Organization Theory And Design 3rd Edition by Ann Armstrong – Test Bank

$25.00

Category:

Description

INSTANT DOWNLOAD WITH ANSWERS

Organization Theory And Design 3rd Edition by Ann Armstrong – Test Bank

Chapter 6

Indicate whether the statement is true or false.

 

1. The global product structure works best when pressure for decision-making balances the interests of both product standardization and geographical localization, and when coordination to share resources is important.

a. True
b. False

 

2. The “not invented here” syndrome makes some managers reluctant to tap into the know-how and expertise of other units.

a. True
b. False

 

3. In many instances, companies will need to respond to both global and local opportunities simultaneously, in which case the global matrix structure can be used.

a. True
b. False

 

4. Deal-focused individuals believe in building close personal relationships as the appropriate way to conduct business.

a. True
b. False

 

5. As companies begin to explore international opportunities, they typically start with an international division that grows into an export department.

a. True
b. False

 

6. With a global geographical structure, each division’s manager is responsible for planning, organizing, and controlling all functions for the production and distribution of its products for any market around the world.

a. True
b. False

 

7. The transnational model reflects the ultimate in both organizational complexity, with many diverse units, and organizational coordination, with mechanisms for integrating the varied parts.

a. True
b. False

 

8. Network coordinators would enable a manufacturing organization to provide knowledge and integrated solutions across multiple businesses, divisions, and countries for a large customer.

a. True
b. False

 

9. The GLOBE findings are notably different from Hofstede’s.

a. True
b. False

 

10. High uncertainty avoidance means that people accept inequality in power among institutions, organizations, and people.

a. True
b. False

 

11. An organization in the second stage of international evolution (international stage) will usually have a domestic structure with an export department.

a. True
b. False

 

12. In the third stage (multinational stage) of international development, a company typically shifts its interest from domestic activity to exporting.

a. True
b. False

 

13. To meet new competitive threats, many manufacturing firms are emphasizing their ability to customize their products to meet specific needs, which requires a greater emphasis on global responsiveness.

a. True
b. False

 

14. A joint venture is a separate entity created with two or more active firms as sponsors.

a. True
b. False

 

15. The management philosophy of a transnational model is based on interdependence rather than either full divisional independence or total divisional dependence on headquarters for decision making and control.

a. True
b. False

 

16. A growing number of global consumers are rejecting the notion of homogenized products and services, and calling for greater response to local preferences.

a. True
b. False

 

17. Low uncertainty avoidance means that people have a high tolerance for the unstructured, the unclear, and the unpredictable.

a. True
b. False

 

18. The globalization strategy means that product design, manufacturing, and marketing strategy are standardized throughout the world, whereas a multidomestic strategy means that competition in each country is handled independently of competition in other countries.

a. True
b. False

 

19. The international stage of international development means that exporting is taken seriously and that the company deals with the competitive issues of each country separately.

a. True
b. False

 

20. A transnational team is a work group comprising multinational members whose activities span multiple countries.

a. True
b. False

 

21. The product-based structure works best when a division handles products that are technologically similar and can be standardized for marketing around the world.

a. True
b. False

 

22. Functional structures are found more frequently in a worldwide business than in a domestic business.

a. True
b. False

 

23. The global geographical structure divides the world into geographical regions, with each geographical division reporting to the CEO.

a. True
b. False

 

24. In parts of Mexico, laundry detergent is used to wash dishes, not clothes, which is an example of the need for a multidomestic strategy.

a. True
b. False

 

25. Building a global presence expands an organization’s scale of operations, enabling it to realize economies of scale.

a. True
b. False

 

26. Functional managers coordinate across functions, whereas country managers coordinate among countries.

a. True
b. False

 

27. Managers and organizations all over the world are very reluctant to cooperate to achieve competitive advantage on a global scale.

a. True
b. False

 

28. European companies tend to have international units that have a high level of independence.

a. True
b. False

 

29. Hybrid structures are typical in highly volatile environments.

a. True
b. False

 

30. Informal cultures place a low value on status and power differences.

a. True
b. False

 

31. Having a presence in multiple countries provides firms with more marketing power and synergy compared to the same-size firm that has a presence in fewer countries.

a. True
b. False

 

Indicate the answer choice that best completes the statement or answers the question.

 

32. What type of organization operates with the entire world as their marketplace?

a. multidomestic firms
b. international organizations
c. governmental agencies
d. global companies

 

33. Which of the following is a characteristic of the global matrix organizational structure?

a. It increases horizontal coordination, but decreases vertical coordination.
b. It balances the interests of both product standardization and regional customization
c. It commonly utilizes matrix bosses as functional and product heads.
d. It divides the world into regions with each division reporting to the CEO.

 

34. Which of the following is a characteristic of the global geographical organizational structure?

a. It is most useful for new product lines.
b. It works well for products with rapidly changing technologies.
c. It works best if there are similar needs for the product across countries.
d. It may make product planning on a global scale challenging.

 

35. Which of the following characteristics distinguishes the transnational organization from other forms of global organizations?

a. Assets and resources are dispersed worldwide into highly specialized operations that are linked through interdependent relationships.
b. Structures are stable.
c. Subsidiary managers initiate strategy and innovations that become strategy for the corporation as a whole.
d. Unification and coordination are achieved primarily through corporate culture, shared vision and values, and management style rather than through formal structures and systems.

 

36. In what stage of the international evolution of a company are the worldwide geographic or product structures most likely to appear?

a. domestic
b. international
c. multinational
d. global

 

37. Which statement best describes Mandel-Campbell’s description of Canada’s approach to competing globally?

a. Canada has competed effectively internationally.
b. Canada needs policies to encourage entrepreneurial action.
c. Canada needs to do more research to understand and address globalization.
d. Canadian companies have not had the gumption necessary for international success.

