2006

Review of chapters 8, 9 and 11. See your notes for chapter 10.
Chapter 8: Organizing- To create structures
1.

An organization chart is the system of tasks, workflows, reporting relationships, and

communications channels that link together the work of diverse parts of an organization.
F
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2.

A product structure groups together jobs and activities that serve the same customers or clients.
F
120

3.

A process structure groups together jobs and activities that are part of the same processes.
T
120

4.

Network structures use communications and information technology to support a shifting variety of
strategic alliances and business contracts that sustain operations.
T
123

5.

Due to the elimination of internal and external boundaries, knowledge is an essential component of
the boundaryless organization.
T
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6.

A current organizing trend within organizations is to flatten the structures by reducing the levels of
management.
T
126

7.

Span of control refers to the number of subordinates reporting directly to a manager.

T
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8.

Decentralization is the dispersion of authority to make decisions throughout the organization.

T
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9.

Which management function clarifies who is responsible for what, identifies the person in charge,
and determines how different people relate to one another?
A. Planning.
B. Coordinating.
C. Controlling.
D. Organizing.
E. Leading.
D
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10.

Organization structure refers to the system of __________ that link together the work of diverse
individuals and groups.
A. Tasks and workflows.
B. Reporting relationships.
C. Communication channels.
D. All of the above.
E. None of the above.
D
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11.

Changing an organizations structure in the attempt to improve performance is called __________.

A. Restructuring.
B. Upsizing.
C. Organizing.
D. Strategic planning.
E. Tactical planning.
A
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12.

Which of these statements about an organization chart is FALSE?

A. The organization chart shows management layers.
B. The organization chart shows formal communications channels.
C. The organization chart shows informal lines of communication.
D. The organization chart shows superior-subordinate relationships.
E. The organization chart shows position titles.
C
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13.

Three common types of traditional organizational structures are __________.

A. Centralized, decentralized, and integrated.
B. Functional, horizontal, and vertical.
C. Divisional, centralized, and line.
D. Functional, divisional, and matrix.
E. Matrix, staff, and functional.
D
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14.

A matrix structure basically combines elements of __________and __________ structures.

A. Horizontal vertical.
B. Horizontal divisional.
C. Functional vertical.
D. Functional divisional.
E. Vertical divisional.
D
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15.

A __________ uses permanent and temporary cross-functional teams to create more effective
lateral relations as well as to improve problem solving and work performance.
A. Geographical structure.
B. Cross-functional structure.
C. Team structure.
D. Divisional structure.
E. Matrix structure.
C
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16.

Network organizations own only the __________ and outsource __________.

A. Information technology actual production work.
B. Support functions core functions.
C. Essential core functions the support functions.
D. Intellectual property the manufacturing of products.
E. Essential core functions all customer contacts.
C
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__________ organizations are those in which teamwork and intense communication take the place
of formal lines of authority.
A. Divisional.

17.

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B.
C.
D.
E.

Functional.
Geographical.
Matrix.
Boundaryless.
E
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18.

The __________ is the concept of putting customers on the top, served by workers in the middle,
who in turn are supported by managers at the bottom.
A. Employee empowerment structural adaptation.
B. The customer-focused stacked organization.
C. Upside-down pyramid.
D. Customer-driven organization chart.
E. Functionally stacked structure.
C
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19.

The line of authority that vertically links all positions with successively higher levels of
management is the __________.
A. Unity-of-command principle.
B. Span-of-control principle.
C. Channel-of-communication principle.
D. Chain of command.
E. Line of authority.
D
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20.

When decision-making authority is concentrated at the top level of an organization, the

organization is said to be __________.
A. Vertically coordinated.
B. Decentralized.
C. Centralized.
D. Horizontally coordinated.
E. Control oriented.
C
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Chapter 9: Organizational Culture and Design

1.

The observable culture of an organization includes what one sees and hears when walking around
the organization as a visitor, a customer, or an employee.
T
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2.

Elements of the core culture include stories, heroes, rites and rituals, and symbols.
F
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3.

The best organizational cultures promote progressive leadership and worker empowerment but do
not embrace diversity or ethics.
F
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4.

