Organizational Theory, Design, and Change, 7e (Jones) Chapter 4 Basic Challenges of Organizational Design
1) Differentiation is the process of establishing and controlling the division of labor in an organization. Answer: TRUE Page Ref: ! Diffic"lt#: Eas# $%: &'1 !) Division of labor and differentiation are high in a co (ple organization. Answer: TRUE Page Ref: ! Diffic"lt#: Eas# $%: &'1 *) An organizational organizational role is a set of tas+'related behaviors re,"ired of a person b# his or her position in an organization. Answer: TRUE Page Ref: & Diffic"lt#: Eas# $%: &'1 &) -"pport f"nctions (anage and i(prove the efficienc# of an organizations conversion processes so that (ore val"e is created. Answer: /A$-E Page Ref: 0 Diffic"lt#: Eas# $%: &'1 0) Research and develop(ent is an ea(ple of a (aintenance f"nction. Answer: /A$-E Page Ref: Diffic"lt#: 2oderate $%: &'1 ) -"b"nit orientation is the tendenc# to view ones role in the organization strictl# fro( the perspective of the ti(e fra(e3 goals3 and interpersonal orientations of ones s"b"nit. s"b"nit. Answer: TRUE Page Ref: Diffic"lt#: Eas# $%: &'!
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4) 5ntegration is the wa# in which a co(pan# allocates people and reso"rces to organizational tas+s. Answer: /A$-E Page Ref: Diffic"lt#: Eas# $%: &'! 6) The si(plest integrating (echanis( is to establish direct contact between people in different s"b"nits. Answer: /A$-E Page Ref: Diffic"lt#: 2oderate $%: &'! ) A tas+ force is a per(anent co((ittee for(ed to hand le proble(s that eist within an organization. Answer: /A$-E Page Ref: 177 Diffic"lt#: Eas# $%: &'! 17) An integrating role is a f"ll'ti(e (anagerial position established specificall# to i(prove co(("nication between divisions. Answer: TRUE Page Ref: 17! Diffic"lt#: Eas# $%: &'! 11) Differentiation Differentiation and integration are both epensive epe nsive in ter(s of the n"(ber of (anagers e(plo#ed and the a(o"nt of (anagerial ti(e spent on coordinating organizational activities. Answer: TRUE Page Ref: 17* Diffic"lt#: 2oderate $%: &'! 1!) Decentralization pro(otes fleibilit# and responsiveness within an organization. Answer: TRUE Page Ref: 170 Diffic"lt#: Eas# $%: &'! 1*) /or(alization is (ore appropriate in environ(ents that re,"ire high levels of ("t"al ad8"st(ent. Answer: /A$-E Page Ref: 17'174 Diffic"lt#: 2oderate $%: &'! !
1&) 9or(s are for(alized r"les of behavior within an organization. Answer: /A$-E Page Ref: 174 Diffic"lt#: 2oderate $%: &'! 10) 5ntegrating (echanis(s s"ch as tas+ forces and tea(s help increase the level of standardization within an organization. Answer: /A$-E Page Ref: 176 Diffic"lt#: 2oderate $%: &'! 1) Tas+s Tas+s associated with a role are clearl# defined in a (echanistic str"ct"re. Answer: TRUE Page Ref: 117 Diffic"lt#: 2oderate $%: &'* 14) %rganizations are ver# stat"s conscio"s in (echanistic str"ct"res. Answer: TRUE Page Ref: 117 Diffic"lt#: 2oderate $%: &'* 16) %rganic str"ct"res follow a centralized cen tralized decision'(a+ing str"ct"re. Answer: /A$-E Page Ref: 117 Diffic"lt#: Eas# $%: &'* 1) The contingenc# approach to organizational design tailors organizational str"ct"re to the so"rces of "ncertaint# facing an organization. Answer: TRUE Page Ref: 11! Diffic"lt#: Eas# $%: &'& !7) Top Top (anagers sho"ld (a+e all the decisions if an organization faces a rapidl# chang ing environ(ent. Answer: /A$-E Page Ref: 110 Diffic"lt#: 2oderate $%: &'&
