Chapter 8 Designing Adaptive Organizations PDF

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Chapter 8 - Designing Adaptive Organizations 1. As a class project, Senora is working with other classmates to create a company that would market NASCAR

memorabilia. She is instructed to use the traditional approach to create the organization’s structure. What should Senora do? a. create an organizational structure with vertical and horizontal configurations b. use an organizational process to create a matrix design c. create a virtual organization d. use the organizational structure to control creativity ANSWER: a 2. What is the term for the collection of activities that transforms inputs into outputs that customers value? a. re-engineering b. functionalization c. organizational structure d. organizational process ANSWER: d 3. What is the definition of the term organizational process? a. the definition of roles, not activities b. the limitations on the adaptivity of an organization c. the use of vertical and horizontal departmentalization d. the activities whereby inputs are transformed into outputs that customers value ANSWER: d 4. Which of the following emphasizes jobs and their authority relationships? a. departmentalization b. organizational process c. functionalization d. organizational structure ANSWER: d 5. What type of departmentalization organizes work and workers into distinct units responsible for certain

business roles or areas of expertise? a. functional b. customer c. matrix d. product ANSWER: a 6. Kimberly-Clark is subdivided into organizational units called Kimberly-Clark Health Care, which sells

products to hospitals; Kimberly-Clark Professional, which sells to businesses; and Kimberly-Clark Consumer, which sells the company’s products to consumers. Which of the following does Kimberly-Clark use? Copyright Cengage Learning. Powered by Cognero.

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Chapter 8 - Designing Adaptive Organizations a. hierarchical functionalization b. product departmentalization c. a nonlinear organizational structure d. customer departmentalization ANSWER: d 7. As a consequence of the Industrial Revolution and its emphasis on specialization, institutions providing higher education developed strict sections of the organization that contained specialized functions. This organizational structure was perceived as a way to enhance the accumulation and dissemination of knowledge. Which organizational structure is this? a. re-engineering b. functionalization c. departmentalization d. functional empowerment ANSWER: c 8. What is a general term that refers to subdividing work and workers into separate organizational units that are

responsible for completing particular tasks? a. organizational layout b. organizational process c. departmentalization d. job formatting ANSWER: c 9. Which statement presents a characteristic of functional departmentalization? a. Functional departmentalization allows work to be done by highly qualified

specialists. b. Functional departmentalization increases costs by reducing duplication. c. Functional departmentalization complicates communication and coordination

for departmental managers. d. Functional departmentalization is a form of matrix departmentalization. ANSWER: a 10. Which statement presents a characteristic of functional departmentalization? a. Functional departmentalization lowers costs by reducing duplication. b. Functional departmentalization increases costs by creating duplication. c. Functional departmentalization produces managers with broader experience

and expertise. d. Functional departmentalization produces managers with narrower experience and expertise. ANSWER: a Copyright Cengage Learning. Powered by Cognero.

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Chapter 8 - Designing Adaptive Organizations 11. Which of the following is characteristic of functional departmentalization? a. It makes it easier for top managers to assess work-unit performance. b. It makes communication and coordination less problematic for managers. c. It produces managers with broader experience and expertise. d. It enhances coordination between departments. ANSWER: b 12. Hallmark has four departments: (1) Flowers and Gifts, (2) Cards and E-cards, (3) Hallmark Collectibles, and (4) Photo Albums and Scrapbooks. Which type of departmentalization does Hallmark use? a. matrix b. product c. customer d. geographic ANSWER: b 13. Pierre is the president of his company. He is frustrated that it is difficult to get his managers together.

Decision making is slow, and it’s hard to get a consensus on what new products the company should introduce. What type of departmentalization does Pierre’s company have? a. product b. customer c. geographic d. functional ANSWER: d 14. A manufacturer of acrylic, latex, and nitrile gloves sells to medical laboratories; to factories where employees handle chemicals; to companies that manufacture micro-tech equipment; and to cleaning services. The manufacturer is organized to better satisfy the needs of each of its four target markets. Which type of departmentalization does the manufacturer use? a. matrix b. product c. customer d. geographic ANSWER: c 15. Large accounting agencies typically have separate departments that deal with households, businesses, and

governments. Which type of departmentalization do many of these accounting agencies use to better serve the needs of their clients? a. matrix b. product c. customer d. functional Copyright Cengage Learning. Powered by Cognero.

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Chapter 8 - Designing Adaptive Organizations ANSWER: c 16. Companies such as Sprint and American Express focus on both business clients and consumer clients. Which type of departmentalization have they adopted? a. boundaryles s b. product c. customer d. functional ANSWER: c 17. What is the primary disadvantage of customer departmentalization? a. an overemphasis on customer needs b. duplication of job functions c. difficulties in coordinating across departments d. overspecialization of managers and workers ANSWER: b 18. Procter & Gamble has divisions for personal grooming and beauty, house and home, health and wellness,

baby and family, and pet nutrition and care. Which type of departmentalization does the company use? a. functional b. geographic c. product d. customer ANSWER: c 19. A general manager of a manufacturing firm wishes to increase efficiency by reducing duplication throughout the organization. Which form of departmentalization should he adopt? a. functional b. matrix c. product d. geographic ANSWER: a 20. Marianne is working on a special project. She reports to the project manager as well as her finance manager where her full-time work resides. What organizational structure is Marianne working within? a. geographic b. matrix c. product d. customer Copyright Cengage Learning. Powered by Cognero.

