Student name:__________

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) The nature of an organization's human resources is an important determinant of the
organization's structure.
⊚ true
⊚ false

2) When using a differentiation strategy aimed at increasing the customer's perception of an

organization’s services, the organizational structure makes no difference.
⊚ true
⊚ false

3) Hackman and Oldham’s job characteristics model explains how managers can make jobs
more interesting and motivating.
⊚ true
⊚ false

4) Marta loves her job because she has the freedom to schedule her tasks and to decide how to
carry them out. This demonstrates task identity.
⊚ true
⊚ false

5) When managers organize divisions according to the types of customer to whom they market
their products, they are focusing on a product structure.
⊚ true
⊚ false

6) Team members in a market structure are known as two-boss employees.

⊚ true
⊚ false

7) The "chain of command" of an organization is the hierarchy of authority for that

organization.
⊚ true
⊚ false
8) Too much decentralization has disadvantages for an organization because it can lead to a lack
of communication among functions or divisions.
⊚ true
⊚ false

9) A business-to-business (B2B) network is a company-specific internal information system that

allows workers to share their knowledge and expertise and find others to help solve ongoing
problems.
⊚ true
⊚ false

10) B2B network structures are becoming less common as companies become more global in
their reach.
⊚ true
⊚ false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
11) The process by which managers establish the structure of working relationships among the
workers of the organization is known as
A) planning.
B) leading.
C) organizing.
D) controlling.

12) Organizational ________ is the formal system of task and job reporting relationships that
determines how employees use resources to achieve organizational goals.
A) structure
B) strategy
C) mission
D) policy

13) Organizational ________ is the process by which managers create an organizational structure
and culture that helps a company operate in the most efficient and effective way.
A) strategy
B) policy
C) design
D) tactics
14) Which theory posits that managers should choose an organizational structure that fits the
circumstances affecting their organization the most?
A) contingency
B) design
C) agency
D) equity

15) What is a characteristic of a stable external environment?

A) an inflexible structure
B) constant change
C) decentralized authority
D) low uncertainty

16) According to Charles Perrow, the routineness of technology is partially determined by task
A) volatility.
B) analyzability.
C) performance.
D) commitment.

17) Sanjay’s job changes often depending on the availability of raw materials and the reliability
of the supply chain. He is constantly scanning the external environment for ways to
accomplish his tasks. Sanjay’s job has a high level of task
A) structure.
B) predictability.
C) analyzability.
D) variety.

18) Brianna’s job is mostly routine and has procedures for most problems that may arise. Her job
is high in task
A) uncertainty.
B) stability.
C) analyzability.
D) creativity.
19) Managers would be most likely to design flexible structures, characterized by decentralized
authority and empowered employees, for their organization when its
A) environment is stable.
B) technology is simple.
C) workforce is highly skilled.
D) strategy is well understood.

20) The greater the level of uncertainty in the organization's environment, the
A) less likely managers are to design a structure and a culture that are innovative.
B) less likely managers are to design a structure and a culture that change quickly.
C) more likely managers are to design an organizational structure that is formal and
controlling.
D) more likely managers are to design a structure and a culture that are flexible.

21) Cara wants to start a graphic design company that will have employees who are highly
skilled at using complex computer programs. For this type of company, Cara would most
likely want to
A) give upper-level managers the responsibility for most client-related decisions but
handle corporate decisions herself.
B) make sure that all design decisions are run by her before they are implemented by
employees.
C) give lower-level managers and the graphic designers the authority to make important
decisions.
D) give graphic designers the ability to make decisions, but insist that they get approval
from upper management.

22) When are managers most likely to use standard operating procedures?
A) when the environment is less mechanistic
B) when the organizational structure is highly flexible
C) when resources are difficult to obtain
D) when the external environment is stable

23) The first step in organizational design is

A) coordinating functions and divisions.
B) grouping jobs into functions and divisions.
C) division of labor.
D) job design.
24) The process by which managers decide how to divide into specific jobs the tasks that have to
be performed to provide customers with goods and services is known as job
A) design.
B) delegation.
C) organization.
D) policy.

25) Pasta Italiano established a basic division of labor among chefs and food servers in which
chefs perform all tasks involved in actual cooking, and food servers carry out all tasks
involved in giving food to the customers. This illustrates
A) a matrix structure.
B) job design.
C) a divisional structure.
D) a product structure.

26) When implementing job design, a restaurant might

A) have the food servers wear uniforms.
B) buy a new vehicle for the food delivery people.
C) increase the chef’s annual salary to reflect the skills required by the job.
D) combine the jobs of chef and food server into a single job description.

27) A manager increases the number of tasks that a subordinate has to do in order to make the job
more interesting for the subordinate. This is known as
A) job simplification.
B) job enlargement.
C) job enrichment.
D) task identity.

28) Carmine, a manager, redesigns the job of David, a subordinate, so that he has more
responsibility over his job. This is the process of job
A) enlargement.
B) simplification.
C) enrichment.
D) reduction.
29) The goal of job enlargement is to increase
A) the quantity of work assigned and thus reduce manpower.
B) both the scope of a job and salaries and thus reduce turnover.
C) quality assurance measures, thereby reducing mistakes.
D) the range of tasks and thus reduce boredom.

30) The extent to which a job requires a worker to use a wide range of knowledge and abilities is
known as
A) task identity.
B) task significance.
C) autonomy.
D) skill variety.

31) A manager noticed that employees on the assembly line were slowing down and the quality
of their work was suffering. The manager decided to assign specific quality control tasks to
each employee, increasing their responsibility and accountability for the final product. This is
a strategy known as job
A) expansion.
B) enlargement.
C) development.
D) enrichment.

32) At Sam’s Sandwich Shop, all employees are responsible for making the sandwiches,
restocking ingredients, cleaning their stations, and serving customers. Because the job
requires a worker to perform all of the tasks that are required to complete the job, this
demonstrates
A) skill variety.
B) task identity.
C) task significance.
D) feedback.

