Ch7 Test Bank Designing Organizational Structure

Essentials of Contemporary Management, 8e (Jones)

Chapter 7 Designing Organizational Structure

1) The nature of an organization's human resources is an important determinant of the organization's structure.

Difficulty: 1 Easy

Topic: Organizational Development (OD)

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

2) A differentiation strategy aimed at increasing the customer's perception of an organization's services usually succeeds even with an inflexible structure.

Difficulty: 1 Easy

Topic: Organizational Development (OD); Customer Relationship Management (CRM)

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

3) The job characteristics model explains how managers can make jobs more interesting and motivating.

Difficulty: 1 Easy

Topic: Job Design; Job Specification

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

4) The degree to which a job design gives a worker the freedom to schedule his or her tasks and to decide how to carry them out is known as the task identity.

Difficulty: 1 Easy

Topic: Job Design; Job Specification

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

5) When managers organize divisions according to the types of customer to whom they market their products, they are focusing on a product structure.

Difficulty: 1 Easy

Topic: Divisional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

6) Team members in a market structure are known as two-boss employees.

Difficulty: 1 Easy

Topic: Functional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

7) The "chain of command" of an organization is the hierarchy of authority for that organization.

Difficulty: 1 Easy

Topic: Hierarchy of Authority

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

8) Too much decentralization has disadvantages for an organization because it can lead to a lack of communication among functions or divisions.

Difficulty: 1 Easy

Topic: Decentralized Authority

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

9) The more complex an organization, the less important the use of cross-functional teams becomes to the organization.

Difficulty: 1 Easy

Topic: Functional Structure

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

10) A business-to-business (B2B) network is a company-specific virtual information system that allows workers to share their knowledge and expertise and find others to help solve ongoing problems.

Difficulty: 1 Easy

Topic: B2B Network Structures

Learning Objective: 07-05 Describe how information technology (IT) is helping managers build strategic alliances and network structures to increase organizational efficiency and effectiveness.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

11) The process by which managers establish the structure of working relationships among the workers of the organization is known as

A) planning.

B) leading.

C) organizing.

D) controlling.

Difficulty: 1 Easy

Topic: Organizational Development (OD)

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

12) Organizational ________ is the formal system of task and job reporting relationships that determines how employees use resources to achieve organizational goals.

A) structure

B) strategy

C) mission

D) policy

Difficulty: 1 Easy

Topic: Organizational Development (OD)

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

13) Organizational ________ is the process by which managers create an organizational structure and culture that helps a company operate in the most efficient and effective way.

A) strategy

B) policy

C) design

D) tactics

Difficulty: 1 Easy

Topic: Organizational Development (OD)

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

14) According to ________ theory, managers should choose a structure that fits the circumstances affecting their organization the most.

A) contingency

B) design

C) agency

D) equity

Difficulty: 1 Easy

Topic: Organizational Development (OD); Contingency Theory

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

15) Which of the following is a characteristic of a stable external environment?

A) an inflexible structure

B) constant change

C) decentralized authority

D) low uncertainty

Difficulty: 1 Easy

Topic: Organizational Development (OD)

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

16) According to Charles Perrow, the routineness of technology is determined by task

A) volatility.

B) analyzability.

C) performance.

D) commitment.

Difficulty: 1 Easy

Topic: Organizational Development (OD)

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

17) The number of new or unexpected problems or situations that a person or function encounters in performing tasks or jobs is task

A) volatility.

B) predictability.

C) analyzability.

D) variety.

Difficulty: 1 Easy

Topic: Organizational Development (OD); Task Specialist Roles

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

18) The degree to which programmed solutions are available to people or functions to solve the problems they encounter is task

A) uncertainty.

B) stability.

C) analyzability.

D) creativity.

Difficulty: 1 Easy

Topic: Organizational Development (OD); Task Specialist Roles

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

19) Managers should design flexible structures, characterized by decentralized authority and empowered employees, for their organization when its

A) environment is stable.

B) technology is simple.

C) workforce is highly skilled.

D) strategy is well understood.

Difficulty: 2 Medium

Topic: Organizational Development (OD)

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

20) The greater the level of uncertainty in the organization's environment, the

A) less likely managers are to design a structure and a culture that are innovative.

B) less likely managers are to design a structure and a culture that change quickly.

C) more likely managers are to design an organizational structure that is formal and controlling.

D) more likely managers are to design a structure and a culture that are flexible.

Difficulty: 2 Medium

Topic: Organizational Development (OD)

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

21) Karabo wants to start a graphic design company that will have employees who are highly skilled at using complex computer programs. For this type of company, Karabo would most likely want to

A) give upper-level managers the responsibility for most client-related decisions but handle corporate decisions himself.

B) make sure that all design decisions are run by him before they are implemented by employees.

C) give lower-level managers and the graphic designers the authority to make important decisions.

