Quiz 4: Basic Challenges of Organizational Design

Differentiation is the process of establishing and controlling the division of labor in an organization.

Division of labor and differentiation are high in a complex organization.

An organizational role is a set of task-related behaviors required of a person by his or her position in an organization.

Support functions manage and improve the efficiency of an organization's conversion processes so that more value is created.

Research and development is an example of a maintenance function.

Subunit orientation is the tendency to view one's role in the organization strictly from the perspective of the time frame, goals, and interpersonal orientations of one's subunit.

Integration is the way in which a company allocates people and resources to organizational tasks.

The simplest integrating mechanism is to establish direct contact between people in different subunits.

A task force is a permanent committee formed to handle problems that exist within an organization.

An integrating role is a full-time managerial position established specifically to improve communication between divisions.

Differentiation and integration are both expensive in terms of the number of managers employed and the amount of managerial time spent on coordinating organizational activities.

Decentralization promotes flexibility and responsiveness within an organization.

Formalization is more appropriate in environments that require high levels of mutual adjustment.

Norms are formalized rules of behavior within an organization.

Integrating mechanisms such as task forces and teams help increase the level of standardization within an organization.

Tasks associated with a role are clearly defined in a mechanistic structure.

Organizations are very status conscious in mechanistic structures.

Organic structures follow a centralized decision-making structure.

The contingency approach to organizational design tailors organizational structure to the sources of uncertainty facing an organization.

Top managers should make all the decisions if an organization faces a rapidly changing environment.

________ is the process by which an organization allocates people and resources to organizational tasks and establishes the task and authority relationships that allow the organization to achieve its goals. A) Differentiation B) Decentralization C) Integration D) Standardization

________ is the power to hold people accountable for their actions and to make decisions about how to invest and use organizational resources. A) Orientation B) Motivation C) Capability D) Authority

A ________ is a subunit composed of a group of people, working together, who possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs. A) hierarchy B) class C) function D) division

Which of the following functions facilitate an organization's control of its relations with its environment and stakeholders? A) production functions B) support functions C) adaptive functions D) managerial functions

________ functions manage and improve the efficiency of an organization's conversion processes to create more value. A) Managerial B) Support C) Production D) Maintenance

Quality control is a part of ________ function. A) managerial B) support C) production D) maintenance

Recruiting and training employees to improve skills is a(n) ________ function. A) adaptive B) maintenance C) production D) managerial

________ functions allow an organization to adjust to changes in the environment. A) Maintenance B) Adaptive C) Support D) Production

Which of the following is an adaptive function? A) resource acquisition B) purchasing C) quality control D) long-range planning

________ functions facilitate the control and coordination of activities within and among departments. A) Managerial B) Adaptive C) Support D) Maintenance

A(n) ________ is a classification of people in an organization according to authority and rank. A) hierarchy B) architecture C) culture D) orientation

________ refers to the way in which an organization groups organizational tasks into roles and roles into subunits. A) Vertical integration B) Horizontal differentiation C) Vertical differentiation D) Horizontal integration

Which of the following refers to the way in which an organization designs its hierarchy of authority and creates reporting relationships to link organizational roles and subunits? A) vertical integration B) horizontal differentiation C) vertical differentiation D) horizontal integration

________ is the process of coordinating various tasks, functions, and divisions to work together and not be at cross-purposes. A) Subunit orientation B) Integration C) Differentiation D) Decentralization

Which of the following is the simplest integrating technique? A) integrating role B) hierarchy of authority C) task force D) integrating department

A salesperson for a computer accessories manufacturer reports to the sales manager of the computer screen division. Identify the integrating technique used in this case. A) hierarchy of authority B) direct contact C) integrating role D) liaison role

The marketing and manufacturing managers of the sportswear division of a sports goods company meet to discuss the launch of a new line of football jerseys. The integrating technique used in this case is ________. A) integrating role B) direct contact C) task force D) integrating department

Which of the following is an integrating mechanism where an existing manager meets face to face to coordinate activities? A) integrating role B) task force C) integrating department D) direct contact

________ is an integration mechanism where a specific manager is given responsibility for coordinating with managers from other subunits on behalf of his or her subunit. A) Liaison role B) Task force C) Integrating role D) Direct contact

Robert Downs, the CEO of a manufacturing firm, wants to improve the communication between marketing and production departments. He asks one manager from each department to coordinate the communication between these departments. Identify the integrating mechanism used in this case. A) task force B) integrating department C) direct contact D) liaison role

