Chapter 8—Designing Adaptive Organizations
TRUE/FALSE
1. Organizational structure is the description of the vertical and horizontal configuration of departments,
authority, and jobs within a company.
2. While organizational structure emphasizes the activities through which work is done in the
organization, organizational process emphasizes jobs and their authority relationships.
3. Functional departmentalization organizes work and workers into separate units responsible for
particular business functions or areas of expertise.
4. Departmentalization is a method of organizing work and workers into separate units responsible for
particular business functions or areas of expertise.
5. Cross-department coordination tends to be very easy in organizations with functional
departmentalization.
6. Product departmentalization organizes work and workers into separate units responsible for particular
kinds of customers.
7. The two disadvantages associated with product departmentalization are costly duplication and
difficulties with cross-departmental coordination.
8. Under product departmentalization, it is easier for top managers to assess work-unit performance.
9. Matrix departmentalization is a hybrid structure in which two or more forms of departmentalization,
such as the product and functional forms are used together.
10. In matrix departmentalization, as in other forms of departmentalization, most employees report to a
single boss.
11. The coordination of departmental activities tends to be more difficult with the geographic approach to
departmentalization than with the other approaches.
12. The most common matrix combines customer and functional forms of departmentalization.
13. One of the reasons that matrix organizations are difficult to manage is that the organizational structure
violates the principle of delegation of authority.
14. In a decentralized organization, workers closest to problems are authorized to make the decisions
necessary to solve the problems on their own.
15. The term task description refers to the number, kind, and variety of tasks that individual workers
perform in doing their jobs.
16. Specialized jobs are characterized by simple, easy–to-learn steps; low variety; and high repetition.
17. In spite of their disadvantages, companies continue to create and use specialized jobs because they are
very economical.
18. Specialized jobs are generally inefficient.
19. Job enlargement and job enrichment mean essentially the same thing.
20. An organic organization is characterized by broadly defined jobs and responsibility; loosely defined,
frequently changing roles; and decentralized authority and horizontal communication based on task
knowledge.
21. All organizations can be categorized clearly as either completely mechanistic or completely organic.
22. Using reciprocal interdependence, work must be performed in succession because one group or job’s
outputs become the inputs for the next group or job.
23. Empowerment can lead to changes in organizational processes because meaning, competence, impact,
and self-determination produce empowered employees who take active rather than passive roles in
their work.
24. A virtual organization is an organization that outsources noncore business activities to outside
companies, suppliers, specialists, or consultants.
25. One of the advantages of a virtual organization is the fact that it allows member companies to share
costs.
26. A virtual organization is part of a network in which many companies share skills, costs, capabilities,
markets, and customers with each other.
MULTIPLE CHOICE
1. As a class project, Senora is working with other classmates to create a company that would market
NASCAR memorabilia. Senora’s teacher has instructed her 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
e.
create a matrix structure that will adhere to the unity of command principle
2. ____ is the collection of activities that transform inputs into outputs that customer’s value.
a.
Reengineering
b.
Functionalization
c.
Organizational structure
d.
Production positioning
e.
Organizational process
3. The organizational process ____.
a.
defines roles not activities
b.
limits the adaptivity of an organization
c.
uses vertical and horizontal departmentalization
d.
is a traditional method for establishing organizational structures
e.
is the collection of activities that transform inputs into outputs that customers value
4. While ____ emphasizes jobs and their authority relationships, ____ emphasizes the activities through
which work gets done in the organization.
a.
departmentalization; functionalization
b.
organizational process; organizational structure
c.
interorganizational process; intraorganizational process
d.
intraorganizational process; interorganizational process
e.
organizational structure; organizational process
5. ____ departmentalization is defined as organizing work and workers into separate units responsible for
particular business functions or areas of expertise.
a.
Functional
b.
Customer
c.
Matrix
d.
Product
e.
Hierarchical
6. Kimberly-Clark is subdivided into organizational units called Kimberly-Clark Health Care, which
provides products to hospitals, Kimberly-Clark Professional, which sells to businesses, and
Kimberly-Clark Consumer, which sells the company’s products to customers. From this information,
you know that Kimberly-Clark uses ____.
a.
hierarchical functionalization
b.
departmentalization
c.
a nonlinear organizational structure
d.
a product layout
e.
product formatting
7. As a consequence of the Industrial Revolution and its emphasis on specialization, institutions
providing higher education developed strict departments that contained specialized functions. This
organizational structure was perceived as a way to enhance the accumulation and dissemination of
knowledge. Institutions providing higher education have traditionally used ____.
a.
reengineering
b.
functionalization
c.
departmentalization
d.
functional empowerment
e.
job dissemination
8. ____ 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
e.
