Question 1

A company designs and creates new toys. Because the toy market is so competitive, this company must incorporate customer feedback quickly in order to launch the next big thing. The firm's product developers in various regions must be able to independently make decisions to get toys rapidly designed and launched for their markets. The firm's organizational design would most likely be built for which of the following?
A) high empowerment, high control
B) high efficiency, low empowerment
C) high responsiveness, high empowerment
D) low efficiency, low responsiveness

Accepted Answer

The firm's need to incorporate customer feedback quickly and for product developers to independently make decisions suggests a need for a high level of empowerment and responsiveness. This will enable the company to quickly adapt to changing market trends and customer preferences. High efficiency and low empowerment would be counterproductive in this context, as it may slow down the process of getting new toys to market. Low efficiency and low responsiveness would also be detrimental to the company's ability to compete in the fast-paced and constantly evolving toy market.

Question 2

3M has customer innovation centres for corporate customers. These centres, usually located near 3M research facilities, are like showrooms that allow 3M to have a better understanding of what its customers are trying to accomplish. By understanding this, 3M can create products that help its customers. How does 3M likely prioritize organizational design?
A) high efficiency
B) high responsiveness
C) low empowerment
D) high control

Accepted Answer

3M's focus on customer innovation centres suggests that the company prioritizes high responsiveness to customer needs and preferences in its organizational design, rather than high efficiency, low empowerment, or high control.

Question 3

Which term is used to describe the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people?
A) rotation
B) specialization
C) enrichment
D) organization

Accepted Answer

Specialization is the term used to describe the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people. Rotation refers to the movement of employees between different jobs or departments, enrichment involves increasing the responsibilities and challenges of a job, and organization refers to the structure of the company as a whole.

Question 4

The various tasks in Caterpillar's manufacturing plant are arranged so that one worker draws the wiring, another strengthens the wires, a third cuts them, a fourth installs them, and a fifth seals them together. Which of the following does this arrangement exemplify?
A) job redesign
B) job specialization
C) job enrichment
D) job enlargement

Accepted Answer

The arrangement exemplifies job specialization, where each worker is assigned a specific task based on their skills and expertise.

Question 5

A high-end department store's employee handbook states, "Use your best judgment in all situations. There will be no additional rules." This store's organizational design likely prioritizes which of the following?
A) high efficiency
B) high control
C) low responsiveness
D) high empowerment

Accepted Answer

The answer of A high-end department store's employee handbook states,...

Question 6

An auto-manufacturing company designs its production line to build cars using the minimum amount of resources. However, its product development teams are always scanning the competitive environment, seeking to be the first to market with product improvements. What would be the company's two most important goals in organizational design?
A) high efficiency, high responsiveness
B) high control, low efficiency
C) high efficiency, low responsiveness
D) low responsiveness, high empowerment

Accepted Answer

The company's goals are to balance high efficiency in their production line with high responsiveness to the competitive environment. This means they want to produce cars using minimal resources while also being able to quickly and effectively respond to market demands for product improvements. High efficiency is important to keep costs low and profits high, while high responsiveness allows the company to stay ahead of competitors and maintain a competitive advantage.

Question 7

Costco is able to keep costs down and offer low prices thanks to a no-frill shopping experience. It offers thousands of different products and does take into consideration customer preferences. After realizing the popularity of organic food products, Costco quickly stocked more of these items and created an initiative to help farmers buy land to grow organic crops. How does Costco prioritize efficiency and responsiveness?
A) high efficiency, low responsiveness
B) high efficiency, high responsiveness
C) low efficiency, low responsiveness
D) low efficiency, high responsiveness

Accepted Answer

Costco prioritizes efficiency by keeping costs low through a no-frills shopping experience and offering a limited selection of products. However, it also demonstrates high responsiveness by quickly responding to customer demands for organic food products and implementing initiatives to support organic farmers.

Question 8

When a worker has to learn only a specific, highly specialized task, that individual will learn to do it very efficiently. However, this efficiency could eventually become inhibited by job monotony and boredom. This situation could be alleviated through which of the following?
A) job rotation
B) job specialization
C) high organizational control
D) assembly-line production

Accepted Answer

Job rotation involves moving workers through a variety of jobs within an organization, which can help alleviate job monotony and boredom associated with highly specialized tasks. This can also improve overall employee skills and flexibility.