An organizations ethical climate reflects a shared sets of understandings about what is considered
ethically correct behavior in the organization.
T
135

5.

In a mechanistic organization design, an employee works in an orderly and disciplined environment,

adheres to many rules and procedures, and is closely supervised.
T
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6.

Once a good fit between an organizations strategy and structure is achieved, the structure will
continue to work well no matter what changes occur in the organizations strategy.
F
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7.

Larger organizations tend to have more organic structures than smaller organizations, which makes
it difficult for them to adapt to changing environments.
F
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8.

Differentiation represents the level of coordination achieved among subsystems in an organization.

F
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9.

Differences in time orientation, objectives, interpersonal orientation, and formal structure are
sources of differentiation among subsystems.
T
139

10.

Successful organizations operate with both differentiated structures and appropriate integrating
mechanisms.
T
140

11.

Process reengineering tries to redesign processes to eliminate systems bottlenecks and duplications
of work, reduce costs, and streamline operations.
T
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12.

Jimmy is new to the ZYX Organization. He asks his supervisor why production standards are not
modified to reflect market competition. His supervisor says, That is the way we do things around
here. The supervisors comment is an example of __________.
A. The supervisors motto.
B. The corporate mission.
C. A supervisors principle.
D. The organizational culture.
E. An outdated production manual.
D
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13.

While walking through the offices during an interview with the marketing director, John notices the
way people dress, the arrangement of their offices, and how the employees treat each other when
passing in the hallways. This information about the company reflects its __________.
A. Symbols.
B. Core culture.
C. Observable culture.
D. Environmental culture.
E. Displayed culture.
C
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14.

The special use of language and other nonverbal expressions to communicate important aspects of
corporate life are the __________ of organizational culture.
A. Norms.
B. Stories.
C. Heroes.
D. Rites and rituals.
E. Symbols.
E
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15.

Successful companies typically focus on which of the following core values?

A. Strategy, performance, structure, and worker involvement.
B. Stories, symbols, heroes, and rites and rituals.
C. Symbols, stories, and strategies.
D. Performance excellence, innovation, social responsibility, integrity, worker involvement,
customer service, and teamwork.
E. Observable behavior, management strategy, mission statement, and strategic objectives.
D
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16.

Which of the following statements accurately describe the direction(s) in which organizational
culture is developing?
A. Developing a culture to enable an organization to gain a competitive advantage.
B. Developing a culture that values diversity in the workplace.
C. Developing a culture that ensures high ethical standards.
D. B and C.
E. A, B, and C.
E
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17.

Newly hired workers at Disney World are counseled to always think of themselves as more than
employees; they are key members of the cast. They are told that Disney is not just any business,
that it is an entertainment business. This is an example of Disney Worlds use of __________.
A. Language barriers.
B. Disciplinary procedures.
C. Language metaphors.
D. Company goals.
E. Hiring policy.
C
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18.

As an ideal organizational form, bureaucracy is characterized by all of the following EXCEPT:

A. A clear-cut division of labor.
B. Positions arranged in a hierarchy of authority.

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C. Rationality, fairness, and efficiency.

D. A system of formal rules and standards.
E. Promotions based on seniority.
E
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19.

In a classic study conducted in the 1960s, Burns and Stalker __________.

A. Identified three basic organizational forms: horizontal, mechanistic, and organic.
B. Developed conclusions that have been substantially refuted by later research.
C. Revealed that bureaucratic structures thrived when the environment was uncertain and
changing.
D. Favored organic over mechanistic forms.
E. Concluded that different organizational structures could be successful, depending on the nature
of the firms external environment.
E
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20.

The organizational design that is highly bureaucratic in nature is called the __________ design.
A. Machine.
B. Mechanistic.
C. Organic.
D. Professional.
E. Divisional.
B
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21.

Centralization, many rules and procedures, a precise division of labor, narrow spans of control,
and formal means of coordination characterizes the __________ organizational design.
A. Traditional.
B. Organic.
C. Adaptive.
D. Transformational.
E. Mechanistic.
E
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22.

