Management 8th Edition Kinicki Test Bank

Management 8th Edition Kinicki Test
Bank
Visit to Download in Full:
https://testbankdeal.com/download/management-8th-edition-kinicki-test-bank/
Chapter 08
Test Bank
True / False Questions
1. Productivity expert Odette Pollar recommends that managers delegate (1) emergencies and (2) confidential matters, and (3) personnel-related
matters.
FALSE
AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Identify the major elements of an organization.
Topic: Delegation
Feedback: Odette Pollar recommends that managers should not delegate an emergency, which is a crisis for which there is little time for solution.
Managers should also not delegate tasks that are confidential or that involve the evaluation, discipline, or counseling of subordinates.
2. An organizational structure is a set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks
about, and reacts to its environments.
FALSE

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-01 Describe how managers align vision and strategies with the organization's culture and structure.
Topic: Organizational Culture
Feedback: A set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its
environments is its organizational culture or corporate culture. Organizational structure is a formal system of task and reporting relationships that
coordinate and motivates an organization's members so that they can work together to achieve the organization's goals.
3. A company's organizational structure is its formal and informal marketing systems of goods, services, ideas, and customer relationships.
FALSE

Blooms: Understand
Topic: Organizational Structure
Feedback: Organizational structure is a formal system of task and reporting relationships that coordinate and motivate an organization's members so
that they can work together to achieve the organization's goals.
4. A company with a market culture has a strong internal focus, and it concentrates on developing the business and marketing plans, as well as helping
employees market their product(s).
FALSE

Blooms: Understand
Learning Objective: 08-02 Explain how to characterize an organization's culture.
Topic: Market Culture
Feedback: A market culture has a strong external focus and values stability and control. Because market cultures are focused on the external
environment and driven by competition and a strong desire to deliver results, customers, productivity, and profits take precedence over employee
development and satisfaction.
5. Dave, a graphic designer with Development Advertising, enjoys working for the company because of the flexibility of its management and its culture,
which encourages risk taking, innovation, and creativity. Dave gets quick answers from his boss, which allows him and Development Advertising to
quickly respond to changes in the marketplace. Development Advertising is an example of an adhocracy culture.
TRUE
AACSB: Knowledge Application

Blooms: Apply
8-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Difficulty: 3 Hard
Topic: Adhocracy Culture
Feedback: An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products by being
adaptable, creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of
getting things done.
6. Thrifty Bank has an external focus, concentrating on strategic planning, risk taking, and flexibility over stability. Thrifty Bank has a hierarchy
culture.
FALSE

Blooms: Apply
Difficulty: 3 Hard
Topic: Hierarchy Culture
Feedback: Hierarchy culture has an internal focus and values stability and control over flexibility. Companies with this kind of culture are apt to have a
formalized, structured work environment aimed at achieving effectiveness through a variety of control mechanisms that measure efficiency, timeliness,
and reliability in the creation and delivery of products. Thrifty bank has an adhocracy culture, which has an external focus and values creativity.
7. Changing organizational culture is essentially a teaching process, a process in which members instruct each other about the organization's preferred
values, beliefs, expectations, and behaviors.
TRUE

Blooms: Understand
Learning Objective: 08-03 Describe the process of culture change in an organization.
Topic: Organizational Culture Change
Feedback: Changing organizational culture is essentially a teaching process—that is, a process in which members instruct each other about the
organization's preferred values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12
mechanisms: formal statements; slogans and sayings; rites and rituals; stories, legends, and myths; leader reactions to crises; role modeling, training,
and coaching; physical design; rewards, titles, promotions, and bonuses; organizational goals and performance criteria; measurable and controllable
activities; organizational structure; and organizational systems and procedures.
8. The AFL-CIO is an example of a for-profit organization, and the March of Dimes is an example of a nonprofit organization.
FALSE

Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations.
Feedback: Mutual-benefit organizations (such as the AFL-CIO) are voluntary collectives whose purpose is to advance members' interests (examples:
unions, trade associations). Nonprofit organizations (such as the March of Dimes) are formed to offer services to some clients, not to make a profit
(examples: hospitals, colleges). For-profit organizations are formed to make money, or profits, by offering products or services (examples: Microsoft,
Dell Computer, Delta Airlines).
9. When Angela, a new nurse was hired at Mercy Hospital, the HR manager gave her a handout containing a chart that showed a family-tree-like pattern
of boxes and lines. This document, which shows the formal lines of authority and the organization's official positions and work specializations, at the
hospital is called an organization chart.
TRUE

Blooms: Apply
Difficulty: 3 Hard
Feedback: An organization chart is a box-and-lines illustration showing the formal lines of authority and the organization's official positions or work
specializations. This is the family-treelike pattern of boxes and lines posted on workplace walls and given to new hires (see Figure 8.4).
10. The arrangement of having discrete parts of a task done by different people is known as division of labor.
8-2
TRUE

Blooms: Remember
Difficulty: 1 Easy
Feedback: The arrangement of having discrete parts of a task done by different people is known as division of labor.
11. Tom's Hardware has a simple organizational structure. There are no levels of middle management, because all employees report to the owner, Tom,
or to his assistant managers. Tom's Hardware has a thin organizational structure.
FALSE

Blooms: Apply
Difficulty: 3 Hard
Topic: Hierarchy of Authority
Feedback: An organization is said to be flat when there are only a few levels with wide spans of control. Like other flat organizations, Tom's Hardware
has an organizational structure with few or no levels of middle management between top managers and those reporting to them.
12. Two advantages of decentralization are that (1) managers are encouraged to solve their own problems, and (2) decisions are made more quickly,
increasing the organization's flexibility and efficiency.
TRUE

Blooms: Understand
Topic: Decentralized Authority
Feedback: An advantage of decentralized authority is that managers are encouraged to solve their own problems rather than to buck the decision to a
higher level. In addition, decisions are made more quickly, which increases the organization's flexibility and efficiency.
13. Fine Oil uses an organizational structure that includes both functional divisions (such as marketing and HR) and a divisional chain of command
(such as the chemical and petroleum products divisions). For example, Glen, a salesperson for Fine Oil, reports to both the marketing manager and the
petroleum products manager as he starts to develop the Shell Oil account. Fine Oil uses a matrix structure.
TRUE

Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-06 Describe the seven organizational structures.
Topic: Divisional Structure
Feedback: In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command
structures: vertical and horizontal. Thus, a marketing person might report to both the vice president of marketing and to the project manager.
14. While figuring out how to save money for a bride who is having financial problems, Paula, the catering manager of Oh Happy Day, asked her
assistant, "What do you think is the best menu to offer under these particular circumstances? How can we offer the bride and groom's guests a great meal
within their budget?" Paula and her assistant are using the contingency approach.
TRUE

Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-07 Identify the factors that affect the design of an organization's structure.
Topic: Contingency Design
Feedback: The process of fitting the organization to its environment is called contingency design. The manager following the contingency approach
simply asks, "What method is the best to use under these particular circumstances?"
15. Lena works as an order-taker at Fast Burger, a fast-food restaurant. She does not cook food, or even package the final order, but she does input the
order and takes payment. Lena reports directly to the shift manager, and she seldom interacts with the general manager. Fast Burger is an example of a
8-3
mechanistic organization.
TRUE

Blooms: Apply
Difficulty: 3 Hard
Topic: Mechanistic Organization
Feedback: In a mechanistic organization, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.
Mechanistic organizations, then, are bureaucratic, with rigid rules and top-down communication. Fast Burger is a mechanistic organization.
16. Routine tasks and paperwork, as well as jobs that help your subordinates grow, are
A. tasks that a manager should not delegate, according to Odette Pollar.
B. tasks that should be delegated, according to Maslow.
C. tasks that a manager should delegate, according to Odette Pollar.
D. tasks that should not be delegated, according to Maslow.
E. tasks that a manager should never delegate, according to Frank Gilbreth.