D) give graphic designers the ability to make decisions, but insist that they get approval from upper management.

Difficulty: 3 Hard

Topic: Organizational Development (OD)

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

22) If a company has a stable external environment and resources are easily available, then the human resource manager for this company would most likely want to

A) encourage managers to empower lower-level employees.

B) allow managers to make their own guidelines.

C) set up flexible norm guides.

D) set up detailed standard operating procedures (SOPs).

Difficulty: 2 Medium

Topic: Organizational Development (OD)

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

23) The process by which managers decide how to divide into specific jobs the tasks that have to be performed to provide customers with goods and services is known as job

A) design.

B) delegation.

C) organization.

D) policy.

Difficulty: 1 Easy

Topic: Job Design

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

24) Chiara's Pizza established a basic division of labor among "chefs" and "food servers" in which chefs perform all tasks involved in actual cooking, and food servers carry out all tasks involved in giving food to the customers. Chiara's Pizza implemented

A) a matrix structure.

B) job design.

C) a divisional structure.

D) a product structure.

Difficulty: 2 Medium

Topic: Job Design

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

25) The Pizza Man implemented job design by

A) having the food servers wear uniforms.

B) buying a new vehicle for the food delivery people.

C) increasing the chef's annual salary to reflect the skills required by the job.

D) combining the jobs of chef and food server into a single job description

Difficulty: 2 Medium

Topic: Job Design

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

26) A manager increases the number of tasks that a subordinate has to do in order to make the job more interesting for the subordinate. This is known as

A) job simplification.

B) job enlargement.

C) job enrichment.

D) task identity.

Difficulty: 1 Easy

Topic: Job Enlargement

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

27) Carlos, a manager, redesigns the job of Dani, a subordinate, so that she has more responsibility over her job. This is the process of job

A) enlargement.

B) simplification.

C) enrichment.

D) reduction.

Difficulty: 1 Easy

Topic: Job Enrichment

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

28) The goal of job enlargement is to increase

A) the quantity of work assigned and thus reduce manpower.

B) both the scope of a job and salaries.

C) quality assurance measures, thereby reducing mistakes.

D) the range of tasks and thus reduce boredom.

Difficulty: 2 Medium

Topic: Job Enlargement

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

29) The extent to which a job requires a worker to use a wide range of knowledge and abilities is known as

A) task identity.

B) task significance.

C) autonomy.

D) skill variety.

Difficulty: 1 Easy

Topic: Task Specialist Roles

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

30) Increasing workers' responsibility and involvement in their jobs in order to increase their interest in the quality of their output is a strategy known as job

A) expansion.

B) enlargement.

C) development.

D) enrichment.

Difficulty: 2 Medium

Topic: Job Enrichment

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

31) The extent to which a job requires a worker to perform all of the tasks that are required to complete the job is known as

A) skill variety.

B) task identity.

C) task significance.

D) feedback.

Difficulty: 1 Easy

Topic: Task Specialist Roles; Task Role

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

32) The degree to which a manager feels that his or her job is "meaningful" because of the way in which the job affects other people is known as

A) skill variety.

B) feedback.

C) autonomy.

D) task significance.

Difficulty: 1 Easy

Topic: Task Specialist Roles; Task Role

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

33) Mr. Pierson reads an article in the newspaper about one of his students who has been appointed CEO of a multinational corporation. At this moment, Mr. Pierson is experiencing

A) autonomy.

B) task identity.

C) task significance.

D) skill variety.

Difficulty: 2 Medium

Topic: Task Specialist Roles; Task Role

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

34) The degree to which a job allows the worker to schedule the tasks of the job and to decide how to carry out these tasks is known as

A) autonomy.

B) task identity.

C) task significance.

D) skill variety.

Difficulty: 1 Easy

Topic: Task Specialist Roles; Task Role

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

35) Eduardo works a salesperson at a prescription drug store; Marietta works as a doctor, helping people who suffer from malignant diseases. Marietta most likely has

A) a low degree of feedback.

B) less autonomy.

C) less skill variety.

D) higher task significance.

Difficulty: 2 Medium

Topic: Job Design; Task Specialist Roles; Task Role

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

36) George is an order taker at a restaurant; Audrey is a sales executive who is given the authority to choose the prospective customers she will visit on personal sales calls. Audrey has

A) less autonomy.

B) less task significance.

C) less task identity.

D) more autonomy.

Difficulty: 2 Medium

Topic: Job Design; Task Specialist Roles; Task Role

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

37) The extent to which a job gives the worker direct and clear information about how well the worker is performing the job is known as

A) task identity.

B) feedback.

C) autonomy.

D) task significance.

Difficulty: 1 Easy

Topic: Job Design; Task Specialist Roles; Task Role

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

38) Which of the following explains Hackman and Oldham's theory of how the job characteristics model affects three critical psychological states?