__________ have features of __________, including more decentralized authority, fewer rules and
procedures, less precise division of labor, wider spans of control, and more personal means of
coordination.
A. Adpative organizations organic designs.
B. Bureaucratic organizations organic designs.
C. Bureaucratic organizations mechanistic designs.
D. Adpative organizations mechanistic designs.
E. Adpative organizations functional designs.
A
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23.

The __________ design is characterized by decentralization, wider spans of control, and few rules
and procedures.
A. Mechanistic.
B. Traditional.
C. Organic.
D. Bureaucratic.

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E. Transformational.
C
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24.

__________ will be more successful when supported by bureaucratic organizations using

mechanistic designs.
A. Organization-wide strategies.
B. Stability strategies.
C. Growth strategies.
D. Business strategies.
E. Long-term strategies.
B
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25.

As organizations grow in size, they tend to become __________ and subsequently tend to have
__________ in adapting to a changing environment.
A. More bureaucratic less difficulty
B. More bureaucratic more difficulty.
C. Less bureaucratic more difficulty.
D. More organic less difficulty
E. More organic more difficulty.
B
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26.

In their study of systems and subsystems design, Paul Lawrence and Jay Lorsch found that
__________.
A. Successful firms had total system designs that matched their respective environments.
B. Subsystems in the successful firms worked well together, even though some had very different
structures.
C. Subsystems in successful firms matched challenges of their respective subenvironments.
D. All of the above.
E. None of the above.
D
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27.

The goal of process reengineering is to focus attention on all of the following EXCEPT:
A. Improving customer satisfaction.
B. Improving work performance.
C. Breaking people and mindsets away from habits.
D. Eliminating preoccupation with past accomplishments.
E. Continuing the existing ways of doing things.
E
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Chapter 11: To Inspire Effort

1.

According to Max DePree, the former chairperson of Herman Miller, Inc., leaders are less inclined
to believe that they alone know what is best when they recognize the unique gifts, talents, and skills
of others.
T
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2.

An effective visionary leader should challenge the process, be enthusiastic, help others to act, be a
role model, and celebrate the achievements of others.
T
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3.

Reward power is the ability to influence someone by providing something of value.

T
164

4.

Referent power refers to the capacity to influence the behavior of other people because of ones
knowledge and understanding.
F
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5.

A leader who is high in concern for task will act warm and supportive toward followers, maintain
good social relations with them, respect their feelings, be sensitive to their needs, and show trust in
them.
F
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6.

The situational characteristics in Fiedlers contingency theory include leader-member relations,

position power, and task structure.
T
168

7.

According to Fiedler, task-oriented leadership is most effective under conditions of moderate

situational control.
F
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8.

According to path-goal leadership theory, the leader should use the leadership style that adds value
to the situation.
T
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9.

The Vroom-Jago leader-participation model specifies three decision models authority decision,
consultative decision, and group decision that can be used by leaders, depending on the nature
of the problem to be solved.
T
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10.

Transformational leaders focus on the role of the leader in adjusting tasks, rewards, and structures
to help followers meet their needs while working to accomplish organizational objectives.
F
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11.

Transformational leaders are characterized by the qualities of vision, charisma, symbolism, and
empowerment, but not intellectual stimulation or integrity.
F
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12.

Moral leaders should be ethical examples for others to follow, but they do not have an obligation to
supply the necessary spark to awaken the potential of each individual.
F
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13.

__________ is the process of inspiring others to work hard to accomplish important tasks.
A. Management.
B. Motivating.
C. Culture building.
D. Leadership.
E. Teamwork.
D
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14.

Leading is related to the other management functions. Specifically, __________ sets the direction
and objectives; __________ brings the resources together to turn plans into action; __________
builds the commitments and enthusiasm needed for people to apply their talents fully to help
accomplish plans; and __________ makes sure things turn out right.
A. Planning leading organizing controlling.
B. Leading planning organizing controlling.
C. Planning organizing leading controlling.
D. Organizing planning leading controlling.
E. Leading organizing planning controlling.
C
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15.

The principles for meeting the challenges of visionary leadership include all of the following
EXCEPT:
A. Be a pioneer, encouraging innovation and supporting people who have ideas.
B. Inspire others through personal example to share in a common vision.
C. Be a team player and support the efforts and talents of others.
D. Keep emotion out of the workplace.
E. Provide a consistent model of how others can and should act.
D
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16.

