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Management - Organizational Behavior Ch. 14, Exercises of Organization Behaviour

The system where proposals at lower levels are signed and passed along to higher level management in an effort to build consensus is the Max has just been assigned to a project team after his organization restructured to a matrix organization. What kinds of advice could be offered him to help him deal with multiple bosses?

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Management - Organizational Behavior Ch. 14
Organizational Behavior, Version 1.1
Bauer & Erdogan
FWK Test Item File
Chapter 14
TRUE/FALSE
1.Toyota employees feel a sense of ownership in their company, which is supported by the firm’s
matrix structure.
(True)
2.Toyota employees are expected to be experts in what they do.
(True)
3.Toyota uses a system of continuous improvement and learning.
(True)
4.Just-in-time production leads to antagonistic relations between Toyota and its suppliers.
(False)
5.Decentralization is the concentration of decision making at higher levels in the organization.
(False)
6.Employees feel that decentralized organizations provide greater levels of procedural fairness.
(True)
7.If a firm is operating in a stable environment, the centralized organizational structure may lead to
the most efficient operations.
(True)
8.A unionized firm has very formalized structures.
(True)
9.A formalized structure leads to faster decision making.
(False)
10.Tall structures have wider span of control than flat structures.
(False)
11.Flat structures are better at satisfying employee self-actualization needs while tall structures are
better at satisfying employee security needs.
(True)
12.In divisional structures, employees tend to be more specialists than generalists.
(False)
13.Functional structures are most effective for companies with large product lines.
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Management - Organizational Behavior Ch. 14

Organizational Behavior, Version 1.

Bauer & Erdogan

FWK Test Item File

Chapter 14

TRUE/FALSE

  1. Toyota employees feel a sense of ownership in their company, which is supported by the firm’s matrix structure. (True)
  2. Toyota employees are expected to be experts in what they do. (True)
  3. Toyota uses a system of continuous improvement and learning. (True)
  4. Just-in-time production leads to antagonistic relations between Toyota and its suppliers. (False)
  5. Decentralization is the concentration of decision making at higher levels in the organization. (False)
  6. Employees feel that decentralized organizations provide greater levels of procedural fairness. (True)
  7. If a firm is operating in a stable environment, the centralized organizational structure may lead to the most efficient operations. (True)
  8. A unionized firm has very formalized structures. (True)
  9. A formalized structure leads to faster decision making. (False)
  10. Tall structures have wider span of control than flat structures. (False)
  11. Flat structures are better at satisfying employee self-actualization needs while tall structures are better at satisfying employee security needs. (True)
  12. In divisional structures, employees tend to be more specialists than generalists. (False)
  13. Functional structures are most effective for companies with large product lines.

(False)

  1. Employees working in dynamic environments depend on their general mental abilities for good performance. (True)
  2. Organic structures are highly formalized and centralized. (False)
  3. The biggest advantage of a mechanistic structure, especially in a stable environment, is its efficiency. (True)
  4. Organic structures are related to higher levels of job satisfaction. (True)
  5. Matrix organizations violate the unity of command principle. (True)
  6. Conflict at various levels is a potential issue for matrix organizations. (True)
  7. A strategic alliance is a type of boundaryless organization where all nonessential functions are outsourced. (False)
  8. A learning organization is one where acquiring knowledge and changing behavior as a result of the newly acquired knowledge is part of the organization’s design. (True)
  9. Organizational change can be either radical or incremental. (True)
  10. Moore’s law says the overall complexity of computer circuits will double every 18 months with no increase in costs, so firms will rapidly change their technology. (True)
  11. While manufacturing jobs have been outsourced, knowledge-based jobs are safe from outsourcing. (False)
  12. Change is more likely to occur in firms that are performing poorly because successful firms keep doing what they have done to make them successful. (True)
  13. Surveys indicate that resistance to change is one of the top two reasons why change efforts within organizations fail. (True)
  14. Passive resistance refers to sabotaging the change effort and being outspoken about the negative effects of change. (False)

c. Toyota’s production system has led it to be structured as a matrix organization. d. Toyota requires all its employees to be generalists. (d) Difficult/Evaluation