A) The more employees are given work responsibility, the more frustrated they become because they know that they will never get additional remuneration for it.

B) The more employees feel that they are responsible for work outcomes and how it affects their positions in the company, the less motivating their work becomes.

C) The more employees feel that they are being used efficiently by the company, the more their expectation of better compensation and higher position increases.

D) The more employees feel that they are responsible for work outcomes and for knowing how those outcomes affect others, the more motivating their work becomes.

Difficulty: 2 Medium

Topic: Job Design; Job Description

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

39) Freya is dissatisfied with her work as an office supply clerk for a large telecommunications company. She explains her feelings about her work to the human resource manager, who gives her an aptitude test. Based on this test, the satisfaction Freya gets from her job and how she views her job depend largely on how what she does impacts other people. Considering this, what job should the human resource manager recommend Freya get training for and pursue?

A) a job as a computer programmer who designs software for autistic children

B) a position as a salesperson with the ability to plan her own schedule

C) a job as a graphic designer who often works on a project from beginning to end

D) a position as a marketing researcher, which requires a variety of skills

Difficulty: 3 Hard

Topic: Job Design; Task Specialist Roles; Task Role

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

40) Because he has high autonomy, Santiago coaxes his manager to

A) allow him work at home, where he can work during any time of the day.

B) give him a variety of jobs that require a wide skill set.

C) let him focus on one assignment at a time.

D) give him more input on how his work affects customers.

Difficulty: 2 Medium

Topic: Job Design; Task Specialist Roles; Task Role

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

41) An organizational structure consisting of all the departments within the company that are needed to produce its goods or services is a ________ structure.

A) functional

B) geographic

C) divisional

D) product

Difficulty: 1 Easy

Topic: Functional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

42) Which of the following structures groups together people who perform similar jobs?

A) divisional

B) transitional

C) organic

D) functional

Difficulty: 1 Easy

Topic: Functional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

43) The units of Effron, Ltd., are grouped such that the functions that work together to produce a product are grouped together. This is an example of a(n) ________ structure.

A) divisional

B) transitional

C) organic

D) functional

Difficulty: 2 Medium

Topic: Divisional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

44) Which of the following structures is an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer?

A) divisional

B) transitional

C) organic

D) functional

Difficulty: 1 Easy

Topic: Divisional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

45) What structure do organizations adopt when they organize divisions according to the type of customers they focus on?

A) market

B) geographic

C) product

D) functional

Difficulty: 1 Easy

Topic: Divisional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

46) At Xen, Ltd., each product line is managed within a division. In each of these divisions, the division manager is responsible for

A) giving each employee in the division a large amount of autonomy.

B) devising a corporate-level plan with the managers of other divisions.

C) creating a separate business-level strategy for its division.

D) making sure each job in the division has high skill variety.

Difficulty: 2 Medium

Topic: Divisional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

47) CrossBorders Delivery Corporation organizes its managers according to the different regions of the world in which the managers work. This is an example of a ________ structure.

A) geographic

B) customer

C) product

D) matrix

Difficulty: 2 Medium

Topic: Divisional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

48) When managers pursue a multidomestic strategy, they most likely use a ________ strategy.

A) market

B) customer

C) global geographic

D) global transitional

Difficulty: 1 Easy

Topic: Divisional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

49) PlayBall Enterprises produces baseball mitts in the United States, including the ones used in the major leagues. Baseball teams around the world usually want to use the same mitts as the major league teams in America. As a result, the managers of PlayBall have decided to use a ________ structure.

A) global product

B) customer

C) global geographic

D) global transitional

Difficulty: 2 Medium

Topic: Divisional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

50) In the design of an organization, another name for "market structure" is "________ structure."

A) product

B) geographic

C) customer

D) functional

Difficulty: 1 Easy

Topic: Divisional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

51) Managers are able to be responsive to the needs of their customers and maintain flexibility in making decisions regarding customers' changing needs with a ________ structure.

A) market

B) geographic

C) functional

D) matrix

Difficulty: 1 Easy

Topic: Divisional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

52) When designing an organization, if managers are grouped both by function and by product at the same time, the organizational structure being used is the ________ structure.

A) market

B) geographic

C) functional

D) matrix

Difficulty: 1 Easy

Topic: Organizational Development (OD); Product Development Plan

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

53) The organizational design in which employees are correctly referred to as two-boss employees is a ________ structure.

A) product

B) matrix

C) geographic

D) functional

Difficulty: 1 Easy

Topic: Hierarchy of Authority; Line of Authority

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

54) At Cosmeto & Co., Ignas, a marketing specialist, usually works with other marketers. However, he has recently been assigned to a team to develop a new kind of shampoo. Cosmeto has a complex organizational structure, and the team developing the new shampoo has members who specialize in a variety of functions for the company, including research and design, production, and packaging. Ignas and these other members will rotate in and out of the shampoo team as their specific tasks are completed. Ignas has to report to

A) both the marketing manager and the personal care product manager.

