Q6.1. What is the impact of age and size on organizational structure according to Mintzberg?

A. (Correct) They influence the choice of design parameters and coordinating mechanisms.

B. They have no significant impact on organizational structure.

C. They only affect the external environment of an organization.

D. Age and size primarily determine the color-coding of organizational charts.

E. Organizational structure is solely influenced by technological factors.

Answer: A. They influence the choice of design parameters and coordinating mechanisms.

Elaboration: Mintzberg argues that the age and size of an organization affect its internal design. Older an
d larger organizations tend to move towards more complex structures, often involving increased formaliza
tion and specialization. The choice of design parameters, such as the degree of formalization, and coordi
nating mechanisms, like direct supervision or standardization, is influenced by the organization’s age and
size.

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Q6.2. How do age and size contribute to organizational structure development?

A. They have no impact on the development of organizational structure.

B. (Correct) They contribute to the elaboration of administrative structures over time.

C. Age and size determine the company’s logo and branding.

D. They affect the external perception of the organization.

E. Organizational structure development is solely determined by market demand.

Answer: B. They contribute to the elaboration of administrative structures over time.

Elaboration: As organizations age and grow in size, they tend to elaborate their administrative structures.
This involves the development of more complex and differentiated structures, including the establishment
of specialized roles, departments, and hierarchical levels to manage increased complexity.

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Q6.3. Which design parameter is influenced by the age and size of an organization?

A. Organizational culture and values.

B. (Correct) The degree of formalization.

C. The choice of the CEO.

D. The number of products a company produces.

E. The company’s mission and vision.

Answer: B. The degree of formalization.

Elaboration: The degree of formalization, referring to the extent to which rules and procedures are establi
shed, is influenced by the age and size of an organization. Larger and older organizations tend to have hi
gher levels of formalization to cope with increased complexity and coordinate activities.

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Q6.4. How does Mintzberg describe the relationship between age, size, and organizational structure?

A. Age and size have no impact on organizational structure.

B. Organizational structure is solely determined by industry type.

C. (Correct) Age and size are associated with the degree of bureaucratization and elaboration.

D. Organizational structure is entirely dependent on technological factors.

E. The geographical location is the primary determinant of organizational structure.

Answer: C. Age and size are associated with the degree of bureaucratization and elaboration.

Elaboration: Mintzberg suggests that as organizations age and grow in size, they tend to become more bu
reaucratized and elaborate in their administrative structures. Bureaucratization involves the development
of formal rules and procedures, and elaboration refers to the increased complexity of administrative struct
ures.

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Q6.5. In the context of organizational development, what role does age play according to Mintzberg?

A. Age has no significant role in organizational development.

B. (Correct) Age is associated with the tendency to move from simple to more complex structures.

C. Age determines the level of market competition.

D. Organizational development is solely determined by shareholder interests.

E. The age of employees is the primary factor influencing organizational structure.

Answer: B. Age is associated with the tendency to move from simple to more complex structures.

Elaboration: According to Mintzberg, organizations typically start with simpler structures in their formative
years. As they age, they tend to develop more complex structures to adapt to the changing environment, i
ncreasing size, and the need for more sophisticated coordination mechanisms.

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Q6.6 In Mintzberg’s organizational design framework, which of the following characteristics is NOT typicall
y associated with a simple structure?

(a) Centralized decision-making

(b) Wide spans of control
(c) (Correct) High formalization
(d) Little departmentalization
(e) Low work specialization

Answer: (c) High formalization

Elaboration: Simple structures are characterized by minimal bureaucracy and informality. Decision-makin
g is centralized in the hands of the owner or manager, and there are few formal rules or procedures.
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Q6.7. What is the primary reason why simple structures are often found in small businesses and startups
?

(a) They are more efficient and cost-effective to operate.

(b) They allow for greater flexibility and adaptability.
(c) They provide a clear chain of command and accountability.
(d) They foster a sense of community and shared purpose.
(e) (Correct) They are well-suited for organizations in dynamic and uncertain environments.

Answer: (e) They are well-suited for organizations in dynamic and uncertain environments.