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!1) is the process b# which an organization allocates people and reso"rces to organizational tas+s and establishes the tas+ and a"thorit# relationships that allow the organization to achieve its goals. A) Differentiation Differentiation ;) Decentralization <) 5ntegration D) -tandardization Answer: A Page Ref: ! Diffic"lt#: Eas# $%: &'1 !!) is the power to hold people acco"ntable for their actions and to (a+e decisions abo"t how to invest and "se organizational reso"rces. A) %rientation ;) 2otivation <)
A) prod"ction f"nctions ;) s"pport f"nctions <) adaptive f"nctions D) (anagerial f"nctions Answer: ; Page Ref: 0 Diffic"lt#: Eas# $%: &'1
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!0) f"nctions (anage and i(prove the efficienc# of an organizations conversion processes to create (ore val"e. A) 2anagerial ;) -"pport <) Prod"ction D) 2aintenance Answer: < Page Ref: Diffic"lt#: Eas# $%: &'1 !) ?"alit# control is a part of f"nction. A) (anagerial ;) s"pport <) prod"ction D) (aintenance Answer: < Page Ref: Diffic"lt#: 2oderate $%: &'1 !4) Recr"iting and training e(plo#ees to i(prove s+ills is a@n) f"nction. A) adaptive ;) (aintenance <) prod"ction D) (anagerial Answer: ; Page Ref: Diffic"lt#: Eas# $%: &'1 !6) f"nctions allow an organization to ad8"st to changes in the environ(ent. A) 2aintenance ;) Adaptive <) -"pport D) Prod"ction Answer: ; Page Ref: Diffic"lt#: Eas# $%: &'1
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!) =hich of the following is an adaptive f"nction> A) reso"rce ac,"isition ;) p"rchasing <) ,"alit# control D) long'range planning Answer: D Page Ref: Diffic"lt#: Eas# $%: &'1 *7) f"nctions facilitate the control and coordination of activities within and a(ong depart(ents. A) 2anagerial ;) Adaptive <) -"pport D) 2aintenance Answer: A Page Ref: Diffic"lt#: Eas# $%: &'1 *1) A@n) is a classification of people in an organization according to a"thorit# and ran+. A) hierarch# ;) architect"re <) c"lt"re D) orientation Answer: A Page Ref: 4 Diffic"lt#: Eas# $%: &'1 *!) refers to the wa# in which an organization gro"ps organizational tas+s into roles and roles into s"b"nits. A) ertical integration ;) Borizontal differentiation <) ertical differentiation D) Borizontal integration Answer: ; Page Ref: 4 Diffic"lt#: Eas# $%: &'1
**) =hich of the following refers to the wa# in which an organization designs its hierarch# of a"thorit# and creates reporting relationships to lin+ organizational roles and s"b"nits> A) vertical integration ;) horizontal differentiation differentiation <) vertical differentiation D) horizontal integration Answer: < Page Ref: 4 Diffic"lt#: Eas# $%: &'1 *&) is the process of coordinating vario"s tas+s3 f"nctions3 and divisions to wor+ together and not be at cross'p"rposes. A) -"b"nit orientation ;) 5ntegration <) Differentiation D) Decentralization Answer: ; Page Ref: Diffic"lt#: Eas# $%: &'! *0) =hich of the following is the si(plest integrating techni,"e> A) integrating role ;) hierarch# of a"thorit# <) tas+ force D) integrating depart(ent Answer: ; Page Ref: Diffic"lt#: Eas# $%: &'! *) A salesperson for a co(p"ter accessories (an"fact"rer reports to the sales (anager of the co(p"ter screen division. 5dentif# the integrating techni,"e "sed in this case. A) hierarch# of a"thorit# ;) direct contact <) integrating role D) liaison role Answer: A Page Ref: 177 Diffic"lt#: 2oderate $%: &'!
