Chapter 8 Managing the Information Technology Resource 1
Chapter 8
Organizing IT
True-False Questions
1.
Scientific management has proven that there is one best way to manage an organization.
2.
The adhocracy structure is characterized by a division of labor, hierarchical decision-making,
a high degree of formal procedures and regulations, and impersonal relationships.
3.
Horizontal process tunnels are generally found in decentralized organizations and describe
those units of the firm that have been created to focus on a particular business area in an
independent fashion.
4.
In a machine bureaucracy organizational structure, the IT department is typically a
centralized function.
5.
The vertical functional stovepipe is generally found in a decentralized organization.
6.
A major benefit of a vertical functional stovepipe is that it facilitates communication between
the different functional units.
7.
The use of a temporary team to address an emergency is often referred to as a SWOT
analysis.
8.
A major drawback of the matrix organization type is that the employees report to only one
boss.
2 Managing the Information Technology Resource
9.
A major benefit of the horizontal process tunnel is priorities are base don the needs of
products and processes reaching markets, rather than having priorities set by individual
functions.
10.
The matrix organization type typically has workers in cross-functional teams with two
bosses.
11.
A major drawback of the federated organization structure is the redundancy that occurs due
to the duplication of infrastructure.
12.
The adhocracy organization type is predominantly composed of permanent project-oriented
work groups.
13.
A major benefit of the centralized IT structure is that it is responsive to individual business
unit needs.
14.
A major benefit of the federated IT structure is that it enables both economies of scale and
responsiveness to individual business needs.
15.
A centralized IT organization presents the best structure for enhancing strategic alignment by
clarifying the relationship between IT organizations and their corresponding line
organizations.
Multiple Choice Questions
16.
A basic organization that is hierarchical in nature is best described as:
a. professional bureaucracy.
b. simple structure.
c. divisional form.
d. adhocracy.
Chapter 8 Managing the Information Technology Resource 3
17.
Which one of the following is the organizational theory that emphasizes the motivation and
involvement of the employee?
a. Classical
b. Modern structural
c. Power and politics
d. Human relations
18.
Which one of the following is the organizational theory that emphasizes that the key
elements of success in organizing are flexibility, responsiveness, individual and group
empowerment, and customer service?
a. Systems
b. Modern structural
c. Classical
d. Human relations
19.
Which one of the following is the organizational theory that emphasizes the culture that
exists in an organization?
a. Institutional
b. Modern structural
c. Power and politics
d. Human relations
20.
Flexible, informal structures set up to deal with new complex technology best describes:
a. adhocracy.
b. skunk works.
c. long-linked technology.
d. sequential interdependence.
21.
Which of the following is considered to give the most latitude to subordinates?
a. Flattened organization
b. Hierarchical organization
c. Virtual organization
d. Network organization
4 Managing the Information Technology Resource
22.
Which one of the following is the organizational infrastructure type that is most likely to be
used by a family business or single proprietary business?
a. Simple structure
b. Machine bureaucracy
c. Professional bureaucracy
d. Divisional form
23.
Which one of the following is the organizational infrastructure type that is most likely to be
used by a doctors, lawyers, or accountants?
a. Simple structure
b. Machine bureaucracy
c. Professional bureaucracy
d. Divisional form
24.
Which one of the following organizational types best describes the divisional form of
infrastructure having business units such as IT, marketing, finance, and human resources?
a. Horizontal process tunnel
b. Federated
c. Vertical functional stovepipe
d. Matrix
25.
Each of the following is considered a benefit of a centralized organizational structure except:
a. expertise is shared among all organizations within the firm.
b. there is increased communication between business units.
c. there are clear career paths and training programs.
d. there is back up because of the redundancy of skills within the work unit.
26.
Each of the following is considered a benefit of horizontal process tunnels except:
a. communication is increased dramatically because multiple groups work as a team.
b. sharing of information and knowledge across functions is widely available.
c. there is great opportunity for staff to be knowledgeable about multiple aspects of the
product and process.
d. priorities are set by individual functions rather than by the needs of products and
processes reaching markets.
Chapter 8 Managing the Information Technology Resource 5
27.
Which one of the following organizational types is most likely to have an employee reporting
to two bosses at the same time?
a. Horizontal process tunnel
b. Federated
c. Vertical functional stovepipe
d. Matrix
28.
Which of the following organization types is most likely to engage in outsourcing?
a. Horizontal process tunnel
b. Matrix
c. Adhocracy
d. Federated
29.
Which of the following organizations best represents a virtual organization?
a. ADP
b. Calyx & Corolla
c. Federal Express
d. DoubleClick
30.
Each of the following is considered a drawback of a centralized IT organization except:
a. standards are more difficult to maintain.
b. unresponsive to individual business unit needs.
c. lack of functional experts.
d. IT staff are technical specialists and business generalists.
Fill In the Blanks
The network organization type allows the most latitude to subordinates.
Reference: p. 213
making, a high degree of formal procedures and regulations, and impersonal relationships.
Reference: p. 210
6 Managing the Information Technology Resource
34.
bosses.
Reference: p. 219
theory and is the author of Principles of Scientific Management.
Reference: p. 208
35.
new complex technology.
Reference: p. 212
it is comprised of many intangibles such as values, beliefs, assumptions, perception, and
patterns of behavior.
Reference: p. 211
accountants is a professional bureaucracy.
37.
The organizational infrastructure type used predominantly by doctors, lawyers, or
Reference: p. 215
38.
The organizational infrastructure type that leverages mechanization of operations and
manufacturing to increase the complexity of producing, assembling, and distributing best
39.
single proprietary business describes a simple structure.
The organizational infrastructure type that is most likely to be found in a family business or a
Reference: p. 215
special purpose, and upon completion of this purpose, the group can be disbanded, or placed
in reserve, until another special purpose or project is identified.
Reference: p. 217
41.
people.
Reference: p. 217
33.
The matrix organization type typically has workers in cross-functional teams with two
describes the divisional form of infrastructure that has been common in many large firms.
Reference: p. 217
The federated organizational structure uses as its model the U.S. government.
Reference: p. 220
ultimate gatekeeper of the entire IT organization.
Reference: p. 224
determine the priorities of their own IT departments.
Reference: p. 226
Essay Questions
46.
Discuss the differences between a machine bureaucracy and the divisional form.
8 Managing the Information Technology Resource
47.
Define the adhocracy organizational infrastructure type and explain why it has become so
popular in organizations.
48.
Briefly discuss an example of how information technology has made it possible for virtual
organizations to exist.
Chapter 8 Managing the Information Technology Resource 9
49.
Describe three ways that an organization’s IT function can be structured. Give some benefits
and drawbacks of each the three structures.
50.
Describe how the federal IT model captures the benefits of both the centralized IT model and
the decentralized IT model.