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79) In structural terms, a virtual organization is highly centralized, with little or no
departmentalization.
80) A virtual organization lacks flexibility.
81) ________ is a systematic effort to make an organization leaner by selling off business units,
closing locations, or reducing staff.
A) Removing boundaries
B) Departmentalizing
C) Decentralizing
D) Downsizing
E) Formalizing
82) Describe the various ways in which the negative impact of downsizing can be minimized.
83) A(n) ________ model is generally synonymous with the bureaucracy in that it has highly
standardized processes for work, high formalization, and more managerial hierarchy.
A) mechanistic
B) organic
C) network
D) boundaryless
E) pyramidal
84) A(n) ________ model is a structure that is flat, uses cross-hierarchical and cross-functional
teams, has low formalization, possesses a comprehensive information network, and relies on
participative decision making.
A) mechanistic
B) organic
C) boundaryless
D) network
E) pyramidal
85) Which of the following is typically a characteristic of an organic model of organization?
A) narrow spans of control
B) centralization
C) free flow of information
D) high formalization
E) inflexibility
86) Which of the following is typically a characteristic of the mechanistic model of organization?
A) low formalization
B) rigid departmentalization
C) decentralized management
D) wide spans of control
E) low specialization
87) A(n) ________ strategy emphasizes the introduction of major new products and services.
A) innovation
B) cost-minimization
C) imitation
D) organic
E) mechanistic
88) Organizations following a(n) ________ strategy try to both minimize risk and maximize
opportunity for profit, moving into new products or new markets only after innovators have
proven their viability.
A) innovation
B) cost-cutting
C) imitation
D) organic
E) mechanistic
89) Which of the following is most likely to be a characteristic of an organization pursuing an
innovation strategy?
A) high formalization
B) high specialization
C) decentralized control
D) rigid departmentalization
E) narrow span of control
90) Which of the following is most likely to be a characteristic of an organization pursuing a
cost-minimization strategy?
A) lack of tight control
B) wide span of control
C) low work specialization
D) high centralization
E) low formalization
91) Which of the following terms refers to the way an organization transfers inputs into outputs?
A) volatility
B) formalization
C) complexity
D) technology
E) environment
92) What are the key dimensions to any organization's environment?
A) conformity, criticality, and diffusivity
B) complexity, volatility, and capacity
C) complexity, diffusivity, and criticality
D) conformity, criticality, and capacity
E) criticality, volatility, diffusivity
93) Which of the following dimensions of an environment describes the degree to which the
environment can support growth?
A) capacity
B) flexibility
C) volatility
D) sustainability
E) complexity
94) Volatility refers to the degree of ________ within an environment.
A) heterogeneity
B) instability
C) flexibility
D) diffusivity
E) conformity
95) The ________ of an environment refers to the degree of heterogeneity and concentration
among environmental elements.
A) density
B) simplicity
C) complexity
D) intricacy
E) permeability
96) Harald is opening a manufacturing plant with a mechanistic and centralized structure.
Employees from which of the following countries will be least comfortable with this type of a
structure?
A) Greece
B) Peru
C) Canada
D) France
E) Chile
97) Institutions are cultural factors that act as guidelines for appropriate behavior for
organizational structure.
98) The more scarce, dynamic, and complex the environment, the more organic a structure
should be.
99) Compare and contrast the three primary organizational strategies: innovation, cost-
minimization, and imitation.
100) What are the three dimensions that characterize the environment of an organization?
101) What is the difference between a mechanistic model and an organic model of organizational
structure?
102) Who coined the term boundaryless organization?
A) Steve Jobs
B) Jack Welch
C) Milton Friedman
D) John Maynard Keynes
E) Frederick Herzberg
103) A boundaryless organization strives to ________.
A) break down barriers between the company, its customers, and suppliers
B) reduce bureaucracy costs associated with managing the projects in the organization
C) outsource projects to a competent third party
D) create a higher level of formalization in the organization
E) centralize power within the organization
104) Odysseus Corp. is attempting to flatten its organizational hierarchy. It is encouraging the
use of cross-hierarchical teams, participative decision-making practices, and 360-degree
performance appraisals. Based on this information, we can say that Odysseus Corp. is attempting
to create a ________ organization.
A) highly centralized
B) virtual
C) boundaryless
D) highly formalized
E) highly departmentalized
105) A boundaryless organization is most likely to ________.
A) encourage hierarchical structure
B) avoid using cross-hierarchical teams
C) discourage participative decision-making practices
D) use 360-degree performance appraisals
E) replace empowered teams with departments
106) You decide to eliminate horizontal, vertical, and external barriers within your organization.
You want to operate as a ________ organization.
A) matrix
B) formalized
C) team structure
D) boundaryless
E) centralized
107) Which of the following is a method that companies can use to break down cultural barriers
in the global market?
A) increase the degree of formalization
B) use only organic structures
C) increase the degree of centralization
D) limit global expansion
E) form strategic alliances
108) Work specialization contributes to higher employee productivity, but at the price of
________.
A) reduced economies of scale
B) increased cost
C) reduced job satisfaction
D) restricted flow of information
E) increased complexity
109) Some individuals want work that makes minimal intellectual demands and provides the
security of routine; for them, ________ is a source of job satisfaction.
A) free flow of information
B) wide span of control
C) low formalization
D) high work specialization
E) high decentralization
110) A boundaryless organization tries to flatten the hierarchy and minimizes status and rank.
111) The goal of a boundaryless organization is to break down cultural barriers.
112) Managers must take individual differences, such as experience, personality, culture, and the
work task, into account to maximize employee performance and satisfaction.
113) Explain the concept of the boundaryless organization and how boundaryless organizations
are useful in breaking down cultural barriers in a global workplace.