Functionalization
9. Which of the following statements about functional departmentalization is true?
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 requires the same kinds of functional departments in any
company.
e.
Functional departmentalization is also called free-form specialization.
10. Which of the following is NOT a characteristic of functional departmentalization?
a.
Functional departmentalization allows work to be done by highly qualified specialists.
b.
Functional departmentalization lowers costs by reducing duplication.
c.
Functional departmentalization produces managers with broader experience and expertise.
d.
Functional departmentalization complicates coordination between departments.
e.
Functional departmentalization organizes workers into separate units responsible for
performing particular business functions.
11. Functional departmentalization ____.
a.
makes it easier for top managers to assess work-unit performance
b.
allows work to be done by highly qualified specialists
c.
produces managers with broader experience and expertise
d.
enhances coordination between departments
e.
encourages interdepartmental communication
12. Hallmark has four departments. These departments are (1) Flowers and Gifts, (2) Cards and E-cards,
(3) Hallmark Collectibles, and (4) Photo Albums and Scrapbooks. Hallmark uses ____
departmentalization.
a.
matrix
b.
product
c.
customer
d.
geographic
e.
functional
13. Disadvantages of ____ departmentalization include slower decision making, the development of
managers and workers with narrow experience and expertise, and makes it more difficult for
cross-departmental coordination.
a.
product
b.
customer
c.
geographic
d.
functional
e.
hierarchical
14. A manufacturer of acrylic and latex gloves sells to medical laboratories, to factories where employees
handle chemicals, to companies that manufacture micro-tech equipment, and to cleaning services.
Because it is organized to better satisfy the needs of each of its four target markets, the manufacturer
uses ____ departmentalization.
a.
matrix
b.
product
c.
customer
d.
geographic
e.
functional
15. Large accounting agencies typically have separate departments that deal with households, businesses,
and governments. This allows them to better serve the needs of their clients, by using ____
departmentalization.
a.
matrix
b.
product
c.
customer
d.
geographic
e.
functional
16. With divisions that focus on business clients and consumer clients, companies like Sprint, American
Express, and others are examples of ____ departmentalization.
a.
boundaryless
b.
product
c.
customer
d.
functional
e.
matrix
17. The primary disadvantage of customer departmentalization is ____.
a.
an over-emphasis on customer needs
b.
duplication
c.
difficulties in coordinating across departments
d.
overspecialization of managers and workers
e.
an inability to solve problems for specific customers
18. Procter & Gamble has divisions for personal and beauty, house and home, health and wellness, baby
and family, and pet nutrition and care. These divisions indicate that the company uses ____
departmentalization.
a.
functional
b.
geographic
c.
product
d.
customer
e.
strategic business unit (SBU)
19. Which of the following types of departmentalization does NOT have a problem with the duplication of
resources?
a.
functional
b.
geographic and matrix
c.
product and customer
d.
customer and functional
e.
geographic
20. With ____ departmentalization, most employees report to two bosses.
a.
geographic
b.
matrix
c.
product
d.
customer
e.
functional
21. The primary disadvantage of geographic departmentalization is ____.
a.
the absence of cross-departmental coordination
b.
broken chains of command
c.
spans of control that are too wide
d.
the lack of empowerment
e.
duplication of resources
22. Commerce Insurance Services has five divisions. They are personal; core commercial; Main Street
business; major commercial; and benefits. The company is also departmentalized along product lines.
Commerce Insurance Services uses ____ departmentalization.
a.
boundaryless
b.
product
c.
customer
d.
functional
e.
matrix
23. Which of the following statements about matrix departmentalization is true?
a.
Most employees in an organization that uses matrix departmentalization report to two
bosses.
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 needs to be significant coordination between
functional and project managers.
d.
The most common matrix combines product and functional departmentalization.
e.
All of these statements about matrix departmentalization are true.
24. The primary advantage of ____ departmentalization is the fact that it allows companies to manage
large, complex tasks efficiently by minimizing duplication.
a.
product
b.
functional
c.
matrix
d.
geographic
e.
functional
25. In a(n) ____, managers from different parts of the matrix report to matrix managers who help them
sort out problems and conflicts.
a.
networked matrix
b.
synergistic matrix
c.
complex matrix
d.
hierarchical matrix
e.
organic matrix
26. A(n) ____ is a form of matrix departmentalization in which managers in different parts of the matrix
negotiate conflicts and resources directly.
a.
simple matrix
b.
networked matrix
c.
empathetic matrix
d.
matrix of convenience
e.
synergistic matrix
27. ____ departmentalization is notorious for confusion and conflict between project managers in different
areas of the organization.
a.
