Chapter 9: Designing Adaptive Organizations
TRUE/FALSE
1. Organizational structure is the vertical and horizontal configuration of departments, authority, and jobs
within a company.
2. While organizational structure emphasizes the activities through which work gets done in the
organization, organizational process emphasizes jobs and their authority relationships.
3. The process view of an organization will typically be very similar to the structural, hierarchical view
of the organization.
4. Functional departmentalization organizes work and workers into separate units responsible for
particular business functions or areas of expertise.
5. Departmentalization is a method of organizing work and workers into separate units responsible for
particular business functions or areas of expertise.
6. Cross-department coordination tends to be very easy in organizations with functional
departmentalization.
7. Product departmentalization organizes work and workers into separate units responsible for particular
kinds of customers.
8. In 1999, GM Products, a Dutch company, opened GM Solutions B.V., a division that sells a complete
range of products in the area of ground security, installation material, and mobile following vehicles.
From this information, you know that GM Products has a matrix organization.
9. The two disadvantages associated with product departmentalization are costly duplication and
difficulties with cross-departmental coordination.
10. Under product departmentalization, it is easier for top managers to assess work-unit performance.
11. Matrix departmentalization is a hybrid structure in which two or more forms of departmentalization
are used together, such as the product and functional forms.
12. In 2007, Yahoo combined its two U.S. advertising divisions into one. One of the former divisions was
designed to deal with print and video advertisers, and the other was designed to deal with Web
advertisers. From this information, you know that Yahoo has now adopted customer
departmentalization.
13. In matrix departmentalization, as in other forms of departmentalization, most employees report to a
single boss.
14. The coordination of departmental activities tends to be more difficult with the geographic approach to
departmentalization than with the other approaches.
15. The most common matrix combines customer and functional forms of departmentalization.
16. One of the reasons that matrix organizations are difficult to manage is that the organizational structure
violates the principle of delegation of authority.
17. In a decentralized organization, workers closest to problems are authorized to make the decisions
necessary to solve the problems on their own.
18. The term “task description” refers to the number, kind, and variety of tasks that individual workers
perform in doing their jobs.
19. Specialized jobs are characterized by simple, easy–to-learn steps, low variety, and high repetition.
20. In spite of their disadvantages, companies continue to create and use specialized jobs because they are
very economical.
21. Specialized jobs are generally inefficient.
22. Job enlargement and job enrichment mean essentially the same thing.
23. According to the What Really Works, “The Job Characteristics Model: Making Jobs More Interesting
and Motivating,” jobs rich with the five core job characteristics are more satisfying to workers who
possess an individual characteristic called growth need strength.
24. According to the What Really Works, “The Job Characteristics Model: Making Jobs More Interesting
and Motivating,” absenteeism may be reduced by increasing levels of skill variety, task identity, task
significance, autonomy, and feedback in a job.
25. Task significance is the degree to which a job gives workers the discretion, freedom, and independence
to decide how and when to accomplish the job.
26. 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.
27. In reciprocal interdependence, work must be performed in succession because one group or job’s
outputs become the inputs for the next group or job.
28. 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.
29. Vail Horton, the co-founder and CEO of Keen Mobility, likes to glide along the hallway of his
company’s headquarters on his wooden skateboard, checking in with employees who might need an
extra jolt of encouragement or a laugh with their morning coffee. From this information, you can
surmise that the company operates in an atmosphere of behavioral informality.
30. Casual dress policies and open office systems are two methods for increasing behavioral formality.
31. Open office systems increase behavioral informality by significantly increasing the level of
communication and interaction among employees.
32. According to the Doing the Right Thing box, there is nothing legally or ethically wrong with
scavenging a fired co-worker’s belongings before he or she leaves the company.
33. A virtual organization is an organization that outsources noncore business activities to outside
companies, suppliers, specialists, or consultants.
34. One of the advantages of virtual organization is the fact that it allows member companies to share
costs.
35. While the interorganizational process revolves around a central company in modular organizations, a
virtual organization is part of a network in which many companies share skills, costs, capabilities,
markets, and customers with each other.
36. The greatest disadvantage for networks who establish a virtual organization agreement is how difficult
it is to manage.