33) The degree to which a manager feels that his or her job is "meaningful" because of the way in
which the job affects other people is known as
A) skill variety.
B) feedback.
C) autonomy.
D) task significance.
34) Mr. Patel reads an article in the newspaper about one of his students who has been appointed
CEO of a multinational corporation and he feels very proud. At this moment, Mr. Patel is
experiencing
A) autonomy.
B) task identity.
C) task significance.
D) skill variety.

35) The degree to which a job allows the worker to schedule the tasks of the job and to decide
how to carry out these tasks is known as
A) autonomy.
B) task identity.
C) task significance.
D) skill variety.

36) Tao works as a salesperson at a prescription drug store; Shui works as a doctor, helping
people who suffer from infectious diseases. Shui most likely has
A) a low degree of feedback.
B) less autonomy.
C) less skill variety.
D) higher task significance.

37) Jorge is an order taker at a restaurant; Alissa is a sales executive who is given the authority to
choose the prospective customers she will visit on personal sales calls. Alissa has
A) less autonomy.
B) less task significance.
C) less task identity.
D) more autonomy.

38) The extent to which a job gives the worker direct and clear information about how well the
worker is performing the job is known as
A) task identity.
B) feedback.
C) autonomy.
D) task significance.
39) Which statement explains Hackman and Oldham's theory of how the job characteristics
model affects three critical psychological states?
A) The more employees are given work responsibility, the more frustrated they become
because they know that they will never get additional remuneration for it.
B) The more employees feel that they are responsible for work outcomes and how it
affects their positions in the company, the less motivating their work becomes.
C) The more employees feel that they are being used efficiently by the company, the
more their expectation of better compensation and higher position increases.
D) The more employees feel that they are responsible for work outcomes and for
knowing how those outcomes affect others, the more motivating their work becomes.

40) Parma is dissatisfied with her work as an office supply clerk for a large telecommunications
company. She explains her feelings about her work to the human resource manager, who
gives her an aptitude test. Based on this test, the satisfaction Parma gets from her job and
how she views her job depend largely on how what she does impacts other people.
Considering this, what job should the human resource manager recommend Parma get
training for and pursue?
A) a job with a philanthropy for autistic children
B) a position as a salesperson with the ability to plan her own schedule
C) a job as a graphic designer who often works on a project from beginning to end
D) a position as a marketing researcher, which requires a variety of skills

41) Because he has high autonomy, Sorrento coaxes his manager to

A) allow him work at home, where he can work during any time of the day.
B) give him a variety of jobs that require a wide skill set.
C) let him focus on one assignment at a time.
D) give him more input on how his work affects customers.

42) An organizational structure consisting of all the departments within the company that are
needed to produce its goods or services is a ________ structure.
A) functional
B) geographic
C) divisional
D) product
43) Which organizational structure groups together people who perform similar jobs?
A) divisional
B) transitional
C) organic
D) functional

44) The units of a company allow certain functions to be grouped together to produce a specific
product. This is an example of a(n) ________ structure.
A) divisional
B) transitional
C) organic
D) functional

45) Which organizational structure is composed of separate business units within which are the
functions that work together to produce a specific product for a specific customer?
A) divisional
B) transitional
C) organic
D) functional

46) What structure do organizations adopt when they organize divisions according to the type of
customers they focus on?
A) market
B) geographic
C) product
D) functional

47) At a consumer products company, each product line is managed within a division. In each of
these divisions, the division manager is responsible for
A) giving each employee in the division a large amount of autonomy.
B) devising a corporate-level plan with the managers of other divisions.
C) creating a separate business-level strategy for its division.
D) making sure each job in the division has high skill variety.
48) Home Health has separate divisions for sensory aids (hearing and vision), mobility
(wheelchairs and walkers), and personal care (toilet seats and bed pads). This company uses a
_____ organizational structure.
A) geographic
B) customer
C) product
D) matrix

49) An international delivery service has a Midwest division, a Western division, and a
Southern/Eastern division. This is an example of a ________ structure.
A) geographic
B) customer
C) product
D) matrix

50) When managers pursue a multidomestic strategy, they most likely use a ________ strategy.
A) market
B) customer
C) global geographic
D) global transitional

51) Balltime produces baseball gloves in the United States, including the ones used in the major
leagues. Baseball teams around the world usually want to use the same gloves as the major
league teams in America. As a result, the managers of Balltime would most likely decide to
use a ________ structure.
A) global product
B) customer
C) global geographic
D) global transitional

52) In the design of an organization, another name for "market structure" is "________
structure."
A) product
B) geographic
C) customer
D) functional
53) Managers are able to be responsive to the needs of their customers and maintain flexibility in
making decisions regarding customers' changing needs with a ________ structure.
A) market
B) geographic
C) functional
D) matrix

54) When designing an organization, if managers are grouped both by function and by product at
the same time, the organizational structure being used is the ________ structure.
A) market
B) geographic
C) functional
D) matrix

55) The organizational design in which employees are correctly referred to as two-boss
employees is a ________ structure.
A) product
B) matrix
C) geographic
D) functional

56) At a cosmetics company, Yoshi, a marketing specialist, usually works with other marketers.
However, he has recently been assigned to a team to develop a new kind of shampoo. The
company has a complex organizational structure, and the team developing the new shampoo
has members who specialize in a variety of functions for the company, including research
and design, production, and packaging. Yoshi and these other members will rotate in and out
of the shampoo team as their specific tasks are completed. Yoshi most likely has to report to
A) both the marketing manager and the personal care product manager.
B) the CEO of the company, but only while the shampoo is being marketed.
C) the geographic distribution manager, who will help Yoshi determine a target market.
D) either the marketing manager or the chemical formula manager.

57) Employees organized according to a matrix structure are grouped by

A) functions and by experience.
B) product and by geographic location.
C) functions and by product.
D) geographic location.
58) What is the main problem with the matrix structure's dual reporting relationship?
A) tracking responsibilities
B) tasks are more complex
C) conflicting demands can arise
D) deciding which job will finish faster

59) When different managers from different functional areas are brought together to work on an
organizational task, they are known as a(n) ________ team.
A) functional
B) co-dependent
C) cross-functional
D) independent

60) How does the product team structure differ from the matrix structure?
A) It allows dual reporting relationships.
B) It permanently assigns employees to cross-functional teams.
C) It focuses on designing and marketing quality products.
D) It allows team members to work with other teams.