Blooms: Understand
Topic: Delegation
Feedback: Productivity expert Odette Pollar recommends that you delegate tasks that help your subordinates grow, as well as routine tasks and
paperwork. Let your employees solve their own problems whenever possible. Let them try new things so they will grow in their jobs.
17. "To do more in a day, ____," according to productivity expert Odette Pollar.
A. do not delegate, but be more focused
B. you must do more—not do everything faster
C. you must do more—not do everything slower
D. hire more employees
E. you must do less—not do everything faster

Blooms: Understand
Topic: Delegation
Feedback: According to productivity expert Odette Pollar, "To do more in a day, you must do less—not do everything faster."
18. Adam, the owner of Adam's Roofing, was talking to a visitor in his office, telling her that "We are a fun-loving group that believes in teamwork and
a family atmosphere at work, which significantly affects our work outcomes. Plus, we do things together outside of work. This is the 'social glue' that
binds the members of our company together." Adam was referring to his company's
A. mission statement.
B. organizational culture.
C. code of ethics.
D. diversity plan.
E. analytics.

Blooms: Apply
Difficulty: 3 Hard
Feedback: Organizational culture, or corporate culture, is the set of shared, taken-for-granted implicit assumptions that a group holds and that
determines how it perceives, thinks about, and reacts to its various environments. Corporate culture is the "social glue" that binds members of the
organization together. Just as a human being has a personality—such as fun-loving, warm, uptight, competitive—so an organization has a "personality."
And that is culture.
19. Jean-Paul, the store manager at an H&M outlet, was speaking with Patty, his new assistant manager, about the store's system of job relationships; he
also explained whom she will report to and who will report to her. Jean-Paul said, "This structure is one of the things that motivates our employees to
work together to achieve our company's goals." Jean-Paul was telling Patty about the store's
8-4
A. organizational structure.
B. organizational culture.
C. code of ethics.
D. diversity plan.
E. values statement.

Blooms: Apply
Difficulty: 3 Hard
Feedback: Organizational structure is a formal system of task and reporting relationships that coordinates and motivates an organization's members so
that they can work together to achieve the organization's goals.
20. According to the competing values framework, the four types of ______ are clan, adhocracy, market, and hierarchy.
A. organizational values
B. industry cultural standards
C. organizational norms
D. value statements
E. organizational cultures

Blooms: Remember
Difficulty: 1 Easy
Feedback: According to the competing values framework, organizational cultures can be classified into four types: (1) clan, (2) adhocracy, (3) market,
and (4) hierarchy (see Figure 8.2).
21. Insurance company Acuity has a clan culture; employees have generous perks and are empowered to participate in a way in the company that is fun.
The end results are profitability and an enviably low 2% turnover rate. A clan culture has a(n)
A. internal focus and values flexibility.
B. strong external focus and values stability and control.
C. external focus and values flexibility.
D. internal focus and values stability and control.
E. continual focus on efficiency, cost cutting, and outsourcing.

Blooms: Remember
Difficulty: 1 Easy
Topic: Clan Culture
Feedback: A clan culture has an internal focus and values flexibility rather than stability and control.
22. Online retailer Amazon relies heavily on a hierarchy culture to manage its vast and complex shipping processes. ___________ are part of Amazon's
hierarchy culture.
A. An internal focus and values stability and control
B. A strong external focus and values stability and control
C. An external focus and values flexibility
D. An internal focus and values innovation and creativity
E. A continual focus on efficiency, cost cutting, and outsourcing

Blooms: Remember
Difficulty: 1 Easy
Topic: Hierarchy Culture
Feedback: A hierarchy culture has an internal focus and values stability and control over flexibility.
23. Juan, the owner of Quality Catering, is driven by competition. He is very focused on meeting deadlines and quality, and on delivering the results that
customers want. He pushes his managers to continually exceed their productivity goals, and he stresses that profits take precedence over employee
development and satisfaction. Juan feels "there is not enough time for training." However, his employees are regularly rewarded for their success in
meeting company goals. Quality Catering has a(n) ____ culture.
8-5
A. clan
B. target-driven
C. adhocracy
D. market
E. hierarchy

Blooms: Apply
Difficulty: 3 Hard
Topic: Market Culture
Feedback: A market culture has a strong external focus and values stability and control. Uber has a "champions mind-set." The company uses an
approach called "principled competition" to establish itself in new markets, developing a base of enthusiastic new riders and drivers and using that
grassroots support to fend off opposition.
24. Employees and customers are treated like a family at Bayou Seafood Café. Paul and Betsey, the owners, work to encourage unity to increase their
employees' job satisfaction and commitment. At their café, Paul and Betsey have built a(n)
A. market culture.
B. goal-driven agenda.
C. bureaucracy culture.
D. clan culture.
E. adhocracy culture.

Blooms: Apply
Difficulty: 3 Hard
Topic: Clan Culture
Feedback: A clan culture has an internal focus and values flexibility rather than stability and control. Like a family-type organization, it encourages
collaboration among employees, striving to encourage cohesion through consensus and job satisfaction and to increase commitment through employee
involvement. Clan organizations devote considerable resources to hiring and developing their employees, and they view customers as partners.
25. Phillip, owner of Technology Sales, said, "We have to focus on our customers and how can we beat the competition, so we have to be flexible." He
encourages his R&D department to develop innovative products and focuses on being quick to respond to market changes. Technology Sales has a(n)
A. market culture.
B. goal-driven agenda.
C. adhocracy culture.
D. clan culture.
E. focused approach.

Blooms: Apply
Difficulty: 3 Hard
Feedback: An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products by being
adaptable, creative, and quick to respond to changes in the marketplace. Adhocracy cultures are well suited for start-up companies, those in industries
undergoing constant change, and those in mature industries that are in need of innovation to enhance growth.
26. Elly and Sylvia, owners of Gaia Organic Foods, do not have a formal policy about dress code and work procedures because they see their company
as a family place that is enjoyable to work for. Elly and Sylvia believe that if you treat employees like family, the company will do well and grow. _____
are the core beliefs that represent the core values of Gaia Organic Foods' culture.
A. A code of ethics
B. Basic assumptions
C. Espoused values
D. Rites and rituals
E. Observable artifacts

Blooms: Apply
8-6
Feedback: Basic assumptions, which are not observable, represent the core values of an organization's culture. They are those that are taken for granted
and, as a result, are difficult to change.
27. _______ are the rituals and ceremonies of a company, as well as the manner of dress, awards, myths and stories told about a company.
A. Observable artifacts of organizational culture
B. Espoused values of organizational culture
C. Enacted values of organizational culture
D. Basic assumptions about organizational culture
E. Invisible artifacts of that industry's culture and values

Blooms: Understand
Difficulty: 1 Easy
Feedback: At the most visible level, organizational culture is expressed in observable artifacts, which are physical manifestations such as manner of
dress, awards, myths and stories about the company, rituals and ceremonies, and decorations, as well as visible behavior exhibited by managers and
employees.
28. Espoused values are _____. For example, Hewlett-Packard stresses the "HP Way," a collegial, egalitarian culture that gave as much authority and
job security to employees as possible.
A. a narrative based on true events, which emphasize a particular value
B. physical manifestations of organizational culture
C. the values and norms actually exhibited in the community
D. explicitly stated values and norms preferred by an organization
E. profit and cost expectations stated in the business plan