B) Angelique, the CEO of Cosmeto, but only while the shampoo is being marketed.

C) the geographic distribution manager, who will help Ignas determine a target market.

D) to either the marketing manager or the chemical formula manager.

Difficulty: 3 Hard

Topic: Organizational Development (OD); Functional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

55) Employees organized according to a matrix structure are grouped by

A) functions and by experience.

B) product and by geographic location.

C) functions and by product.

D) geographic location.

Difficulty: 2 Medium

Topic: Organizational Development (OD); Functional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

56) What is the main problem with the matrix structure's dual reporting relationship?

A) tracking responsibilities

B) tasks are more complex

C) conflicting demands can arise

D) deciding which job will finish faster

Difficulty: 2 Medium

Topic: Organizational Development (OD); Functional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

57) When different managers from different functional areas are brought together to work on an organizational task, they are known as a(n) ________ team.

A) functional

B) co-dependent

C) cross-functional

D) independent

Difficulty: 1 Easy

Topic: Organizational Development (OD); Functional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

58) How does the product team structure differ from the matrix structure?

A) It allows dual reporting relationships.

B) It permanently assigns employees to cross-functional teams.

C) It focuses on designing and marketing quality products.

D) It allows team members to work with other teams.

Difficulty: 2 Medium

Topic: Organizational Development (OD); Functional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

59) Juliette has been hired as a business consultant for ChocoChip, Inc., a company that specializes in making chocolate chip cookies. The success of ChocoChip has created a problem for the company's CEO, Andrew. The demand for ChocoChip's cookies has increased significantly worldwide. As a result, the company has established cookie factories in various countries, which are doing fairly well but need customized attention for each country. Also, because of this expansion, the functional structure of the company has developed problems with communication between divisions. Andrew wants Juliette's advice on how the company should accommodate its expansion. Juliette most likely suggests that ChocoChip set up a

A) matrix structure and form temporary cross-functional teams.

B) global market structure and form a centralized and bureaucratic hierarchy.

C) global geographic structure and form strategic alliances with suppliers in various nations.

D) product structure and form special, temporary tasks forces to deal with various challenges.

Difficulty: 3 Hard

Topic: Strategic Alliances

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

60) VRT, Inc., started out just making hair dryers. However, as the company expanded, it produced automobiles, life insurance, and furniture. Considering this, the CEO has decided to change from a functional structure to a ________ structure.

A) geographic

B) product

C) market

D) hierarchical

Difficulty: 2 Medium

Topic: Organizational Development (OD); Product Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

61) The major goals of the manufacturing function are to keep costs under control and

A) prepare products on schedule.

B) keep employees happy.

C) develop new products.

D) use the latest production methods.

Difficulty: 1 Easy

Topic: Organizational Development (OD); Functional Structure

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

62) An organization's hierarchy of authority is also known as its

A) chain of command.

B) span of control.

C) task-flow command.

D) matrix of control.

Difficulty: 1 Easy

Topic: Hierarchy of Authority

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

63) The relative authority that each manager in the organization has from the CEO down to the lowest-level manager is called the

A) span of control.

B) chain of command.

C) corporate ladder.

D) unity of direction.

Difficulty: 1 Easy

Topic: Hierarchy of Authority

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

64) The number of subordinates who report directly to a manager is known as the manager's

A) unity of command.

B) hierarchy of authority.

C) chain of command.

D) span of control.

Difficulty: 1 Easy

Topic: Hierarchy of Authority

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

65) Riku is a project manager who has 15 employees reporting directly to him. Those 15 employees represent Riku's

A) unity of command.

B) span of control.

C) chain of command.

D) unity of direction.

Difficulty: 2 Medium

Topic: Hierarchy of Authority

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

66) At Able Electronics, the person in charge of advertising is a staff manager, who reports to

A) the stockholders.

B) a manager in the direct chain of command.

C) the CEO.

D) a co-manager in the division.

Difficulty: 2 Medium

Topic: Task Specialist Roles; Task Role

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

67) The kitchen workers at Joe's Coffee Shop and Bakery report directly to Zara, the kitchen manager. Zara is a ________ manager.

A) line

B) product

C) staff

D) task force

Difficulty: 2 Medium

Topic: Task Specialist Roles; Task Role

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

68) An organizational structure becomes taller when it

A) grows in size and the hierarchy of authority lengthens.

B) maintains its original size and the hierarchy remains constant.

C) hires more employees while keeping the same number of managers.

D) expands its product base but maintains its staff size.

Difficulty: 1 Easy

Topic: Hierarchy of Authority

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

69) The idea that an organization's hierarchy should be designed with as few levels of authority as are necessary to use the organization's resources in an efficient and effective manner falls under which of the following principles?

