10 TEST BANK Daft Richard L Manag,jklhkhkhement 11th Ed 2014 Chapter 10 Designing Adapt

8/9/2019 10 TEST BANK Daft Richard L Manag,jklhkhkhement 11th Ed 2014 Chapter 10 Designing Adapt

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Chapter 10--Designing Adaptive Organizations

Student: ___________________________________________________________________________

The deployment of organizational resources to achieve strategic goals refers to organizing. TrueFalse

Organizing defines hat to do hile strategy defines ho to do it. True False

The frameor! in hich the organization defines ho tas!s are divided" resources are deployedand departments are coordinated is called organizational structure.

True False

A organizational map is a visual representation of an organization#s structure" shoingcommunication and lines of poer.

True False

Despite the apparent advantages of specialization" many organizations are moving aay fromthis principle.

True False

The principle of unity of command suggests that managers ithin an organization should reachagreement on the goals and o$%ectives of the organization.

True False

Authority is the right to use resources" ma!e decisions and issue orders in an organization. TrueFalse

The duty to perform the tas! or activity an employee has $een assigned is called accounta$ility.True False

&ost organizations today discourage managers to delegate authority to the loer levels giventhe challenges to meet customer needs and adapt to the environment.

True False

10 The acceptance theory of authority argues that managers have authority $ecause employeesdo not have a choice in choosing to accept their commands.

True False

1


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11 'ine departments perform tas!s that reflect the organization(s primary goal and mission.

True False

1) The right to advise" recommend" and counsel in the staff specialists# area of e*pertise isincluded in staff authority.

True False

1+ The num$er of employees reporting to a supervisor is his or her span of management.

True False

1, Traditional vies of organizational design recommend a span of management of a$out to 10 su$ordinates per manager.

True False

1 &any hierarchical levels and a correspondingly narro span of management refers to a flat

structure.

True False

1/ The trend in recent years has $een toard narroer spans of control as a ay to facilitate delegation.

True False

1 A tall structure is a management structure characterized $y an overall narro span ofmanagement and a relatively large num$er of hierarchical levels.

True False

1 Certainty in the environment is usually associated ith decentralization.

True False

1 The $asis for grouping positions into departments and departments into the totalorganization is referred to as departmentalization.

True False

)0 For companies to operate effectively" the amount of centralization or decentralizationshould fit the firm(s strategy.

True False

)1 At Fo* 2nd" people are grouped together in departments $y common s!ills and or!activities" including a sales department and a production department. This is an e*ample ofvertical functional approach.

True False


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)) The functional structure offers a ay to decentralize decision ma!ing and provide directionfrom the teams in the field.

True False

)+ 3ecause the chain of command converges at the top" the functional structure provides a ayto decentralize decision ma!ing and provide unified direction from all managers.

True False

), 4uic! response to e*ternal changes is an advantage of vertical functional structure.

True False

) Divisions are created" in functional structures" as self-contained units ith separatefunctional departments for each division.

True False

)/ The divisional structure encourages decentralization.

True False

) 5n a geographic-$ased structure" all functions in a specific country or region report to thesame division manager.

True False

) 6ith a mati* structure" the entire organization is made up of horizontal teams that coordinatetheir or! and or! directly ith customers to accomplish the organization(s goals.

True False

) Aspects of $oth functional and divisional structures simultaneously in the same part of theorganization are com$ined in the virtual netor! approach.

True False

+0 The horizontal structure provides traditional control ithin functional departments" and thevertical structure provides coordination across departments.

True False

+1 The confusion and frustration caused $y the dual chain of command is a ma%or pro$lem of the matri* structure.

True False

+) The overseer of $oth the product and functional chains of command" responsi$le for theentire matri* is the matri* $oss.

True False


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++ The modular approach is similar to virtual netor!ing.

True False

+, The divisional structure fosters e*cellent coordination ithin divisions" $ut coordinationacross divisions is often poor.

True False

+ 5n the divisional approach" coordination across divisions is great hereas coordinationithin divisions is often poor.

True False

+/ The matri* approach can $e highly effective in a comple*" rapidly changing environmentin hich the organization needs to $e fle*i$le and adapta$le.

True False

+ One ma%or disadvantage of the virtual netor! approach is the lac! of hands-on control.