Managers meet in temporary committees to coordinate cross-functional activities in some cases. This is an example of using a(n) ________ to integrate activities. A) integrating role B) task force C) team D) integrating department

A cell-phone manufacturer forms a temporary committee to find new ways to position its products. Identify the integrating mechanism used in this case. A) integrating role B) team C) task force D) integrating department

A firm hires a supervisor to handle the communication between two functions. Which of the following integrating mechanisms is used in this case? A) integrating role B) direct contact C) task force D) integrating department

Which of the following refers to the integration mechanism where a new team of managers is created to coordinate the activities of functions or divisions? A) integrating department B) direct contact C) task force D) hierarchy of authority

Which of the following integrating mechanisms involves creating a permanent committee to promote coordination within an organization? A) task force B) integrating department C) team D) liaison role

Which of the following integrating mechanisms is most appropriate for a complex and highly differentiated organization? A) integrating role B) direct contact C) liaison role D) hierarchy of authority

Which of the following is a difference between an integrating role and a liaison role? A) A liaison role is a more complex integrating mechanism than an integrating role. B) An integrating role is a full-time managerial position whereas a liaison role is a task involved in a full-time job. C) The ranking of employees is irrelevant for the integrating role whereas it becomes very significant in the liaison role. D) An integrating role's influence is limited to a single department whereas a liaison role's influence extends across multiple departments.

A complex organization that is differentiated to a large extent needs a(n) ________. A) high level of integration to coordinate its activities effectively B) informal operating procedures and controls C) lesser number of supporting functions and managers D) simpler method of integrating the organizational departments

________ involves choices about distributing authority within an organization. A) Standardization B) Subunit orientation C) Centralization D) Vertical differentiation

Top-level managers make all the important decisions in an organization. This organization is said to be ________. A) differentiated B) formalized C) centralized D) decentralized

________ refers to a situation where the authority to make important decisions is retained by managers at the top of the hierarchy. A) Centralization B) Standardization C) Formalization D) Differentiation

________ refers to a situation in which the authority to make important decisions about organizational resources and new projects is delegated to managers at all levels in the hierarchy. A) Formalization B) Standardization C) Integration D) Decentralization

A disadvantage of centralization is that ________. A) the organization tends to lose its focus on achieving its goals B) coordination becomes difficult to achieve within the organization C) the top managers have little time for long-term strategic decision-making D) the extent of standardization is reduced within the organization

An advantage of centralization is that it ________. A) keeps the organization focused on organizational goals B) gives top managers ample time to focus on strategic decision-making C) allows lower-level managers to make on-the-spot decisions D) promotes flexibility and responsiveness within an organization

An advantage of decentralization is that it ________. A) ensures formalization of procedures and policies within an organization B) promotes flexibility and responsiveness within an organization C) keeps the organization focused on achieving its goals D) simplifies the coordination process within an organization

An organization should adopt decentralization if it ________. A) needs flexibility and responsiveness B) requires high levels of internal control C) aims to keep the operational costs low D) faces problems in coordinating the activities

A disadvantage of decentralization is that it ________. A) reduces the level of flexibility within an organization B) makes lower level managers less responsive C) fails to motivate the lower-level managers in an organization D) makes planning and coordination very difficult

Standardizing the operations will help an organization in ________. A) increasing the creativity of its employees B) keeping the costs low C) promoting mutual adjustment among different divisions D) personalizing its customer service

Which of the following refers to the compromise that emerges when decision-making and coordination are evolutionary processes and people use their judgment to address a problem? A) centralization B) mutual adjustment C) formalization D) standardization

________ refers to conformity to specific models or examples, defined by sets of rules and norms, that are considered proper in a given situation. A) Standardization B) Decentralization C) Differentiation D) Mutual adjustment

Which of the following refers to the use of written rules and procedures to standardize operations? A) horizontal differentiation B) formalization C) socialization D) vertical differentiation

A high level of formalization typically implies ________. A) diffusion of power across the organization B) centralization of authority C) mutually adjusted approach to decision-making D) encouragement of innovation and flexibility

People turn around to face the door when they enter an elevator. This behavior is observed although there are no formal rules. This is an example of a(n) ________. A) norm B) rule C) benchmark D) hierarchy

Norms are ________. A) formal written statements that control behavior B) atypical behaviors of a group of people C) formal actions at lower levels in an organization D) behaviors that are representative of a certain group

Chiselers are employees who ________. A) follow established group norms B) carry out their duties within themselves C) work too slowly D) break the formal rules