 

38. What kind of major challenge do managers face as organizations become more differentiated, with multiple products, divisions, departments, and positions scattered across numerous countries?

a. knowledge transfer
b. differentiation
c. integration
d. development

 

39. What type of strategy is being followed when a company such as Coca-Cola decides to use the same product design and advertising strategy throughout the world?

a. multidomestic
b. consortia
c. focused
d. globalization

 

40. In what stage does a specific division replace the export department, requiring the need to hire specialists to handle sales, service, and warehousing abroad?

a. domestic
b. international
c. global
d. multinational

 

41. Which term refers to groups of independent companies that come together to share skills, resources, costs, and access to one another’s markets?

a. joint ventures
b. cartels
c. alliances
d. consortia

 

42. Which term refers to the number and variety of products and services a company offers, as well as the number and variety of regions, countries, and markets it serves?

a. economies of scale
b. market potential
c. scope
d. development stage

 

43. Which component of the global organizational challenge is being faced by an organization that has to create a structure to operate in numerous countries that differ in economic development, language, political systems and government regulations, cultural norms and values, and infrastructure?

a. the problem of transferring knowledge across a global firm
b. dealing with greater complexity and differentiation
c. the need for integration
d. the need for KSAs

 

44. Which of the following characterizes the transnational model?

a. using shared vision and values to achieve coordination in this horizontal structure
b. being one step short of the matrix in exploiting both global and local advantages for the corporation as well as multiple interrelated competitive issues
c. having a single headquarter and a single centre of control for each country and for each product line
d. not having a single corporate headquarter, but a clear hierarchical responsibility

 

45. What does building a global presence enable an organization’s operations to achieve?

a. economies of scale
b. economies of scope
c. factors of production
d. its international development stage

 

46. Which of the following, if present to a high degree, means that people accept inequality among institutions, organizations, and people?

a. uncertainty avoidance
b. power distance
c. employee empowerment
d. integration

 

47. Which factor motivates companies to expand internationally and is related to labour and raw materials?

a. cheaper production
b. smaller number of distribution channels
c. economies of scale
d. economies of scope

 

48. What is a popular approach to sharing development and production costs and penetrating new markets?

a. consortia
b. licensing
c. joint ventures
d. franchising

 

49. Which type of strategy would encourage production design, assembly, and marketing tailored to the needs of each country?

a. focused
b. multidomestic
c. globalization
d. joint venture

 

50. Which term refers to a new entity that is created when two or more separate firms come together to share development and/or production costs?

a. wholly owned subsidiaries
b. joint ventures
c. consortia
d. licensing agreements

 

51. Lawrence Incorporated used global teams as part of its internationalization, enabling them to be more locally responsive to different regional markets, consumer preferences, and political and legal systems. Which issue did this structure address?

a. the differentiation challenge
b. units gaining influence within the global firm
c. codification of organizational knowledge throughout the global firm
d. lack of ability to gain economies of scope

 

52. Which of the following is a characteristic of the global product organizational structure?

a. It uses country managers who are accountable for profit and loss of every product.
b. It fits well with customization of production or marketing.
c. It may result in competition among product divisions.
d. It will ensure that all countries are covered well.

 

Chart 6.2

 

 

53. Refer to Chart 6.2. What structure is shown?

a. global functional
b. domestic hybrid
c. global matrix
d. global product

 

54. Refer to Chart 6.2. How would you relate the structure diagrammed in Chart 6.2 to a global geographic structure?

a. The firm shown above is not as far along in developing opportunities for multidomestic strategy as the global geographic structure would be.
b. Product managers differ in that, in the chart above, the product heads are line managers primarily accountable for their product domestically, whereas, in the global geographic structure, product heads are staff advisers.
c. The structure shown is better than the global geographic structure.
d. The global geographic structure is more domestically oriented than the one above.

 

Chart 6.1

 

 

55. Refer to Chart 6.1. Which statement best describes the organization depicted in Chart 6.1?

a. Law, engineering, and finance are considered to be product groups.
b. The regional directors are also responsible for product groups.
c. Global product heads fulfill the function of full-time staff integrators.
d. Global product heads are usually accountable for profit and loss of their product in worldwide sales.

 

56. With what kind of products does the global product structure work best?

a. products that are technologically dissimilar
b. products that can be standardized for marketing worldwide
c. products that are obsolete in one country, but not in another
d. products that are cheap and easy to produce

 

57. What kind of formal positions do organizations create to coordinate information and activities related to key customer accounts?

a. functional manager
b. transnational team
c. network coordinator
d. division network

 

Chart 6.1

 

 

58. Refer to Chart 6.1. What structure is shown?

a. global geographic
b. global matrix
c. global product
d. global functional

 

59. Which model reflects the ultimate in both organizational complexity, with many diverse units, and organizational coordination, with mechanisms for integrating the varied parts?

a. transformative
b. transnational
c. global
d. multidomestic

 

 

Case 6.0
It was reported in the Wall Street Journal that Ford Motor Co. was reorganizing to place its functions such as product development, sales, and engine/transmissions under their own executives with global authority. Alexander Trotman, chairman and CEO, wanted to create a structure that would avoid costly duplication in different parts of the world and that would foster Ford’s development of models such as its Mondeo (Europe) and Contour (U.S.), which could sell worldwide with few modifications. Trotman wanted a company that was strong internationally in product development, manufacturing, and purchasing and that could take advantage of Ford’s geographical strengths throughout the world.The company had been organized geographically into three relatively independent divisions—Ford North America, Ford of Europe, and Ford Asia/Pacific. The new products cited above, Mondeo and Contour, sapped $6 billion in development costs because of expensive coordination time between the sometimes-conflicting European and North American divisions. Elimination of duplication was a goal of the new structure.