61) Juanita has been hired as a business consultant for Kookies, Incorporated, a company that
specializes in making chocolate chip cookies. The success of Kookies has created a problem
for the company's CEO, Alejandro. The demand for Kookie’s cookies has increased
significantly worldwide. As a result, the company has established cookie factories in various
countries, which are doing fairly well but need customized attention for each country. Also,
because of this expansion, the functional structure of the company has developed problems
with communication between divisions. Alejandro wants Juanita’s advice on how the
company should accommodate its expansion. Juanita most likely suggests that Kookies set up
a
A) matrix structure and form temporary cross-functional teams.
B) global market structure and form a centralized and bureaucratic hierarchy.
C) global geographic structure and form strategic alliances with suppliers in various
nations.
D) product structure and form special, temporary tasks forces to deal with various
challenges.
62) Dernes, Incorporated, started out just making hair dryers. However, as the company
expanded, it also produced commercial hand dryers, cosmetics, and baby products.
Considering this, the CEO most likely decided to change from a functional structure to a
________ structure.
A) geographic
B) product
C) market
D) hierarchical

63) The major goals of the manufacturing function are to keep costs under control and
A) prepare products on schedule.
B) keep employees happy.
C) develop new products.
D) use the latest production methods.

64) An organization's hierarchy of authority is also known as its

A) chain of command.
B) span of control.
C) task-flow command.
D) matrix of control.

65) The relative authority that each manager in the organization has from the CEO down to the
lowest-level manager is called the
A) span of control.
B) chain of command.
C) corporate ladder.
D) unity of direction.

66) The number of subordinates who report directly to a manager is known as the manager's
A) unity of command.
B) hierarchy of authority.
C) chain of command.
D) span of control.
67) Rohan is a project manager who has 15 employees reporting directly to him. Those 15
employees represent Rohan’s
A) unity of command.
B) span of control.
C) chain of command.
D) unity of direction.

68) The kitchen workers at Joanna’s Coffee Shop and Bakery report directly to Zoe, the kitchen
manager. Zoe is a ________ manager.
A) line
B) product
C) staff
D) task force

69) An organizational structure becomes taller when it

A) grows in size and the hierarchy of authority lengthens.
B) maintains its original size and the hierarchy remains constant.
C) hires more employees while keeping the same number of managers.
D) expands its product base but maintains its staff size.

70) The idea that an organization's hierarchy should be designed with as few levels of authority
as are necessary to use the organization's resources in an efficient and effective manner falls
under which principle?
A) integration
B) allocation
C) minimum chain of command
D) consolidation of command

71) Organizations can keep their hierarchy flat by

A) decreasing the span of control.
B) increasing the number of levels of management.
C) decentralizing authority.
D) centralizing authority.
72) Allocating authority in an organization in a way that gives lower-level managers and
nonmanagerial employees the right to make important decisions about how to use
organizational resources demonstrates
A) decentralization of authority.
B) a high span of control.
C) centralization of authority.
D) maximum chain of command.

73) An organization that allows its employees to behave in a flexible way, even as the
organization grows and becomes taller, is utilizing
A) managing as a rule.
B) decentralizing authority.
C) decreasing the span of control.
D) decreasing autonomy.

74) The simplest type of integrating mechanism is

A) liaison roles.
B) task forces.
C) cross-functional teams.
D) integrating roles and departments.

75) If a company wanted to implement a liaison role, it would do so by

A) creating a team that includes employees from three departments (marketing,
engineering, and production) to manage a product to the launch stage.
B) having a representative in each of three departments (marketing, engineering, and
production) meet to discuss the launching of a new product.
C) giving one manager in each of three departments (marketing, engineering, and
production) the responsibility of coordinating with each other to brainstorm new
product ideas.
D) providing a team consisting of members of three departments (marketing,
engineering, and production) with status reports from senior managers of other
departments.

76) Which of these is often known as an ad hoc committee?

A) a functional team
B) a cross-functional team
C) a task force
D) managers with integrating roles
77) Organizing tools that managers use to increase communication among functions and
divisions are known as ________ mechanisms.
A) expansion
B) interaction
C) integrating
D) synchronizing

78) Those who perform integrating roles in an organization are usually

A) line managers.
B) staff managers.
C) senior managers.
D) suppliers.

79) A team of managers from different functions or divisions is temporarily formed to solve a
specific, mutual problem. This is known as a
A) standing committee.
B) confederate committee.
C) functional force.
D) task force.

80) Motor Company brings together senior managers from its marketing, R&D, manufacturing,
accounting, and finance departments to work together as a team to design a new type of sport
utility vehicle. In this scenario, Motor Company creates a
A) cross-functional team.
B) vertically integrated team.
C) mass-production team.
D) standing committee.

81) Joshua has been hired by an IT firm to perform an integrating role by

A) determining which threats in the external environment should be taken most
seriously.
B) conducting an in-house study to determine which departments can be trimmed.
C) advising the manager of the marketing department on how to appeal to teenage
consumers.
D) increasing coordination between the marketing and research departments to achieve
performance gains.
82) To speed up the communication from the top managers down to the lower-level employees
and vice versa, a CEO would most likely
A) reorganize the chain of command, thereby decreasing the flatness of the company.
B) expand the chain of command, thereby increasing the tallness of the company.
C) centralize the company, thereby changing it from a flat organization to a tall
organization.
D) decentralize the company, thereby changing it from a tall organization to a flat
organization.

83) A formal agreement that commits two or more companies to exchange or share their
resources in order to produce and market a product is known as a(n) ________ alliance.
A) outsourcing
B) combination
C) strategic
D) market structure

84) A beverage company forms a B2B network structure when it

A) enters into an agreement with a company in Brazil that allows the Brazilian company
to manufacture and market its products to the Brazilian market.
B) purchases its domestic bottle supplier, foreign syrup producer, and domestic
distributor in order to gain more control over every stage of the value chain.
C) creates a series of agreements with its supplier in Brazil, manufacturer in Mexico, and
distributor in the United States to produce and market its products.
D) purchases a domestic clothing store, a Swiss pharmaceutical company, and an English
movie production company.