  1. Which of the following statements regarding Toyota’s just-in-time production and suppliers is INCORRECT? a. Around 75% of the final Toyota vehicle is produced by its suppliers. b. Long-term relationships are established with Toyota suppliers. c. Toyota work goes to the lowest bidding supplier. d. Toyota sends engineers to supplier firms to assess and improve their production processes. (c) Difficult/Evaluation Section I: Organizational Structure
  2. Organization structure is a. the degree to which decision-making authority is concentrated at higher levels in the organization. b. how the individual and team work within an organization is coordinated. c. the degree to which policies, procedures, job descriptions and rules are written and explicitly articulated. d. the number of employees reporting to a single manager. (b) Easy/Knowledge
  3. The degree to which decision-making authority is concentrated at higher levels in an organization is a. formalization b. centralization c. hierarchical levels d. departmentalization (b) Easy/Knowledge
  4. In an organization, the union contract is very explicit as to employee work rules, the tasks each individual employee will perform, the pay each individual will receive, how each individual can move from one position to another and so on. This organization’s structure is an example of a ____________ structure in the organization. a. centralized b. departmentalized c. hierarchical d. formalized (d) Medium/Application
  5. _________ is the number of levels an organization has. a. Hierarchy b. Departments c. Structure d. Centralization (a) Easy/Knowledge
  6. The company is organized into accounting, marketing, human resource management, and production departments. This firm has a a. divisional structure. b. functional structure. c. product structure. d. matrix structure. (b) Easy/Application
  1. The company was organized into the detergent area, the dishwashing soap area, and the health and beauty aid area. This firm has a a. divisional structure. b. functional structure. c. mechanistic structure. d. matrix structure. (a) Easy/Application
  2. Centralized organizations a. tend to have faster, more efficient decision making. b. attract more job candidates. c. put less pressure on higher level managers. d. can lead to large cost savings in purchasing operations. (d) Medium/Analysis
  3. Formalization a. can lead to greater innovativeness. b. enhances employee motivation. c. provides for quicker decision making. d. makes employee behavior predictable. (d) Medium/Analysis
  4. In which of the following firms is formalization likely to occur? a. small, local pizza shop b. advertising agency c. unionized manufacturing firm d. nonunion heavy construction firm (c) Difficult/Synthesis
  5. Tall structures provide a. employees greater levels of role ambiguity. b. employees with greater self-actualization need satisfaction. c. employees with greater security need satisfaction. d. managers with a greater span of control. (c) Difficult/Evaluation
  6. Flat structures a. have narrow spans of control. b. provide lower levels of self-actualization than tall structures. c. provide opportunities for greater role clarity for employees. d. provide limited advancement opportunities. (d) Medium/Analysis
  7. Functional structures a. are most effective when an organization has a large number of products. b. are most effective in dynamic environments. c. tend to facilitate the effective performance of employees with general mental abilities. d. are cost-effective structures for the human resource and information technology departments of most companies. (d) Medium/Analysis
  8. Highly formalized and centralized structures similar to bureaucracies are a. mechanistic structures.

b. functional organization. c. boundaryless organization. d. divisional organization. (c) Easy/Knowledge