Blooms: Remember
Difficulty: 1 Easy
Feedback: Espoused values are the explicitly stated values and norms preferred by an organization, as may be put forth by the firm's founder or top
managers.
29. Symbols, stories, heroes, and rites and rituals are ways in which ____ is (are) most often transmitted to employees.
A. plans
B. goals
C. objectives
D. culture
E. ethics

Blooms: Understand
Feedback: Culture is transmitted to employees in several ways, most often through such devices as symbols, stories, heroes, and rites and rituals.
30. IKEA employees are inspired to work hard by an anecdote from their Swedish founder, Invar Kamprad, who told how he was berated by his father
for failing repeatedly to get out of bed to milk the cows on his family's farm. Then one day he got an alarm clock. "‘Now by jiminy, I'm going to start a
new life,' he determined, setting the alarm for twenty to six and removing the ‘off button.'" Invar Kamprad is an example of a(n)
A. trend.
B. fable.
C. hero.
D. urban legend.
E. key employee.

Blooms: Apply
Difficulty: 3 Hard
8-7
Feedback: A hero is a person whose accomplishments embody the values of the organization. The accomplishments of heroes, past and present, are put
forth to motivate other employees to do the right thing.
31. Rites and rituals are ____. For example, employees of New Belgium Brewery in Fort Collins, Colorado, get a free brewery-hopping trip to Belgium
after being employed by the company for five years.
A. company values included in the code of ethics
B. the activities and ceremonies that celebrate important occasions and accomplishments in the organization's life
C. objects, acts, or the quality that conveys meaning to others
D. a narrative based on true events that emphasize a particular value
E. company expectations for employees, such as working hard, ethically, and honestly

Blooms: Remember
Difficulty: 1 Easy
Feedback: Rites and rituals are the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the
organization's life.
32. Danilo has been working for Metropolitan Taxi for three months. He expected that his job would be to drive around the city, pick up fares, and drop
them off at their desired locations, but in his first few days on the job he realized that the job entails much more. He must keep his taxi cab clean and
neat, and some days he will be stationed at the shop and go to people's houses to pick them up and bring them to the local airport. Within a few months,
he has learned that taxi drivers often express frustration with the people they call "civilians"—that is, non–taxi drivers, whose driving skills they
complain about incessantly. In his first few months on the job, ________ describes what Danilo is undergoing.
A. a symbolic ritual
B. values training
C. hierarchical indoctrination
D. fit analysis
E. organizational socialization

Blooms: Understand
Feedback: Organizational socialization is the process by which employees learn the values, norms, and required behaviors that permit them to
participate as members of an organization. Converting from outsider into organizational insider may take weeks or even years.
33. Which of the following is an accurate conclusion based on a recent meta-analysis of more than 38,000 organizational units and 616,000 individuals?
A. An organization's culture does not matter.
B. An organization's financial performance (profit and revenue growth) is strongly related to organizational culture.
C. Employees have more positive work attitudes when working in organizations with clan cultures.
D. Quality and innovation are most closely related to hierarchical cultures.
E. Adhocracy cultures produce higher customer satisfaction and market share.

Blooms: Understand
Feedback: A recent meta-analysis of organizations and individuals determined that (1) an organization's culture matters, (2) employees have more
positive work attitudes when working in organizations with clan cultures, (3) clan and market cultures are more likely to deliver higher customer
satisfaction and market share, (4) operational outcomes, quality, and innovation are more strongly related to clan, adhocracy, and market cultures than
to hierarchical cultures, and (5) an organization's financial performance (profit and revenue growth) is not strongly related to organizational culture.
34. Hewlett-Packard founders David Packard and William Hewlett created a close-knit organizational culture that gave a lot of responsibility to
employees and fostered innovation within the company. ______ are individual responsibility and the importance of innovation.
A. Espoused values
B. Focused values
C. Enacted values
D. Analytics
E. A diverse perspective
8-8
Blooms: Apply
Difficulty: 3 Hard
Topic: Espoused Values
Feedback: Espoused values are the explicitly stated values and norms preferred by an organization, as may be put forth by the firm's founder or top
managers. Another example: CVS Health decided not to continue selling cigarettes because selling such an unhealthy product was heavily out of sync
with a company that was trying to sell itself as a health care giant.
35. Making formal statements, engaging in rites and rituals, utilizing employee training and coaching, demonstrating how a leader reacts to a crises,
being a role model, and giving rewards, promotions, and bonuses are some of the teaching methods that organizations can utilize to
A. write a strategic plan.
B. perform competitive analysis.
C. effect corporate change.
D. conduct formal market research.
E. follow legal requirements.

Blooms: Understand
Feedback: Changing organizational culture is a teaching process in which organizational members teach each other about the organization's preferred
values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms: formal statements;
slogans and sayings; rites and rituals; stories, legends, and myths; leader reactions to crises; role modeling, training, and coaching; physical design;
rewards, titles, promotions, and bonuses; organizational goals and performance criteria; measurable and controllable activities; organizational structure;
and organizational systems and procedures.
36. Della, the new CEO of Sky Advertising, has been with the firm for over 25 years. She was picked by the board to turn the 85-year-old agency
around, because it had lost its edge in the Internet age. To infuse new life and energy into the agency, Della wants to bring back some old ideas that
previously worked at Sky. She plans on having managers and veteran employees instruct each other about the organization's values, beliefs, and
expectations; telling stories about some of the company legendary ad campaigns; coming up with a slogan that summarizes Sky's abilities in a simple
and memorable phrase; and having quarterly ceremonies where creativity and innovation are rewarded. The things that Della wants to do are all
examples of
A. a value stabilizing plan.
B. decentralizing authority.
C. embedding culture.
D. MBO.
E. TQM.

Blooms: Apply
Difficulty: 3 Hard
Feedback: Changing organizational culture is a teaching process in which organizational members teach each other about the organization's preferred
values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms: formal statements;
slogans and sayings; rites and rituals; stories, legends, and myths; leader reactions to crises; role modeling, training, and coaching; physical design;
rewards, titles, promotions, and bonuses; organizational goals and performance criteria; measurable and controllable activities; organizational structure;
and organizational systems and procedures.
37. According to Chester I. Barnard's classic definition, an organization is a

A. formal system of task and reporting relationships that coordinate and motivate employees.
B. means to increase collaboration and cooperation among groups of people.
C. set of shared, taken-for-granted implicit assumptions that a group holds.
D. system of consciously coordinated activities or forces of two or more people.
E. type of analytical tool used for planning.