37. In horizontal, interorganizational processes that characterize virtual organizations, the role of a broker
is to plan, organize, and control.
MULTIPLE CHOICE
1. As a class project, Senora is working with other classmates to create a company that would market
NASCAR memorabilia. Her teacher has instructed Senora 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 transforms inputs into outputs that customers 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 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 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
10. 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.
11. 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.
12. 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
13. 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
14. Disadvantages of ____ departmentalization include slower decision making, the development of
managers and workers with narrow experience and expertise, and more difficult cross-departmental
coordination.
a.
product
b.
customer
c.
geographic
d.
functional
e.
hierarchical
15. A manufacturer of acrylic, latex, and nitrile 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
16. Large accounting agencies typically have separate departments that deal with households, businesses,
and governments. To better serve the needs of their clients, many of these accounting agencies use
____ departmentalization.
a.
matrix
b.
product
c.
customer
d.
geographic
e.
functional
17. 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
18. The primary disadvantage of customer departmentalization is:
a.
an overemphasis 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
19. Procter & Gamble has divisions for personal and beauty, house and home, health and wellness, baby
and family, and pet nutrition and care. It also has divisions for market development, global business
services, and corporate functions. These divisions indicate that the company uses ____
departmentalization.
a.
functional
b.
geographic
c.
product
d.
customer
e.
matrix
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 it allows companies to efficiently
manage large, complex tasks by minimizing duplication.
a.
product
b.
functional
c.
matrix
d.
geographic
e.
functional
25. ____ 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
26. 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
27. 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
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. A salesperson who works in the shipping division of an international distribution company 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. Since it takes at least two hours to
prepare the expense account form and the salesperson wants to devote as much time as possible to
sales, 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.
an assembly-line worker
c.
the vice president of marketing
d.
a member of the office cleaning crew
e.
a shift supervisor
41. ____ assigns 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 that were damaged or destroyed by Hurricane Katrina and make this
individual accountable for the campaign’s success. 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. Because the typical urban school district’s personnel and budgeting systems leave principals without
much say in hiring teachers or allocating resources, it is clear that public education primarily uses:
a.
consistency planning
b.
organizational autonomy
c.
centralization of authority
d.
problem empowerment
e.
procedural planning
46. Like most large U.S. hospitals, University Health Care System spends an enormous amount on patient
supplies, over $45 million annually. The hospital has more than 15,000 individual products that are
purchased on a routine basis. One of the challenges for its purchasing department was that the various
hospital departments used different product descriptions and classifications for the same item. 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
47. An Indian 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. Cardinal Varkey Vithayathil in a published interview stated that the Indian church has
been forced “to depend on the Roman curia for too many matters.” 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
48. According to Indian Cardinal Varkey Vithayathil, the greatest weakness of the Catholic Church is the
way papal authority is exercised without the participation of those concerned. 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
49. 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
50. 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
51. ____ 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
52. Job specialization can result in:
a.
high job satisfaction
b.
employee boredom
c.
low employee turnover
d.
complicated job designs
e.
low absenteeism
53. ____ determines the number, kind, and variety of tasks that individual workers perform in doing their
jobs.
a.
Standardization
b.
Task mapping
c.
Job design
d.
Job specialization
e.
An organizational chart
54. 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
55. The Ryerson University Library is organized in a hierarchy with six unit heads reporting to a chief
librarian. The units are archives, audiovisual/interlibrary loans, library access services, reference and
information, systems, and technical services. 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
56. It’s no secret that physicians today face myriad challenges and changes—from increased medical
malpractice litigation, shrinking reimbursements, and cost containment, to concerns about privacy,
security, and patient safety. Their greatest source of satisfaction in their work is the patients. Which of
the following job design techniques could be used to adjust practice patterns to permit doctors more of
the patient contact they enjoy so much?
a.
job enlargement
b.
task specialization
c.
job enrichment
d.
task standardization
e.
job rotation
57. Scott Manuel had a lot to learn when he was hired at Thomson, a highly profitable global publisher of
legal, financial, scientific, and healthcare data. Manuel was allowed to work for different business
units in the company before accepting a permanent position. Through the use of _____, he was able to
learn about the company and determine which division best suited his skills.
a.
job enlargement