True False

+ Coordination is the 7uality of colla$oration across departments.

True False

+ 8eengineering is the outcome of information and cooperation.

True False

,0 A pro%ect manager is a person responsi$le for coordinating the activities of severaldepartments for the completion of a specific pro%ect.

True False

,1 8eengineering $asically means preserving the past $y esta$lishing the se7uence ofactivities $y ho or! as done.

True False

,) The radical redesign of $usiness processes to achieve dramatic improvements in cost"7uality" service" and speed is called reengineering.

True False

,+ The distinctive feature of the pro%ect manager position is that the person is not a mem$erof one of the departments $egin coordinated.

True False


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,, 6hen an organization uses a differentiation strategy" it strives for internal efficiency.

True False

, The pure functional structure is appropriate for achieving internal efficiency goals.

True False

,/ A vertical structure that emphasizes specialization and centralization is appropriate henenvironmental uncertainty is high.

True False

, A rigid" vertical structure in an uncertain environment prevents the organization formadapting to change.

True False

, The functional structure is appropriate hen the primary goal is innovation and fle*i$ility.

True False

, 9mall-$atch production is distinguished $y standardized production runs.

True False

0 . 6hich of the folloing refers to the deployment of organizational resources to achieve strategicgoals:

A.

;lanning3.ControllingC.OrganizingD.'eading29trategicmanagement

9trategy defines


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Organizational structure includes hich of these:

A. The set of formal tas!s

assigned to individuals

3 The set of formal tas!s assigned todepartments

CThe design of systems to ensure effectivecoordination of employees across departments

Formal reporting relationships2 All of these are part of organizationalstructure.

Organization structure is defined as the@

visual repres entati on of the organi zation

.

frameor! in hich the organization definedho tas!s are divided" resources are deployed"and departments are coordinated. C division of

. la$or. un$ro!en line of authority that lin!s allindividuals in the organization. 2 none of

these.

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The organization chart@

A. shos the c

vertical struis a visual representation of the organization#s structure.

details the formal reporting relationships that e*ist ithin an

D. all of these.2 $oth shos the characteristics of the organization#s verti

of the organization#s structure.

The


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6hen or! specialization is e*tensive@

employee s perform a single tas!.

3 employees perform. many tas!s.

C employees are often highly challenged.

D employees are. often inefficient.

2 %o$s tend to $elarge.

'ouise or!s in the manufacturing department at5ce 9culptures. The or! in 'ouise#s departmentis lo in tas! specialization. As a result" 'ouise@

usually performs a single tas!.

3 does a variety of tas!s and activities.C. is often $ored. D is rarely

challenged.2 generally goofs-off.


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aco$ as recently loo!ing at his company#sorganization chart in an attempt to discoverho reports to hom. aco$ is studying hisorganization#s@

degree of formali zation.

3 amount of

. differentiation.

C degree of . centralization.

D chain of . command.2 division of la$or.

nity of command and the scalar principle are

$oth closely related to the@

amount of or! speciali zation in an organiz ation.

3 degree of . formalization.

C chain of . command.Damount of $ureaucracy in the organization.2 matri*

structure.


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8e$ecca or!s for a company that has clearlydefined lines of authority. 2ach employee !nosthat he or she has authority and responsi$ility fora distinct set of tas!s. 2mployees are also aareof the company(s reporting structure as ell assuccessive management levels all the ay to thetop. 8e$ecca(s company follos hich principle:

9pecializat ion principle

3 nity of command. principleC. 9calar principle D Authority principle.

2 8esponsi$ilityprinciple

o does managerial authority flo throughthe organizational hierarchy:

A. Bertically9poradicallyorizontally5n a circular fashion2 Authority is static - it does notflo

The people ith authority and responsi$ility aresu$%ect to reporting and %ustifying tas!outcomes to those a$ove them in the chain ofcommand. This is called


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6hich of the folloing characteristicsdistinguishes authority:

A. 5t is vested inpeople" notpositions.9u$ordinates accept it.C 5t flos across the horizontal

hierarchy.D 5t emerges from the organizationalvalues.2 5ndividuals are $orn ith thispoer.

Eina ishes to transfer authority and responsi$ilityto her su$ordinates. This process is !non as@

account a$ility.

3 coordination..