Elaboration: Simple structures allow small businesses and startups to quickly adapt to changing market c
onditions and customer needs. The flexibility and informality of these structures enable rapid decision-ma
king and experimentation.

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Q6.8. Which of the following is NOT an example of an external control that can influence power relationsh
ips within an organization?

(a) Government regulations

(b) Labor unions
(c) Investor demands
(d) Customer preferences
(e) Supplier relationships

Answer: (d) Customer preferences

Elaboration: Customer preferences are not a form of external control. They can influence the organization’
s design and structure, but they do not directly impact power relationships within the organization.
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Q6.9. Which design parameter is influenced by the age and size of an organization?

A. Organizational culture and values.

B. (Correct) The degree of formalization.

C. The choice of the CEO.

D. The number of products a company produces.

E. The company’s mission and vision.

Answer: B. The degree of formalization.

Elaboration: The degree of formalization, referring to the extent to which rules and procedures are establi
shed, is influenced by the age and size of an organization. Larger and older organizations tend to have hi
gher levels of formalization to cope with increased complexity and coordinate activities.

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Q6.10.How does Mintzberg describe the relationship between age, size, and organizational structure?

A. Age and size have no impact on organizational structure.

B. Organizational structure is solely determined by industry type.

C. (Correct) Age and size are associated with the degree of bureaucratization and elaboration.

D. Organizational structure is entirely dependent on technological factors.

E. The geographical location is the primary determinant of organizational structure.

Answer: C. Age and size are associated with the degree of bureaucratization and elaboration.

Elaboration: Mintzberg suggests that as organizations age and grow in size, they tend to become more bu
reaucratized and elaborate in their administrative structures. Bureaucratization involves the development
of formal rules and procedures, and elaboration refers to the increased complexity of administrative struct
ures.

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Q6.11.In the context of organizational development, what role does age play according to Mintzberg?

A. Age has no significant role in organizational development.

B. (Correct) Age is associated with the tendency to move from simple to more complex structures.

C. Age determines the level of market competition.

D. Organizational development is solely determined by shareholder interests.

E. The age of employees is the primary factor influencing organizational structure.

Answer: B. Age is associated with the tendency to move from simple to more complex structures.

Elaboration: According to Mintzberg, organizations typically start with simpler structures in their formative
years. As they age, they tend to develop more complex structures to adapt to the changing environment, i
ncreasing size, and the need for more sophisticated coordination mechanisms.

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Q6.12.How do environmental dimensions impact organizational structure according to Mintzberg?

A. Environmental dimensions have no influence on organizational structure.

B. (Correct) They affect the need for coordination mechanisms and structural components.

C. Environmental dimensions only determine the office layout.

D. Organizational structure is solely determined by employee preferences.

E. The geographical location is the primary determinant of organizational structure.

Answer: B. They affect the need for coordination mechanisms and structural components.

Elaboration: Mintzberg emphasizes that environmental dimensions, such as stability and complexity, shap
e the organizational need for coordination mechanisms (e.g., standardization) and structural components
(e.g., differentiation). Different environmental dimensions require different structural responses for effectiv
e functioning.

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Q6.13. What role do environmental dimensions play in the design of organizational structure?

A. Environmental dimensions have no influence on the design of organizational structure.

B. (Correct) They contribute to the choice between organic and mechanistic structures.

C. Environmental dimensions only impact the selection of office furniture.

D. Organizational structure is solely determined by market demand.

E. The industry type is the primary determinant of organizational structure.

Answer: B. They contribute to the choice between organic and mechanistic structures.

Elaboration: Environmental dimensions influence the choice between organic and mechanistic structures.
For instance, a stable environment may favor mechanistic structures, while a dynamic environment may p
ush organizations towards more organic structures to adapt quickly.

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Q6.14. Which of the following is NOT an example of how environmental dimensions can influence organiz
ational design?

(a) A grocery store in a stable and predictable environment may adopt a simple structure.
(b) A technology company in a dynamic and hostile environment may adopt a complex and adaptive struc
ture.
(c) A hospital in a complex and diverse environment may adopt a decentralized structure with specialized
departments.
(d) A government agency in a stable and predictable environment may adopt a bureaucratic structure.
(e) A non-profit organization in a diverse and hostile environment may adopt a flexible and collaborative st
ructure.