The three types of position power are __________, __________, and __________.
A. Legitimate expert coercive
B. Coercive expert reward.
C. Reward legitimate coercive.
D. Referent reward legitimate.
E. Expert referent legitimate.
C
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17.

When a managers charisma or interpersonal attractiveness is used to influence the behavior of

subordinates, the manager is using __________.
A. Referent power.
B. Human relations leadership.
C. Expert power.
D. Position power.
E. Participative leadership.
A
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18.

The process that managers use to allow others to gain power and achieve influence within the
organization is known as __________.
A. Planning.
B. Organizing.
C. Empowerment.
D. Authority.
E. Motivating.
C
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19.

Which of the following is NOT a tip of how to empower others?

A. Get others involved in selecting their work assignments.
B. Encourage others to take initiative and make decisions.
C. Create an environment of cooperation, information sharing, and shared ownership of goals.
D. Provide close supervision and tight control.
E. Let others put their ideas and solutions into practice.
D
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20.

A manager who has high concern for people uses a leadership style that emphasizes all of the
following EXCEPT:
A. Developing rapport with followers and respecting their feelings.
B. Acting warm and supportive toward followers.
C. Being sensitive to followers needs.
D. Showing trust in followers.
E. Planning and assigning followers work and setting clear work standards.
E
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21.

According to Fiedlers contingency model, leadership style is __________.

A. A part of ones personality.
B. Relatively enduring.
C. Easy to change.
D. A and B.
E. A, B, and C.
D
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22.

Fred Fiedler, the developer of the contingency theory of leadership, asserts that four of the five
following statements are true. Which statement is NOT true from Fiedlers perspective?
A. Leadership style is part of ones personality.
B. Competent leaders can adapt their behavioral styles to fit the demands of differing situations
they encounter.
C. Leadership style must be fit to the situation.
D. Leadership style is relatively enduring and difficult to change.
E. The amount of situational control is crucial in determining the correct style-situation fit.
B
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23.

One guiding proposition of Fiedlers contingency theory of leadership is that a _________ style
works best in low-control situations and a __________ style works best in high-control situations.
A. Task-oriented relationship-oriented.
B. Relationship-oriented task-oriented.
C. Task-oriented task-oriented.
D. Relationship-oriented relationship-oriented.
E. Achievement-oriented supportive.
C
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24.

In Hersey and Blanchards situational leadership model, a manager who allows the group to make
task decisions and take responsibility for them uses which leadership style?
A. Telling.
B. Participating.
C. Delegating.
D. Asking.
E. Selling.
C
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25.

In Hersey and Blanchards situational leadership model, a manager who emphasizes the sharing of
ideas and involvement in decision making uses which leadership style?
A. Congenial.
B. Delegating.
C. Participating.
D. Asking.
E. Selling.
C
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26.

The basic premise of Houses path-goal leadership theory is that __________.

A. Effective leaders should adapt their style to suit the employee.
B. Since leadership style is part of the individuals basic character, an effective leader will find a
situation most suitable to his/her style.
C. Managers can be taught the one best leadership style.

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D. Effective leaders clarify the path through which followers can achieve both task-related and
personal goals.
E. Effective leaders provide the motivation for their followers to achieve organizational objectives.
D
170
27.

A(n) ____________ leader develops special leader-follower relationships and inspires followers in
extraordinary ways.
A. Participative.
B. Charismatic.
C. Transformational.
D. Transactional.
E. Old-fashioned.
B
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28.

____________ leadership refers to someone who uses charisma and related qualities to raise
aspirations and shift people and organizational systems into new high-performance patterns.
A. Participative.
B. Charismatic.
C. Transformational.
D. Transactional.
E. Old-fashioned.
C
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____________ leadership focuses on the leader adjusting tasks, rewards, and structures to help
followers meet their needs while working to accomplish organizational objectives.
A. Participative.
B. Charismatic
C. Transformational.
D. Transactional.
E. Old-fashioned.
D
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29.

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