C. delegation.D departmentaliz. ation.2 passing the$uc!.

6hich of the folloing typically is OTconsidered a staff department:

9trategic planning

Accounting&anufacturinguman resources 2 8esearch and

. development

6hich department performs tas!s that reflect theorganization#s primary goals and mission:

'ine9taff;rimary

Functional2 9trategicplanning

1)


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Traditionally" a span of management of a$out


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1,


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Dustin#s su$ordinates are highly trained and allperform similar tas!s. 3rittany#s su$ordinatesare spread over to locations and she has littleavaila$le in the ay of support systems. 6hichof the folloing statements is most correct:

icho le#s span of mana geme nt can $e larger thanGevin# s.

ichole ill have pro$lems ith unity of command.Gevin#s span of management can $e larger thanichole#s. Gevin has more pro$lems ith or!specialization

.

2 one of these

1


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6hich of the folloing organizations have a flatstructure compared to others:

A. Organization A itheleven hierarchicallevels3 Organization 3 ith three hierarchicallevels

C Organization C ith eight hierarchicallevelsD Organization D ith si* hierarchical levels.

2 Organization 2 ith seven hierarchicallevels

6hich of the folloing factors is OT associated itlarger span of control:

A. 6or! performed $y

su$ordinates is sta$le and

routine.9u$ordinates perform similar or! tas!s.C 9u$ordinates are located at various different locations

.

D 9u$ordinates are highly trained and need little directio

.

2 8ules and procedures defining tas! activities are

availa$le.

8elative to a flat organizational structure" a tall structure ha


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aco$" a customer service representative for A38etailers" has seven levels of management$eteen himself and the company(s C2O. 5ncontrast" his friend 8honda" a customer servicerepresentative for HI 8etailers" has only four levelsof management $eteen her and the companyC2O. Compared to HI" aco$(s company has hattype of organizational structure:

ar ro

6ideFlatTall2 5dentical

The functional"


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5n times of crisis or ris! of companyfailure" authority should $e@

A de c e n tr a li z e d

.

cent raliz ed at the $ott om. cent rali zed at

the top. spre ad thro ugh a ide span of manage men t.

2 flat.

)0


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6hen departments are grouped together onthe $asis of organizational outputs" theorganization is using a@

functional structure.

3 matri* structure..

C divisionalstructure.D virtual netor!. structure. 2 team-$asedstructure.

9elf-contained unit structure is a term used for@

divisional structure.

3 functional structure.

.

term structure.matri* structure. 2 virtual netor!

. structure.

8elative to the functional structure" thedivisional structure@

A. encourages decentralization.

3 has a higher degree of or!specialization.C has a more pronounced division of la$or.D has e*cellent coordination across. departments.2 results in an efficient use of resources.


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Theresa or!s in an organization herecoordination across organizational units is poorand the units perceived themselves to $e incompetition ith one another for organizationalresources. These characteristics are consistentith hich of the folloing structures:

A matri* structure

3 A functional structure.

C A divisional structure.

D A team-$ased structure.

2 A virtual netor!structure

All functions in a specific country or region report

to the same division manager in


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A formal chain of command for $oth functional anddivisional relationships is provided $y the


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)+


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9alta Communications is a glo$altelecommunications company that hasoperations on four continents. The C2O(sdirect supervisors include B;s for the orth

American 9outh American" 2uropean" and the Asian divisions. 9alta can $est $e descri$ed asusing hat organizational structure:

et or!

&atri*C FunctionalD Divisional2 Eeographic

The matri* structure violates hich of the

folloing principles of management:

nity of direction

3 nity of command.

C 6or!specializationD Division of la$or .

2 9pan of

management

All of the folloing are the ma%or disadvantagesof the matri* structure 2JC2;T@

A. it generates alarge amountof conflict.3 managers spend much time. resolving conflict.

C the confusion caused $y the dual chain ofcommand.

Dthe poer im$alance that can result $eteenthe sides of the matri*.2 enlarged tas!s for employees.


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uan is a top manager at 5.F.'." a matri*organization. e oversees $oth the product andfunctional chains of command" and is responsi$le for maintaining a poer $alance $eteen the to sidesof the matri*. uan is a


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)


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The


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According to &AAE28#9 9O;TA'G inChapter 10" all of the folloing are effectiveays for a manager to delegate 2JC2;T@

delegate the hole tas!.