85) Comfy Footwear designs shoes using computer-aided design, and it electronically stores all
new product information, including manufacturing instructions. When the designers have
finished their work, they digitally transmit all the blueprints for the new products to
Southeast Asian suppliers and manufacturers with which Comfy Footwear has formed
strategic alliances. Instructions for the design of a new sole are sent to a supplier in India and
instructions for the leather uppers are sent to a supplier in Bhutan. Also, Comfy Footwear has
formed a strategic alliance with distributor in Taiwan. By doing this, Comfy Footwear is
implementing a
A) B2B network structure.
B) decentralized organization.
C) vertically integrated organization.
D) diversified product.
86) Comfy Footwear, one of the leading shoe manufacturers, enters into a contract with Bolinger
—a foreign manufacturer—to only manufacture its shoes. In this scenario, Comfy Footwear
is following a(n) ________ strategy.
A) franchising
B) licensing
C) green field venturing
D) outsourcing

87) Which term describes the series of global strategic alliances that an organization creates with
suppliers, manufacturers, and distributors to produce and market a product?
A) global structure
B) complex network
C) B2B network structure
D) communications network

88) An organization whose members are linked by computers, email, computer-aided design
systems, videoconferencing, and cloud-based software is a ________ organization.
A) tall
B) complex
C) flat
D) boundaryless

89) Neveen set up a publishing company, which used freelance editors, writers, and marketers
located in various areas of the United States. Even though these people never saw each other
face-to-face, the company ran efficiently. Neveen accomplished this by creating a
A) boundaryless organization.
B) strategic alliance.
C) B2B network structure.
D) tall organization.

90) A large IT company has a company-specific virtual information system that systematizes the
knowledge of its employees and facilitates the sharing and integration of expertise within and
between functions and divisions through real-time interconnected technology. This is called
a(n)
A) boundaryless organization.
B) network system.
C) expertise database.
D) knowledge management system.
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
91) Explain the importance of good communication in order for an organization to gain a
competitive advantage.

92) Briefly explain organizational structure and organizational design.

93) Identify the four factors that are important determinants of an organizational structure.

94) Explain briefly the two factors that make technology routine or complicated, according to
Charles Perrow.

95) Describe job enlargement and given an example. What is its significance in an organization?

96) Discuss four ways in which a manager could redesign the job of a subordinate to enrich that
subordinate's job. Give an example for each way.
97) According to the job characteristics model, list and define the characteristics that determine
how motivating the job is. Give an example for each.

98) Discuss the advantages and disadvantages of the functional structure of organization.

99) Explain the forms of divisional structure and the organization of divisions under it. Give an
example for each type of division.

100) Describe the matrix structure and the concept of "two-boss employees."

101) Explain the problems present in tall organizations.

102) State the differences between a line and staff manager. Give an example of each.
103) Discuss the advantages and disadvantages of "decentralization" in organizational design.

104) Briefly discuss the integrating mechanisms of liaison roles, task forces, and cross-
functional teams.

105) Define strategic alliance and network structure and give an example of each. Also,
discuss their usage.

106) Explain how boundaryless organizations operate.

Answer Key
Test name: chapter 7

1) TRUE
2) FALSE
3) TRUE
4) FALSE
5) FALSE
6) FALSE
7) TRUE
8) TRUE
9) FALSE
10)FALSE
The use of network structures is increasing rapidly as companies recognize the many
opportunities they offer to reduce costs and increase organizational flexibility.

11) C
Organizing is the process by which managers establish the structure of working relationships
among employees to allow them to achieve organizational goals efficiently and effectively.

12) A
Organizational structure is the formal system of task and job reporting relationships that
determines how employees use resources to achieve organizational goals.

13) C
Organizational design is the process by which managers create a specific type of organizational
structure and culture so a company can operate in the most efficient and effective way.

14) A
According to contingency theory, managers design organizational structures to fit the factors or
circumstances that are affecting the company the most and causing them the most uncertainty.

15) D
If the external environment is stable, resources are readily available, and uncertainty is low, then
less coordination and communication among people and functions are needed to obtain
resources.

16) B
Charles Perrow argued that two factors determine how complicated or nonroutine technology is:
task variety and task analyzability.

17) D
Task variety is the number of new or unexpected problems or situations that a person or function
encounters in performing tasks or jobs.

18) C
Task analyzability is the degree to which programmed solutions are available to people or
functions to solve the problems they encounter.

19) C
The more highly skilled its workforce, and the greater the number of employees who work
together in groups or teams, the more likely an organization is to use a flexible, decentralized
structure and a professional culture based on values and norms that foster employee autonomy
and self-control.

20) D
The greater the level of uncertainty in the organization's environment, the more complex its
strategy and technologies, and the more highly qualified and skilled its workforce, the more
likely managers are to design a structure and a culture that are flexible, can change quickly, and
allow employees to be innovative in their responses to problems, customer needs, and so on.

21) C
In general, the more highly skilled its workforce and the more complicated the technology used,
the more likely an organization is to use a flexible, decentralized structure. A decentralized
structure gives lower-level managers and nonmanagerial employees the right to make important
decisions about how to use organizational resources. If managers at higher levels give lower-
level employees the responsibility of making important decisions and only manage by exception,
then the problems of slow and distorted communication noted previously are kept to a minimum.

22) D
If the external environment is stable, resources are readily available, then a company is more
likely to use detailed rules and standard operating procedures (SOPs).

23) D
The first step in organizational design is job design, the process by which managers decide how
to divide into specific jobs the tasks that have to be performed to provide customers with goods
and services.

24) A
Job design is the process by which managers decide how to divide into specific jobs the tasks
that have to be performed to provide customers with goods and services.

25) B
Job design is the process by which managers decide how to divide into specific jobs the tasks
that have to be performed to provide customers with goods and services. The division of labor is
the result of the restaurant’s job design.

26) D
Job design is the process by which managers decide how to divide into specific jobs the tasks
that have to be performed to provide customers with goods and services. In this case, managers
chose a job design where there is no division of labor among the chefs and food servers.