Simultaneously a new “program team facility” was being constructed so that all of Ford’s new product development would be by teams. The new coupe Mustang was born from an experimental cross-functional team that designed the product in less than three years compared to Ford’s normal four-to-five-year development cycle. Trotman emphasized that he wanted to change the process, not just the structure, by which new products were developed. Ford apparently found the team process convincing because the Mustang was developed on a budget about 30% lower than budgets for comparable projects.

SOURCE: Summarized from “Ford to Realign with a System of Global Chiefs,” The Wall Street Journal, March 31, 1994, pp. A3–A4.

 

60. Refer to Case 6.0. Comment on any difficulties Ford might encounter in adopting the philosophy and behaviour of a horizontal corporation as the company made the structural change CEO Trotman outlined.

 

61. Discuss the global matrix structure. Give an example.

 

62. List the reasons most organizations tap only a fraction of the potential available from the cross-border transfer of knowledge.

 

63. Discuss the three primary approaches to coordination and control as represented by Japanese, North American, and European companies.

 

Case 6.0
It was reported in the Wall Street Journal that Ford Motor Co. was reorganizing to place its functions such as product development, sales, and engine/transmissions under their own executives with global authority. Alexander Trotman, chairman and CEO, wanted to create a structure that would avoid costly duplication in different parts of the world and that would foster Ford’s development of models such as its Mondeo (Europe) and Contour (U.S.), which could sell worldwide with few modifications. Trotman wanted a company that was strong internationally in product development, manufacturing, and purchasing and that could take advantage of Ford’s geographical strengths throughout the world.The company had been organized geographically into three relatively independent divisions—Ford North America, Ford of Europe, and Ford Asia/Pacific. The new products cited above, Mondeo and Contour, sapped $6 billion in development costs because of expensive coordination time between the sometimes-conflicting European and North American divisions. Elimination of duplication was a goal of the new structure.

Simultaneously a new “program team facility” was being constructed so that all of Ford’s new product development would be by teams. The new coupe Mustang was born from an experimental cross-functional team that designed the product in less than three years compared to Ford’s normal four-to-five-year development cycle. Trotman emphasized that he wanted to change the process, not just the structure, by which new products were developed. Ford apparently found the team process convincing because the Mustang was developed on a budget about 30% lower than budgets for comparable projects.

SOURCE: Summarized from “Ford to Realign with a System of Global Chiefs,” The Wall Street Journal, March 31, 1994, pp. A3–A4.

 

64. Refer to Case 6.0. Identify the strategy in the textbook that Ford appears to be adopting. Describe advantages and disadvantages of that strategy for Ford. Why do you think CEO Trotman moved to that strategy?

 

65. Compare and contrast the global product division structure and global matrix structure.

 

66. Discuss the national value systems.

 

67. Select any organization with which you are familiar—your college or university, the car dealership down the road, an organization where you work, etc. Analyze the global forces that influence the organization you selected. How should the organization respond to those global forces in order to gain international competitive advantage?

 

68. What are the three primary segments of the global organizational challenge? Discuss each.

 

69. What are the international strategic alliances that companies can choose from to expand globally? Discuss and give an example of each.

 

70. Under what conditions should an organization consider a global geographical structure as opposed to a global product structure?

 

Case 6.0
It was reported in the Wall Street Journal that Ford Motor Co. was reorganizing to place its functions such as product development, sales, and engine/transmissions under their own executives with global authority. Alexander Trotman, chairman and CEO, wanted to create a structure that would avoid costly duplication in different parts of the world and that would foster Ford’s development of models such as its Mondeo (Europe) and Contour (U.S.), which could sell worldwide with few modifications. Trotman wanted a company that was strong internationally in product development, manufacturing, and purchasing and that could take advantage of Ford’s geographical strengths throughout the world.The company had been organized geographically into three relatively independent divisions—Ford North America, Ford of Europe, and Ford Asia/Pacific. The new products cited above, Mondeo and Contour, sapped $6 billion in development costs because of expensive coordination time between the sometimes-conflicting European and North American divisions. Elimination of duplication was a goal of the new structure.

Simultaneously a new “program team facility” was being constructed so that all of Ford’s new product development would be by teams. The new coupe Mustang was born from an experimental cross-functional team that designed the product in less than three years compared to Ford’s normal four-to-five-year development cycle. Trotman emphasized that he wanted to change the process, not just the structure, by which new products were developed. Ford apparently found the team process convincing because the Mustang was developed on a budget about 30% lower than budgets for comparable projects.

SOURCE: Summarized from “Ford to Realign with a System of Global Chiefs,” The Wall Street Journal, March 31, 1994, pp. A3–A4.

 

71. Refer to Case 6.0. What sort of structure was Ford using before the proposed change?

 

72. Discuss each of the motivations for global expansion.

 

73. The most advanced and competitive use of global teams involves simultaneous contributions in three strategic areas. List these three areas.

 

74. Describe the stages of international evolution in terms of their strategic orientation.

 

75. When should a company begin using an international division? What problems are likely to be solved by adopting this structure? As the company progresses in its international development, what problems will likely not be solved by this structure?

 

Case 6.0
It was reported in the Wall Street Journal that Ford Motor Co. was reorganizing to place its functions such as product development, sales, and engine/transmissions under their own executives with global authority. Alexander Trotman, chairman and CEO, wanted to create a structure that would avoid costly duplication in different parts of the world and that would foster Ford’s development of models such as its Mondeo (Europe) and Contour (U.S.), which could sell worldwide with few modifications. Trotman wanted a company that was strong internationally in product development, manufacturing, and purchasing and that could take advantage of Ford’s geographical strengths throughout the world.The company had been organized geographically into three relatively independent divisions—Ford North America, Ford of Europe, and Ford Asia/Pacific. The new products cited above, Mondeo and Contour, sapped $6 billion in development costs because of expensive coordination time between the sometimes-conflicting European and North American divisions. Elimination of duplication was a goal of the new structure.