Blooms: Remember
Difficulty: 1 Easy
8-9
Feedback: According to Chester I. Barnard's classic definition, an organization is a system of consciously coordinated activities or forces of two or more
people. By this definition, a crew of two coordinating their activities to operate a commercial tuna fishing boat is just as much an organization as the
entire Bumble Bee Tuna Company with its thousands of employees.
38. Organizations that are formed to offer services to clients and not make a profit are ____, whereas, ________ are those organizations that are formed
to make money, or profits, by offering products or services.
A. for-profit organizations; nonprofit organizations
B. unions; associations
C. nonprofit organizations; associations
D. co-ops; for-profit organizations
E. nonprofit organizations; for-profit organizations

Blooms: Remember
Difficulty: 1 Easy
Feedback: A nonprofit organization is formed to offer services to some clients, not to make a profit (examples: Goodwill Industries, the Red Cross).
For-profit organizations are formed to make money, or profits, by offering products or services.
39. Dr. Gomez is retiring as a doctor in private practice. He wants to start a(n) __________, Doctor Help, that will provide low-income individuals in
the United States with medical assistance at no cost.
A. for-profit organization
B. union
C. mutual-benefit organization
D. nonprofit organization
E. co-op

Blooms: Apply
Difficulty: 3 Hard
Feedback: A nonprofit organization is formed to offer services to some clients, as the Humane Society does, not to make a profit.
40. _______ are voluntary collectives with the purpose of advancing their members' interests. One example of such a collective is the Teamsters Union.
A. Clan cultures
B. Nonprofit organizations
C. Volunteer co-ops
D. For-profit organizations
E. Mutual-benefit organizations

Blooms: Remember
Difficulty: 1 Easy
Feedback: Mutual-benefit organizations are voluntary collectives whose purpose is to advance members' interests (examples: unions, trade
associations).
41. Examples of ______ are the AFL-CIO (a union) and the National Federation of Independent Business are both voluntary groups with the purpose of
advancing member interests.
A. mutual-benefit organizations
B. nonprofit organizations
C. volunteer co-ops
D. for-profit organizations
E. trade alliances

Blooms: Apply
Difficulty: 3 Hard
8-10
Feedback: Mutual-benefit organizations are voluntary collectives whose purpose is to advance members' interests (examples: unions, trade
associations).
42. ________ is(are) another way of describing a vertical hierarchy.

A. An upward graph
B. An X-Y chart
C. A chain of command
D. A network structure
E. Corporate steps

Blooms: Remember
Difficulty: 1 Easy
Feedback: The vertical hierarchy is also known as the chain of command.
43. Having realistic expectations and thinking about the kind of manager you want to be, not forgetting to manage upward and sideways as well as
downward, getting guidance from other managers, and resisting isolation is good advice for those who are
A. starting a networking group within an organization.
B. developing a training and development program.
C. developing a diversity or synergy plan.
D. starting retirement.
E. transitioning upward in an organization.

Blooms: Understand
Feedback: For those who are transitioning upward in an organization, good advice is to (1) have realistic expectations and think about the kind of
manager you want to be, (2) don't forget to manage upward and sideways as well as downward, (3) get guidance from other managers, and (4) resist
isolation.
44. ________ in an organization is the division of labor. For example, in a publishing company, there are people who acquire manuscripts (sponsoring
editors), people who edit manuscripts (developmental editors), and people who turn manuscripts into printed books (production editors).
A. The coordination of individual efforts into a group or organization-wide effort
B. The common purpose that unifies employees
C. An organizational structure with few or no levels of middle management
D. A structure where employees report to no more than one manager
E. The arrangement of having discrete parts of a task done by different people

Blooms: Remember
Difficulty: 1 Easy
Feedback: Division of labor, also known as work specialization, is the arrangement of having discrete parts of a task done by different people.
45. __________ is also known as division of labor.

A. A task chart
B. A horizontal hierarchy
C. An organizational graph
D. Work specialization
E. Chain of command

Blooms: Remember
Difficulty: 1 Easy
8-11
Feedback: Division of labor is also known as work specialization.
46. A hierarchy of authority is ____. Most military organizations are known for having a strong hierarchy of authority.
A. also known as a division of labor
B. a control mechanism for making sure the right people do the right things at the right time
C. a diversity structure used in planning with recruiting, selection, and hiring
D. also known as work specialization
E. the arrangement of having discrete parts of a task done by different people

Blooms: Remember
Difficulty: 1 Easy
Feedback: The hierarchy of authority, or chain of command, is a control mechanism for making sure the right people do the right things at the right time.
If coordinated effort is to be achieved, some people (namely, managers) need to have more authority, or the right to direct the work of others.
47. Tomás, a sales associate in the furniture department of the Larkspur Department Store, reports to Carolina, the furniture department manager. This
morning, Carolina asked Tomás to change the price tags on the desk chairs. While working on this task, David, the computer department manager, told
Tomás that he wanted him to unload some computers. Tomás is confused about what to do because under the principle of unity of command,
A. employees should report to no more than one manager.
B. Tomás will need to determine how he can multitask.
C. employees can report to two managers, so Tomás needs to decide whose directions to follow.
D. Tomás can refuse to do both tasks.
E. Tomás needs to decide which manager has more power.

Blooms: Apply
Difficulty: 3 Hard
Feedback: A principle stressed by early management scholars was that of unity of command, in which an employee should report to no more than one
manager to avoid conflicting priorities and demands.
48. Alana, the children's department manager at Shoe Mart, has eight employees in her department, also known as her _________. All of eight of these
employees report directly to her.
A. area of responsibility
B. span of direction
C. span of control
D. hierarchy of authority
E. management depth

Blooms: Apply
Difficulty: 3 Hard
Topic: Span of Control
Feedback: The span of control, or span of management, refers to the number of people reporting directly to a given manager.
49. _____ are the two kinds of spans of control.

A. Tall and short
B. Flat and broad
C. Tall and hollow
D. Hierarchy and nonhierarchy
E. Narrow and wide

Blooms: Remember
Difficulty: 1 Easy
Feedback: There are two kinds of spans of control, narrow (or tall) and wide (or flat).
8-12
50. Maria, the CEO of EnviroSystems, has only three people reporting to her: the vice president of marketing, vice president of HR, and vice president
of accounting. Maria has a
A. narrow span of control.
B. small unity of command.
C. wide span of control.
D. focused span of control.
E. broad span of influence.

Blooms: Apply
Difficulty: 3 Hard
Feedback: When a manager has a limited number of people reporting directly to her, she has a narrow span of control.
51. During weekly conference calls, Mary, a restaurant manager for a national chain of restaurants, and the other managers in her district explain to their
district manager the reasons for different decisions; they also explain why certain costs and sales were higher or lower than they were the previous week.
_______ is the explanation of their decisions and work results.
A. Accountability
B. A stepped decision
C. A hierarchy of authority
D. Touching
E. Power

Blooms: Apply
Difficulty: 3 Hard
Feedback: Accountability means managers must report and justify work results to the managers above them.
52. ________ enables a manager to make decisions, give orders, and utilize resources. For example, the manager of a local pizzeria has the right to hire
and fire drivers based on their punctuality, performance, and customer-service ratings.
A. Power
B. A clan culture
C. A hierarchy of power
D. Touching
E. Authority

Blooms: Remember
Difficulty: 1 Easy
Feedback: Authority refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources. Authority is
distinguished from power, which is the extent to which a person is able to influence others so they respond to orders.
53. Jim was recently promoted to the position of dining room supervisor at The Crab Shack, and he is now responsible for making decisions on
numerous matters in the dining room and giving orders to the serving staff. At the same time, Jim has the obligation to perform the many new tasks
assigned to him as a supervisor, such as overseeing the closing work and the cleaning of the dining room. Jim's obligations are known as his
A. hierarchy.
B. power.
C. beliefs.
D. authority.
E. responsibility.