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*4) The (ar+eting and (an"fact"ring (anagers of the sportswear division of a sports goods co(pan# (eet to disc"ss the la"nch of a new line of football 8erse#s. The integrating techni,"e "sed in this case is . A) integrating role ;) direct contact <) tas+ force D) integrating depart(ent Answer: ; Page Ref: 177 Diffic"lt#: 2oderate $%: &'! *6) =hich of the following is an integrating (echanis( where an eisting (anager (eets face to face to coordinate activities> A) integrating role ;) tas+ force <) integrating depart(ent D) direct contact Answer: D Page Ref: 177 Diffic"lt#: Eas# $%: &'! *) is an integration (echanis( where a specific (anager is given responsibilit# for coordinating with (anagers fro( other s"b"nits on behalf of his or her s"b"nit. A) $iaison role ;) Tas+ force <) 5ntegrating role D) Direct contact Answer: A Page Ref: 177 Diffic"lt#: Eas# $%: &'! &7) Robert Downs3 the
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&1) 2anagers (eet in te(porar# co((ittees to coordinate cross'f"nctional activities in so(e cases. This is an ea(ple of "sing a@n) to integrate activities. A) integrating role ;) tas+ force <) tea( D) integrating depart(ent Answer: ; Page Ref: 177 Diffic"lt#: Eas# $%: &'! &!) A cell'phone (an"fact"rer for(s a te(porar# co((ittee to find new wa#s to position its prod"cts. 5dentif# the integrating (echanis( "sed in this case. A) integrating role ;) tea( <) tas+ force D) integrating depart(ent Answer: < Page Ref: 177 Diffic"lt#: 2oderate $%: &'! &*) A fir( hires a s"pervisor to handle the co(("nication between two f"nctions. =hich of the following integrating (echanis(s is "sed in this case> A) integrating role ;) direct contact <) tas+ force D) integrating depart(ent Answer: A Page Ref: 177 Diffic"lt#: 2oderate $%: &'! &&) =hich of the following refers to the integration (echanis( where a new tea( of (anagers is created to coordinate the activities of f"nctions or divisions> A) integrating depart(ent ;) direct contact <) tas+ force D) hierarch# of a"thorit# Answer: A Page Ref: 177 Diffic"lt#: Eas# $%: &'!
&0) =hich of the following integrating (echanis(s involves creating a per(anent co((ittee to pro(ote coordination within an organization> A) tas+ force ;) integrating depart(ent <) tea( D) liaison role Answer: < Page Ref: 171 Diffic"lt#: Eas# $%: &'! &) =hich of the following integrating (echanis(s is (ost appropriate for a co(ple and highl# differentiated organization> A) integrating role ;) direct contact <) liaison role D) hierarch# of a"thorit# Answer: A Page Ref: 17! Diffic"lt#: 2oderate $%: &'! &4) =hich of the following is a difference between an integrating role and a liaison role> A) A liaison role is a (ore co(ple integrating (echanis( than an integrating role. ;) An integrating role is a f"ll'ti(e (anagerial position whereas a liaison role is a tas+ involved in a f"ll'ti(e 8ob. <) The ran+ing of e(plo#ees is irrelevant for the integrating role whereas it beco(es ver# significant in the liaison role. D) An integrating integrating roles infl"ence is li(ited to a single depart(ent whereas a liaison roles infl"ence etends across ("ltiple depart(ents. Answer: ; Page Ref: 17! Diffic"lt#: 2oderate $%: &'! &6) A co(ple organization that is differentiated d ifferentiated to a large etent needs a@n) . A) high level of integration to coordinate its activities effectivel# ;) infor(al operating proced"res and controls <) lesser n"(ber of s"pporting f"nctions and (anagers D) si(pler (ethod of integrating the organizational depart(ents Answer: A Page Ref: 17* Diffic"lt#: Eas# $%: &'!