Simultaneously a new “program team facility” was being constructed so that all of Ford’s new product development would be by teams. The new coupe Mustang was born from an experimental cross-functional team that designed the product in less than three years compared to Ford’s normal four-to-five-year development cycle. Trotman emphasized that he wanted to change the process, not just the structure, by which new products were developed. Ford apparently found the team process convincing because the Mustang was developed on a budget about 30% lower than budgets for comparable projects.

SOURCE: Summarized from “Ford to Realign with a System of Global Chiefs,” The Wall Street Journal, March 31, 1994, pp. A3–A4.

 

76. Refer to Case 6.0. Describe how Ford’s proposed structural changes are different from the usual progression through the stages resulting from international development. Describe how Ford’s proposed structural changes parallel the new designs for domestic and global advantage.

 

77. Why are global companies sometimes described as stateless corporations?

 

78. List and discuss the characteristics that distinguish the transnational organization from other global organization forms.

 

79. Compare and contrast the globalization strategy and the multidomestic strategy. Give an example of effective use of each strategy.

 

80. Discuss the global geographical structure.

 

81. Which type of international strategic alliance, if any, would you recommend for a business that wanted to gain entry into China? Explain the reasons behind your choice.

 

Answer Key

1. False

 

2. True

 

3. True

 

4. False

 

5. False

 

6. False

 

7. True

 

8. True

 

9. False

 

10. False

 

11. False

 

12. False

 

13. False

 

14. True

 

15. True

 

16. True

 

17. True

 

18. True

 

19. True

 

20. True

 

21. True

 

22. False

 

23. True

 

24. True

 

25. True

 

26. False

 

27. False

 

28. True

 

29. True

 

30. True

 

31. True

 

32. d

 

33. b

 

34. d

 

35. b

 

36. c

 

37. d

 

38. c

 

39. d

 

40. b

 

41. d

 

42. c

 

43. b

 

44. a

 

45. a

 

46. b

 

47. a

 

48. c

 

49. b

 

50. b

 

51. a

 

52. c

 

53. b

 

54. a

 

55. d

 

56. b

 

57. c

 

58. c

 

59. b

 

60. The organizational structure is very complex to manage and the change may have been too abrupt for Ford to implement effectively.

 

61. The global matrix is like a domestic matrix but the degree of coordination and communication are greater and more complex. It works best when the pressure for decision making balances the interests of both product standardization and geographical localization. ABB, described on page 228 of the textbook, is an excellent example.

 

62. There are four main reasons organizations tap only a fraction of the potential. They are (1) knowledge often remains hidden because of language and other differences, (2) some divisions will want to hold on to their knowledge, as they see knowledge as power, (3) the “not invented here” syndrome, and (4) much of the knowledge is either tacit or in the employees’ minds, and the organization does not have the resources to capture the knowledge.

 

63.

Japan North America European
Coordination and Control Systems Rely on centralization Use formalization Use decentralized approach

 

64. Ford seems to be moving to a globalization strategy. Such a strategy could help Ford get the benefits of economies of scale by standardizing product design and manufacturing, using common suppliers, introducing product globally more quickly, and coordinating prices and manufacturing standards. However, product design, assembly, and marketing would be less tailored to the needs of individual countries.

 

65.

Global Product Global Matrix
Structural Characteristics Product division takes responsibility for global operation in its product area. Like a domestic matrix but the degree of coordination and communication are greater and more complex.
Advantages Fairly straightforward design; managers at headquarters have broad perspective; standardizing production and sales globally Works best when the pressure for decision-making balances the interests of both product standardization and geographical localization

 

66. National value systems are thought to distinguish one country from another. The most popular research on such differences was conducted by Hofstede, who identified five dimensions on which countries differ: power distance, long-term orientation, masculinity, uncertainty avoidance, and individualism.

 

67. Students will have a range of responses, depending on the type of organization they use for the analysis. It is important for the students to be clear about the extent of the possible influence of global forces and then address the suitable structures as presented in Exhibit 6.1 on page 218.

 

68. They are the following: (1) when organizations go international, they encounter greater internal and external complexity, and so they face the challenge of increased complexity and the need for greater differentiation. (2) As a result, they face the challenge of the need for greater integration. (3) They also face the challenge of the transfer of innovation and knowledge, which can be limited by political forces and resource inadequacy in the organization.

 

69. Typical alliances include (a) licensing, (b) joint ventures, and (c) consortia. To illustrate each, (a) pharmaceutical companies will often cross-license their new drugs to encourage innovation in drug development; (b) Nortel Networks had joint ventures with Chinese firms to get access to China’s enormous markets; and (c) Airbus Industries is a consortium of French, German, and British aerospace firms.

 

70. Companies that want to emphasize adaptation to regional or local market needs would do well to adopt a global geographical structure.

 

71. Ford was using a multidomestic strategy by region.

 

72. Organizations are motivated to expand globally for three reasons: (1) to get economies of scale, (2) to achieve economies of scope, and (3) to find low-cost production locations.

 

73. First, global teams help companies address the differentiation challenge. Second, teams provide the necessary integration. Third, they contribute to learning and knowledge transfer and adaptation on a global level.

 

74.

1. Domestic 2. International 3. Multinational 4. Global
Strategic Orientation Domestically- oriented Export-oriented
multidomestic
Multinational Global

 

75. A company should use an international division as its starts to explore international opportunities. The organization will have resources dedicated to its international customers. However, the structure does not permit the company to be particularly close to its customers, so many organizations move on to the global product structure or the global geographical structure.

 

76. It seems that Ford is going from the international stage directly to the global stage without going through the multinational stage. Ford is trying not to be just a collection of different domestic entities but to be truly global with the competitive position in one country affecting the organization as a whole.