Blooms: Apply
Difficulty: 3 Hard
Feedback: Responsibility is the obligation you have to perform the tasks assigned to you. The higher level the manager, the more responsibility he or
8-13
she has.
54. Patricia, the manager of Prime Health Club, was telling her new trainer that "I have many decisions to make in a day, and as the club manager,
during the course of a week, I have to give orders to most of the 35 employees. Then there is my budget and the club resources, which I oversee."
Patricia's _______ gives her the right to make decisions, give orders, and utilize resources.
A. responsibility
B. authority
C. power
D. delegation
E. work specialization

Blooms: Apply
Difficulty: 3 Hard
Feedback: Authority refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources.
55. Ralph, the manager of a busy hardware store, knows that he needs to entrust many of his tasks to managers and other employees. _____ is this
process of assigning tasks to lower-level managers and employees. Ralph follows the 70% rule, which states that he should assign tasks to employees
who can perform each task at least 70% as well as Ralph can.
A. Handing
B. Outputting
C. Span of control
D. Delegation
E. Accountability

Blooms: Apply
Difficulty: 3 Hard
Topic: Delegation
Feedback: Delegation is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.
56. _____ is the process of assigning managerial authority and responsibility to lower-level managers and employees.
A. Authority
B. Planning
C. Delegation
D. A power trip
E. Control

Blooms: Remember
Difficulty: 1 Easy
Topic: Delegation
Feedback: Delegation is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.
57. During a meeting, Tammy, a branch manager for USA Bank, pointed to the corporate organization chart on the wall. Tammy remarked that "These
people provide advice, recommendations, and research for us, and they are indicated with a dotted line. Laura (our CEO) and the vice presidents of our
organization are up here, indicated on the organization chart by a solid line vertical line." _______ are indicated on the organization chart by a solid line
____, and ______ are indicated by a dotted line.
A. Line managers; temporary personnel
B. Line managers; personnel in training
C. Staff personnel; vital personnel
D. Line managers; part-time personnel
E. Line managers; staff personnel

Blooms: Understand
8-14
Feedback: Staff personnel have authority functions; they provide advice, recommendations, and research to line managers (example: specialists such as
legal counsels). Staff positions are indicated on the organization chart by a dotted line (usually a horizontal line). Line managers have authority to make
decisions and usually have people reporting to them (examples: the president, the vice presidents, the director of personnel, and the head of accounting).
Line positions are indicated on the organization chart by a solid line (usually a vertical line).
58. Astrid, a customer service representative with NorthTel Wireless Services, was asked by one of her customers if NorthTel would be interested in
joining the chamber of commerce to meet potential customers and increase its contacts in the local business community. Astrid believes this is a very
good idea and approached her manager, DeShawn, about becoming a chamber member. DeShawn said to Astrid, "Because the cost of membership is
over $500 and you will have to leave the office to attend meetings, I will have to get approval from management above me." NorthTel is an example of
an organization with
A. decentralized authority.
B. unity of command.
C. work specialization.
D. centralized authority.
E. line managers.

Blooms: Apply
Difficulty: 3 Hard
Topic: Centralized Authority
Feedback: With centralized authority, important decisions are made by higher-level managers.
59. With ______, important decisions are made by middle-level and supervisory-level managers.
A. decentralized authority
B. upper authority
C. focused power
D. centralized authority
E. higher-management influence

Blooms: Remember
Difficulty: 1 Easy
Feedback: With decentralized authority, important decisions are made by middle-level and supervisory-level managers.
60. Artem, the president of Instructor Services, told one of his new hires that "Managers at this company are encouraged to solve their own problems
rather than buck the decision to a higher level, and decisions are made more quickly, which increases our organization's flexibility and efficiency." The
key benefits of _______ are the advantages that Artem related to his new hires.
A. centralized authority
B. management accountability
C. management responsibility
D. decentralized authority
E. work specialization

Blooms: Apply
Difficulty: 3 Hard
Feedback: An advantage in having decentralized authority is that managers are encouraged to solve their own problems rather than buck the decision to
a higher level. In addition, decisions are made more quickly, which increases the organization's flexibility and efficiency.
61. Organizational design is concerned with an organization developing

A. the best structures of costs and efficiency that an organization uses to meet goals.
B. optimal structures of accountability and responsibility to execute its strategies.
C. important decisions that are suggested by employees.
D. new MBO goals.
E. the most favorable methods of accomplishing both the diversity and synergy plans.

Blooms: Remember
8-15
Difficulty: 1 Easy
Feedback: Organizational design is concerned with designing the optimal structures of accountability and responsibility that an organization uses to
execute its strategies. We may categorize organizational designs as three types: (1) traditional designs, (2) horizontal designs, and (3) designs that open
boundaries between organizations.
62. Tech Geeks, a sole proprietorship that uses contract labor, has all of its authority centralized in a single person (the owner), a flat hierarchy, few
rules, and low work specialization. Tech Geeks is an organization with a
A. team-based design.
B. simple structure.
C. hollow structure.
D. functional structure.
E. horizontal design.

Blooms: Understand
Topic: Simple Structure
Feedback: An organization with a simple structure has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization.
63. The structure of Sandal Mart consists of people with similar specialties put together in formal groups, such as the marketing, accounting, and human
resource departments. Sandal Mart has a _____ structure.
A. simple
B. focused
C. hollow
D. functional
E. centralized

Blooms: Apply
Difficulty: 3 Hard
Topic: Functional Structure
Feedback: In a functional structure, people with similar occupational specialties are put together in formal groups. This is a quite commonplace
structure, seen in all kinds of organizations, for-profit and nonprofit. (See Figure 8.7.)
64. Time Warner has different divisions for magazines, movies, recordings, cable television, and so on. The Warner Bros. part of the empire alone has
divisions spanning movies and television, a broadcast network, retail stores, theaters, amusement parks, and music. Time Warner is an example of an
organization with ____ divisions.
A. geographic
B. common
C. product
D. merchandise
E. customer

Blooms: Apply
Difficulty: 3 Hard
Feedback: Product divisions group activities around similar products or services.
65. IT Technology has designed its corporate structure with divisions based on their location. For example, there are the Southern and Northern
Divisions, and globally there are the European Division and the Asian Division. IT Technology is an example of a structure with
A. geographic divisions.
B. matrix partitions.
C. customer divisions.
D. common area divisions.
E. product divisions.
8-16
Blooms: Apply
Difficulty: 3 Hard
Feedback: Geographic divisions group activities around defined regional locations.
66. Ford Motor Co. has separate divisions for passenger cars, for large trucks, and for farm products. Ford is an example of an organization with
A. geographic divisions.
B. customer divisions.
C. matrix partitions.
D. a decentralized management structure.
E. a global corporate culture.

Blooms: Apply
Difficulty: 3 Hard
Feedback: Customer divisions tend to group activities around common customers or clients, such as types of products.
67. Organizations using a matrix structure

A. contain multiple overlapping command structures, in which all employees report to three or more managers.
B. centralize authority into a single person.
C. contain two command structures, in which some people report to two bosses.
D. establish a hierarchy in which employees report to only one supervisor.
E. utilize teams or workgroups with few lines of authority.

Blooms: Understand
Topic: Matrix Structure
structures, vertical and horizontal. For example, a marketing person may report to both the vice president of marketing and to the project manager.
68. Quality Paper Products utilizes a structure that includes functional divisions, such as accounting and production, and a divisional chain of command,
such as the home products and office divisions. For example, Mariana, a salesperson, reported to both her sales manager and the office products
manager when she first started working on the city of Springfield account. Quality Paper Products has a
A. geographic-divisional structure.
B. matrix structure.
C. team-based approach.
D. modular structure.
E. hollow structure.