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&) involves choices abo"t distrib"ting a"thorit# within an organization. A) -tandardization ;) -"b"nit orientation <)
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0*) A disadvantage of centralization is that . A) the organization tends to lose its foc"s on achieving its goals ;) coordination beco(es diffic"lt to achieve within the organization <) the top (anagers have little ti(e for long'ter( strategic decision'(a+ing D) the etent of standardization is red"ced within the organization Answer: < Page Ref: 17& Diffic"lt#: 2oderate $%: &'! 0&) An advantage of centralization is that it . A) +eeps the organization foc"sed on organizational goals ;) gives top (anagers a(ple ti(e to foc"s on strategic decision'(a+ing <) allows lower'level (anagers to (a+e on'the'spot decisions D) pro(otes fleibilit# and responsiveness within an organization Answer: A Page Ref: 17& Diffic"lt#: 2oderate $%: &'! 00) An advantage of decentralization is that it . A) ens"res for(alization of proced"res and policies within an organization ;) pro(otes fleibilit# and responsiveness within an organization <) +eeps the organization foc"sed on achieving its goals D) si(plifies the coordination process within an organization Answer: ; Page Ref: 170 Diffic"lt#: 2oderate $%: &'! 0) An organization organization sho"ld adopt decentralization if it . A) needs fleibilit# and responsiveness ;) re,"ires high levels of internal control <) ai(s to +eep the operational costs low D) faces proble(s in coordinating the activities Answer: A Page Ref: 170 Diffic"lt#: 2oderate $%: &'!
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04) A disadvantage of decentralization is that it . . A) red"ces the level of fleibilit# within an organization ;) (a+es lower level (anagers less responsive <) fails to (otivate the lower'level (anagers in an organization D) (a+es planning and coordination ver# v er# diffic"lt Answer: D Page Ref: 170 Diffic"lt#: 2oderate $%: &'! 06) -tandardizing the operations will help an organization in . A) increasing the creativit# of its e(plo#ees ;) +eeping the costs low <) pro(oting ("t"al ad8"st(ent a(ong different divisions D) personalizing its c"sto(er service Answer: ; Page Ref: 17 Diffic"lt#: Eas# $%: &'! 0) =hich of the following refers to the co(pro(ise that e(erges when decision'(a+ing and coordination are evol"tionar# processes and people "se their 8"dg(ent to address a proble(> A) centralization ;) ("t"al ad8"st(ent <) for(alization D) standardization Answer: ; Page Ref: 17 Diffic"lt#: Eas# $%: &'! 7) refers to confor(it# to specific (odels or ea(ples3 defined b# sets of r"les and nor(s3 that are considered proper in a given sit"ation. A) -tandardization ;) Decentralization <) Differentiation D) 2"t"al ad8"st(ent Answer: A Page Ref: 17 Diffic"lt#: Eas# $%: &'!
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1) =hich of the following refers to the "se of written r"les and proced"res to standardize operations> A) horizontal differentiation ;) for(alization <) socialization D) vertical differentiation Answer: ; Page Ref: 17 Diffic"lt#: Eas# $%: &'! !) A high level of for(alization t#picall# i(plies . A) diff"sion of power across the organization ;) centralization of a"thorit# <) ("t"all# ad8"sted approach to decision'(a+ing D) enco"rage(ent of innovation and fleibilit# Answer: ; Page Ref: 174 Diffic"lt#: 2oderate $%: &'! *) People t"rn aro"nd to face the door when the# enter an elevator. This behavior is observed altho"gh there are no for(al r"les. This is an ea(ple of a@n) . A) nor( ;) r"le <) bench(ar+ D) hierarch# Answer: A Page Ref: 174 Diffic"lt#: 2oderate $%: &'! &) 9or(s are . A) for(al written state(ents that control behavior ;) at#pical behaviors of a gro"p of people <) for(al actions at lower levels in an organization D) behaviors that are representative of a certain gro"p Answer: D Page Ref: 174 Diffic"lt#: Eas# $%: &'!