27) B
Job enlargement is increasing the number of different tasks in a given job by changing the
division of labor. The idea behind job enlargement is that increasing the range of tasks performed
by a worker will reduce boredom and fatigue and may increase motivation to perform at a high
level—increasing both the quantity and the quality of goods and services provided.

28) C
Job enrichment is increasing the degree of responsibility a worker has over a job.

29) D
The idea behind job enlargement is that increasing the range of tasks performed by a worker will
reduce boredom and fatigue and may increase motivation to perform at a high level—increasing
both the quantity and the quality of goods and services provided.

30) D
Skill variety is the extent to which a job requires that an employee use a wide range of different
skills, abilities, or knowledge.

31) D
The idea behind job enrichment is that increasing workers’ responsibility increases their
involvement in their jobs and thus increases their interest in the quality of the goods they make
or the services they provide.

32) B
Task identity is the extent to which a job requires that a worker perform all the tasks necessary to
complete the job, from the beginning to the end of the production process.

33) D
Task significance is the degree to which a worker feels his or her job is meaningful because of its
effect on people inside the organization, such as coworkers, or on people outside the
organization, such as customers.

34) C
Task significance is the degree to which a worker feels his or her job is meaningful because of its
effect on people inside the organization, such as coworkers, or on people outside the
organization, such as customers.

35) A
Autonomy is the degree to which a job gives an employee the freedom and discretion needed to
schedule different tasks and decide how to carry them out.

36) D
Task significance is the degree to which a worker feels his or her job is meaningful because of its
effect on people inside the organization, such as coworkers, or on people outside the
organization, such as customers.

37) D
Autonomy is the degree to which a job gives an employee the freedom and discretion needed to
schedule different tasks and decide how to carry them out.

38) B
Feedback is the extent to which actually doing a job provides a worker with clear and direct
information about how well he or she has performed the job.

39) D
Hackman and Oldham argue that five job characteristics affect an employee's motivation because
they affect three critical psychological states. The more employees feel that their work is
meaningful and that they are responsible for work outcomes and responsible for knowing how
those outcomes affect others, the more motivating work becomes and the more likely employees
are to be satisfied and to perform at a high level.

40) A
Task significance is the degree to which a worker feels his or her job is meaningful because of its
effect on people inside the organization, such as coworkers, or on people outside the
organization, such as customers. Working for the benefit of autistic children, therefore, would
provide Parma with high task significance.

41) A
Autonomy is the degree to which a job gives an employee the freedom and discretion needed to
schedule different tasks and decide how to carry them out. By working at home, Sorrento would
have this freedom.

42) A
A functional structure is an organizational structure composed of all the departments that an
organization requires to produce its goods or services.

43) D
A functional structure groups jobs according to function. As a result, this structure groups
together people who perform similar jobs.

44) A
Most managers of large organizations choose a divisional structure and create a series of
business units to produce a specific kind of product for a specific kind of customer. Each
division is a collection of functions or departments that work together to produce the product.

45) A
Divisional structure is an organizational structure composed of separate business units within
which are the functions that work together to produce a specific product for a specific customer.

46) A
When managers organize divisions according to the type of customer they focus on, they adopt a
market structure.

47) C
Using a product structure, managers place each distinct product line or business in its own self-
contained division and give divisional managers the responsibility for devising an appropriate
business-level strategy to allow the division to compete effectively in its industry or market.

48) C
Using a product structure, managers place each distinct product line or business in its own self-
contained division and give divisional managers the responsibility for devising an appropriate
business-level strategy to allow the division to compete effectively in its industry or market.

49) A
This follows a geographic structure, in which divisions are broken down by geographic location.

50) C
In adopting a global geographic structure, managers locate different divisions in each of the
world regions where the organization operates. Managers are most likely to do this when they
pursue a multidomestic strategy, because customer needs vary widely by country or world
region.

51) A
In a global product structure, each product division, not the country and regional managers, takes
responsibility for deciding where to manufacture its products and how to market them in
countries worldwide. It is often used when customers abroad are willing to buy the same kind of
product or slight variations thereof.

52) C
Market structure is also known as customer structure, as it is an organizational structure in which
each kind of customer is served by a self-contained division.

53) A
A market structure is an organizational structure in which each kind of customer is served by a
self-contained division. A market structure allows managers to be responsive to the needs of
their customers and allows them to act flexibly in making decisions in response to customers'
changing needs.

54) D
In a matrix structure, managers group people and resources in two ways simultaneously: by
function and by product. Employees are grouped by functions to allow them to learn from one
another and become more skilled and productive. In addition, employees are grouped into
product teams in which members of different functions work together to develop a specific
product.

55) B
In a matrix structure, each person in a product team reports to two managers: (1) a functional
boss, who assigns individuals to a team and evaluates their performance from a functional
perspective, and (2) the boss of the product team, who evaluates their performance on the team.
Thus, team members are known as two-boss employees.

56) A
In a matrix structure, each person in a product team reports to two managers: (1) a functional
boss, who assigns individuals to a team and evaluates their performance from a functional
perspective, and (2) the boss of the product team, who evaluates their performance on the team.
Thus, team members are known as two-boss employees.

57) C
In a matrix structure, managers group people and resources in two ways simultaneously: by
function and by product. Employees are grouped by functions to allow them to learn from one
another and become more skilled and productive.

58) C
The dual reporting relationships that are at the heart of a matrix structure have always been
difficult for managers and employees to deal with. Often the functional boss and the product boss
make conflicting demands on team members, who do not know which boss to satisfy first.

59) C
A cross-functional team is a group of managers brought together from different departments to
perform organizational tasks.

60) B
The product team structure differs from a matrix structure in two ways: (1) It does away with
dual reporting relationships and two-boss employees, and (2) functional employees are
permanently assigned to a cross-functional team that is empowered to bring a new or redesigned
product to market.

61) C
Juanita would most likely suggest that Kookies set up a global geographic structure and form
strategic alliances with suppliers in various nations. This structure would enable Kookies to use a
multidomestic strategy to adapt marketing to various cultural conditions. The strategic alliances
would help Kookies manage its global value chain. The product, market, and matrix structures
would not work well because Kookies produces only one type of product, chocolate chip
cookies.