Answer: (c) A hospital in a complex and diverse environment may adopt a centralized structure with speci
alized departments.

Elaboration: Hospitals are typically complex organizations that operate in a diverse and dynamic environ
ment. This requires them to adopt a decentralized structure with specialized departments, which allows th
em to respond quickly and effectively to changing needs. A centralized structure would be too rigid and inf
lexible for a hospital to operate effectively in this environment.

Overall, Mintzberg’s environmental dimensions are a useful framework for understanding how the externa
l environment can influence organizational design. By carefully considering these dimensions, organizatio
ns can choose a structure that best suits their needs and helps them to achieve their goals.
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Q6.15. How does Mintzberg describe the relationship between environmental dimensions and organizatio
nal structure?

A. Environmental dimensions have no impact on organizational structure.

B. Organizational structure is solely determined by industry type.

C. (Correct) Environmental dimensions influence the need for coordination mechanisms and structural co
mponents.

D. Organizational structure is entirely dependent on CEO preferences.

E. The size of the workforce is the primary determinant of organizational structure.

Answer: C. Environmental dimensions influence the need for coordination mechanisms and structural co
mponents.

Elaboration: Mintzberg argues that environmental dimensions shape the organizational need for coordinat
ion mechanisms (e.g., standardization) and structural components (e.g., specialization). The nature of the
environment determines the most effective way to coordinate work within the organization.

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Q6.16. Which environmental dimension is characterized by frequent and unpredictable changes?

(a) Stability
(b) Complexity
(c) Diversity
(d) Hostility
(e) Dynamism

Answer: (e) Dynamism

Elaboration: Dynamism refers to the rate of change in the environment. A dynamic environment is charact
erized by frequent and unpredictable changes, which can make it difficult for organizations to plan and ad
apt.

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Q6.17. Which of the following is NOT an example of an organization that typically adopts a simple structur
e?

(a) A local bakery

(b) A family-owned restaurant
(c) A small consulting firm
(d) A multinational corporation
(e) A startup technology company

Answer: (d) A multinational corporation

Elaboration: Multinational corporations typically employ complex organizational structures due to their larg
e size, global reach, and diversified operations. Simple structures are generally not suitable for such large
and complex organizations.s

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Q6.18.Which of the following member needs is most likely to lead to a decentralized organizational struct
ure?

(a) Need for autonomy and self-direction

(b) Need for security and stability
(c) Need for recognition and appreciation
(d) Need for structure and guidance
(e) Need for belonging and community

Answer: (a) Need for autonomy and self-direction

Elaboration: Employees with a high need for autonomy and self-direction are likely to prefer a decentraliz
ed structure that gives them more freedom and control over their work.

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Q6.19. Which of the following cultural influences is most likely to lead to a formal organizational structure?

(a) Respect for authority and tradition

(b) Emphasis on equality and participation
(c) Focus on innovation and creativity
(d) Value for flexibility and adaptability
(e) Preference for consensus-based decision-making

Answer: (a) Respect for authority and tradition

Elaboration: Cultures that value respect for authority and tradition are more likely to adopt formal organiza
tional structures with clear hierarchies and well-defined roles and responsibilities.
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Q6.20. How does cultural influence impact power relationships in organizational structure according to Mi
ntzberg?

A. Cultural influence has no bearing on power relationships.

B. Cultural influence solely depends on the organization’s age.

C. (Correct) Cultural influences shape the values and norms that impact the distribution of authority.

D. Organizational structure is entirely determined by geographical location.

E. The organization’s product offerings are the primary determinant of cultural influence.

Answer: C. Cultural influences shape the values and norms that impact the distribution of authority.

Elaboration: Mintzberg asserts that cultural influences play a crucial role in shaping the values and norms
within an organization. These cultural elements, in turn, impact how authority is distributed among membe
rs, influencing power relationships.

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Q6.21. Which of the following power relationships is most likely to lead to conflict within an organization?

