals into departments and of departments into the total organization. d. Organization structure designates formal reporting relationships, including the number of levels in the hierarchy and the span of control of managers and supervisors. ANSWER: b RATIONALE: Feedback: The following three key components define organization structure: 1. Organization structure designates formal reporting relationships, including the number of levels in the hierarchy and the span of control of managers and supervisors. 2. Organization structure identifies the grouping together of individuals into departments and of departments into the total organization. 3. Organization structure includes the design of systems to ensure effective communication, coordination, and integration of efforts across departments. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Organization Structure KEYWORDS: Bloom’s: Remember 2. Organization structure identifies the grouping together of individuals into departments and of departments into the total organization. 3. Organization structure includes the design of systems to ensure effective communication, coordination, and integration of efforts across departments. 2. Which of the following is true of effective information sharing in an organization? a. Information should be shared vertically, but not horizontally. b. Vertical linkages are designed primarily for coordination and collaboration. c. The structure should fit the information requirements of the organization. d. It is not possible to give people a lot of information. ANSWER: c RATIONALE: Feedback: If the structure does not fit the information requirements of the organization, people either will have too little information or will spend time processing information that is not vital to their tasks, thus reducing effectiveness. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Information-Sharing Perspective on Structure KEYWORDS: Bloom’s: Understand 3. _____ means that decision authority is located near the top of the organization. a. Centralization b. Decentralization c. Joint collaboration d. Horizontal linkage ANSWER: a RATIONALE: Feedback: Centralization and decentralization pertain to the hierarchical level at which decisions are made. Centralization means that decision authority is located near the top of the organization. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Information-Sharing Perspective on Structure KEYWORDS: Bloom’s: Remember 4. With _____, decision authority is pushed downward to lower organization levels. a. centralization b. decentralization c. full-time integration d. task forces ANSWER: b RATIONALE: Feedback: Centralization and decentralization pertain to the hierarchical level at which decisions are made. With decentralization, decision authority is pushed downward to lower organization levels. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Information-Sharing Perspective on Structure KEYWORDS: Bloom’s: Remember 5. _____ are used to coordinate activities between the top and bottom of an organization and are designed primarily for control of the organization. a. Vertical linkages b. Functional groups c. Horizontal linkages d. Divisional groups ANSWER: a RATIONALE: Feedback: Vertical linkages are used to coordinate activities between the top and bottom of an organization and are designed primarily for control of the organization. Organizations may use any of a variety of structural devices to achieve vertical linkage, including hierarchical referral, rules and plans, and formal management information systems. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Information-Sharing Perspective on Structure KEYWORDS: Bloom’s: Remember 6. Which of the following strategies includes periodic reports, written information, and computer-based communications? a. Rules and plans b. Task forces c. Vertical information systems d. Hierarchical referral ANSWER: c RATIONALE: Feedback: A vertical information system is a strategy for increasing vertical information capacity. Vertical information systems include the periodic reports, written information, and computer-based communications distributed to managers. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Information-Sharing Perspective on Structure KEYWORDS: Bloom’s: Remember 7. A liaison role exists when: a. there is direct contact between managers affected by a problem. b. there is an exchange of paperwork during a hiring process. c. a temporary committee composed of representatives from each department affected by a problem is formed. d. a person located in one department has the responsibility for communicating and achieving coordination with another department. ANSWER: d RATIONALE: Feedback: One way to promote direct contact is to create a special liaison role. A liaison person is located in one department but has the responsibility for communicating and achieving coordination and collaboration with another department. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Information-Sharing Perspective on Structure KEYWORDS: Bloom’s: Understand 8. Brian is the brand manager for Bake ‘n Bite Pastries. His job requires him to coordinate several aspects of the brand, right from the design to the distribution of the product. Although he does not report to any of the teams being coordinated, he still plays an active role in managing the product. In the context of horizontal linkages, Brian is _____. a. a liaison b. a full-time integrator c. the head of a task force d. a team leader ANSWER: b RATIONALE: Feedback: Brian is a full-time integrator. A full-time integrator frequently has a title, such as product manager, project manager, program manager, or brand manager. Unlike a liaison person, the integrator does not report to one of the functional departments being coordinated. He or she is located outside the departments and has the responsibility for coordinating several departments. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Reflective Thinking TOPICS: Information-Sharing Perspective on Structure KEYWORDS: Bloom’s: Apply 9. A full-time integrator: a. improves vertical linkages in an organization. b. has a title such as brand manage or product manager. c. reports to one of the functional departments being coordinated. d. has the responsibility of coordinating only one department. ANSWER: b RATIONALE: Feedback: A stronger horizontal linkage device is to create a full-time position or department solely for the purpose of coordination. A full-time integrator frequently has a title, such as product manager, project manager, program manager, or brand manager. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Information-Sharing Perspective on Structure KEYWORDS: Bloom’s: Understand 10. Which of the following is true of full-time integrators? a. They have a lot of authority but little responsibility. b. They communicate with and are responsible for one department. c. They need excellent people skills. d. They are usually a part of the team being coordinated. ANSWER: c RATIONALE: Feedback: Integrators need excellent people skills. Integrators in most companies have a lot of responsibility but little authority. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Information-Sharing Perspective on Structure KEYWORDS: Bloom’s: Understand 11. Which of the following is true of teams? a. Teams tend to be the weakest horizontal linkage mechanism. b. Teams are the first device in a variety of structural devices to achieve vertical linkage. c. Teams provide a standard information source enabling employees to be coordinated without actually communicating about every task. d. Teams are often used in conjunction with a fulltime integrator. ANSWER: d RATIONALE: Feedback: Teams are permanent task forces and are often used in conjunction with a fulltime integrator. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Information-Sharing Perspective on Structure KEYWORDS: Bloom’s: Understand 12. A(n) _____ is a group that is made up of organizationally or geographically dispersed members who are linked primarily through advanced information and communications technologies. a. vertical linkage b. functional department c. organizational committee d. virtual team ANSWER: d RATIONALE: Feedback: Many of today’s companies use virtual cross-functional teams. A virtual team is one that is made up of organizationally or geographically dispersed members who are linked primarily through advanced information and communications technologies. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Communication TOPICS: Information-Sharing Perspective on Structure KEYWORDS: Bloom’s: Remember 13. The highest level of horizontal coordination is: a. relational coordination. b. departmental grouping. c. hierarchical referral. d. functional grouping. ANSWER: a RATIONALE: Feedback: The highest level of horizontal coordination is relational coordination. Relational coordination refers to “frequent, timely, problem-solving communication carried out through relationships of shared goals, shared knowledge, and mutual respect.” POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Information-Sharing Perspective on Structure KEYWORDS: Bloom’s: Remember 14. _____ refers to frequent, timely, problem-solving communication carried out through relationships of shared goals, shared knowledge, and mutual respect. a. Relational coordination b. Departmental grouping c. Hierarchical referral d. Functional grouping ANSWER: a RATIONALE: Feedback: The highest level of horizontal coordination is relational coordination. Relational coordination refers to “frequent, timely, problem-solving communication carried out through relationships of shared goals, shared knowledge, and mutual respect.” POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Information-Sharing Perspective on Structure KEYWORDS: Bloom’s: Remember 15. Which of the following is true of relational coordination? a. Relational coordination is the lowest level of horizontal coordination. b. Relational coordination is the first device in the variety of structural devices to achieve vertical linkage. c. Relational coordination provides a standard information source enabling employees to be coordinated without actually communicating about every task. d. Relational coordination is not a device or mechanism like other elements, but rather is part of the very fabric and culture of the organization. ANSWER: d RATIONALE: Feedback: The highest level of horizontal coordination is relational coordination. Relational coordination is not a device or mechanism like other elements, but rather is part of the very fabric and culture of the organization. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Information-Sharing Perspective on Structure KEYWORDS: Bloom’s: Understand 16. The overall design of organization structure indicates all of the following except: a. work activities. b. reporting relationships. c. departmental groupings. d. information systems. ANSWER: d RATIONALE: Feedback: The overall design of organization structure indicates three things: required work activities, reporting relationships, and departmental groupings. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16.03.04 - 03.04 NATIONAL STANDARDS: United States - AACSB: TOPICS: Organization Design Alternatives KEYWORDS: Bloom’s: 17. _____ places together employees who perform similar functions or work processes or who bring similar knowledge and skills to bear. a. Functional grouping b. Divisional grouping c. Multifocused grouping d. Horizontal grouping ANSWER: a RATIONALE: Feedback: Functional grouping places together employees who perform similar functions or work processes or who bring similar knowledge and skills to bear. For example, all marketing people work together under the same supervisor, as do all manufacturing employees, all human resources people, and all engineers. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: TOPICS: Organization Design Alternatives KEYWORDS: Bloom’s: 18. _____ means people are organized according to what the organization produces. a. Functional grouping b. Divisional grouping c. Multifocused grouping d. Horizontal grouping ANSWER: b RATIONALE: Feedback: Divisional grouping means people are organized according to what the organization produces. For example, all the people required to produce toothpaste—including personnel in marketing, manufacturing, and sales—are grouped together under one executive. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Organization Design Alternatives KEYWORDS: Bloom’s: Remember 19. _____ means an organization embraces two or more structural grouping alternatives simultaneously. a. Functional grouping b. Divisional grouping c. Multifocused grouping d. Horizontal grouping ANSWER: c RATIONALE: Feedback: Multifocused grouping means an organization embraces two or more structural grouping alternatives simultaneously. These structural forms are often called matrix or hybrid. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Organization Design Alternatives KEYWORDS: Bloom’s: Remember 20. _____ means employees are organized around core work processes, the end-to-end work, information, and material flows that provide value directly to customers. a. Functional grouping b. Divisional grouping c. Multifocused grouping d. Horizontal grouping ANSWER: d RATIONALE: Feedback: Horizontal grouping means employees are organized around core work processes, the end-to-end work, information, and material flows that provide value directly to customers. All the people who work on a core process are brought together in a group rather than being separated into functional departments. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: Analytic TOPICS: Organization Design Alternatives KEYWORDS: Bloom’s: Remember 21. In _____, departments are separate organizations that are electronically connected for the sharing of information and completion of tasks. a. functional grouping b. virtual network grouping c. divisional grouping d. horizontal grouping ANSWER: a RATIONALE: Feedback: With virtual network grouping, the organization is a loosely connected cluster of separate components. In essence, departments are separate organizations that are electronically connected for the sharing of information and completion of tasks. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: TOPICS: Organization Design Alternatives KEYWORDS: Bloom’s: 22. In a _____, activities are grouped together by common function from the bottom to the top of the organization. a. functional structure b. divisional structure c. geographic structure d. hybrid structure ANSWER: a RATIONALE: Feedback: Functional grouping and divisional grouping are the two most common approaches to structural design. In a functional structure, also called a U-form (unitary), activities are grouped together by common function from the bottom to the top of the organization. POINTS: 1 LEARNING OBJECTIVES: ORGT.DAFT.16. NATIONAL STANDARDS: United States - AACSB: TOPICS: Functional, Divisional, and Geographic Designs KEYWORDS: Bloom’s: 23. Which of the following is a strength of a functional structure? a. It has fast response time to environmental changes. b. It leads to excellent horizontal coordination among departments. c. It results in more innovation. d. It allows economies of scale within functional departments. ANSWER: d RATIONALE: Feedback: One of the strengths of a functional structure is that it allows economies of scale within fu