 

77. Such companies do not see themselves as belonging to a single home country.

 

78. Transnational organizations are the most advanced type of international organization. They create an integrated network of individual operations that are linked together to achieve the various goals of the organization. They are characterized by (1) assets and resources being dispersed worldwide into highly specialized linked operations; (2) flexible and changing structures; (3) subsidiary managers’ ability to initiate strategy; and (4) coordination being achieved primarily through organizational culture, shared visions and values, and management style.

 

79.

Globalization Strategy Multidomestic Strategy
Product design, manufacturing, and marketing strategies are standardized around the world. Competition in different countries is handled differently.
Example: Coca-Cola Company Example: P&G

 

80. The global geographical structure divides the world into geographical regions, with each geographical region reporting directly to the CEO. Each region has complete control of the functional activities in its region.

 

81. You would recommend joint ventures, because then the non-Chinese company could learn from its Chinese partners about the special characteristics of the market. However, it’s important to note that there may be time-consuming cross-cultural challenges to manage. The goal is to achieve a “global” relationship.

 

 

Chapter 7

Indicate whether the statement is true or false.

Indicate whether the statement is true or false.

 

1. Intensive technologies refers to “the combination in one organization of successive stages of production; each stage of production uses as its inputs the production of the preceding stage and produces inputs for the following stage.”

a. True
b. False

 

2. Products of different sizes, types, and customer requirements freely intermingling on the assembly line is an advantage of lean manufacturing.

a. True
b. False

 

3. Span of control is the number of employees who report to a single manager or supervisor and is normally influenced by departmental technology.

a. True
b. False

 

4. E-commerce entails the customer’s landing on the home page.

a. True
b. False

 

5. Perrow’s study is about organization-level technology, while Woodward’s study is classified as pertaining to department-level technology.

a. True
b. False

 

6. A company can adopt CAD in one department and/or CAM in another, and make improvements in efficiency and quality, but the results of implementing all three improvements are breathtaking.

a. True
b. False

 

7. A baseball team is an example of pooled interdependence.

a. True
b. False

 

8. A mediating technology provides products or services that mediate or link clients from the external environment and, in doing so, allows each department to work independently.

a. True
b. False

 

9. Routine technologies are characterized by little task variety and the use of objective, computational procedures, whereas engineering technologies tend to be complex because there is substantial variety in the tasks performed.

a. True
b. False

 

10. Advanced technology does not always have a positive effect on employees, but research findings in general are encouraging, suggesting that jobs for workers are enriched rather than simplified, engaging their higher mental capacities, offering opportunities for learning and growth, and providing greater job satisfaction.

a. True
b. False

 

11. An integrated information network refers to a computerized system with a common database linking all areas of the organization such as accounting, inventory control, design, marketing, production, etc.

a. True
b. False

 

12. Boundary roles are used extensively in manufacturing firms, but rarely used in service organizations.

a. True
b. False

 

13. “Technology” could be considered to be the tools, techniques, and actions that are used to transform organizational inputs into outputs.

a. True
b. False

 

14. Compared with traditional mass production technologies, FMS has a narrow span of control; few hierarchical levels; adaptive tasks, low specialization, and decentralization; and an overall environment characterized as organic and self-regulative.

a. True
b. False

 

15. Engineering technologies tend to be low in analyzability and high in variety.

a. True
b. False

 

16. The production of tangible outputs from service technology, rather than intangible ones from manufacturing technology, is the most obvious difference between the two technologies.

a. True
b. False

 

17. Sociotechnical systems design requires detailed design specifications.

a. True
b. False

 

18. Since decision-making, communication, and coordination problems are greatest for reciprocal interdependence, reciprocal interdependence should receive last priority in organization structure.

a. True
b. False

 

19. Failing to adopt appropriate technologies to support strategy, or adopting a new technology and failing to realign strategy to match it, can lead to poor performance.

a. True
b. False

 

20. Large-batch production is considered to have greater technical complexity than small-batch production on Woodward’s scale.

a. True
b. False

 

21. Job enrichment refers to the expansion of the number of different tasks performed by an employee.

a. True
b. False

 

22. The management systems in both unit production and continuous process are characterized as mechanistic, whereas mass production is seen as organic.

a. True
b. False

 

23. Research suggests that FMS can become a competitive burden, rather than a competitive advantage, unless organizational structures and management processes are redesigned to take advantage of the new technology.

a. True
b. False

 

24. Job simplification means that jobs are made less difficult and with fewer tasks.

a. True
b. False

 

25. Mass customization refers to the separation of one product from the mass production line so that it can be adapted to the needs of a particular market.

a. True
b. False

 

26. Service technologies are considered to be labour- and knowledge-intensive, while manufacturing technologies tend to be capital-asset-intensive.

a. True
b. False

 

27. More advanced technology tends to cause job enrichment.

a. True
b. False

 

28. With services technologies, the organization should generally be centralized.

a. True
b. False

 

29. Sequential interdependence exists when the output of operation A is the input of operation B, and the output of operation B is the input back again to operation A.

a. True
b. False

 

Indicate the answer choice that best completes the statement or answers the question.

 

30. What are the three subcomponents of computer-integrated manufacturing?

a. CAD, CAM, and integration information network
b. people, hardware, and software
c. information, computers, and procedures
d. CIM, ADC, and software

 

31. According to the general pattern in technology research, what is advisable when technologies are routine, analyzable, independent, and well defined?

a. Organic structures with less control, fewer procedures, decentralized decision making, and face-to-face communications should be used.
b. A sociotechnical approach should be used.
c. Mechanistic structures with tighter control, formalized procedures, centralized decision making, and written communications are appropriate.
d. Coordination must be achieved through CIM.