3 select the right person..

C save feed$ac! for completion of the pro%ect.D evaluate and reard. performance.

2 give thoroughinstruction.

5n the


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resulting economies of scale.enlarged tas!s for employees.

The $iggest advantage to a virtual netor!approach is


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6hich of the folloing structures is theleanest of all organization forms $ecauselittle supervision is re7uired:

Function al approach

3 Birtual netor!. approach

C Team approach.

D &atri* approach.

2 Divisionalapproach

9hooting 9tar" 5nc. has slo response toe*ternal changes" centralized decisionma!ing" and poor coordination across

departments. 5t is li!ely structured@

along divisi onal lines.

3 along. functional lines.

C$ased on the team approach.D$ased on the virtual netor! approach.2 none of these.

+0


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Organ 8entals Corporation has $een havingnumerous pro$lems. Communication acrossdepartments is poor and decisions are $ac!ing up atthe top of the organization. Organ 8entals uses a


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Advantages of the matri* structure include@

it incre ases empl oyee parti cipat

ion. 3it ma!es efficient use of humanresources. Cit or!s ell in a changingenvironmen t.it develops $oth general and specialistmanagemen t s!ills.

2 all of these.

+)


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6hich of the folloing is=are> an advantage ofteam structure:

5ncre ased $arri ers amo ng depa rtme nts

3nplanned decentraliz ation

CTime and resources spent on meetings D'ess

response time" 7uic!er decisions

2 All of these

9tephanie or!s in one of seven research anddevelopment departments at Tara#s Terrace" 5nc.This ould suggest that Tara#s Terrace has a@

functio nal structur e.

3 divisional. structure.C ide span of . control.

D high degree of centralization.

2 matri*structure.

++


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6hich of the folloing is a contemporary approach tostructural design in departmentalization:

Functio nal

Divisional C Traditional

. divisions

D. Teams2 Eeographic-$ased

The team approach to departmentalization is aresponse to@

A. lac! of participative teams.

centralized decision-ma!ing.the competitive glo$al environment.

all of these.2 $oth lac! of participative teams and centralized decisi

ma!ing.


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+,


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Coordination is defined as@

the a$ilit y of the organizat ion to prod ucetimel y prod ucts.

the 7uality of colla$oration across department s.

C differenti. ation.

the 7uantity of goodsproduced $y theorganizatio n.

2 all of these.

+


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5nnovative Creations Corporation is designedalong functional lines. e product development isvery slo and the process is plagued $y manypro$lems. One of the pro$lems is that the peoplein mar!eting never communicate ith the people inproduction. This is an e*ample of poor


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6hen the organization is structured along


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&arissa as recently assigned to a committee hose to research ne product opportunities. Once this grougenerates a list of si* or seven via$le options" it ill $edis$anded. This group is also !non as a


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&a!ai#s &ar!eting &i* =&&&> does not use itsresources isely. The employees at &&& spendtoo much time in meetings and not enough timefocusing on the tas! at hand. &&smanagement should consider changing theorganizational structure from


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'isa is responsi$le for coordinating the effortsof several different departments. 6hich of thefolloing titles $est descri$es her position:

Departme nt manager

&iddle managerC First-levelsupervisor

D ;ro%ect manager .

2 Chairman of the$oard

Typically" pro%ect managers have authority over


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Gara#s department is made up of people ith similars!ills and or! activities. er organization uses the


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6ith a=n>


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The pure functional structure does not ena$lethe organization to $e@

a cost leade r.

3efficient..

Cfle*i$le..

D.sta$le.

2all of these.

6hich of the folloing structures or!s $estin an uncertain organizational environment:

A tight structure

3 A mechanistic. structureC A horizontalstructureD A functional. structure 2 A vertical

structure

A=n>


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6hich of the folloing is an incorrect fit in asta$le organizational environment:

A tightstructure 3 A rigid structure

.

C A functional

structureD A horizontal. structure 2 A verticalstructure

5n


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9ift &ove Facilities manufacturers to different$icycle models. The company produces a highvolume of products using standardizedproduction runs. The company does very littleproduct customization. 9ift &ove uses hattype of technology structure:

A. 9ervice

production&ass productionC 'arge-$atch production.