Matrix
b.
Functional
c.
Customer
d.
Product
e.
Geographic
28. Of all types of departmentalization, ____ departmentalization requires the highest level of
management skill for successful implementation.
a.
geographic
b.
customer
c.
matrix
d.
product
e.
functional
29. Because of problems associated with conflicts over schedules, budgets, and available resources
(including employees), ____ departmentalization often evolves from a simple form to a more complex
form.
a.
hierarchical
b.
functional
c.
customer
d.
product
e.
matrix
30. Honeywell Inc. reorganized its European operations along customer lines to prepare for a unified
European Union. In doing so, it abandoned matrix departmentalization. Why would Honeywell engage
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 improve its ability to handle complex tasks
e.
to end conflict between product managers in different parts of its matrix
31. In terms of the chain of command, ____ authority is the right to command immediate subordinates,
while ____ authority is the right to advise but not command others who are not subordinates.
a.
departmental; functional
b.
centralized; decentralized
c.
functional; expert
d.
internal; external
e.
line; staff
32. Organizational authority is traditionally characterized by ____.
a.
chain of command
b.
empowerment
c.
behavioral informality
d.
reengineering
e.
all of these
33. Robert Strickland works in the legal department at a large consumer products manufacturer. It is his
job to craft warnings on package labels. This is Strickland’s ____.
a.
line function
b.
boundary-spanning role
c.
chain of command role
d.
staff function
e.
personal empowerment role
34. As a result of their structures, matrix organizations automatically violate the principle of ____.
a.
line authority
b.
unity of command
c.
delegation of authority
d.
degree of centralization
e.
staff authority
35. One of the key assumptions underlying the chain of command is ____, which means that workers
should report to just one supervisor.
a.
delegation of command
b.
empowerment
c.
synergistic authority
d.
unity of command
e.
centralization of authority
36. A(n) ____ function is an activity that contributes directly to creating or selling the company’s products.
a.
staff
b.
line
c.
mechanistic
d.
organic
e.
charted
37. Jennifer Lee works in the public relations department of a large pharmaceutical company. It is her job
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. Lee has ____.
a.
line authority
b.
mechanistic authority
c.
empowerment obligations
d.
staff authority
e.
linear power
38. An international distribution company has a shipping division, a warehouse division, a computer
hardware and software distribution center, 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. His
supervisor in the shipping division wants expense accounts submitted monthly. The salesperson is
likely experiencing a problem with ____.
a.
line authority
b.
delegation of authority
c.
centralization
d.
chain of command
e.
organizational synergy
39. The chain of command ____.
a.
is the horizontal line of authority that indicates at which level of management an
individual belongs
b.
acts at cross-purposes to the unity of command principle
c.
is only relevant in mechanistic organizations
d.
does not permit delegation of authority
e.
is described by none of these
40. Which of the following positions 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
e.
a shift supervisor
41. ____ involves assigning direct authority and responsibility to a subordinate to complete tasks for
which the manager is normally responsible.
a.
A job description
b.
Staff functionality
c.
Delegation of authority
d.
Decentralization
e.
An organization chart
42. When managers delegate work, three transfers occur. The three transfers are responsibility, authority,
and ____.
a.
utility
b.
synergy
c.
reciprocity
d.
accountability
e.
empathy
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 decided to give his
assistant the full responsibility and authority for developing a mailing campaign to target churches on
the Mississippi Gulf Coast. In other words, the marketing manager has ____.
a.
implemented feedback controls
b.
created a staff position
c.
embraced the matrix organizational philosophy
d.
delegated the task
e.
created a win-win relationship
44. ____ is the process of solving problems by consistently applying the same rules, procedures, and
processes.
a.
Consistency planning
b.
Organizational autonomy
c.
Standardization
d.
Problem empowerment
e.
Procedural planning
45. Like most large U.S. hospitals, University Health Care System spends an enormous amount on patient
supplies. The hospital has more than 15,000 individual products that are purchased on a routine basis.