A) integration

B) allocation

C) minimum chain of command

D) consolidation of command

Difficulty: 1 Easy

Topic: Hierarchy of Authority

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

70) Organizations can keep their hierarchy flat by

A) decreasing the span of control.

B) increasing the number of levels of management.

C) decentralizing authority.

D) centralizing authority.

Difficulty: 1 Easy

Topic: Hierarchy of Authority; Decentralized Authority

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

71) Allocating authority in an organization, which gives lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources, is an example of

A) decentralization of authority.

B) a high span of control.

C) centralization of authority.

D) maximum chain of command.

Difficulty: 1 Easy

Topic: Decentralized Authority

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

72) An organization that allows its employees to behave in a flexible way, even as the organization grows and becomes taller, is utilizing

A) managing as a rule.

B) decentralizing authority.

C) decreasing the span of control.

D) decreasing autonomy.

Difficulty: 1 Easy

Topic: Decentralized Authority

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

73) CoreSol Ltd. implements a liaison role by

A) creating a team that includes employees from three departments (marketing, engineering, and production) to manage a product to the launch stage.

B) having a representative in each of three departments (marketing, engineering, and production) meet to discuss the launching of a new product.

C) giving one manager in each of three departments (marketing, engineering, and production) the responsibility of coordinating with each other to brainstorm new product ideas.

D) providing a team consisting of members of three departments (marketing, engineering, and production) with status reports from senior managers of other departments.

Difficulty: 2 Medium

Topic: Task Specialist Roles

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

74) Which of the following is often known as an ad hoc committee?

A) a functional team

B) a cross-functional team

C) a task force

D) managers with integrating roles

Difficulty: 1 Easy

Topic: Task Force

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

75) Organizing tools that managers use to increase communication among functions and divisions are known as ________ mechanisms.

A) expansion

B) interaction

C) integrating

D) synchronizing

Difficulty: 1 Easy

Topic: Organizing

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

76) In which mechanism do senior managers provide members of a cross-functional team with relevant information from other teams and divisions?

A) liaison roles and departments

B) task forces

C) functional forces

D) integrating roles and departments

Difficulty: 1 Easy

Topic: Task Specialist Roles; Product Development Plan

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

77) A team of managers from different functions or divisions is temporarily formed to solve a specific, mutual problem. This is known as a

A) standing committee.

B) confederate committee.

C) functional force.

D) task force.

Difficulty: 1 Easy

Topic: Task Force

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

78) Fern Motor Co. brings together senior managers from its marketing, R—D, manufacturing, accounting, and finance departments to work together as a team to design a new type of sport utility vehicle. In this scenario, Fern Motor Co. creates a

A) cross-functional team.

B) vertically integrated team.

C) mass-production team.

D) standing committee.

Difficulty: 2 Medium

Topic: Task Specialist Roles

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

79) Jason has been hired by Praltiz Inc., an IT firm, to perform an integrating role by

A) determining which threats in the external environment should be taken most seriously.

B) conducting an in-house study to determine which departments can be trimmed.

C) advising the manager of the marketing department on how to appeal to teenage consumers.

D) increasing coordination between the marketing and research departments to achieve performance gains.

Difficulty: 2 Medium

Topic: Task Specialist Roles

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

80) To speed up the communication from the top managers down to the lower-level employees and vice versa, a CEO would most likely

A) reorganize the chain of command, thereby decreasing the flatness of the company.

B) expand the chain of command, thereby increasing the tallness of the company.

C) centralize the company, thereby changing it from a flat organization to a tall organization.

D) decentralize the company, thereby changing it from a tall organization to a flat organization.

Difficulty: 2 Medium

Topic: Decentralized Authority

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

81) Digistar, Inc., is a large corporation that produces a wide variety of products and services. As a result, it is a tall organization with a product structure. Employees are only expected to report to a single boss. Even so, communications between various functions in a division has become a problem. Because of this, it often takes a long time to bring new products to market, which is a severe handicap in highly competitive areas, such as printers. To expedite the process of bringing new printers into the market, Digistar should form a

A) boundaryless structure between the design division and marketing division of the company.

B) liaison relationship between the design and marketing section of the printer division.

C) team consisting of managers from the design, manufacturing, and marketing sections of the printer division.

D) task force consisting of managers from the design, manufacturing, and marketing divisions of the company.

Difficulty: 3 Hard

Topic: Task Specialist Roles

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

82) A formal agreement that commits two or more companies to exchange or share their resources in order to produce and market a product is known as a(n) ________ alliance.

A) outsourcing

B) task force

C) strategic

D) market structure

Difficulty: 1 Easy

Topic: Strategic Alliances

Learning Objective: 07-05 Describe how information technology (IT) is helping managers build strategic alliances and network structures to increase organizational efficiency and effectiveness.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

83) Tot Beverages forms a B2B network structure by

A) entering into an agreement with a company in Brazil that allows the Brazilian company to manufacture and market Tot Beverages to the Brazilian market.