D 9mall-$atch production.

2 Continuous processproduction

Organizations such as Amazon.com" Eoogle"Face$oo!" and ;riceline.com are e*amples of

firms that are $ased on@

A. digital technology.

3. tangi$le output. C direct contact ith

customers.D mechanistic technology..

2 products rather thanservices.

5n a


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Scenario - Javier Gomez

avier is a veteran manager ith ;i*el 5nternational" 5n=;55>. 8ecently ;55 purchased a small $usiness in the pindustry. avier has $een assigned the tas! of managine ac7uisition and is currently deciding ho $est to dits structure. Currently" employees are assigned to onethree departments" including sales" production" and le

defense.

The analysis of hether the ne division should $ecentralized or decentralized should include all of thefolloing 2JC2;T@

a. the level of cha

corporate history and culture.the threat of crisis or the ris! of company failure.

the structure of competitors and customers.

all of these should $e included.


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avier is a veteran manager ith ;i*el 5nternational" 5n=;55>. 8ecently ;55 purchased a small $usiness in the pindustry. avier has $een assigned the tas! of managine ac7uisition and is currently deciding ho $est to dits structure. Currently" employees are assigned to onethree departments" including sales" production" and le

defense.

Current departmentalization of avier#s ne division$e characterized primarily as@

a. vertical functio

divisional.horizontal matri*.

team-$ased.none of these.


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avier is a veteran manager ith ;i*el 5nternational" 5nc. =;55>. 8ecently ;55 purchased a small $usinesthe printing industry. avier has $een assigned the tas! of managing this ne ac7uisition and is currendeciding ho $est to design its structure. Currently" employees are assigned to one of three departmeincluding sales" production" and legal defense.

5f avier organizes ith a horizontal matri* structure" some potential advantages that he could anticipate include

the folloing" 2JC2;T@

a. a more e fficient

greater fle*i$ility and adapta$ility to a changing environment.development of $oth general and specialist management s!ills.

decreased need for coordination among managers.all of these are potential advantages.

The deployment of organizational resources to achieve strategic goals is !non as


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The


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The 7uality of colla$oration across departments is !non as


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'ist the advantages of the virtual netor! structure.

'ist the three $asic types of production technology.

Descri$e service technology.

Compare and contrast authority" responsi$ility" accounta$ility" and delegation.

3riefly e*plain the concept of line and staff departments and authority.


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Define span of management and e*plain if there is an ideal span of management.

'ist the factors that are associated ith less supervisor involvement and thus larger spans of control.

5dentify the three factors that typically influence centralization versus decentralization.

6hat is the horizontal matri* approach to departmentalization and hat are its main advantages:

6hat is=are> the difference=s> $eteen cross-functional and permanent teams:


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6hat is the team approach to departmentalization and hat are its main disadvantages:

Descri$e reengineering and hat it involves.

Define tas! forces and pro%ect management.


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Chapter 10--Designing Adaptive Organizations Gey

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C e d a dorganizingorganization structureorganization chartor! specializationor! specializationchain of commandunity of commandscalar principle

Authority

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vested in organizational positions not people? accepted $y su$ordinates? floing don the vertical hierarchy. 8esponsi$ility Accounta$ility Delegation 'ine? staff? line 'ine authority

span of management flattall decentralization Centralization functional divisional

product structure? program structure? self-contained unit structure geographic regionmatri* approach Cross-functional virtual netor! virtual netor! modular coordination tas! force pro%ect manager 8eengineering vertical 5ntangi$leoutput

Bertical functional" divisional" horizontal matri*" teams" and virtual netor!.

Choose three of the folloing -- duplication of resources across divisions" less technical depth and specialization in divisions" poorcoordination across divisions" less top management control" and competition for corporate resources.

Elo$al competitiveness" or!force fle*i$ilityKchallenge" and reduced administrative overhead.

The three $asic types of production technology include small-$atch and unit production" large-$atch and mass production" andcontinuous process production.

9ervice technology can $e defined as having intangi$le input and direct contact ith customers.