62) B
The product structure is helpful to use if a company produces a wide variety of products. Using a
product structure, managers place each distinct product line or business in its own self-contained
division and give divisional managers the responsibility for devising an appropriate business-
level strategy to allow the division to compete effectively in its industry or market.

63) A
At the functional level, the manufacturing function typically has a short-term view; its major
goals are to keep costs under control and get the product out the factory door on time.

64) A
The hierarchy of authority is an organization's chain of command—the relative authority that
each manager has—extending from the CEO at the top, down through the middle managers and
first-line managers, to the nonmanagerial employees who actually make goods or provide
services.

65) B
The hierarchy of authority is an organization's chain of command—the relative authority that
each manager has—extending from the CEO at the top, down through the middle managers and
first-line managers, to the nonmanagerial employees who actually make goods or provide
services.

66) D
The term ''span of control' refers to the number of subordinates who report directly to a manager.
Every manager, at every level of the hierarchy, supervises one or more subordinates.

67) B
The term “span of control” refers to the number of subordinates who report directly to a
manager. Every manager, at every level of the hierarchy, supervises one or more subordinates.

68) A
A line manager is someone in the direct line or chain of command who has formal authority over
people and resources.

69) A
As an organization grows in size (normally measured by the number of its managers and
employees), its hierarchy of authority normally lengthens, making the organizational structure
taller. A tall organization has many levels of authority relative to company size.

70) C
The principle of the minimum chain of command states that top managers should always
construct a hierarchy with the fewest levels of authority necessary to efficiently and effectively
use organizational resources.

71) C
One way in which managers can keep the organizational hierarchy flat is by decentralizing
authority. That is by giving lower-level managers and nonmanagerial employees the right to
make important decisions about how to use organizational resources.

72) A
Decentralization gives lower-level managers and nonmanagerial employees the right to make
important decisions about how to use organizational resources. If managers at higher levels give
lower-level employees the responsibility of making important decisions and only manage by
exception, then the problems of slow and distorted communication are kept to a minimum.

73) B
Decentralizing authority allows an organization and its employees to behave in a flexible way
even as the organization grows and becomes taller. This is why managers are so interested in
empowering employees, creating self-managed work teams, establishing cross-functional teams,
and even moving to a product team structure.

74) A
On a scale of simple to complex, liaison roles are the simplest.

75) C
Managers can increase coordination among functions and divisions by establishing liaison roles.
When the volume of contacts between two functions increases, one way to improve coordination
is to give one manager in each function or division the responsibility of coordinating with the
other.

76) C
Task forces are often called ad hoc committees because they are temporary; they may meet on a
regular basis or only a few times. When the problem or issue is solved, the task force is no longer
needed; members return to their normal roles in their departments or are assigned to other task
forces.

77) C
To increase communication and coordination among functions or between divisions and to
prevent these problems from emerging, top managers incorporate various integrating
mechanisms into their organizational architecture. The greater the complexity of an
organization's structure, the greater is the need for coordination among people, functions, and
divisions to make the organizational structure work efficiently and effectively.

78) C
Usually managers who perform integrating roles are experienced senior managers who can
envision how to use the resources of the functions or divisions to obtain new synergies.

79) D
A task force is a temporary committee of managers from various functions or divisions who meet
to solve a specific, mutual problem. When more than two functions or divisions share many
common problems, direct contact and liaison roles may not provide sufficient coordination. In
these cases, a more complex integrating mechanism, a task force, may be appropriate.

80) A
To address recurring problems effectively, managers are increasingly using permanent
integrating mechanisms such as cross-functional teams. An example of a cross-functional team is
a new product development committee that is responsible for the choice, design, manufacturing,
and marketing of a new product.

81) D
An integrating role is a role whose only function is to increase coordination and integration
among functions or divisions to achieve performance gains from synergies.

82) D
Tall organizations often develop communication problems because of the many levels in the
hierarchy. To counteract this, a CEO would most likely decentralize the company, thereby
changing it from a tall organization with a large hierarchy to a flat organization with a small
hierarchy.

83) C
A strategic alliance is a formal agreement that commits two or more companies to exchange or
share their resources in order to produce and market a product. Most commonly, strategic
alliances are formed because the companies share similar interests and believe they can benefit
from cooperating.

84) C
A B2B network structure is a formal series of global strategic alliances that one or several
organizations create with suppliers, manufacturers, and distributors to produce and market a
product. Network structures allow an organization to manage its global value chain and to find
new ways to reduce costs while increasing the quality of products—without incurring the high
costs of operating a complex organizational structure.

85) A
A B2B network structure is a formal series of global strategic alliances that one or several
organizations create with suppliers, manufacturers, and distributors to produce and market a
product. Network structures allow an organization to manage its global value chain and to find
new ways to reduce costs while increasing the quality of products—without incurring the high
costs of operating a complex organizational structure.
86) D
To outsource is to use outside or foreign suppliers and manufacturers to produce goods and
services.

87) C
A B2B network structure is a formal series of global strategic alliances that one or several
organizations create with suppliers, manufacturers, and distributors to produce and market a
product. Network structures allow an organization to manage its global value chain and to find
new ways to reduce costs while increasing the quality of products—without incurring the high
costs of operating a complex organizational structure (such as the costs of employing many
managers).

88) D
The ability of managers to develop a network structure to produce or provide the goods and
services customers want, rather than create a complex organizational structure to do so, has led
many researchers and consultants to popularize the idea of a boundaryless organization. Such an
organization is composed of people linked by technology—computers, email, computer-aided
design systems, videoconferencing, and cloud-based software—who may rarely, if ever, see one
another face-to-face.

89) A
A boundaryless organization is composed of people linked by technology—computers, mobile
and virtual technology, computer-aided design systems, videoconferencing, and cloud computing
software—who may rarely, if ever, see one another face-to-face. People are utilized when their
services are needed, much as in a matrix structure, but they are not formal members of an
organization; they are functional experts who form an alliance with an organization, fulfill their
contractual obligations, and then move on to the next project.

90) D
This is the definition of a knowledge management system that is used by consulting companies
like Accenture and IBM.