B) purchasing its domestic bottle supplier, foreign syrup producer, and domestic distributor in order to gain more control over every stage of the value chain.

C) creating a series of agreements with its supplier in Brazil, manufacturer in Mexico, and distributor in the United States to produce and market Zing Col.

D) purchasing a domestic clothing store, a Swiss pharmaceutical company, and an English movie production company.

Difficulty: 3 Hard

Topic: Strategic Alliances

Learning Objective: 07-05 Describe how information technology (IT) is helping managers build strategic alliances and network structures to increase organizational efficiency and effectiveness.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

84) Alkyl, Ltd., designs shoes using computer-aided design, and they electronically store all new product information, including manufacturing instructions. When the designers have finished their work, they electronically transmit all the blueprints for the new products to Southeast Asian suppliers and manufacturers with which Alkyl has formed strategic alliances. Instructions for the design of a new sole are sent to a supplier in India and instructions for the leather uppers are sent to a supplier in Bhutan. Also, Alkyl has formed a strategic alliance with distributor in Taiwan. By doing this, Alkyl is implementing a

A) B2B network structure.

B) decentralized.

C) vertically integrated.

D) diversified product.

Difficulty: 3 Hard

Topic: B2B Network Structures; Strategic Alliances

Learning Objective: 07-05 Describe how information technology (IT) is helping managers build strategic alliances and network structures to increase organizational efficiency and effectiveness.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

85) Alkyl, Ltd., one of the leading shoe manufacturers, enters into a contract with Blinx—a foreign manufacturer—to only manufacture its shoes. In this scenario, Alkyl is following a(n) ________ strategy.

A) franchising

B) licensing

C) green field venturing

D) outsourcing

Difficulty: 2 Medium

Topic: B2B Network Structures; Strategic Alliances

Learning Objective: 07-05 Describe how information technology (IT) is helping managers build strategic alliances and network structures to increase organizational efficiency and effectiveness.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

86) Which of the following allows an organization to manage its global value chain and to find new ways to reduce costs while increasing the quality of products?

A) coordinating mechanisms

B) network structures

C) integration devices

D) functional alliances

Difficulty: 1 Easy

Topic: B2B Network Structures; Strategic Alliances

Learning Objective: 07-05 Describe how information technology (IT) is helping managers build strategic alliances and network structures to increase organizational efficiency and effectiveness.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

87) Which of the following is the series of global strategic alliances that an organization creates with suppliers, manufacturers, and distributors to produce and market a product?

A) global structure

B) complex network

C) B2B network structure

D) communications network

Difficulty: 1 Easy

Topic: B2B Network Structures; Strategic Alliances

Learning Objective: 07-05 Describe how information technology (IT) is helping managers build strategic alliances and network structures to increase organizational efficiency and effectiveness.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

88) An organization whose members are linked by computers, email, computer-aided design systems, videoconferencing, and cloud-based software is a ________ organization.

A) tall

B) complex

C) flat

D) boundaryless

Difficulty: 1 Easy

Topic: B2B Network Structures; Strategic Alliances

Learning Objective: 07-05 Describe how information technology (IT) is helping managers build strategic alliances and network structures to increase organizational efficiency and effectiveness.

Bloom's: Remember

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

89) RideOn, Inc., is an automobile company that has strategic alliances with two entities: a supplier in India and a manufacturer in South Africa. RideOn's vehicles are known for being of good quality, but they are more expensive than the average person can afford. The company would like to further reduce its costs so that it can pass those savings on to the end consumer. To do this RideOn would most likely

A) set up a liaison relationship between the South African manufacturer and a distributor in China.

B) form a strategic alliance with a distributor in China.

C) form a joint venture with the supplier in India.

D) create a boundaryless structure with the manufacturer in South Africa.

Difficulty: 3 Hard

Topic: B2B Network Structures; Strategic Alliances

Learning Objective: 07-05 Describe how information technology (IT) is helping managers build strategic alliances and network structures to increase organizational efficiency and effectiveness.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

90) Natasha sets up a publishing company, which uses freelance editors, writers, and marketers located in various areas of the United States. Even though these people never see each other face-to-face, the company runs efficiently. Natasha accomplished this by creating a

A) boundaryless organization.

B) strategic alliance.

C) B2B network structure.

D) tall organization.

Difficulty: 2 Medium

Topic: B2B Network Structures; Strategic Alliances

Learning Objective: 07-05 Describe how information technology (IT) is helping managers build strategic alliances and network structures to increase organizational efficiency and effectiveness.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

91) Briefly explain organizational structure, organizational design, and contingency theory.

Difficulty: 2 Medium

Topic: Organizational Development (OD)

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

92) Identify the four factors that are important determinants of an organizational structure.