 

32. What is the goal of the sociotechnical systems approach?

a. to design the organization for joint optimization
b. to design the organization for re-engineering
c. to design the organization for self-regulation of advanced technology
d. to design the organization for strong organization culture

 

33. Suppose that VW is considering changing its production operations from an assembly line in which each employee adds one piece as a car chassis goes by to an operation in which several employees work as a team to build the complete car, with the team deciding who does what tasks. If VW implements the change, how would interrelationships change?

a. from pooled interdependence on the line to reciprocal interdependence between the teams
b. from reciprocal interdependence on the line to sequential interdependence between the teams
c. from sequential interdependence on the line to pooled interdependence between the teams
d. from routine tasks to mediating technology

 

34. What is the purpose of the sociotechnical systems approach?

a. to apply the theory of job enlargement
b. to provide qualified management to an organization in a turbulent environment
c. to offer the most advanced information technology possible to maximize organizational competitiveness
d. to combine human needs with technical efficiency in job design

 

35. Which of the following is based on employee involvement?

a. mass customization
b. flexible manufacturing systems
c. lean manufacturing
d. computer-aided design

 

36. What kind of technology is employed by an oil explorer using a divining rod to decide where to begin drilling operations?

a. routine
b. craft
c. engineering
d. high analyzability

 

37. Which type of system links manufacturing components that previously stood alone?

a. continuous process systems
b. flexible manufacturing systems
c. advance technological systems
d. computerized process systems

 

38. A building contractor is constructing 35 “tract homes” on small, adjoining parcels. The crew knows that the many subcontractors must complete their work in a proper order. What is your recommendation regarding the level of coordination required?

a. Because this is pooled interdependence, rules from the construction industry should suffice, since everyone on the job can learn the rules for the proper ordering of subcontractors.
b. Because this is reciprocal interdependence, cross-functional teams among all the subcontractors will be essential.
c. Because this is sequential interdependence, regularly scheduled meetings and planning will be needed to coordinate the ordering of the work.
d. Because this is a sociotechnical system, it is most important to design the coordination to improve efficiency, ignoring human needs.

 

39. What sort of organization is a retail store such as HBC an example of?

a. customer service
b. product and service
c. product focused
d. product consuming

 

40. Which of the following is Perrow most concerned with?

a. two aspects of technology: variety and analyzability
b. two types of structures that seem to determine which technology is best
c. two aspects of environment that call for a particular structure
d. two types of structures that seem to determine which environment should be enacted

 

41. Which kind of production represents mechanization and standardization one step beyond those in an assembly line?

a. continuous process
b. large-batch
c. technical complexity
d. small-batch

 

42. Judy has 300 employees reporting to her, whereas 25 employees report to Fred. Which statement provides the best comparison of the two?

a. Judy has a narrower span of control than Fred.
b. Judy’s organization has less formalization than Fred’s.
c. Judy’s employees are less skilled than Fred’s.
d. Judy has a wider span of control than Fred.

 

43. Which of the following includes the assignment of goals and tasks to be accomplished by employees?

a. job rotation
b. job coordination
c. job exchange
d. job design

 

44. Which type of process is used in the production of an intangible product?

a. service technology
b. flexible manufacturing systems
c. lean manufacturing
d. non-core departmental technology

 

45. What impact have advanced technologies had on job design?

a. job simplification
b. no change
c. job enrichment
d. lowered wages

 

46. How did flexible manufacturing systems give manufactures a competitive advantage?

a. by making small batches of customized products
b. by making large batches of customized products
c. by making small batches of standardized products
d. by making large batches of standardized products

 

47. Which of the following means that the job provides greater responsibility, recognition, and opportunities for growth and development?

a. job enrichment
b. job rotation
c. job design
d. job simplification

 

48. Using Perrow’s framework, in what category would you most likely find the public relations department?

a. craft
b. nonroutine
c. engineering
d. routine

 

49. When Dell Computer Corporation began building computers to order, they were one of the first major organizations to engage in which of the following?

a. mass customization
b. flexible manufacturing systems
c. lean manufacturing
d. computer-aided design

 

50. Which term means providing exactly the service each customer wants and needs?

a. service complexity
b. customized output
c. mass customization
d. CAM

 

51. What is one important advantage of flexible manufacturing systems?

a. It requires little training to use.
b. There is little employee involvement.
c. One product can be produced at a time, making it easier for employees to operate.
d. Products of different sizes, types, and customer requirements freely intermingle on the assembly line.

 

52. The verification department of the federal tax department checks the mathematics on returns and notes any discrepancies. Which of Perrow’s quadrants would this department fit into?

a. craft
b. routine
c. engineering
d. nonroutine

 

53. What form of interdependence would apply to a game of football?

a. pooled, because management must select individual players and develop their skills
b. sequential because plays are run sequentially and events during the plays occur sequentially
c. reciprocal because mutual adjustments must be made by the players
d. sporadic because it is really a game of individual talents

 

54. What type of interdependence exists when work does not flow between units and each unit works independently?

a. pooled
b. grouped
c. sequential
d. high

 

55. How can service organizations achieve their greatest economies?

a. through centralization of services
b. through geographic decentralization
c. through dividing into smaller units close to customers
d. through centralized decision making

 

56. Which term means that an organization functions best only when the social and technical systems are defined to fit the needs of one another?

a. job design
b. joint optimization
c. coordination
d. task variety

 

57. What is the core principle underlying the sociotechnical systems approach that refers to the iterative process of design?

a. incompletion
b. reciprocal interdependence
c. support congruence
d. variance control

 

58. For which of the following would baseball be a close analogy?

a. sequential interdependence
b. pooled interdependence
c. reciprocal interdependence
d. the highest level of team interdependence

 

59. Woodward’s classified technology into three clusters of organizational technologies based on a scale. What did that scale measure?