(a) Collaborative power

(b) Expert power
(c) Legitimate power
(d) Referent power
(e) Coercive power

Answer: (e) Coercive power

Elaboration: Coercive power, which relies on threats or punishment, is more likely to lead to conflict and r
esentment than other forms of power. Employees who are subjected to coercive power may feel disempo
wered and disengaged, which can negatively impact productivity and morale.
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Q6.22. What are the defining characteristics of Mintzberg’s Simple Structure?

A. Simple Structure is characterized by a highly elaborate technostructure and complex support staff.

B. (Correct) Simple Structure features little or no technostructure, few support staffers, and a loose divisio
n of labor.

C. Simple Structure relies heavily on extensive horizontal decentralization.

D. Simple Structure is synonymous with rigid and highly formalized communication channels.

E. The effectiveness of Simple Structure is solely dependent on a large managerial hierarchy.

Answer: B. Simple Structure features little or no technostructure, few support staffers, and a loose division
of labor.

Elaboration: Mintzberg’s Simple Structure is defined by its simplicity, marked by minimal technostructure,
a sparse support staff, and a loose division of labor. This configuration emphasizes flexibility and direct co
mmunication channels.

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Q6.23. What is the decision-making process like in Mintzberg’s Simple Structure?

A. Decision-making in Simple Structure involves a highly analytical and formalized approach.

B. (Correct) Simple Structure features flexible decision-making, with power centralized at the strategic ap
ex.

C. Decision-making is entirely decentralized across all organizational levels in Simple Structure.

D. Simple Structure exclusively relies on standardized procedures for decision-making.

E. The middle line in Simple Structure plays a dominant role in decision-making processes.

Answer: B. Simple Structure features flexible decision-making, with power centralized at the strategic ape
x.

Elaboration: In Simple Structure, decision-making is characterized by its flexibility, with power concentrate
d at the strategic apex. This allows for rapid response and adaptability to changing circumstances.

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Q6.24. Under what conditions does Simple Structure thrive according to Mintzberg?

A. Simple Structure is most effective in complex and stable environments.

B. (Correct) Simple Structure is well-suited for simple and dynamic environments, especially in young and
small organizations.

C. Simple Structure excels in highly bureaucratic and regulated settings.

D. Large organizations with a complex technical system are ideal for Simple Structure.

E. Simple Structure is most effective in environments with extensive external control.

Answer: B. Simple Structure is well-suited for simple and dynamic environments, especially in young and
small organizations.

Elaboration: Mintzberg suggests that Simple Structure is most effective in simple, dynamic environments,
making it suitable for young and small organizations that prioritize flexibility over bureaucracy.

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Q6.25. What is a potential risk associated with Mintzberg’s Simple Structure?

A. Simple Structure is risk-free and immune to potential drawbacks.

B. (Correct) Simple Structure is considered the riskiest of configurations, hinging on the health and whims
of one individual.

C. Simple Structure is prone to excessive formalization, leading to rigidity.

D. The strategic apex in Simple Structure is known for decentralized decision-making.

E. The middle line in Simple Structure is resistant to power concentration.

Answer: B. Simple Structure is considered the riskiest of configurations, hinging on the health and whims
of one individual.

Elaboration: The risk associated with Simple Structure lies in its dependence on a single individual, typical
ly the CEO. Any health-related issues or unpredictable decisions by this individual can have a significant i
mpact on the organization.

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Q6.26.How does Mintzberg describe the organizational culture within Simple Structure?

A. Simple Structure promotes a highly bureaucratic and formal organizational culture.

B. Simple Structure exclusively fosters a culture of centralized decision-making.

C. (Correct) Simple Structure provides a strong sense of mission, with employees developing solid identifi
cation with the leader’s vision.

D. Organizational culture in Simple Structure is characterized by extensive formal procedures and protoco
ls.

E. Simple Structure encourages a culture where power is distributed across all organizational levels.

Answer: C. Simple Structure provides a strong sense of mission, with employees developing solid identific
ation with the leader’s vision.

Elaboration: Mintzberg notes that Simple Structure often fosters a strong sense of mission, where employ
ees identify with the leader’s vision. This can lead to rapid organizational growth and a sense of purpose
among members.