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) =hich of the following t#pes of e(plo#ees are (ost li+el# to follow standardized practices in perfor(ing their tas+s> A) office acco"ntants ;) RCD eec"tives <) advertising eec"tives D) p"blic relations officers Answer: A Page Ref: 176 Diffic"lt#: Eas# $%: &'! 47) =hich of the following is the (a8or integrating (echanis( "sed in (echanistic str"ct"res> A) hierarch# of a"thorit# ;) tas+ forces <) tea(s D) integrating depart(ents Answer: A Page Ref: 17 Diffic"lt#: 2oderate $%: &'* 41) 2echanistic str"ct"res res"lt when . A) e(plo#ees wor+ collaborativel# and across several f"nctions ;) a"thorit# is delegated to people at all levels of the organization <) etensive "se is (ade of r"les and -%Ps to coordinate tas+s D) (ost of the co(("nication within the organization is lateral Answer: < Page Ref: 17 Diffic"lt#: 2oderate $%: &'* 4!) %rganic str"ct"res res"lt when . A) organizational a"thorit# is not delegated ;) integrative (echanis(s are relativel# si(ple <) standard operating proced"res are "sed to coordinate tas+s D) wor+ processes are relativel# "npredictable Answer: D Page Ref: 17 Diffic"lt#: 2oderate $%: &'*
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4*) An organization organization "ses tas+ forces to coordinate the activities of vario"s depart(ents. E(plo#ees also wor+ in tea(s to increase coordination. This organization (ost li+el# has a@n) str"ct"re. A) (echanistic ;) b"rea"cratic <) organic D) centralized Answer: < Page Ref: 17 Diffic"lt#: 2oderate $%: &'* 4&) =hich of the following is a characteristic of organic str"ct"res> A) 8oint specialization of tas+s ;) standardization of proced"res <) centralization of a"thorit# D) si(ple (ethods of integration Answer: A Page Ref: 117 Diffic"lt#: Eas# $%: &'* 40) o" o" are the
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44) A (echanistic str"ct"re is characterized b# b # . A) high levels of standardization ;) co(ple integrating (echanis(s <) r"les that are defined infor(all# D) decentralized organizational str"ct"res Answer: A Page Ref: 117 Diffic"lt#: Eas# $%: &'* 46) str"ct"res pro(ote fleibilit#3 fleibilit#3 so people initiate change and can adapt ,"ic+l# to changing conditions. A) 2echanistic ;) -tandardized <) %rganic D)
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61) is a (anage(ent (anag e(ent approach in which the design of an organizations str"ct"re is tailored to the so"rces of "ncertaint# facing an organization. A) A) The organization needs to decentralize decision'(a+ing. ;) The organization sho"ld have low levels of differentiation. <) The organization needs to adopt for(alized r"les and proced"res. D) The organization sho"ld increase the level of standardization. Answer: A Page Ref: 110 Diffic"lt#: 2oderate $%: &'&
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60) According to the st"d# cond"cted cond "cted b# To( ;"rns and . 2. -tal+er3 an organization f"nctioning in a stable environ(ent sho"ld have . A) (echanistic organizational str"ct"re ;) high levels of integration <) high levels of differentiation D) decentralized decision'(a+ing proced"res Answer: A Page Ref: 110 Diffic"lt#: 2oderate $%: &'& 6) Eplain differentiation. Answer: Differentiation Differentiation is the process b# which an organization allocates people and reso"rces reso"rces to organizational tas+s and establishes the tas+ and a"thorit# relationships that allow the organization to achieve its goals. 5n short3 it is the process of establishing and controlling the division of labor3 or degree of specialization3 in the organization. Page Ref: ! Diffic"lt#: Eas# $%: &'1 . 64) =hat is an organizational o rganizational role> Answer: An organizational role is a set of tas+'related tas+'related behaviors re,"ired of a person b# his or her position in an organization. Page Ref: & Diffic"lt#: Eas# $%: &'1 66) Define a"thorit# and control. Answer: A"thorit# is the power to hold people acco"ntable for their actions and to (a+e decisions abo"t how to invest and "se organizational reso"rces.