Its purchasing manager instituted a hospital-wide purchasing policy that gave a specific code to each
individual item. In other words, the purchasing manager engaged in ____.
a.
consistency planning
b.
organizational autonomy
c.
standardization
d.
problem empowerment
e.
procedural planning
46. An Indian Catholic Cardinal’s call for local church leaders to have more power and for papal authority
to be distributed to lower levels within the Catholic hierarchy has elicited agreement from other church
leaders in India. He also asserted that bishops should not have “to run to Rome for everything” and that
canon law should be modified to allow the pope to share his authority. Vithayathil is calling for ____.
a.
centralization
b.
standardization
c.
top management empowerment
d.
job specialization
e.
decentralization
47. According to an Indian Cardinal by the name of Varkey Vithayathil, the greatest weakness of the
Catholic Church is the way papal authority is exercised without the participation of those concerned.
His eminence Cardinal Vithayathil is criticizing the fact that the Catholic Church relies on ____.
a.
centralization of authority
b.
standardization
c.
top management reciprocity
d.
job specialization
e.
decentralization
48. Decentralization ____.
a.
leads to faster decision making and more satisfied customers and employees
b.
tends to stymie employee capabilities
c.
is characteristic of large companies
d.
is more appropriate where standardization is important
e.
is accurately described by all of these
49. Where standardization is important, it is appropriate to ____.
a.
centralize authority
b.
decentralize authority
c.
emphasize line authority
d.
have a flat organizational structure
e.
evaluate interdependence
50. ____ is characterized by simple, easy-to-learn steps; low variety; and high repetition.
a.
Job consistency
b.
Job specialization
c.
Task reengineering
d.
Standardization
e.
Task homogeneity
51. Job specialization can result in ____.
a.
high job satisfaction
b.
employee boredom
c.
low employee turnover
d.
complicated job designs
e.
low absenteeism
52. ____ determines the number, kind, and variety of tasks that individual workers perform in their jobs.
a.
Standardization
b.
Task mapping
c.
Job design
d.
Job specialization
e.
An organizational chart
53. An organization that has increased the number of different tasks that a worker performs within one
particular job has engaged in ____.
a.
task aggregation
b.
job specialization
c.
job enlargement
d.
employee specialization
e.
job rotation
54. The Ryerson University Library is organized in a hierarchy with six unit heads reporting to a chief
librarian. Within these units are fifteen librarians and forty-seven full-time library staff. One of the
tools used in the organizational development of the library was to systematically move employees
from one job to another to give them an opportunity to learn and use different skills. The Ryerson
University Library used ____.
a.
task aggregation
b.
job specialization
c.
job enlargement
d.
employee specialization
e.
job rotation
55. The job design approach associated with ____ involves increasing the number of different tasks that a
worker performs within one particular job and giving workers the authority and control to make
meaningful decisions about their work.
a.
job rotation and job enlargement
b.
job specialization and job enrichment
c.
job specialization and job enlargement
d.
job enlargement and job enrichment
e.
job enrichment and job rotation
56. The central concern of the job characteristics model (JCM) is ____.
a.
internal motivation
b.
synergy
c.
task identification
d.
time-motion studies
e.
a value-added measure
57. Which of the following approaches to job redesign entails more than simply providing additional
variety in job tasks?
a.
the job enrichment plan
b.
the job characteristics model
c.
the Gantt chart
d.
the task specialization map
e.
the task breakdown plan
58. Which of the following is NOT one of the core job characteristics in the job characteristics model
(JCM)?
a.
client relationships
b.
task identity
c.
autonomy
d.
skill variety
e.
task significance
59. Elena works in a data processing department for a large credit reporting service and is bored. She
spends her days inputting an endless stream of monotonous data into much larger data bases.
According to the job characteristics model (JCM), one of the primary reasons for her boredom is ____.
a.
a low degree of feedback
b.
a high degree of autonomy
c.
a low degree of task identity
d.
a high degree of task significance
e.
a high degree of skill variety
60. ____ is the degree to which a job gives workers the discretion, freedom, and independence to decide
how and when to accomplish their jobs.
a.
Task significance
b.
Task identity
c.
Skill variety
d.
Autonomy
e.
Skill feedback
61. ____ is the degree to which a job is perceived to have a substantial impact on others inside or outside
the organization.
a.
Task significance
b.
Skill feedback
c.
Skill variety
d.
Autonomy
e.
Task identity
62. According to the job characteristics model, ____ means pushing some managerial authority down to
workers.
a.
establishing reciprocity
b.
vertical loading
c.
forming natural work units
d.
decoding tasks
e.
creating group norms