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Q6.27. What characterizes an Autocratic Organization in Mintzberg’s organizational design?

A. Autocratic Organization promotes extensive decentralization of power.

B. (Correct) Autocratic Organization is marked by a concentration of power at the top, with the chief execu
tive hoarding decision-making authority.

C. Autocratic Organization emphasizes a fully democratic decision-making process.

D. Autocratic Organization relies on a highly bureaucratic structure with a flattened hierarchy.

E. The decision-making process in Autocratic Organization is distributed equally across all organizational l
evels.

Answer: B. Autocratic Organization is marked by a concentration of power at the top, with the chief execut
ive hoarding decision-making authority.

Elaboration: In an Autocratic Organization, power is concentrated at the top, typically with the chief execut
ive making decisions unilaterally. This style is characterized by a lack of shared decision-making.

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Q6.28. What is a common characteristic of leadership in an Autocratic Organization?

A. Leadership in Autocratic Organization encourages shared decision-making.

B. (Correct) Leadership in Autocratic Organization tends to be autocratic, with the chief executive hoardin
g power and avoiding formalization of behavior.

C. Autocratic Organization emphasizes a laissez-faire leadership approach.

D. Leadership in Autocratic Organization promotes extensive collaboration among organizational member

s.

E. Decisions in Autocratic Organization are made collectively by the leadership team.

Answer: B. Leadership in Autocratic Organization tends to be autocratic, with the chief executive hoarding
power and avoiding formalization of behavior.

Elaboration: Autocratic Organization is characterized by a leadership style where the chief executive tend
s to hoard power and avoids formalizing organizational behavior. Decision-making is often centralized.

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Q6.29. What factor can lead to the development of an Autocratic Organization according to Mintzberg?

A. Autocratic Organization emerges in organizations that promote extensive decentralization.

B. Autocratic Organization is prevalent in environments with a high degree of external control.

C. (Correct) Personal needs for power, where the chief executive hoards decision-making authority, can l
ead to the development of an Autocratic Organization.

D. Autocratic Organization is a response to simple and dynamic environments.

E. Autocratic Organization thrives in highly bureaucratic settings.

Answer: C. Personal needs for power, where the chief executive hoards decision-making authority, can le
ad to the development of an Autocratic Organization.

Elaboration: Mintzberg suggests that an Autocratic Organization can develop when the chief executive ha
s personal needs for power and avoids formalization of behavior, leading to a concentration of decision-m
aking authority.
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Q6.30. How does Mintzberg describe the decision-making process in Autocratic Organizations?

A. Decision-making in Autocratic Organizations involves a highly democratic and participatory approach.

B. Autocratic Organizations rely on decentralized decision-making processes.

C. (Correct) Decision-making in Autocratic Organizations is characterized by a single person, usually the

chief executive, making decisions without extensive consultation.

D. Autocratic Organizations emphasize a collaborative and team-oriented decision-making style.

E. The middle line in Autocratic Organizations plays a dominant role in decision-making processes.

Answer: C. Decision-making in Autocratic Organizations is characterized by a single person, usually the c

hief executive, making decisions without extensive consultation.

Elaboration: In Autocratic Organizations, decision-making is centralized, with a single person, often the ch
ief executive, making decisions without extensive consultation. This aligns with the autocratic leadership s
tyle.

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Q6.31. What is a potential cultural characteristic of Autocratic Organizations according to Mintzberg?

A. Autocratic Organizations foster a culture of extensive collaboration and shared decision-making.

B. Autocratic Organizations exclusively promote bureaucratic and formal organizational cultures.

C. Autocratic Organizations encourage a laissez-faire cultural approach.

D. (Correct) Autocratic Organizations may be associated with cultures where the chief executive’s power i
s not challenged, and decision-making is driven by the leader’s preferences.

E. Cultures in Autocratic Organizations are marked by extensive decentralization of power.

Answer: D. Autocratic Organizations may be associated with cultures where the chief executive’s power is
not challenged, and decision-making is driven by the leader’s preferences.