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Chapter 8 - Designing Adaptive Organizations ANSWER: b 21. What is the primary disadvantage of geographic departmentalization? a. the absence of cross-departmental coordination b. broken chains of command c. spans of control that are too wide d. the duplication of resources ANSWER: d 22. Commerce Insurance Services has five divisions: personal, core commercial, Main Street business, major

commercial, and benefits. The company is also departmentalized along product lines. What type of departmentalization does Commerce Insurance Services use? a. boundaryles s b. product c. customer d. matrix ANSWER: d 23. Which of the following is an advantage of matrix departmentalization? a.Most employees in an organization that uses matrix departmentalization report

to one boss. b.With matrix departmentalization, there tends to be more cross-functional

interaction among employees than in other types of departmentalization. c.With matrix departmentalization, there is reduced coordination between

functional and project managers. d.The most common matrix combines geographic and product departmentalization. ANSWER: b 24. Which type of departmentalization has the primary advantage of allowing companies to efficiently manage

large, complex tasks by minimizing duplication? a. product b. functional c. matrix d. geographic ANSWER: c 25. Aleeza is managing the financial area of a special project to launch the company in Asia. Aleeza and the transportation manager disagree on how product should be moved between borders. The two are meeting with the senior project manager to resolve this issue. What type of matrix is Aleeza working within? a. the networked matrix Copyright Cengage Learning. Powered by Cognero.

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Chapter 8 - Designing Adaptive Organizations b. the synergistic matrix c. the complex matrix d. the hierarchical

matrix ANSWER: c 26. Rose is managing the marketing area of a project to introduce a new line of products. Rose and the manager responsible for sales of this new product cannot agree on the launch date. They are meeting today to work out a date that they can both accept. What type of matrix is Rose working within? a. simple matrix b. networked matrix c. empathetic matrix d. matrix of convenience ANSWER: a 27. John feels like he is being pulled in all directions. The project manager he reports to wants him in an all-day meeting on Tuesday. The sales manager for his regular functions wants him to meet with an important client on Tuesday. John is not sure what to do. What type of departmentalization is John working within? a. matrix b. functional c. customer d. product ANSWER: a 28. Of all types of departmentalization, which one requires the highest level of management skill for successful implementation? a. geographic b. customer c. matrix d. product ANSWER: c 29. Which type of departmentalization often evolves from a simple form to a more complex form due to

problems associated with conflicts over schedules, budgets, and available resources (including employees)? a. hierarchica l b. functional c. customer d. matrix ANSWER: d 30. Honeywell Inc. reorganized its European operations along customer lines to prepare for a unified European Copyright Cengage Learning. Powered by Cognero.

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Chapter 8 - Designing Adaptive Organizations Union. In doing so, it abandoned matrix departmentalization. What was the best reason for Honeywell to have engaged in such restructuring? a. to create pools of resources b. to empower its employees c. to better adhere to the management philosophy of staff authority d. to end conflict between product managers in different parts of its matrix ANSWER: d 31. Joseph is a supervisor of accounts receivable. He tells a staff member to call a particular customer to inform them they are overdue on a payment. The staff member does not like making these calls but does what he is told. In terms of chain of command, what type of authority does Joseph have? a. departmental b. centralized c. functional d. line ANSWER: d 32. Which of the following is characteristic of organizational authority? a. chain of command b. empowerment c. behavioural informality d. re-engineering ANSWER: a 33. Robert Strickland works in the legal department at a large consumer products manufacturer. His job is to craft warnings on package labels. Which of the following defines Strickland’s work? a. line function b. boundary-spanning role c. chain of command role d. staff function ANSWER: d 34. Shelley is part of a special team overseeing the property development of the company’s new location. She reports to Brian, the manager of the project, and she continues to report to Reginald, the manager of the area where she works full time. What principle does this matrix organization violate? a. line authority b. unity of command c. delegation of authority d. degree of centralization Copyright Cengage Learning. Powered by Cognero.

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Chapter 8 - Designing Adaptive Organizations ANSWER: b 35. Which of the following is a key assumption underlying the chain of command, which refers to the idea that

workers should report to just one supervisor? a. delegation of command b. empowerment c. synergistic authority d. unity of command ANSWER: d 36. Delmar works in the sales department of a toy manufacturer. Delmar has several very large retail customers that he spends the majority of time making sure they are well taken care of. What type of function would Delmar’s activities be associated with? a. staff b. line c. mechanistic d. organic ANSWER: b 37. Jennifer Lee works in the public relations department of a large pharmaceutical company. Her job is to write speeches for the company’s top managers, to issue press and video releases, to host plant tours, and to be involved in community affairs. Which of the following does Lee have? a. line authority b. mechanistic authority c. empowerment obligations d. staff authority ANSWER: d 38. An international distribution company has a shipping division, a warehouse division, and a computer