91) Essay
In order for an organization to gain a competitive advantage, managers must strive to increase
efficiency, quality, responsiveness to customers, and innovation. Good communication is
essential for attaining each of these four goals and thus is a necessity for gaining a competitive
advantage. Managers can increase efficiency by updating the production process to take
advantage of new and more efficient technologies and by training workers to operate the new
technologies and expand their skills. Similarly, improving quality hinges on effective
communication. Managers need to communicate to all members of an organization the meaning
and importance of high quality and the routes to attaining it. Good communication can also help
to increase responsiveness to customers. When the organizational members who are closest to
customers are empowered to communicate customers' needs and desires to managers, managers
are better able to respond to these needs. Innovation, which often takes place in cross-functional
teams, also requires effective communication.

92) Essay
Organizational structure is the formal system of task and job reporting relationships that
determines how employees use resources to achieve organizational goals. Organizational design
is the process by which managers make specific organizing choices about tasks and job
relationships that result in the construction of a particular organizational structure.

93) Essay
The four factors that are important determinants of the type of an organizational structure or
organizing method managers select are as follows:
 The nature of the organizational environment
 The type of strategy the organization pursues
 The technology (and particularly information technology) the organization uses
 The characteristics of the organization's human resources

94) Essay
According to Charles Perrow, the two factors that determine how complicated or nonroutine
technology is are as follows: task variety and task analyzability. Task variety is the number of
new or unexpected problems or situations that a person or function encounters in performing
tasks or jobs. Task analyzability is the degree to which programmed solutions are available to
people or functions to solve the problems they encounter.
Nonroutine or complicated technologies are characterized by high task variety and low task
analyzability; this means that many varied problems occur and that solving these problems
requires significant nonprogrammed decision making. In contrast, routine technologies are
characterized by low task variety and high task analyzability; this means that the problems
encountered do not vary much and are easily resolved through programmed decision making.

95) Essay
Student examples will vary. Job enlargement is increasing the number of different tasks in a
given job by changing the division of labor. For example, in a Mexican restaurant, a waiter, in
addition to serving food, could be given the responsibility of preparing simpler dishes, such a
guacamole, for customers.
The idea behind job enlargement is that increasing the range of tasks performed by a worker will
reduce boredom and fatigue and may increase motivation to perform at a high level, increasing
both the quantity and the quality of goods and services provided.

96) Essay
Student examples will vary. Job enrichment is increasing the degree of responsibility a worker
has over a job in one of the following ways:
 A manager can empower the subordinate to find a better way of doing his or her job. For
example, a subordinate could be allowed to work at home more to allow him or her to
focus on a certain task and avoid the distractions of working in an office.
 A manager can encourage the subordinate to develop new skills that could be used in the
job. For example, a sales clerk could be encouraged to attend a seminar to improve
interpersonal skills to help the clerk interact with customers.
 A manager can give the subordinate the responsibility to decide how to react to
unexpected situations. For example, a librarian could be allowed to use his or her best
judgment when dealing with difficult patrons instead of following formal guidelines.
 A manager can allow the subordinate to monitor and to measure his or her own job
performance. For instance, a computer programmer could be allowed to measure the
effectiveness of his or her programming by observing people using it.
The idea behind job enrichment is that increasing workers' responsibility increases their
involvement in their jobs and thus increases their interest in the quality of the goods they
make or the services they provide.

97) Essay
Student examples will vary. According to the job characteristics model of J. R. Hackman and G.
R. Oldham, every job has five characteristics that determine how motivating the job is. They are
as follows:
 Skill variety: The extent to which a job requires that an employee use a wide range of
different skills, abilities, or knowledge.
 Task identity: The extent to which a job requires that a worker perform all the tasks
necessary to complete the job, from the beginning to the end of the production process.
For example, a person composing music for a film is often allowed to work on an
assignment from the beginning of the composition to the orchestration of the piece.
 Task significance: The degree to which a worker feels his or her job is meaningful
because of its effect on people inside the organization, such as coworkers, or on people
outside the organization, such as customers. For instance, a person developing an
inexpensive, nutritional food could find meaning if this food is eventually used to help
starving people in various countries.
 Autonomy: The degree to which a job gives an employee the freedom and discretion
needed to schedule different tasks and decide how to carry them out. For example, a
designer for an advertising campaign could be given extensive freedom to schedule
different tasks and decide how to carry them out.
 Feedback: The extent to which actually doing a job provides a worker with clear and
direct information about how well he or she has performed the job. For example, a
baseball player will receive immediate feedback from the crowd if he or she makes an
error or hits a homerun.

98) Essay
The functional structure is an organizational structure composed of all the departments that an
organization requires to produce its goods or services. The advantages and disadvantages to
grouping jobs according to function are as follows:
Advantages
 First, when people who perform similar jobs are grouped together, they can learn from
observing one another and thus become more specialized and can perform at a higher
level.
 Second, when people who perform similar jobs are grouped together, it is easier for
managers to monitor and evaluate their performance.
 Finally, managers appreciate functional structure because it allows them to create the set
of functions they need in order to scan and monitor the competitive environment and
obtain information about the way it is changing.
 First, managers in different functions may find it more difficult to communicate and
coordinate with one another when they are responsible for several different kinds of
products, especially as the organization grows both domestically and internationally.
 Second, functional managers may become so preoccupied with supervising their own
specific departments and achieving their departmental goals that they lose sight of
organizational goals.

99) Essay
Student examples will vary. Most managers of large organizations choose a divisional structure
and create a series of business units to produce a specific kind of product for a specific kind of
customer. Each division is a collection of functions or departments that work together to produce
the product. The goal behind the change to a divisional structure is to create smaller, more
manageable units within the organization. There are three forms of divisional structure:
1. When managers organize divisions according to the type of good or service they provide,
they adopt a product structure. For example, a food company could organize divisions by
breakfast cereals, baked goods, condiments, and cheeses.
2. When managers organize divisions according to the area of the country or world they
operate in, they adopt a geographic structure. For example, a soft drink company that
distributes its product worldwide could organize its division by geographic region, such
as Europe, Central Asia, East Asia, South America, and so on.
3. When managers organize divisions according to the type of customer they focus on, they
adopt a market structure. For example, a computer company could have distinct groups of
customers, each with different needs. As a result, such a company might organize
divisions according to home use, small businesses, and large businesses.