Question 9

Which of the following is the speed at which the organization can improve its products as a result of customer feedback?
A) efficiency
B) effectiveness
C) responsiveness
D) empowerment

Accepted Answer

Responsiveness refers to the speed at which the organization can improve its products as a result of customer feedback. Efficiency is the ability to do something in a timely and cost-effective manner, effectiveness refers to achieving desired results, and empowerment refers to giving authority and autonomy to employees.

Question 10

Ted finds he has less energy to go to work each day. On average he misses two days a week. Ted may be suffering from boredom and lack of empowerment in his assembly line job, which is one negative side effect of which of the following?
A) job enrichment
B) job enhancement
C) job enlargement
D) job specialization

Accepted Answer

Job specialization involves focusing on one specific task or a very narrow range of tasks, which can lead to boredom and lack of empowerment. This is because the repetitive nature of specialized tasks offers little variety or challenge, potentially leading to decreased motivation and energy for work, as described in Ted's situation.

Question 11

The book The Wealth of Nations, published in the eighteenth century, emphasizes the power of which of the following to increase production output?
A) job rotation
B) job specialization
C) job design
D) assembly-line production

Accepted Answer

The Wealth of Nations emphasized the power of job specialization to increase production output.

Question 12

An accounting firm performs audits for top corporations to ensure they are following all applicable tax laws. The firm needs to complete this task using a minimum amount of resources and it needs employees to follow specific guidelines for each audit. This firm's organizational design would most likely be built for which of the following?
A) high empowerment, high efficiency
B) high control, low efficiency
C) high efficiency, high control
D) high responsiveness, high empowerment

Accepted Answer

The firm needs to complete their task with a minimum amount of resources and requires employees to follow specific guidelines for each audit. This indicates that the organizational design should prioritize high efficiency and high control to ensure that resources are utilized effectively and that audits are conducted accurately and consistently. High empowerment or high responsiveness may not be necessary for this type of organization.

Question 13

A manufacturing firm produces fire extinguishers at a high volume and low cost for export to markets all over the world. It must maintain precise processes throughout the organization. How would this organization likely prioritize for efficiency and control?
A) low efficiency, low control
B) low efficiency, high control
C) high efficiency, low control
D) high efficiency, high control

Accepted Answer

Given that the organization produces fire extinguishers at a high volume and low cost for export to markets all over the world, it can be inferred that the primary focus of the organization is on high efficiency. Additionally, given that it must maintain precise processes throughout the organization, it is likely to prioritize high control as well to ensure quality and consistency throughout the production process. Therefore, the best choice is high efficiency, high control (Option D).

Question 14

Which of the following is the ability for management to make decisions and to specify how those decisions will be carried out?
A) control
B) efficiency
C) responsiveness
D) empowerment

Accepted Answer

Control refers to the ability for management to make decisions and to specify how those decisions will be carried out. Efficiency refers to the ability to produce a desired result with minimal wasted effort or resources. Responsiveness refers to the ability to respond to changes or requests quickly and effectively. Empowerment refers to giving employees the authority and resources to make decisions and take action.

Question 15

Which of the following is defined as the degree to which employees make decisions on their own?
A) control
B) effectiveness
C) responsiveness
D) empowerment

Accepted Answer

Empowerment is the degree to which employees are given autonomy and decision-making power in their work. Control refers to how closely management oversees and regulates employee behavior. Effectiveness refers to the extent to which goals are achieved. Responsiveness refers to how quickly and appropriately an organization responds to external stimuli.

Question 16

In a furniture factory, one worker cuts the wood according to the design; another glues the furniture together, and another stains and finishes the furniture. This is an example of which of the following?
A) departmentalization
B) decentralization
C) job rotation
D) job specialization

Accepted Answer

The given scenario is an example of job specialization as each worker is assigned a specific task that they specialize in. The worker who cuts wood specializes in cutting, the worker who glues specializes in gluing, and the worker who stains and finishes specializes in that task. Departmentalization refers to the grouping of similar jobs or tasks into departments, while decentralization refers to the delegation of decision-making authority to lower levels of an organization. Job rotation involves moving employees from one job to another to provide them with a variety of experiences and develop their skills.