hardware and software distribution centre, as well as a marketing research department, a human resources department, and an accounting department. A salesperson who works in the shipping division is told by the accounting department that he must turn in a weekly expense account; at the same time, his supervisor in the shipping division wants expense accounts submitted monthly. Preparing the expense account form takes at least two hours, and the salesperson wants to devote as much time as possible to sales. Which of the following is the salesperson likely experiencing a problem with? a. line authority b. delegation of authority c. centralization d. chain of command ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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Chapter 8 - Designing Adaptive Organizations 39. Which of the following statements best describes the chain of command? a. The chain of command is the vertical line of authority that clarifies who reports

to whom. b. The chain of command acts at cross-purposes to the unity of command

principle. c. The chain of command is relevant only in mechanistic organizations. d. The chain of command does not permit delegation of authority. ANSWER: a 40. Which of the following individuals most likely performs a staff function? a. the supervisor of the loading dock b. the organization’s receptionist c. the vice president of marketing d. a member of the office cleaning crew ANSWER: d 41. Which term most closely refers to assigning direct authority and responsibility to a subordinate to fulfill tasks for which the manager is normally responsible? a. a job description b. staff functionality c. delegation of authority d. decentralization ANSWER: c 42. When managers delegate work, three transfers occur. Two of the transfers are responsibility and authority. What is the third? a. utility b. synergy c. reciprocity d. accountability ANSWER: d 43. The marketing manager of a company that manufactures church furniture has been given the job of

increasing corporate profits by 5 percent during the upcoming year. The manager has decided to give his assistant the full responsibility and authority for developing a mailing campaign to target churches on the Mississippi Gulf Coast that were damaged or destroyed by Hurricane Katrina. The manager is making this individual accountable for the campaign’s success. What has the marketing manager done? a. implemented feedback controls b. created a staff position c. embraced the matrix organizational philosophy d. delegated the task Copyright Cengage Learning. Powered by Cognero.

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Chapter 8 - Designing Adaptive Organizations ANSWER: d 44. Robin works in customer service of a department store. She handles returned products. For most products, if they are returned in original packaging, are undamaged, and the customer has the bill, Robin will accept the return for a full refund. However, for camping gear, the policy is no returns and no exceptions. What term describes how Robin handles returned products? a. consistency planning b. organizational autonomy c. standardization d. problem empowerment ANSWER: c 45. Large hospitals purchase more than 15,000 individual products on a routine basis. One challenge for a

hospital’s purchasing department is that the various hospital departments use different product descriptions and classifications for the same item. One purchasing manager plans to institute a hospital-wide purchasing policy that gives a specific code to each item. In doing so, what is the purchasing manager engaging in? a. consistency planning b. organizational autonomy c. standardization d. problem empowerment ANSWER: c 46. The Toronto Blue Jays are owned by media conglomerate Rogers Communications. The team’s president and general manager report to Rogers’s senior leadership team, but rarely have to seek approval before making trades or signing free agents. Which term best describes this situation? a. centralization b. standardization c. top management empowerment d. decentralization ANSWER: d 47. Boxing Canada has moved its head office and training facilities to Montreal from various locations across

the country. Which of the following best represents the principle Boxing Canada is relying upon? a. centralization of authority b. standardization c. top management reciprocity d. job specialization ANSWER: a 48. Which of the following is characteristic of decentralization? a. It leads to faster decision making and more satisfied customers and employees. Copyright Cengage Learning. Powered by Cognero.

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Chapter 8 - Designing Adaptive Organizations b. It tends to stymie employee capabilities. c. It pertains most to large companies. d. It has proven to be more appropriate where standardization is important. ANSWER: a 49. Which of the following actions is appropriate where standardization is important? a. centralize authority b. decentralize authority c. emphasize line authority d. ensure a flat organizational structure ANSWER: a 50. Which of the following is characterized by simple, easy-to-learn steps, little variety, and much repetition? a. job consistency b. job specialization c. task re-engineering d. standardization ANSWER: b 51. Which of the following can job specialization result in? a. high job satisfaction b. employee boredom c. low employee turnover d. complicated job

designs ANSWER: b 52. Which of the following determines the number, kind, and variety of tasks that individual workers perform in their roles? a. standardization b. task mapping c. job design d. job specialization ANSWER: c 53. Josephine notices that one of her better workers seems less enthusiastic about her work. Josephine adds different tasks to the job to hopefully reduce the boredom the worker is feeling. What did Josephine engage in to alter the worker’s job? a. task aggregation b. job specialization c. job enlargement Copyright Cengage Learning. Powered by Cognero.

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Chapter 8 - Designing Adaptive Organizations d. employee specialization ANSWER: c 54. The Ryerson University Library is organized in a hierarchy with six unit heads reporting to a chief librarian.

The units are archives, audiovisual/interlibrary loans, library access services, reference and information, systems, and technical services. Within these units are 15 librarians and 47 full-time library staff. One tool used in the organizational development of the library was to ...