a. the number of employees in the span of control
b. the interdependence of tasks
c. the technological complexity of the organization’s technical core
d. the variety and analyzability of tasks within each department

 

60. What type of structure–technology relationship do commercially successful organizations tend to have?

a. small-batch organizations had organic structures
b. mass-production organizations had organic structures
c. large-batch organizations had organic structures
d. continuous process organizations had mechanistic structures

 

61. Jane works for a college that offers correspondence courses. She works in the mailroom stuffing envelopes with the replies of professors to students. She then seals the envelopes and puts them in an outgoing bin. She finds that on this job she has a lot of time for daydreaming. What would you expect the organizational structure in her department to be?

a. mechanistic
b. organic
c. high in variety
d. unanalyzable

 

62. Which term is used to refer to the frequency of unexpected and novel events that occur in the conversion process?

a. service technologies
b. non-routine technologies
c. task variety
d. analyzability

 

63. Which of the following has resulted from the impact of technology on job design?

a. job simplification
b. greater division of labour
c. jobs requiring higher-level skills
d. lower compensation because of the financial emphasis on equipment

 

 

64. Discuss the six questions employees are normally asked to show how departmental technology can be analyzed for determining its placement on Perrow’s technology framework.

 

65. Describe an organization in which a mechanistic structure would be the most appropriate and explain why. Describe an organization in which an organic structure would be the most appropriate and explain why.

 

66. Discuss each of the categories of Perrow’s framework. Give examples of each.

 

67. If several of a bank’s departments are considered to be sequentially interdependent, how should their interrelationship be managed?

 

68. Discuss the three basic technology groups of Woodward’s Study.

 

69. Contrast the axes on Perrow’s framework for department technologies.

 

70. John Davis just decided to quit his job with General Motors where he worked in an assembly plant. He is going to open his own shop that will install customized mufflers on cars. Using Woodward’s framework, explain the differences in the technologies of these two types of organizations. What resulting differences in organization structure should there be?

 

71. Discuss the impact technology has on job design.

 

72. What is a flexible manufacturing system (FMS)? Describe the three subcomponents of flexible manufacturing.

 

73. Using Woodward’s findings, compare the structures that are appropriate for each of the technologies she identified. Use at least the following elements of structure: supervisor span of control, worker skill level, centralization, and number of management levels.

 

74. You work for a large company that has just installed a flexible manufacturing system (FMS). You have been eagerly sharing this news with one of your relatives, who says to you, “I don’t like computers, because they remove the companies so much from the demands of the customer.” Based on your readings in organization theory, how would you reply?

 

75. What organizational changes begin to appear as service organizations take on characteristics of “mass production?” Give an example to support your explanation.

 

76. Extend the framework of Woodward’s research findings to today, adding in whatever important technology did not exist at the time she did her research.

 

Case 7.0
Toyz, a seven-year-old manufacturing company in a small valley town, produces three plastic toy lines that it judges will be “hot” items for children. In their first two years, even though start-up costs were high, the company did well because it judged the unpredictable market well and even set the pace within its region for popularity of a new bubble maker. By the third year, however, similar, cheaper bubble makers were commonly imported from Taiwan, and the owner’s judgments on other “hot” items were not on target; consequently, Toyz operated at a loss for two years. Three years ago Toyz added a small new product line that it thought might bring some stability to the company. In addition to the “hot” items, Toyz added a small “cash cow” line of plastic furniture for children. Last year the furniture line constituted 25% of total revenue, and Toyz would like to keep the line at about 25% of total revenues.The design department consists of five employees who are highly educated and held responsible for safe engineering of a product that can realistically be manufactured. Toyz designers gear up annually in January for that year’s Christmas season. As professionals, they make a point of keeping informed of government standards that are occasionally issued.

Some organization leaders feel that marketing is missing the boat by catering more to Toyz’s end users rather than to the company’s wholesale buyers. Toyz deals with only two major distributors to handle all warehousing and distribution. Frequently their orders are not filled correctly because sufficient quantity cannot always be produced on time.

Although top management is giving some consideration to outsourcing part of its manufacturing operations overseas (where labour is less costly), at present 80% of employees are in manufacturing. The manufacturing area is kept very clean, but the odour on the premises is so bad that many people in town will not accept jobs there even though entry-level pay is somewhat above minimum wage.

 

77. Refer to Case 7.0. Place Toyz’s manufacturing, marketing, and design departments in Perrow’s framework for departmental technology. Then, on the basis of your analysis, make recommendations to management on any differences in how each of those departments should be managed.

 

78. Do you agree with a top executive who claimed that top-level management is a craft technology? Based on your answer, what can be taught in the classroom about top-level management?

 

79. List the differences between manufacturing and service technologies. Provide three examples of service technologies, product and service technologies, and product technologies.

 

80. If interdependence is now pooled, should efforts be made to force the entities into greater interrelationship? Defend your position.

 

81. How is organization structure related to technology? Explain.

 

82. Using your program or college/university department as your focal organization, place it in the quadrants of Perrow’s framework. What two factors did you use to determine placement in a quadrant?

 

Case 7.0
Toyz, a seven-year-old manufacturing company in a small valley town, produces three plastic toy lines that it judges will be “hot” items for children. In their first two years, even though start-up costs were high, the company did well because it judged the unpredictable market well and even set the pace within its region for popularity of a new bubble maker. By the third year, however, similar, cheaper bubble makers were commonly imported from Taiwan, and the owner’s judgments on other “hot” items were not on target; consequently, Toyz operated at a loss for two years. Three years ago Toyz added a small new product line that it thought might bring some stability to the company. In addition to the “hot” items, Toyz added a small “cash cow” line of plastic furniture for children. Last year the furniture line constituted 25% of total revenue, and Toyz would like to keep the line at about 25% of total revenues.The design department consists of five employees who are highly educated and held responsible for safe engineering of a product that can realistically be manufactured. Toyz designers gear up annually in January for that year’s Christmas season. As professionals, they make a point of keeping informed of government standards that are occasionally issued.