• The nature of the organizational environment 
• The type of strategy the organization pursues 
• The technology (and particularly information technology) the organization uses
• The characteristics of the organization's human resources

Difficulty: 2 Medium

Topic: Organizational Development (OD)

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

93) Explain briefly the two factors that make technology routine or complicated, according to Charles Perrow.

Nonroutine or complicated technologies are characterized by high task variety and low task analyzability; this means that many varied problems occur and that solving these problems requires significant nonprogrammed decision making. In contrast, routine technologies are characterized by low task variety and high task analyzability; this means that the problems encountered do not vary much and are easily resolved through programmed decision making.

Difficulty: 2 Medium

Topic: Organizational Development (OD)

Learning Objective: 07-01 Identify the factors that influence managers' choice of an organizational structure.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

94) Describe job enlargement and given an example. What is its significance in an organization?

The idea behind job enlargement is that increasing the range of tasks performed by a worker will reduce boredom and fatigue and may increase motivation to perform at a high level, increasing both the quantity and the quality of goods and services provided.

Difficulty: 2 Medium

Topic: Job Enlargement

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

95) Discuss four ways in which a manager could redesign the job of a subordinate to enrich that subordinate's job. Give an example for each way.

• A manager can empower the subordinate to find a better way of doing his or her job. For example, a subordinate could be allowed to work at home more to allow him or her to focus on a certain task and avoid the distractions of working in an office. 
• A manager can encourage the subordinate to develop new skills that could be used in the job. For example, a sales clerk could be encouraged to attend a seminar to improve interpersonal skills to help the clerk interact with customers. 
• A manager can give the subordinate the responsibility to decide how to react to unexpected situations. For example, a librarian could be allowed to use his or her best judgement when dealing with difficult patrons instead of following formal guidelines. 
• A manager can allow the subordinate to monitor and to measure his or her own job performance. For instance, a computer programmer could be allowed to measure the effectiveness of his or her programming by observing people using it.

The idea behind job enrichment is that increasing workers' responsibility increases their involvement in their jobs and thus increases their interest in the quality of the goods they make or the services they provide.

Difficulty: 3 Hard

Topic: Job Enrichment

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

96) According to the job characteristics model, list and define the characteristics that determine how motivating the job is. Give an example for each.

• Skill variety: The extent to which a job requires that an employee use a wide range of different skills, abilities, or knowledge
• Task identity: The extent to which a job requires that a worker perform all the tasks necessary to complete the job, from the beginning to the end of the production process. For example, a person composing music for a film is often allowed to work on an assignment from the beginning of the composition to the orchestration of the piece.
• Task significance: The degree to which a worker feels his or her job is meaningful because of its effect on people inside the organization, such as coworkers, or on people outside the organization, such as customers. For instance, a person developing an inexpensive, nutritional food could find meaning if this food is eventually used to help starving people in various countries.
• Autonomy: The degree to which a job gives an employee the freedom and discretion needed to schedule different tasks and decide how to carry them out. For example, a designer for an advertising campaign could be given extensive freedom to schedule different tasks and decide how to carry them out.
• Feedback: The extent to which actually doing a job provides a worker with clear and direct information about how well he or she has performed the job. For example, a baseball player will receive immediate feedback from the crowd if he or she makes an error or hits a homerun.

Difficulty: 2 Medium

Topic: Job Design; Divisional Structure; Functional Structure

Learning Objective: 07-02 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

97) Discuss the advantages and disadvantages of the functional structure of organization.

Advantages

• First, when people who perform similar jobs are grouped together, they can learn from observing one another and thus become more specialized and can perform at a higher level.
• Second, when people who perform similar jobs are grouped together, it is easier for managers to monitor and evaluate their performance.
• Finally, managers appreciate functional structure because it allows them to create the set of functions they need in order to scan and monitor the competitive environment and obtain information about the way it is changing.

Disadvantages

• First, managers in different functions may find it more difficult to communicate and coordinate with one another when they are responsible for several different kinds of products, especially as the organization grows both domestically and internationally.
• Second, functional managers may become so preoccupied with supervising their own specific departments and achieving their departmental goals that they lose sight of organizational goals.

Difficulty: 2 Medium

Topic: Job Design; Functional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

98) Explain the forms of divisional structure and the organization of divisions under it. Give an example for each type of division.

1. When managers organize divisions according to the type of good or service they provide, they adopt a product structure. For example, a food company could organize divisions by breakfast cereals, baked goods, condiments, and cheeses.

2. When managers organize divisions according to the area of the country or world they operate in, they adopt a geographic structure. For example, a soft drink company that distributes its product worldwide could organize its division by geographic region, such as Europe, Central Asia, East Asia, South America, and so on.

3. When managers organize divisions according to the type of customer they focus on, they adopt a market structure. For example, a computer company could have distinct groups of customers, each with different needs. As a result, such a company might organize divisions according to home use, small businesses, and large businesses.

