Question 1

Toyota uses a system of continuous improvement and learning.

Accepted Answer

Toyota's management philosophy, known as the Toyota Production System, is based on the concept of continuous improvement, or kaizen, and the pursuit of perfection. This involves constantly reviewing and improving processes, products, and services through a culture of learning, experimentation, and collaboration.

Question 2

One issue faced by Toyota was the centralized,Japanese-controlled organizational structure which complicated decision-making in the United States.

Accepted Answer

This is true. The Japanese culture places strong emphasis on hierarchy and centralized decision-making, which can sometimes be at odds with the more decentralized and individualistic approach in the United States. This caused some difficulties for Toyota in making quick and flexible decisions in the American market.

Question 3

Employees working in dynamic environments depend on their general mental abilities for good performance.

Accepted Answer

In dynamic environments, employees need to be able to adapt to changing situations and problem-solve on the fly. These abilities are largely dependent on their general mental abilities, such as cognitive flexibility and working memory.

Question 4

Flat structures are better at satisfying employee self-actualization needs while tall structures are better at satisfying employee security needs.

Accepted Answer

Flat structures have less hierarchy and more autonomy, which can lead to greater opportunities for creativity, innovation, and personal growth, satisfying employee self-actualization needs. Tall structures have more hierarchy and clear lines of authority, providing a greater sense of stability, predictability, and job security, satisfying employee security needs.

Question 5

Decentralization is the concentration of decision making at higher levels in the organization.

Accepted Answer

Decentralization is the opposite of concentration, as it involves delegating decision making to lower levels in the organization.

Question 6

A formalized structure leads to faster decision making.

Accepted Answer

A formalized structure often involves more layers of bureaucracy and clear, established procedures that must be followed, which can slow down the decision-making process as decisions have to go through more approvals and channels.

Question 7

In divisional structures,employees tend to be more specialists than generalists.

Accepted Answer

The answer of In divisional structures,employees tend to be more...

Question 8

If a firm is operating in a stable environment,the centralized organizational structure may lead to the most efficient operations.

Accepted Answer

In a stable environment, there is less need for quick decision making and adaptation. Centralized control allows for streamlined decision making and efficient operations.

Question 9

A strategic alliance is a type of boundaryless organization where all nonessential functions are outsourced.

Accepted Answer

A strategic alliance is a type of partnership between two or more independent organizations where they work together to achieve a common goal or objective. Nonessential functions may or may not be outsourced, but the focus is on collaboration and cooperation between the partners.

Question 10

Just-in-time production leads to antagonistic relations between Toyota and its suppliers.

Accepted Answer

Just-in-time production is actually intended to promote cooperation and collaboration between the company and its suppliers. It aims to reduce waste, lower costs, and improve quality by creating a seamless flow of goods and information between the two parties. Toyota is known for its close relationships with suppliers, often providing training and support to help them improve their processes and meet the company's high standards. Therefore, just-in-time production should lead to more positive and mutually beneficial relations between Toyota and its suppliers.

Question 11

Tall structures have wider span of control than flat structures.

Accepted Answer

Tall structures have a narrower span of control, meaning each manager supervises a smaller number of subordinates, compared to flat structures where managers have a wider span of control with more subordinates each.

Question 12

Organic structures are related to higher levels of job satisfaction.

Accepted Answer

Research suggests that organic structures, which are characterized by decentralized decision-making and more flexible communication channels, can promote a greater sense of autonomy and involvement among employees, leading to higher levels of job satisfaction.

Question 13

A learning organization is one where acquiring knowledge and changing behavior as a result of the newly acquired knowledge is part of the organization's design.

Accepted Answer

A learning organization is designed to promote continual learning and growth. It values the acquisition and application of new knowledge as a means of improving individual and organizational performance.

Question 14

Functional structures are most effective for companies with large product lines.

Accepted Answer

Functional structures are best suited for organizations with a single or limited range of products or services, as they focus on specialized functions such as marketing, finance, and production. Companies with large product lines often benefit from a divisional structure, which allows for focus on specific product categories.

Question 15

Employees feel that decentralized organizations provide greater levels of procedural fairness.

Accepted Answer

Decentralized organizations provide employees with more decision-making power and involvement in the decision-making process, which can result in greater perceived procedural fairness.

Question 16

Toyota owes its success in large part to its manufacturing system known as Total Production System (TPS).

Accepted Answer

Toyota has attributed much of its success to the implementation of the Total Production System (TPS) which is also known as the Toyota Production System. The TPS is a manufacturing system that focuses heavily on the elimination of waste and continuous improvement in efficiency and quality. It has been widely studied and adopted by other companies around the world.

Question 17

Organic structures are highly formalized and centralized.

Accepted Answer

Organic structures are more decentralized and flexible compared to formalized and centralized structures. They have a flatter hierarchy and allow for more fluid communication and decision-making processes.

Question 18

The biggest advantage of a mechanistic structure,especially in a stable environment,is its efficiency.

Accepted Answer

In a stable environment, a mechanistic structure is advantageous due to its efficiency in executing repetitive tasks and clear division of responsibilities. The standardized procedures and hierarchical decision-making process allow for streamlined operations and greater control. However, in a dynamic and uncertain environment, a mechanistic structure may hinder adaptation and innovation.

Question 19

Conflict at various levels is a potential issue for matrix organizations.

Accepted Answer

Matrix organizations involve individuals reporting to multiple managers or teams, which can potentially lead to conflicts and competing priorities at different levels (e.g. between functional managers and project managers, or between project teams).

Question 20

Matrix organizations violate the unity of command principle.

Accepted Answer

Matrix organizations have multiple managers or supervisors with different areas of responsibilities, causing employees to receive conflicting directives and violating the unity of command principle.

Quiz 14: Organizational Structure and Change