/1


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Authority is defined as the formal and legitimate rights of a manager to ma!e decisions" issue orders" and allocate resources. 8esponsi$ility isthe duty to perform the tas! that has $een assigned. &any argue that authority and responsi$ility go hand-in-hand" i.e." in order for someone tofulfill their responsi$ility" they must have an e7uivalent level of authority. Accounta$ility means that those ith authority and responsi$ility aresu$%ect to reporting and %ustifying tas! outcomes to those higher in the chain of command. Accounta$ility $rings authority and responsi$ilitytogether. The principle of delegation allos managers to transfer authority and responsi$ility to those loer in the organizational hierarchy.Delegation should increase an organization#s fle*i$ility $y alloing people Lon the spotL to ma!e decisions.

'ine departments perform tas!s that reflect the organization#s primary tas! and mission. 9taff departments include all those departments that providespecialized s!ills in support of line departments. 5n a typical production firm" line departments ma!e and sell the product" hile staff departments mightinclude accounting and human resource management. 'ine authority means that people in management positions have the formal poer to directimmediate su$ordinates. 9taff authority is the right to advise" recommend" and counsel in the staff specialist#s area of e*pertise.

The span of management" or span of control" is the num$er of employees ho report directly to one supervisor. There is not an idealspan of management. The num$er depends upon several characteristics of the situation including the nature of the or! done $y thesu$ordinates" the locations here the or! is done" the training and education of the or!ers" the level of definition of the tas!" the timeavaila$le to the manager" and the manager#s personal preferences and style.

=1> 6or! performed $y su$ordinates is sta$le and routine. =)> 9u$ordinates perform similar or! tas!s. =+> 9u$ordinates are concentrated in asingle location. =,> 9u$ordinates are highly trained and need little direction in performing tas!s. => 8ules and procedures defining tas! activitiesare availa$le. =/> 9upport systems and personnel are availa$le for the manager. => 'ittle time is re7uired in nonsupervisory activities such ascoordination ith other departments or planning. => &anagers# personal preferences and styles favor a large span.

=1> Ereater change and uncertainty in the environment are usually associated ith decentralization. =)> The amount of centralization or decentralizationshould fit in the firm#s strategy. =+> 5n times of crisis of company failure" authority may $e centralized at the top.

A horizontal matri* structure utilizes functional and divisional chains of command simultaneously in the same part of the organization.This structure has dual lines of authority and purposely violates the principle of unity of command. &a%or advantages include@ =1> moreefficient use of human resources $ecause specialists can $e transferred from one division to another? =)> increased adapta$ility? =+>increased management s!ills? =,> greater interdisciplinary cooperation? and => enlarged tas!s for employees.

Cross-functional teams consist of employees from various functional departments ho are responsi$le to meet as team and resolve mutualpro$lems. Team mem$ers typically still report to their functional departments" $ut they also report to the team" one mem$er of hom may $ethe leader. ;ermanent teams are groups of employees ho are $rought together similar to a formal department. 2ach team $rings togetheremployees from all functional areas focused on a specific tas! or pro%ect. 2mphasis is on horizontal communication and information sharing$ecause representatives from all functions are coordinating their or! and s!ills to complete a specific organizational tas!.

There are at least to different types of teams. Cross-functional teams consist of employees from various functional departments ho areresponsi$le to meet as team and resolve mutual pro$lems. 6hile team mem$ers still report to their functional manager" they ill also report tothe team" perhaps to a team leader. ;ermanent teams consist of groups of employees ho are $rought together as a formal department.9imilar to a divisional structure" although much smaller in the num$er of employees involved" permanent teams are often the result of

reengineering. Disadvantages of the team structure include dual loyalties and conflict" the time and resources spent on meetings" andunintendedKineffective decentralization" hich may occur $ecause team mem$ers do not have the conceptual s!ills to $e effective.

8eengineering" sometimes called $usiness process reengineering" is the radical redesign of $usiness processes to achieve dramaticimprovements in cost" 7uality" service" and speed. 8eengineering involves a shift to a horizontal structure $ased on teams. 3asically" itmeans starting over" throing out all the notions of ho or! as done and deciding on ho it can $est $e done no.

A tas! force is a temporary team or committee designed to solve a short-term pro$lem involving several department A pro%ect manageris a person ho is responsi$le for coordinating the activities of several departments for the completion of a specific pro%ect.


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10 TEST BANK Daft Richard L Manag,jklhkhkhement 11th Ed 2014 Chapter 10 Designing Adapt