Difficulty: 2 Medium

Topic: Job Design; Divisional Structure

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

99) Describe the matrix structure and the concept of the "two-boss employees."

Each person in a product team reports to two managers:

• A functional boss, who assigns individuals to a team and evaluates their performance from a functional perspective
• The boss of the product team, who evaluates their performance on the team

Thus, team members are known as two-boss employees.

Difficulty: 2 Medium

Topic: Task Specialist Roles; Task Role

Learning Objective: 07-03 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

100) Explain the problems present in tall organizations.

Another communication problem that can result is the distortion of commands and messages being transmitted up and down the hierarchy, which causes managers at different levels to interpret what is happening differently. Distortion of orders and messages can be accidental, occurring because different managers interpret messages from their own narrow, functional perspectives. Or distortion can be intentional, occurring because managers low in the hierarchy decide to interpret information in a way that increases their own personal advantage.

Another problem with tall hierarchies is that they usually indicate that an organization is employing many managers, and managers are expensive. Managerial salaries, benefits, offices, and secretaries are a huge expense for organizations.

Difficulty: 2 Medium

Topic: Organizational Development (OD)

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

101) State the differences between a line and staff manager. Give an example of each.

Difficulty: 2 Medium

Topic: Hierarchy of Authority; Task Specialist Roles; Task Role

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Apply

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

102) Discuss the advantages and disadvantages of "decentralization" in organizational design.

However, too much decentralization has certain disadvantages. If divisions, functions, or teams are given too much decision-making authority, they may begin to pursue their own goals at the expense of organizational goals. Also, too much decentralization can result in a lack of communication among functions or divisions; this prevents the synergies that result from cooperation from ever materializing, and organizational performance suffers.

Difficulty: 2 Medium

Topic: Decentralized Authority

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

103) Briefly discuss liaison roles, task forces, and cross-functional teams.

• Liaison roles: Managers can increase coordination among functions and divisions by establishing liaison roles. When the volume of contacts between two functions increases, one way to improve coordination is to give one manager in each function or division the responsibility for coordinating with the other. Coordinating is part of the liaison's full-time job. Furthermore, liaison roles provide a way of transmitting information across an organization, which is important in large organizations whose employees may know no one outside their immediate function or division.
• Task forces: When more than two functions or divisions share many common problems, a more complex integrating mechanism, a task force, may be appropriate. One manager from each relevant function or division is assigned to a task force that meets to solve a specific, mutual problem. Members are responsible for reporting to their departments on the issues addressed and the solutions recommended. Task forces are temporary; they may meet on a regular basis or only a few times. When the problem or issue is solved, the members return to their normal roles in their departments or are assigned to other task forces. Typically, task force members also perform many of their normal duties while serving on the task force.
• Cross-functional teams: To address recurring problems effectively, such as the need to develop new products or find new kinds of customers, managers are increasingly using permanent integrating mechanisms such as cross-functional teams. These teams assume long-term responsibility for all aspects of developing and making the product.

Difficulty: 2 Medium

Topic: Task Specialist Roles; Task Role

Learning Objective: 07-04 Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

104) Define strategic alliance and network structure and give an example of each. Also, discuss their usage.

A strategic alliance is a formal agreement that commits two or more companies to exchange or share their resources in order to produce and market a product. Strategic alliances are formed because the companies share similar interests and believe they can benefit from cooperating. For example, a soft drink company could form a strategic alliance with a movie theater chain. As part of this agreement, the movie theater chain would agree to sell only soft drinks made by the allied company. Also, the theater chain provides an exclusive outlet for the soft drink company's product. Over time, these companies work closely with their suppliers to improve the efficiency and effectiveness of the inputs so that the final product produced is of higher quality and very often can be produced at lower cost.

A network structure is a series of global strategic alliances that one or several organizations create with suppliers, manufacturers, and/or distributors to produce and market a product. For example, a U.S.-based automobile company could create global strategic alliances with a supplier in China, a manufacturer in Malaysia, and a distributor in the United Kingdom. Network structures allow an organization to manage its global value chain in order to find new ways to reduce costs and increase the quality of products—without incurring the high costs of operating a complex organizational structure (such as the costs of employing many managers).

Difficulty: 3 Hard

Topic: B2B Network Structures; Strategic Alliances

Learning Objective: 07-05 Describe how information technology (IT) is helping managers build strategic alliances and network structures to increase organizational efficiency and effectiveness.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

105) Explain how boundaryless organizations operate.

Difficulty: 2 Medium

Topic: B2B Network Structures; Strategic Alliances

Learning Objective: 07-05 Describe how information technology (IT) is helping managers build strategic alliances and network structures to increase organizational efficiency and effectiveness.

Bloom's: Understand

AACSB: Knowledge Application

Accessibility: Keyboard Navigation