100) Essay
In a matrix structure, managers group people and resources in two ways simultaneously: by
function and by product. Employees are grouped by functions to allow them to learn from one
another and become more skilled and productive. In addition, employees are grouped into
product teams in which members of different functions work together to develop a specific
product.
Each person in a product team reports to two managers:
 A functional boss, who assigns individuals to a team and evaluates their performance
from a functional perspective
 The boss of the product team, who evaluates their performance on the team
Thus, team members are known as two-boss employees.

101) Essay
 As a hierarchy becomes taller, problems may result that make the organization's structure
less flexible and slow managers' response to changes in the organizational environment.
 Communication problems may arise when an organization has many levels in the
hierarchy. It can take a long time for the decisions and orders of upper-level managers to
reach managers further down in the hierarchy, and it can take a long time for top
managers to learn how well their decisions worked.
 Feeling out of touch, top managers may want to verify that lower-level managers are
following orders and may require written confirmation from them.
 Middle managers, who know they will be held strictly accountable for their actions, start
devoting too much time to the process of making decisions to improve their chances of
being right. They might even try to avoid responsibility by making top managers decide
what actions to take.
 Another communication problem that can result is the distortion of commands and
messages being transmitted up and down the hierarchy, which causes managers at
different levels to interpret what is happening differently. Distortion of orders and
messages can be accidental, occurring because different managers interpret messages
from their own narrow, functional perspectives. Or distortion can be intentional,
occurring because managers low in the hierarchy decide to interpret information in a way
that increases their own personal advantage.
 Another problem with tall hierarchies is that they usually indicate that an organization is
employing many managers, and managers are expensive. Managerial salaries, benefits,
offices, and secretaries are a huge expense for organizations.

102) Essay
Student examples will vary.
 A line manager is someone in the direct line or chain of command who has formal
authority over people and resources at lower levels. For example, the manager of a
marketing department reports to a top manager, such as a vice-president, and also has
authority over many people in his or her department.
 A staff manager is someone responsible for managing a specialist function. For example,
a staff manager could be in charge of communications for a company. As such, this
person could report directly to the CEO and not have managers above or below her or
him. A staff manager, therefore, is not in the direct line or chain of command.

103) Essay
When focusing on decentralization, managers at higher levels give lower-level employees the
responsibility of making important decisions and only manage by exception; thus, the problems
of slow and distorted communication are kept to a minimum. Moreover, fewer managers are
needed because their role is not to make decisions but to act as coach and facilitator and to help
other employees make the best decisions. In addition, when decision-making authority is low in
the organization and near the customer, employees are better able to recognize and respond to
customer needs. Decentralizing authority allows an organization and its employees to behave in a
flexible way even as the organization grows and becomes taller. However, too much
decentralization has certain disadvantages. If divisions, functions, or teams are given too much
decision-making authority, they may begin to pursue their own goals at the expense of
organizational goals. Also, too much decentralization can result in a lack of communication
among functions or divisions; this prevents the synergies that result from cooperation from ever
materializing, and organizational performance suffers.

104) Essay
Liaison roles, task forces, and cross-functional teams are integrating mechanisms available to
managers to increase communication and coordination.
 Liaison roles: Managers can increase coordination among functions and divisions by
establishing liaison roles. When the volume of contacts between two functions increases,
one way to improve coordination is to give one manager in each function or division the
responsibility for coordinating with the other. Coordinating is part of the liaison's full-
time job. Furthermore, liaison roles provide a way of transmitting information across an
organization, which is important in large organizations whose employees may know no
one outside their immediate function or division.
 Task forces: When more than two functions or divisions share many common problems, a
more complex integrating mechanism, a task force, may be appropriate. One manager
from each relevant function or division is assigned to a task force that meets to solve a
specific, mutual problem. Members are responsible for reporting to their departments on
the issues addressed and the solutions recommended. Task forces are temporary; they
may meet on a regular basis or only a few times. When the problem or issue is solved, the
members return to their normal roles in their departments or are assigned to other task
forces. Typically, task force members also perform many of their normal duties while
serving on the task force.
 Cross-functional teams: To address recurring problems effectively, such as the need to
develop new products or find new kinds of customers, managers are increasingly using
permanent integrating mechanisms such as cross-functional teams. These teams assume
long-term responsibility for all aspects of developing and making the product.

105) Essay
Student examples will vary.
 A strategic alliance is a formal agreement that commits two or more companies to
exchange or share their resources in order to produce and market a product. Strategic
alliances are formed because the companies share similar interests and believe they can
benefit from cooperating. For example, a soft drink company could form a strategic
alliance with a movie theater chain. As part of this agreement, the movie theater chain
would agree to sell only soft drinks made by the allied company. Also, the theater chain
provides an exclusive outlet for the soft drink company's product. Over time, these
companies work closely with their suppliers to improve the efficiency and effectiveness
of the inputs so that the final product produced is of higher quality and very often can be
produced at lower cost.
 A network structure is a series of global strategic alliances that one or several
organizations create with suppliers, manufacturers, and/or distributors to produce and
market a product. For example, a U.S.-based automobile company could create global
strategic alliances with a supplier in China, a manufacturer in Malaysia, and a distributor
in the United Kingdom. Network structures allow an organization to manage its global
value chain in order to find new ways to reduce costs and increase the quality of products
—without incurring the high costs of operating a complex organizational structure (such
as the costs of employing many managers).

106) Essay
The ability of managers to develop a network structure to produce or provide the goods and
services customers want, rather than create a complex organizational structure to do so, has led
many researchers and consultants to popularize the idea of a boundaryless organization. Such an
organization is composed of people linked by technology—computers, email, computer-aided
design systems, videoconferencing, and cloud-based software—who may rarely, if ever, see one
another face-to-face. People are utilized when their services are needed, much as in a matrix
structure, but they are not formal members of an organization; they are functional experts who
form an alliance with an organization, fulfill their contractual obligations, and then move on to
the next project.