Blooms: Apply
Difficulty: 3 Hard
Topic: Matrix Structure
structures, vertical and horizontal.
69. The Safety Committee, a temporary team at the Annapolis Tool & Die Corporation, was established to make the factory floor a safer place.
Members of the committee still work in their departments full-time, but they meet twice a month for a few hours as a committee. The Safety Committee
is an example of a ____ within an organization.
A. vertical design
B. modular design
C. multipurpose design
D. common purpose
E. horizontal design

8-17
Blooms: Apply
Difficulty: 3 Hard
Topic: Horizontal Design
Feedback: In a horizontal design, teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by
breaking down internal boundaries. Team members still have their full-time functional work responsibilities and often still formally report to their own
managers above them in the functional-division hierarchy.
70. With a hollow structure, the organization

A. is a rigid nonadaptive structure.
B. groups activities around similar products or services.
C. has a central core of key functions and outsources others to vendors who are less expensive or faster.
D. is often called a horizontal organization.
E. assembles product chunks, or modules, provided by outside contractors.

Blooms: Remember
Difficulty: 1 Easy
Topic: Boundaryless Organization
Feedback: In the hollow structure, often called the network structure, the organization has a central core of key functions and outsources other functions
to vendors who can do them cheaper or faster (see Figure 8.11).
71. With a modular structure, a firm _____. An example of the modular structure is the massive 787 Dreamliner project, in which Boeing contracted
with many suppliers, each responsible for one component or assembly, which were then integrated to make the aircraft.
A. is a company outside a company that is created specifically to respond to an exceptional market opportunity
B. assembles portions of product provided by outside contractors
C. is an organization whose members are geographically apart, usually working via e-mail
D. has a central core of key functions and outsources production
E. consists of a company with many divisions

Blooms: Remember
Difficulty: 1 Easy
Feedback: In a modular structure, a firm assembles product chunks, or modules, provided by outside contractors.
72. Sally, Greg, Juan, and Amar are working on a project for a customer that is aimed at cutting the client's electrical costs. The four members of this
workgroup are located throughout the Midwest, and they are utilizing the phone, e-mail, and collaborative computing to complete this project. This
workgroup is an example of a
A. modular group.
B. cross-focus group.
C. geographic team.
D. matrix team.
E. virtual organization.

Blooms: Apply
Difficulty: 3 Hard
Feedback: The virtual organization is one whose members are geographically apart, usually working with e-mail and other forms of information
technology while often appearing to customers and others to be a single, unified organization with a real physical location.
73. Raul, a salesperson for the Lovely Landscapes landscaping company, is working with a longtime customer who is interested in either cutting back
on the services or getting a better price due to the tight economy. Raul tells his manager, "I want to take care of the customer with the best value. So what
do you think is the best package to offer in this situation?" Raul and his manager are trying to utilize the
A. contingency design.
B. streamlined design.
C. focused spending approach.
D. boundaryless approach.
E. mechanistic design.
8-18
Blooms: Apply
Difficulty: 3 Hard
Feedback: The process of fitting the organization to its environment is called contingency design. Managers taking a contingency approach must
consider environmental factors as well as the links between strategy, culture, and structure.
74. Peter, the owner of Happy Burger, is involved in the company's daily decisions and has established procedures for every task. The company rules are
clearly specified in the handbook, and Peter also believes in close supervision of all employees. Happy Burger is a(n) _______ organization.
A. informal
B. mechanistic
C. organic
D. decentralized
E. non-hierarchical

Blooms: Apply
Difficulty: 3 Hard
Feedback: In a mechanistic organization, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.
75. Phone Tech, a global phone company, frequently needs to respond quickly to fast-changing consumer tastes with its smartphones. Therefore, Phone
Tech has fewer rules and procedures than most organizations, and networks of employees are encouraged to cooperate and respond quickly to
unexpected tasks and changes in technology. Phone Tech is utilizing a(n) ____ structure.
A. organic
B. inflexible
C. mechanistic
D. hierarchical
E. inelastic

Blooms: Apply
Difficulty: 3 Hard
Topic: Organic Organization
Feedback: In an organic organization, authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to
cooperate and respond quickly to unexpected tasks.
76. According to Lawrence and Lorsch, the stability of an organization's environment determines the degree of
A. synergy needed in an organization.
B. differentiation and efficiency needed.
C. differentiation or integration that is appropriate.
D. profitability that is vital.
E. marketing and integration that is profitable.

Blooms: Understand
Topic: Differentiation
Feedback: The stability of the environment confronting the parts of the organization, according to Lawrence and Lorsch, determines the degree of
differentiation or integration that is appropriate.
77. The more subunits into which an organization breaks down, the
A. more unified it becomes.
B. less differentiated it becomes.
C. lower the productivity.
D. higher the costs.
E. more highly differentiated it becomes.
8-19
Blooms: Understand
Topic: Differentiation
Feedback: Differentiation is the tendency of the parts of an organization to disperse and fragment. This impulse toward dispersal arises because of
technical specialization and division of labor. The more subunits into which an organization breaks down, the more highly differentiated it becomes.
78. Specialists work together to achieve ________ in a highly integrated organization.

A. assimilation
B. a common goal
C. differentiation
D. decentralization
E. centralization

Blooms: Understand
Topic: Integration
Feedback: Integration is the tendency of the parts of an organization to draw together to achieve a common purpose. In a highly integrated organization,
the specialists work together to achieve a common goal.
79. The scientists, nurses, and doctors who work for Medical Technology, an organization that researches the cure for several diseases, work together
for a common goal of ending these illnesses. Medical Technology provides an example of
A. diversity.
B. contingency design.
C. differentiation.
D. integration.
E. autocratic structure.

Blooms: Apply
Difficulty: 3 Hard
Topic: Integration
Feedback: Integration is the tendency of the parts of an organization to draw together to achieve a common purpose. In a highly integrated organization,
the specialists work together to achieve a common goal. One of the means for achieving this is the use of cross-functional teams.
80. A formal chain of command, the standardization of rules and procedures, and the use of cross-functional teams and computer networks so that there
is frequent communication and coordination of the parts are the means for achieving
A. higher sales through analytics.
B. a common goal through integration.
C. lower costs through efficiency.
D. higher profits through goal setting.
E. differentiation through specialization.

Blooms: Understand
Topic: Integration
Feedback: The means of achieving a common goal are a formal chain of command, the standardization of rules and procedures, and the use of
cross-functional teams and computer networks so that there is frequent communication and coordination of the parts.
81. This question has two parts; be sure to answer both. First, define organizational culture and summarize the four types of corporate culture in the
competing values framework. Second, consider the case of The Fireman's Friend, a national chain that sells firefighting equipment and supplies. Due to
major competition from abroad, management of the The Fireman's Friend is under constant pressure to monitor costs and keep its prices under a certain
level. The company is very strictly organized, with the CEO making all of the major decisions. At each store, the manager is responsible for ensuring
that any products ordered by fire departments are delivered the same day. Each store manager is also responsible for continuous quality control by
reading reports on the effectiveness and safety of every item sold in the store. What type of culture does The Fireman's Friend most likely have?
Organizational culture, sometimes called corporate culture, is the set of shared, taken-for-granted implicit assumptions that a group holds and that
8-20
determines how it perceives, thinks about, and reacts to its various environments. According to one common methodology known as the competing
values framework, organizational cultures can be classified into four types: (1) clan, (2) adhocracy, (3) market, and (4) hierarchy. (See Figure 8.2.)
A clan culture has an internal focus and values flexibility rather than stability and control. Like a family-type organization, it encourages collaboration
among employees, striving to encourage cohesion through consensus and job satisfaction through employee involvement.
An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products by being adaptable,
creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of getting things
done.
A market culture has a strong external focus and values stability and control. Because market cultures are focused on the external environment and
driven by competition and a strong desire to deliver results, customers, productivity, and profits take precedence over employee development and
satisfaction.
A hierarchy culture has an internal focus and values stability and control over flexibility. Companies with this kind of culture are apt to have a
formalized, structured work environment aimed at achieving effectiveness through a variety of control mechanisms that measure efficiency, timeliness,
and reliability in the creation and delivery of products.
Due to its structured work environment, and its focus on efficiency, timeliness, reliability, and customer service, The Fireman's Friend most likely has
a hierarchy culture.