Elaboration: In Autocratic Organizations, cultures may develop where the chief executive’s power is not c
hallenged, and decision-making aligns with the leader’s preferences. This can lead to a culture of obedien
ce and centralized control.

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Q6.31. What characterizes a Crisis Organization in Mintzberg’s organizational design?

A. Crisis Organization emphasizes a routine and stable work environment.

B. (Correct) Crisis Organization appears when extreme hostility forces an organization to centralize decisi
on-making temporarily.

C. Crisis Organization thrives in environments with low uncertainty.

D. Crisis Organization relies on extensive bureaucratic structures.

E. In Crisis Organization, decision-making is decentralized across all organizational levels.

Answer: B. Crisis Organization appears when extreme hostility forces an organization to centralize decisio
n-making temporarily.

Elaboration: A Crisis Organization is marked by its response to extreme hostility, which leads to a tempor
ary centralization of decision-making. In times of crisis, organizations may need a quick and coordinated r
esponse, necessitating concentrated authority.

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Q6.32. When might a Crisis Organization variant, such as a synthetic organization, be established accordi
ng to Mintzberg?

A. Synthetic organizations are established in routine and predictable environments.

B. (Correct) Synthetic organizations are set up to deal with natural disasters, responding to new situations
in extremely hostile environments.

C. Synthetic organizations are common in organizations with elaborate bureaucratic structures.

D. Synthetic organizations emerge in stable and simple organizational settings.

E. The synthetic organization model is preferred in large organizations with a hierarchical structure.

Answer: B. Synthetic organizations are set up to deal with natural disasters, responding to new situations
in extremely hostile environments.

Elaboration: A synthetic organization, as described by Mintzberg, is a special case arising in response to

natural disasters. The temporary and unique nature of the situation, combined with extreme hostility in the
environment, necessitates a centralized and responsive structure.

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Q6.33. What impact does a crisis have on the structure of an organization according to Mintzberg?

A. Crisis leads to extensive decentralization of decision-making.

B. (Correct) Crisis often results in centralization, focusing power in the hands of the chief executive for a c
oordinated response.

C. Crisis organizations tend to establish routine structures.

D. Crisis has no impact on the organizational structure.

E. Crisis organizations emphasize a bureaucratic approach.

Answer: B. Crisis often results in centralization, focusing power in the hands of the chief executive for a c
oordinated response.

Elaboration: During a crisis, organizations often centralize decision-making to ensure a swift and coordina
ted response. The concentration of power in the hands of the chief executive is a common characteristic d
uring such periods of extreme hostility.

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Q6.34. Which factor distinguishes Crisis Organizations from other structures according to Mintzberg?

A. Crisis Organizations focus on routine and predictable environments.

B. Crisis Organizations are characterized by extensive decentralization.

C. (Correct) Crisis Organizations distinguish themselves by centralizing decision-making temporarily in re

sponse to extreme hostility.

D. Crisis Organizations rely on permanent centralization even in non-hostile environments.

E. Crisis Organizations emphasize bureaucratic and formal organizational structures.

Answer: C. Crisis Organizations distinguish themselves by centralizing decision-making temporarily in res

ponse to extreme hostility.

Elaboration: The distinguishing feature of Crisis Organizations is their temporary centralization of decision
-making during periods of extreme hostility. This allows for a focused and rapid response to the crisis at h
and.

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Q6.35. What type of environment is conducive to the establishment of a Crisis Organization according to
Mintzberg?

A. Crisis Organizations thrive in routine and simple environments.

B. Crisis Organizations are common in highly bureaucratic settings.

C. Crisis Organizations are preferable in dynamic and complex environments.

D. (Correct) Crisis Organizations are established in environments that are both extremely hostile and unpr
edictable.

E. Crisis Organizations emerge in organizations with extensive decentralization of power.

Answer: D. Crisis Organizations are established in environments that are both extremely hostile and unpr
edictable.

Elaboration: A Crisis Organization is more likely to be established in environments that are not only extre
mely hostile but also unpredictable. The need for a quick and centralized response is crucial in such unce
rtain situations.

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Q6.36. What characterizes a Charismatic Organization in Mintzberg’s organizational design?