Rate-busters are employees who ________. A) follow the group norms B) work too quickly C) work too slowly D) break the formal rules

________ is the process by which organizational members learn and internalize the norms of an organization. A) Mutual adjustment B) Standardization C) Differentiation D) Socialization

Mutual adjustment provides employees the opportunity to ________. A) specialize in performing certain organizational tasks B) standardize the tasks that they are performing C) formalize the rules and procedures for working in an organization D) discover new ways of achieving organizational goals

Which of the following types of employees are most likely to follow standardized practices in performing their tasks? A) office accountants B) R&D executives C) advertising executives D) public relations officers

Which of the following is the major integrating mechanism used in mechanistic structures? A) hierarchy of authority B) task forces C) teams D) integrating departments

Mechanistic structures result when ________. A) employees work collaboratively and across several functions B) authority is delegated to people at all levels of the organization C) extensive use is made of rules and SOPs to coordinate tasks D) most of the communication within the organization is lateral

Organic structures result when ________. A) organizational authority is not delegated B) integrative mechanisms are relatively simple C) standard operating procedures are used to coordinate tasks D) work processes are relatively unpredictable

An organization uses task forces to coordinate the activities of various departments. Employees also work in teams to increase coordination. This organization most likely has a(n) ________ structure. A) mechanistic B) bureaucratic C) organic D) centralized

Which of the following is a characteristic of organic structures? A) joint specialization of tasks B) standardization of procedures C) centralization of authority D) simple methods of integration

You are the CEO of a small firm that manufactures office furniture. The decision-making authority in your firm rests almost entirely with you and your closest associates. You introduce a set of rules and procedures designed to induce predictable and accountable behaviors among employees. Your firm has a(n) ________ structure. A) mechanistic B) mutually adjusted C) organic D) integrative

Structures that are designed to induce people to behave in predictable and accountable ways are called ________ structures. A) decentralized B) mechanistic C) organic D) mutually adjusted

A mechanistic structure is characterized by ________. A) high levels of standardization B) complex integrating mechanisms C) rules that are defined informally D) decentralized organizational structures

________ structures promote flexibility, so people initiate change and can adapt quickly to changing conditions. A) Mechanistic B) Standardized C) Organic D) Centralized

Organic structures are characterized by ________. A) loosely defined organizational roles B) predictable work processes C) high levels of standardization D) centralized organizational structures

Organic structures ________. A) are used by small organizations B) initiate innovative behaviors C) make use of rules and SOPs to coordinate tasks D) are suited to handle emergencies

________ is a management approach in which the design of an organization's structure is tailored to the sources of uncertainty facing an organization. A) Contingency approach B) Standardized approach C) Specialized approach D) Mechanistic approach

According to contingency theory, in order to manage its environment effectively, an organization should ________. A) use mechanistic structures to make organizational decisions B) design its internal structure to control the external environment C) concentrate all authority within the top-management level D) limit the extent of internal differentiation and integration

According to the study conducted by Lawrence and Lorsch, an organization functioning in a highly unstable environment was most effective when it ________. A) used rules and SOPs extensively to coordinate tasks B) concentrated decision-making authority at the top-management level C) incorporated high levels of organizational integration D) relied more on mutual adjustment between subunits

Which of the following statements is true of an organization that adopts an organic structure to deal with high environmental uncertainty? A) The organization needs to decentralize decision-making. B) The organization should have low levels of differentiation. C) The organization needs to adopt formalized rules and procedures. D) The organization should increase the level of standardization.

According to the study conducted by Tom Burns and G. M. Stalker, an organization functioning in a stable environment should have ________. A) mechanistic organizational structure B) high levels of integration C) high levels of differentiation D) decentralized decision-making procedures

Explain differentiation.

What is an organizational role?

Define authority and control.

Explain the different kinds of functions that exist within an organization.

Distinguish between vertical differentiation and horizontal differentiation.

What is subunit orientation?

Briefly describe the various integrating mechanisms used in organizations.

Comment on balancing differentiation and integration within an organization.

Discuss the advantages and disadvantages of centralization.

Discuss the advantages and disadvantages of decentralization.

Write a brief note on how organizations balance centralization and decentralization.

How can an organization establish a balance between standardization and mutual adjustment?

Compare and contrast mechanistic structures and organic structures.

Briefly describe the contingency approach to organizational design.

Explain the relationship between environmental uncertainty and organizational structure based on the study conducted by Burns and Stalker.