Blooms: Understand
82. Define organizational structure.
Organizational structure is a formal system of task and reporting relationships that coordinates and motivates an organization's members so that they can
work together to achieve the organization's goals. Organizational structure is concerned with who reports to whom and who specializes in what work.

Blooms: Understand
83. This question contains two parts; be sure to answer both. After John's father died, John inherited his successful tire business, Thrifty Tire. John
wants to make sure the company's culture, which his father had built for over 40 years, does not get lost but instead remains embedded in the
organization. First, summarize 4 of the 12 ways that a particular culture can become embedded in an organization. Then explain how John might use
each technique to keep Thrifty Tire's corporate culture strong, with an emphasis on employee development, a family-like atmosphere, and a dedication
to offering the best service and the lowest prices.
A particular culture can become embedded in an organization in many ways, 12 of which are described in the textbook. Changing organizational culture
is essentially a teaching process—that is, a process in which members instruct each other about the organization's preferred values, beliefs,
expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms: formal statements; slogans and
sayings; rites and rituals; stories, legends, and myths; leader reactions to crises; role modeling, training, and coaching; physical design; rewards, titles,
promotions, and bonuses; organizational goals and performance criteria; measurable and controllable activities; organizational structure; and
organizational systems and procedures.
Here is how John might use each of these mechanisms at Thrifty Tire:
1. Formal statements: John might hang a plaque with Thrifty Tire's mission statement in each store.
2. Slogans and sayings: John might come up with a tagline for Thrifty Tire, such as "Thrifty in a Jiffy" or another saying that customers (and employees)
will find appealing.
3. Rites and rituals: John might continue the tradition of the company picnic that his father started 40 years ago.
4. Stories, legends, and myths: John might tell stories about his father's founding of the business, and how the business weathered several recessions
while still doing the right thing for its employees.
5. Leader reactions to crises: John can set a strong example for the company by responding in a level-headed way to any crises that may come up (for
example, problems with defective tires that cause blow-outs).
6. Role modeling, training, and coaching: John may ask his top salespeople, or his top technicians, to take roles in training junior staff in the "Thrifty
8-21
Tire Way" of doing business.
7. Physical design: John can make sure the tire shop has a comfortable, clean place for customers to sit and wait, as well as a staff break room that is well
stocked with bottles of water and snacks.
8. Rewards, titles, promotions, and bonuses: John can offer bonuses to salespeople who exceed their sales goals and promote those who work hard.
9. Organizational goals and performance criteria: John can be very clear regarding the way success is defined at Thrifty Tire. By telling workers the
criteria on which their performance will be based, John has the opportunity to send a very strong signal about where employees should be spending their
time (and where they should not be spending their time).
10. Measurable and controllable activities: John can use analytics to make sure that the company is meeting its goals, monitoring its expenses, and
meeting its profit expectations.
11. Organizational structure: John can use a flat management structure so that there are very few (if any) management layers between him and most of
his workers, which will allow him to perpetuate the family atmosphere that his father created.
12. Organizational systems and procedures: John can use the latest technology and other developments to help his employees communicate and save
time.

Blooms: Apply
Difficulty: 3 Hard
84. Summarize the three types of organizations classified according to the three different purposes for which they are formed. Give an example of each
and the purpose and customers they serve.
The three types of organizations classified according to the three different purposes for which they are formed are:
1. For-profit organizations. These are formed to make money, or profits, by offering products or services. Examples include Apple, 3M, Verizon,
Mondelez Foods, and Johnson & Johnson. The companies sell a wide variety of goods and services to the general public: Apple sells computers and
phones, 3M sells many household items, Mondelez sells packaged foods, and Johnson & Johnson sells health-related products. On a smaller level, the
many small stores in a downtown area are for-profit organizations, as are sole proprietors who sell a service, such as tax accountants and actuaries.
2. Nonprofit organizations. These are formed to offer services to some clients, not to make a profit. Examples include hospitals and colleges, as well as
well-known organizations like the Red Cross, the Salvation Army, and Goodwill. Often nonprofit organizations serve people who are underprivileged
or otherwise underserved, such as the poor, or people in recovery, or the elderly.
3. Mutual-benefit organizations. These are voluntary collectives whose purpose is to advance members' interests. Examples include unions and trade
associations, such as TIAA-CREF, the Teamsters Union, and the AFL-CIO. Public unions, which represent public employees such as police officers,
are also mutual-benefit associations.

Blooms: Apply
Difficulty: 3 Hard
85. This question has two parts; be sure to answer both. First, describe the four common elements of organizations proposed by Edgar Schein. Next,
imagine that you work for a nonprofit animal-rescue organization, Animalia, Inc. Describe how each of the four elements relates to that organization's
activities and operations. Animalia has several full-time employees, plus many volunteers (including veterinarians) who rescue and care for hurt and
abandoned animals.
Organizational psychologist Edgar Schein proposed the four common elements of (1) common purpose, (2) coordinated effort, (3) division of labor, and
(4) hierarchy of authority.
The common purpose unifies employees or members and gives everyone an understanding of the organization's reason for being. At Animalia, Inc., the
common purpose is to rescue animals that have been hurt and/or abandoned.
The common purpose is realized through coordinated effort, the coordination of individual efforts into a group or organization-wide effort. Animalia,
Inc. has central offices and phone numbers that people can call to report abandoned animals. People in the home office coordinate the volunteers who go
out and rescue the animals, as well as those who care for the animals once they are brought in.
Division of labor, also known as work specialization, is the arrangement of having discrete parts of a task done by different people. Animalia, Inc., has
different people performing different tasks. For example, volunteers in the home office take calls, while specially trained animal-catchers go out to
8-22
catch the animal so that it can be treated. Trained veterinarians who volunteer for the organization provide treatment for the animals who are hurt.
The hierarchy of authority, or chain of command, is a control mechanism for making sure the right people do the right things at the right time. Animalia,
Inc., will have a CEO or key manager, who may divide the nonprofit organization into several workgroups: fundraisers, marketers, civilian volunteers,
veterinarian volunteers, and so on.

Blooms: Understand
86. This question has two parts; be sure to answer both. First, define span of control and contrast the two kinds of spans of control. Second, imagine that
you are the manager of the customer-service department for a major furniture retailer, which has 40 CSR's (customer service representatives) on the
phone lines at any given time during business hours. Can you be effective as a manager with such a wide span of control? Why or why not?
The span of control, or span of management, refers to the number of people reporting directly to a given manager.
There are two kinds of spans of control, narrow (or tall) and wide (or flat).
Narrow span of control: This means a manager has a limited number of people reporting—three vice presidents reporting to a president, for example,
instead of nine vice presidents. An organization is said to be tall when there are many levels with narrow spans of control.
Wide span of control: This means a manager has several people reporting—a first-line supervisor may have 40 or more subordinates, if little hands-on
supervision is required, as is the case in some assembly-line workplaces. An organization is said to be flat when there are only a few levels with wide
spans of control.
Research suggests that, when aided by technology to communicate and monitor, a manager can oversee 30 employees or more. Because all of your
CSR's are in one location, and because technology makes it easier to monitor their progress, you should be able to manage these workers effectively
(though you may be tired quite a bit of the time).