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6) Eplain the different +inds of f"nctions that eist within an organization. Answer: -"pport f"nctions facilitate an organizations organizations control of its relations with its environ(ent and its sta+eholders. 2aintenance f"nctions enable an organization o rganization to +eep its depart(ents in operation. Prod"ction f"nctions (anage and i(prove the efficienc# of an organizations conversion processes so that (ore val"e is created. Adaptive f"nctions allow an organization to ad8"st to changes in the environ(ent. 2anagerial f"nctions facilitate the control and coordination of activities within and a(ong depart(ents. Page Ref: 0' Diffic"lt#: 2oderate $%: &'1 7) Disting"ish between vertical differentiation and horizontal differentiation. Answer: ertical differentiation differentiation refers to the wa# in which an organization designs its hierarch# of a"thorit# and creates reporting relationships to lin+ organizational roles and s"b"nits. ertical ertical differentiation differentiation establishes the distrib"tion of a"thorit# between levels to give the organization (ore control over its activities and increase its abilit# to create val"e. Borizontal differentiation refers to the wa# in which an organization gro"ps organizational tas+ into roles and roles into s"b"nits @f"nctions and divisions). 5t establishes the division of labor that enables people in an organization to beco(e (ore specialized and prod"ctive and increases its abilit# to create val"e. Page Ref: 4 Diffic"lt#: 2oderate $%: &'1 1) =hat is s"b"nit orientation> Answer: -"b"nit orientation is a tendenc# to view ones role in the organization strictl# strictl# fro( the perspective of the ti(e fra(e3 goals3 and interpersonal orientations of ones s"b"nit. s"b"nit. Page Ref: Diffic"lt#: Eas# $%: &'!
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!) ;riefl# describe the vario"s integrating (echanis(s "sed in organizations. Answer: Bierarch# of a"thorit#: A ran+ing ran+ing of e(plo#ees integrates b# specif#ing who reports to who(. Direct contact: 2anagers (eet face to face to coordinate activities. $iaison role: A specific (anager is given responsibilit# for coordinating with (anagers fro( other s"b"nits on behalf of his or her s"b"nit. Tas+ force: 2anagers (eet in te(porar# co((ittees to coordinate cross'f"nctional activities. Tea(: 2anagers (eet reg"larl# in per(anent co((ittees to coordinate activities. 5ntegrating role: A new role is established to coordinate the activities of two or (ore f"nctions or divisions. 5ntegrating depart(ent: A new depart(ent is created to coordinate the activities of f"nctions or or divisions. Page Ref: '17! Diffic"lt#: 2oderate $%: &'! *)
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0) Disc"ss the advantages and disadvantages of decentralization. Answer: The advantage of decentralization is that it pro(otes fleibilit# fleibilit# and responsiveness b# allowing lower'level (anagers to (a+e on'the'spot decisions. 2anagers re(ain acco"ntable for their actions b"t have the opport"nit# to ass"(e greater responsibilities and ta+e potentiall# s"ccessf"l ris+s. The downside of decentralization is that if so ("ch a"thorit# is delegated that (anagers at all levels can (a+e their own decisions3 dec isions3 planning and coordination beco(e ver# v er# diffic"lt. Th"s too ("ch decentralization (a# lead an organization to lose control of its decision'(a+ing process. Page Ref: 170 Diffic"lt#: Eas# $%: &'! ) =rite =rite a brief note on how h ow organizations balance centralization and decentralization. Answer: The ideal sit"ation for an organization is a balance balance between centralization and decentralization of a"thorit# so that (iddle and lower (anagers who are at the scene of the action are allowed to (a+e i(portant decisions3 and top (anagers pri(ar# responsibilit# beco(es (anaging long'ter( strategic decision'(a+ing. The res"lt is a good balance between long'ter( strateg# (a+ing and short'ter( fleibilit# and innovation as lower'level (anagers respond ,"ic+l# to proble(s and changes chan ges in the environ(ent as the# occ"r. Page Ref: 170 Diffic"lt#: 2oderate $%: &'! 4) Bow can an organization establish a balance between standardization and ("t"al ad8"st(ent> Answer: The challenge facing all organizations3 large and s(all3 is to to design a str"ct"re that achieves the right balance between standardization and ("t"al ad8"st(ent. -tandardization is confor(it# to specific (odels or ea(ples that are considered proper in a given sit"ation. 2"t"al ad8"st(ent3 on the other hand3 is the evolving process thro"gh which people "se their c"rrent best 8"dg(ent of events rather than standardized r"les to address proble(s3 g"ide decision'(a+ing3 and pro(ote coordination. The right balance (a+es (an# actions predictable so that ongoing organizational tas+s and goals are a chieved3 #et it gives e(plo#ees the freedo( to behave fleibl# so the# can respond to new and changing sit"ations creativel#. creativel#. Page Ref: 176 Diffic"lt#: 2oderate $%: &'!
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