CHAPTER 8—ORGANIZATION STRUCTURE, CULTURE, AND CHANGE
MULTIPLE CHOICE
1. The clearest example of a staff department in a manufacturing organization would be
a.
sales.
b.
operations.
c.
food services.
d.
quality assurance.
2. One of the reasons that bureaucracies have endured is that they
a.
provide ample opportunity for risk taking and thrill seeking.
b.
help satisfy people’s need for order and security.
c.
were designed with the age of the Internet in mind.
d.
are almost immune to downsizing.
3. A notable disadvantage of a bureaucracy is that it often leads to
a.
unclear managerial responsibility.
b.
rigidity in dealing with people.
c.
an insufficient amount of rules and regulations.
d.
wide of span of control.
4. The organization structure best suited to gaining the advantage of specialization is ____
departmentalization.
a.
functional
b.
geographic
c.
product
d.
matrix
5. A disadvantage of product-service departmentalization is that
a.
customer needs may be neglected.
b.
field units lack authority.
c.
it often leads to duplication of effort.
d.
employees rarely identify with the field units.
6. A key advantage of geographic departmentalization is that it allows for
a.
decision making at a local level
b.
consideration of the local culture.
c.
a & b
d.
a one size fits all strategy
7. A matrix organization can be described as a(n) ____ structure superimposed on a ____ structure.
a.
project; functional
b.
product; territorial
c.
process; product
d.
informal; formal
8. A wide span of control is advised when
a.
there is considerable flux in the work setting.
b.
group members perform similar tasks.
c.
group members are physically dispersed.
d.
group members and the manager are highly capable.
9. Downsizing is the most likely to be successful when
a.
high-value activity is eliminated first.
b.
information about the pending layoff is held back from employees.
c.
it is part of the business strategy to improve the company.
d.
it is a stopgap measure to save the company money.
10. Companies such as Dell purchase complete designs for some digital devices from Asian developers.
This is called
a.
division of labor
b.
outsourcing
c.
implementing
d.
scenario planning
11. You know that you are a homesourcing agent when you
a.
perform call center duties out of your home.
b.
sell products from door to door.
c.
organize parties in your home to sell products.
d.
work in a large call center responding to problems with consumer products.
12. An example of a horizontal organization structure would be a
a.
department producing an engine.
b.
team assembling components for company machines.
c.
purchasing department.
d.
team responsible for filling orders.
13. The radical redesign of work to achieve substantial improvements in performance is called:
a.
reengineering
b.
job design
c.
downsizing
d.
resistance to change
14. To become part of the informal organization structure, you should
a.
study the company organization chart carefully.
b.
become a temporary worker.
c.
send your résumé to key managers.
d.
establish a network of contacts to help you accomplish work.
15. Flexible organization structures, such as project and matrix structures, are the most likely to be found
in
a.
high-technology firms.
b.
lumber mills.
c.
pasta factories.
d.
poultry processing plants.
16. A suggestion for effective delegation is to
a.
delegate part of a task.
b.
give as much instruction as needed.
c.
closely monitor the details.
d.
assign the task to the highest-ranking company official.
17. Long John Silver’s central headquarters exercises tight control over such matters as menu selection;
however, franchises make human resource decisions such as hiring. This is an example of
a.
centralization
b.
decentralization
c.
specialization
d.
centralization and decentralization
18. The foundation of an organizational culture is the organization’s
a.
relative diversity.
b.
values.
c.
resource allocation and rewards.
d.
degree of change.
19. The dimension or organization culture called a sense of ownership, typically comes about when
a.
the company helps employees purchase houses.
b.
employees develop pride in the company.
c.
the company helps employees get out of debt.
d.
employees purchase stock in the company.
20. The primary way that employees learn the organization culture is through
a.
the process of socialization.
b.
studying the company Website.
c.
studying the company intranet.
d.
making mistakes and then being corrected.
21. The right organizational culture can enhance
a.
productivity, quality, and morale.
b.
person-organization fit.
c.
competitive advantage.
d.
all of the choices
22. CEO Justin wants to sustain the company’s culture. One of the recommended actions he can take is to
a.
suggest that employees decide on their own culture.
b.
bring outsiders into the company whose values clash with the company’s culture.
c.
include a statement of the company’s desired culture in the annual report.
d.
serve as a role model for the desired attitudes and behaviors.
23. A recommended technique for gaining support for change is to
a.
discuss and negotiate sensitive issues.
b.
figure out what to do as one goes along.
c.
discourage worker participation in the changes.
d.
avoid discussion about financial consequences.
24. An important emphasis of a Six Sigma program is to
a.
prevent problems.
b.
punish employees who perform sloppy work.
c.
minimize the behavioral aspects of achieving high quality.
d.
base quality standards on individual differences.
25. In the Model for Change, ______________involves reducing or eliminating resistance to change.
a.
Refreezing
b.
Changing
c.
Thawing
d.
Unfreezing .
TRUE/FALSE
1. A bureaucracy is characterized by a hierarchy of authority.
2. An analysis suggested that many organizations have suffered because of abandoning the bureaucratic
structure, such as eliminating policies, rules, and regulations.
3. A functional organization is the traditional way of arranging job activities in the workplace.
4. In a smooth-running organization with open communication, the various product or service units
cooperate with each other for mutual benefit.
5. A problem with geographical departmentalization is that it leads to too much centralization of decision
making.
6. In a matrix organization, the project managers have line authority over the people assigned to their
projects.
7. The wider a manager’s span of control, the fewer workers that report directly to him or her.
8. A major justification for outsourcing is that a company is likely to profit when it focuses its effort on
activities it performs best, while noncore activities are performed by outside experts.
9. In a horizontal structure, the members of the group focus on a specialized task such as accounting or
purchasing.
10. Reengineering results in a horizontal layout of work.
11. Informal structures in organizations are based to a large extent on the networks of contacts people use
to get work accomplished.
12. Advances in information technology make it possible for workers throughout an organization to solve
problems without being restricted by an organization chart.
13. Social network analysis refers to the mapping and measuring of relationships and links between and
among people, groups, and organizations.
14. Delegation can be used to make empowerment possible.
15. When a business firm faces an uncertain and unstable environment, it needs a highly flexible structure.
16. Centralization is the extent to which authority is retained at the top of the organization.
17. A perspective on national culture is that the introduction of values from another society into a retail
business can be a competitive advantage.
18. One of the major forces influencing an organization culture is the industry in which it operates.
19. A subculture is a pocket in which the organizational culture differs from the dominant culture and
from other pockets of subculture.
20. An effective way for corporate leaders to change the organizational culture is to engage in behavior
they would like others to imitate.
21. A reliable predictor of success in merging two or more firms is the compatibility of their respective
cultures.
22. The unfreezing phase of the change model involves getting workers to learn new habits.
23. Six Sigma emphasizes statistical analysis and measurement to help achieve high quality.
24. The presentation of compelling reasons for change will often create a sense of urgency.
25. People resist change because they fear an unfavorable outcome, such as less money or personal
inconvenience.
ESSAY
1. Identify and describe the most common forms of departmentalization. Give company examples where
you can.
2. First describe, then draw, a matrix organization structure.
3. The appointment of a new chief executive at Procter & Gamble sparked broad management changes.
He planned to reduce the levels of management between entry-level positions and the chief executive.
The CEO planned to “create a simpler, flatter and more agile organization,” he said. “This is a priority
because simplification reduces cost, improves productivity, and enhances employee satisfaction.”
1. Is organization structure related productivity and job satisfaction? Explain
2. What resistance to change might the CEO encounter?
4. What can a CEO do to bring about change in his or her organization?