Blooms: Understand
87. Contrast power and authority. How do power and authority differ between military organizations and typical business organizations?
Authority refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources. Authority is distinguished from
power, which is the extent to which a person is able to influence others so they respond to orders. In the military, of course, orders are given with the
expectation that they will be obeyed, disobedience making one liable to a dishonorable discharge or imprisonment. In civilian organizations, disobeying
orders may lead to less dire consequences (demotion or firing), but subordinates are still expected to accept that a higher-level manager has a legitimate
right to issue orders.

Blooms: Understand
88. Summarize a divisional structure, explaining product divisions, customer divisions, geographic divisions, and matrix structures. Give an example of
each, and draw an organization chart that depicts each. (For the Matrix structure, use Ford or another car company as your example.)
In a divisional structure, people with diverse occupational specialties are put together in formal groups by similar products or services, customers or
clients, or geographic regions.
Product divisions group activities around similar products or services. Example: The media giant Time Warner has different divisions for magazines,
movies, recordings, cable television, and so on. The Warner Bros. part of the empire alone has divisions spanning movies and television, a broadcast
network, retail stores, theaters, amusement parks, and music.
Customer divisions tend to group activities around common customers or clients. Example: Ford Motor Co. has separate divisions for passenger-car
dealers, for large trucking customers, and for farm products customers.
Geographic divisions group activities around defined regional locations. Example: This arrangement is frequently used by government agencies. The
Federal Reserve Bank, for instance, has 12 separate districts around the United States. The Internal Revenue Service also has several districts.
In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command structures, vertical
8-23
and horizontal. The functional structure usually doesn't change. It is the organization's normal departments or divisions, such as finance, marketing,
production, and R&D. The divisional structure may vary by product, brand, customer, or geographic region.

Blooms: Apply
Difficulty: 3 Hard
89. This question has two parts; be sure to answer both.
First, distinguish among a hollow structure, a modular structure, and a virtual structure.
Second, specify whether each of the following companies has a hollow, modular, or virtual structure.
(a) Luxury Yachts, Inc., purchases every item that goes into its luxury boats—from the hull to the brass fittings on the doors and cabinets—from
suppliers all around the world. It then assembles all of these components into the boats it sells to millionaires and executives.
(b) Mostly Murder Press publishes mystery novels. It has only two people on staff who perform the company's core publishing functions: an editor who
acquires the books from authors, and a marketer who serves as a publicist. All other functions, such as typesetting, printing, binding, warehousing, and
distribution are outsourced to companies that can perform these services less expensively.
(c) ADamant is a small advertising agency. Its owner lives in Denver, its account executive lives in Florida, its ad designer lives in New York, and its
media buyer lives in California. The four members of the ADamant team use Skype, Google Chats, and email all day long to talk with one another and
with their clients and prospective customers.
In a hollow structure, often called a network structure, the organization has the central core of key functions and outsources other functions to vendors
who can do them cheaper or faster. A company with a hollow structure might retain such important core processes as design or marketing and outsource
most other processes, such as warehousing and distribution, thereby seeming to "hollow out" the organization.
In a modular structure, a firm assembles product chunks, or modules, provided by outside contractors. Thus the firm compiles the whole from parts it
has sourced elsewhere.
In a virtual structure, an organization whose members are geographically apart work with e-mail and other forms of information technology to appear to
customers as a single, unified organization with a real physical location.
(a) Luxury Yachts has a modular structure.
(b) Mostly Murder Press has a hollow structure.
(c) ADamant has a virtual structure.

Blooms: Apply
90. Distinguish between a mechanistic organization and an organic organization. Think about a company you have worked with (or currently work
with). Is it more mechanistic or more organic? Give three reasons for your response.
In a mechanistic organization, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised. Mechanistic
organizations are bureaucratic, with rigid rules and top-down communication. In an organic organization, authority is decentralized, there are fewer
rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks. Students' responses to the last
part of the question will vary based on their experience.

Blooms: Remember
Difficulty: 1 Easy
Topic: Organic Organization
Category # of Questions
AACSB: Analytical Thinking 49
AACSB: Knowledge Application 41
Accessibility: Keyboard Navigation 80
Blooms: Apply 43
8-24
Blooms: Remember 22
Blooms: Understand 25
Difficulty: 1 Easy 23
Difficulty: 2 Medium 26
Difficulty: 3 Hard 41
Learning Objective: 08-01 Describe how managers align vision and strategies with the organization's culture and structure. 5
Learning Objective: 08-02 Explain how to characterize an organization's culture. 19
Learning Objective: 08-03 Describe the process of culture change in an organization. 4
Learning Objective: 08-04 Compare the structures of for-profit, nonprofit, and mutual-benefit organizations. 15
Learning Objective: 08-05 Identify the major elements of an organization. 21
Learning Objective: 08-06 Describe the seven organizational structures. 15
Learning Objective: 08-07 Identify the factors that affect the design of an organization's structure. 11
Topic: Adhocracy Culture 3
Topic: Boundaryless Organization 3
Topic: Centralized Authority 1
Topic: Clan Culture 2
Topic: Contingency Design 3
Topic: Decentralized Authority 3
Topic: Delegation 5
Topic: Differentiation 2
Topic: Divisional Structure 4
Topic: Espoused Values 1
Topic: Functional Structure 1
Topic: Hierarchy Culture 2
Topic: Hierarchy of Authority 7
Topic: Horizontal Design 1
Topic: Integration 3
Topic: Market Culture 2
Topic: Matrix Structure 2
Topic: Mechanistic Organization 1
Topic: Organic Organization 2
Topic: Organizational Culture 12
Topic: Organizational Culture Change 4
Topic: Organizational Structure 22
Topic: Simple Structure 1
Topic: Span of Control 4
8-25

Management 8th Edition Kinicki Test Bank

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Management 8th Edition Kinicki Test Bank

Uploaded by

Copyright:

Available Formats

Management 8th Edition Kinicki Test

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Knowledge Application

AACSB: Knowledge Application

AACSB: Analytical Thinking

AACSB: Knowledge Application

AACSB: Knowledge Application

AACSB: Analytical Thinking

AACSB: Knowledge Application

AACSB: Analytical Thinking

AACSB: Knowledge Application

AACSB: Knowledge Application

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Knowledge Application

AACSB: Knowledge Application

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Knowledge Application

AACSB: Knowledge Application

AACSB: Knowledge Application

AACSB: Knowledge Application

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Knowledge Application

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Knowledge Application

37. According to Chester I. Barnard's classic definition, an organization is a

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Knowledge Application

AACSB: Analytical Thinking

AACSB: Knowledge Application

42. ________ is(are) another way of describing a vertical hierarchy.

AACSB: Analytical Thinking

Feedback: The vertical hierarchy is also known as the chain of command.

AACSB: Analytical Thinking

AACSB: Analytical Thinking

45. __________ is also known as division of labor.

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Knowledge Application

AACSB: Knowledge Application

49. _____ are the two kinds of spans of control.

AACSB: Analytical Thinking

AACSB: Knowledge Application

AACSB: Knowledge Application

AACSB: Analytical Thinking

AACSB: Knowledge Application

AACSB: Knowledge Application

AACSB: Knowledge Application

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Knowledge Application

AACSB: Analytical Thinking