Question 17

A high-end restaurant is all about delighting customers. The chefs and waiters are free to make decisions that satisfy customer needs, even if it requires extra time or cost. Because the restaurant staff is highly talented and experienced, the restaurants owners take a hands-off approach to daily operations. The firm's organizational design would most likely feature which of the following?
A) high efficiency, high responsiveness
B) high control, low efficiency
C) low control, high empowerment
D) low efficiency, low responsiveness

Accepted Answer

The organizational design of the high-end restaurant would most likely feature low control and high empowerment because the chefs and waiters are free to make decisions that satisfy customer needs, and the restaurant owners take a hands-off approach to daily operations. This also aligns with the idea that the staff is highly talented and experienced, which suggests they are capable of taking on more responsibility and decision-making power. The focus on delighting customers also implies a high responsiveness, making option C the best choice.

Question 18

Which of the following is a benefit of job specialization?
A) It is more challenging to design equipment.
B) It is easier to train new employees.
C) It enlarges the job.
D) It enriches the job.

Accepted Answer

Job specialization allows for employees to become experts in their specific tasks, making it easier and more efficient to train new employees to perform those tasks.

Question 19

Which of the following involves the ability to complete a task using the minimum amount of resources?
A) efficiency
B) effectiveness
C) responsiveness
D) empowerment

Accepted Answer

Efficiency refers to the ability to complete a task using the minimum amount of resources, including time, money, and effort. Effectiveness, on the other hand, refers to the extent to which goals or objectives are achieved. Responsiveness is the ability to react quickly to changes in the environment or customer needs. Empowerment is the process of giving employees authority and responsibility to make decisions and take action.

Question 20

An advertising agency is known for its creative and "outside the box" campaigns. It employs highly talented writers, artists, and art directors to create these campaigns. This agency will most likely organize in order to make which of the following a priority?
A) high efficiency
B) high empowerment
C) low responsiveness
D) high control

Accepted Answer

An advertising agency that is known for its creative and "outside the box" campaigns would prioritize high empowerment. This means that the agency would need to give its highly talented writers, artists, and art directors the freedom and autonomy to come up with creative ideas and execute them without being hindered by excessive control or bureaucracy. This would enable the agency to produce highly creative campaigns that stand out from the competition.

Quiz 7: Creating a Flexible Organization

Which term is used to describe the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people?

The various tasks in Caterpillar's manufacturing plant are arranged so that one worker draws the wiring, another strengthens the wires, a third cuts them, a fourth installs them, and a fifth seals them together. Which of the following does this arrangement exemplify?

A high-end department store's employee handbook states, "Use your best judgment in all situations. There will be no additional rules." This store's organizational design likely prioritizes which of the following?

When a worker has to learn only a specific, highly specialized task, that individual will learn to do it very efficiently. However, this efficiency could eventually become inhibited by job monotony and boredom. This situation could be alleviated through which of the following?

Which of the following is the speed at which the organization can improve its products as a result of customer feedback?

Ted finds he has less energy to go to work each day. On average he misses two days a week. Ted may be suffering from boredom and lack of empowerment in his assembly line job, which is one negative side effect of which of the following?

The book The Wealth of Nations, published in the eighteenth century, emphasizes the power of which of the following to increase production output?

A manufacturing firm produces fire extinguishers at a high volume and low cost for export to markets all over the world. It must maintain precise processes throughout the organization. How would this organization likely prioritize for efficiency and control?

Which of the following is the ability for management to make decisions and to specify how those decisions will be carried out?

Which of the following is defined as the degree to which employees make decisions on their own?

In a furniture factory, one worker cuts the wood according to the design; another glues the furniture together, and another stains and finishes the furniture. This is an example of which of the following?

Which of the following is a benefit of job specialization?

Which of the following involves the ability to complete a task using the minimum amount of resources?

An advertising agency is known for its creative and "outside the box" campaigns. It employs highly talented writers, artists, and art directors to create these campaigns. This agency will most likely organize in order to make which of the following a priority?