Some organization leaders feel that marketing is missing the boat by catering more to Toyz’s end users rather than to the company’s wholesale buyers. Toyz deals with only two major distributors to handle all warehousing and distribution. Frequently their orders are not filled correctly because sufficient quantity cannot always be produced on time.

Although top management is giving some consideration to outsourcing part of its manufacturing operations overseas (where labour is less costly), at present 80% of employees are in manufacturing. The manufacturing area is kept very clean, but the odour on the premises is so bad that many people in town will not accept jobs there even though entry-level pay is somewhat above minimum wage.

 

83. Refer to Case 7.0. Classify Toyz in the organizational framework for manufacturing technology. Explain. Then make recommendations to management for an appropriate structural response based on that analysis.

 

84. Using the sociotechnical systems model, explain the design for joint optimization both in terms of the model and in terms that describe the meaning.

 

Answer Key

1. False

 

2. False

 

3. True

 

4. False

 

5. False

 

6. True

 

7. True

 

8. True

 

9. True

 

10. True

 

11. True

 

12. True

 

13. True

 

14. True

 

15. False

 

16. False

 

17. False

 

18. False

 

19. True

 

20. True

 

21. False

 

22. False

 

23. True

 

24. True

 

25. False

 

26. True

 

27. True

 

28. False

 

29. False

 

30. a

 

31. c

 

32. a

 

33. c

 

34. d

 

35. c

 

36. b

 

37. b

 

38. c

 

39. b

 

40. a

 

41. a

 

42. d

 

43. d

 

44. a

 

45. c

 

46. b

 

47. a

 

48. b

 

49. a

 

50. b

 

51. d

 

52. b

 

53. b

 

54. a

 

55. c

 

56. b

 

57. a

 

58. b

 

59. c

 

60. a

 

61. a

 

62. c

 

63. c

 

64. Using a seven-point scale to judge their responses, employees are asked the following questions. For the variety dimension, the questions are: (1) To what extent would you say your work is routine? (2) Do most people in this unit do about the same job in the same way most of the time? (3) Do you think unit members perform repetitive activities when doing their jobs? For the analyzability dimension, they are asked: (1) To what extent is there a clearly known way to do the major types of work you normally encounter? (2) To what extent is there an understandable sequence of steps that can be followed in doing your work? (3) To what extent can you actually rely on established procedures and practices?

 

65. A mechanistic structure would be appropriate in a mass production facility, because it employs routine technology. An organic structure would be appropriate for an organization whose departmental technology is nonroutine (e.g., an R&D lab).

 

66. There are four: (1) craft, such as a performing arts troupe; (2) nonroutine, such as strategic planning; (3) routine, such as auditing; and (4) engineering, such as tax accounting. Perrow’s framework consists of two dimensions—degree of analyzability and degree of variety.

 

67. The interrelationship should be managed by plans, schedules, feedback, and task forces.

 

68. They are (1) small-batch or craft production, (2) large-batch or mass production, and (3) continuous process or complete mechanization.

 

69. Variety refers to the degree of exceptions in work. Analyzability refers to the extent work can or cannot be broken down into mechanical steps.

 

70. GM often uses large-batch (or mass production) and is structured mechanistically. When Davis starts his own shop, he will be using small-batch technology and so his organization needs to be organic.

 

71. Technology can result in job enlargement or job enrichment. In the past and in some cases still today, technology has resulted in job simplification.

 

72. An FMS is an automated factory. Its three core subcomponents are CAD, CAM, and an integrated information network.

 

73.

Small-Batch Large-Batch Continuous Process
Span of control Medium High Low
Skill High Low High
Centralization Low High Low
Management levels Low Medium High

 

74. FMS allows increased product flexibility so that the company can be closer to the customer.

 

75. Such organizations will rely more on technology and database applications to be able to respond to particular consumer requests. For example, Japan Post hired an expert from Toyota Motor Company to reconfigure its collection, sorting, and delivery of mail.

 

76. IT and Web 2.0 need to be added.

 

77. Toyz seems to have medium variety and medium analyzability, so it borders on the craft and nonroutine departmental technologies as described in Exhibit 7.9 of the textbook. If so, then Toyz needs to have a somewhat organic structure.

 

78. There is some merit in the position that top-level management is a craft. It is hard to break down into mechanical steps. However, it may be better to see top-level management as nonroutine because there is much variety. Students can learn some useful tools, such as organization design, in a classroom but will need to learn from observation, trial-and-error, and being a mentee.

 

79. The answer is contained in its entirety in Exhibit 7.7 of the textbook.

 

80. No, because there are low demands for communication. The type of coordination appropriate for pooled interdependence is standardization, rules, and procedures.

 

81. Technology is one of the contingencies that affect structure. The sports teams example on page 281 of the textbook illustrates the relationships.

 

82. There may be some variability in the answers but the students should be able to explain how they assessed the degree of variety and analyzability in making their classification.

 

83. Toyz seems to be at point 4–5 on Woodward’s 10-point scale of technical complexity and may need to increase its technical complexity. On the other hand, if Toyz outsources, then it could use small-batch technology to become a design-focused firm.

 

84. Joint optimization means that an organization functions best when the social and technical systems are designed for the needs of one another. For example, it is important, when designing a new administrative workstation, to design in ergonomic and other features so that the person can work comfortably.

 

 

 

Reviews

There are no reviews yet.

Be the first to review “Organization Theory And Design 3rd Edition by Ann Armstrong – Test Bank”

Your email address will not be published. Required fields are marked *