A. Charismatic Organizations primarily rely on extensive bureaucracy for decision-making.

B. Charismatic Organizations emphasize decentralization across all organizational levels.

C. Charismatic Organizations are marked by a lack of leadership influence.

D. (Correct) Charismatic Organizations are led by a charismatic leader who gains power because follower
s lavish it upon them.

E. Charismatic Organizations have a highly formalized structure.

Answer: D. Charismatic Organizations are led by a charismatic leader who gains power because follower
s lavish it upon them.

Elaboration: In a Charismatic Organization, the key characteristic is the dominant influence of a charismat
ic leader. This leader gains power not by hoarding it but by virtue of the followers’ admiration and trust, cr
eating an organization centered around their personality.

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Q6.37. When does a Charismatic Organization tend to emerge according to Mintzberg?

A. Charismatic Organizations are prevalent in routine and stable environments.

B. Charismatic Organizations emerge in highly bureaucratic settings.

C. (Correct) Charismatic Organizations tend to emerge when a leader’s charisma is a significant factor, re
gardless of the environment.

D. Charismatic Organizations are common in organizations with decentralized decision-making.

E. Charismatic Organizations are exclusively found in large organizations.

Answer: C. Charismatic Organizations tend to emerge when a leader’s charisma is a significant factor, re
gardless of the environment.

Elaboration: The emergence of a Charismatic Organization is not necessarily tied to a specific environme
nt. Instead, it is associated with the presence of a leader whose charisma plays a crucial role, regardless
of the organizational context.

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Q6.38. What distinguishes a Charismatic Organization’s power structure from other organizational structu
res according to Mintzberg?

A. Charismatic Organizations emphasize permanent centralization of power.

B. (Correct) Charismatic Organizations have a power structure where the leader gains authority because
of followers’ admiration, rather than hoarding it or relying on bureaucratic processes.

C. Charismatic Organizations exclusively rely on decentralized decision-making.

D. Charismatic Organizations have a highly bureaucratic power structure.

E. Charismatic Organizations emphasize delegation of power to lower organizational levels.

Answer: B. Charismatic Organizations have a power structure where the leader gains authority because o
f followers’ admiration, rather than hoarding it or relying on bureaucratic processes.

Elaboration: The key distinction in a Charismatic Organization is the source of power, which is derived fro
m the leader’s charisma and the admiration of followers. Unlike hoarding power or relying on bureaucratic
structures, authority is gained through personal influence.

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Q6.39. How does Mintzberg describe the leadership style within a Charismatic Organization?

A. Charismatic Organizations are characterized by a highly bureaucratic leadership style.

B. (Correct) Charismatic Organizations have leaders with a charismatic style, attracting followers through
personal qualities rather than formal structures.

C. Charismatic Organizations have leaders who emphasize decentralization at all costs.

D. Charismatic Organizations employ leaders who hoard power and avoid personal connections.

E. Charismatic Organizations have leaders who rely on routine and stable leadership approaches.

Answer: B. Charismatic Organizations have leaders with a charismatic style, attracting followers through p
ersonal qualities rather than formal structures.

Elaboration: The leadership style within a Charismatic Organization is charismatic, where leaders attract f
ollowers through personal qualities, vision, and charisma rather than formalized structures.

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Q6.40. What role does culture play in Charismatic Organizations according to Mintzberg?

A. Charismatic Organizations are characterized by a culture that emphasizes bureaucracy and formalizati
on.

B. Charismatic Organizations have a culture that encourages decentralization.

C. (Correct) Charismatic Organizations often have a culture that plays a prominent role, particularly in les
s industrialized societies where strong leaders coordinate through direct supervision.

D. Charismatic Organizations have a culture that avoids any form of power concentration.

E. Charismatic Organizations emphasize a culture of routine and predictability.

Answer: C. Charismatic Organizations often have a culture that plays a prominent role, particularly in less
industrialized societies where strong leaders coordinate through direct supervision.

Elaboration: Culture in Charismatic Organizations is often significant, especially in less industrialized soci
eties. Strong leaders coordinate through direct supervision and personal influence, contributing to a cultur
e where charisma plays a prominent role in organizational dynamics.