  1. Learning organizations use all of the following approaches to acquire knowledge that they can use to change behavior EXCEPT a. conducting formal retrospective meetings. b. studying customer habits. c. benchmarking against best industry practices. d. acquiring a firm to gain its research and development area. (d) Medium/Evaluation
  2. Two or more companies that find an area of collaboration and combine their efforts to create a partnership beneficial to both parties is a a. strategic alliance. b. modular organization. c. matrix organization. d. learning organization. (a) Easy/Comprehension
  3. An organization where all the nonessential functions are outsourced is a a. strategic alliance. b. modular organization. c. matrix organization. d. learning organization. (b) Easy/Comprehension Section II: Organizational Change
  4. Which of the following statements regarding change is INCORRECT? a. Organizational change is the movement of an organization from one state of affairs to another. b. Organizational change takes on limited forms. c. Organizational change, at its most basic, involves effective people management. d. Organizational change can be forced or planned. (b) Medium/Comprehension
  5. All of the following are external forces that are creating change for organizations EXCEPT a. technology. b. workforce demographics. c. market conditions. d. growth of unions. (d) Easy/Knowledge
  6. All of the statements regarding workplace demographics and their impact on change are correct EXCEPT an older workforce a. that chooses retirement may cause a loss of valuable knowledge for firms. b. will create a need for new types of benefits. c. will likely cause flexible work hours and job sharing to diminish as older people like the structure of set hours of work. d. will create a need to train managers so that they are not using age-related stereotypes in managing those employees. (c) Medium/Evaluation
  1. The practice of outsourcing as a response to the globalization of business has created all of the following changes for organizations EXCEPT a need to a. retrain the workforce. b. deal with employee stress. c. understand how to compete in a global marketplace. d. restructure employee communication channels. (d) Medium/Analysis
  2. Which of the following statements regarding factors of change in the organization is INCORRECT? a. Rapid developments in technology force a firm to change its technology to keep up. b. Manufacturing jobs have been outsourced, but knowledge-based jobs are largely safe from such movement. c. Though 50% of all small businesses fail, those that succeed often evolve into large, complex organizations over time. d. Changes in market conditions or the economy may cause companies to change the manner in which they do business. (b) Difficult/Synthesis
  3. Which of the following statements regarding performance and organizational change is INCORRECT? a. More successful firms find it easier to change than those performing poorly. b. Nothing fails like success is a fitting saying to describe the relationship between organizational change and performance. c. Change in upper level management is a motivator for organizational level change. d. Successful companies often have special practices in place to keep the organization open to change. (a) Medium/Synthesis
  4. The most negative reaction to a proposed change attempt is a. enthusiastic support. b. active resistance. c. passive resistance. d. compliance. (b) Easy/Knowledge
  5. Andy is vehemently opposed to the restructuring of the jobs in his department in the manufacturing firm. He decides that since no one is listening to what he has to say he will get their attention by damaging each of the parts he is making for tomorrow’s shipment. This is an example of what kind of change reaction? a. enthusiastic support b. passive resistance c. active resistance d. compliance (c) Medium/Application
  6. Marta has been a part-time faculty member at the university for nine years. She has been teaching two to three writing courses a semester. Last month, the dean held a meeting where he announced that next academic year, part-time instructors would be limited to teaching only two classes during the entire year. Marta is very upset and tells her husband, “I may look into teaching at the community college next year but don’t let anyone at the university know.” This is an example of what kind of change reaction? a. passive resistance b. enthusiastic support

(c) Easy/Comprehension

  1. All of the following statements regarding reasons employees resist change are correct EXCEPT a. those who feel they can perform well under a new system will be more committed than those who have lower confidence in their ability to perform. b. we are creatures of habit. c. feelings of uncertainty create stress. d. people with a negative self-concept view change as an opportunity. (d) Medium/Synthesis
  2. Which of the following statements regarding reasons employees resist change is correct? a. people may not welcome the change currently proposed, but they do not usually place those changes into any past context, so former unsuccessful changes have little impact on the situation. b. people resist change even if it is personally beneficial to them. c. people are less likely to resist a change that is big in scope and has far reaching consequences. d. people resist change that negatively impacts their influence and power in the firm. (d) Difficult/Synthesis
  3. Abdul has been downsized. Which of the following is NOT a piece of advice to offer him? a. Polish your resume and job hunting skills. b. Know our rights. c. Get help. d. Get angry! You just lost your job, you deserve to vent. (d) Easy/Comprehension
  4. Which of the following is NOT a stage of Lewin’s model of planned change? a. refreeze b. unfreeze c. assess d. change (c) Easy/Comprehension
  5. Making sure that organizational members are ready for and receptive to change is what step of the Lewin model? a. refreeze b. unfreeze c. assess d. change (b) Easy/Comprehension
  6. Ensuring that change becomes permanent and the new procedures become the norm is what stage of Lewin’s model of planned change? a. refreeze b. unfreeze c. assess d. change (a) Easy/Comprehension
  7. What is the first step in Lewin’s model of planned change? a. refreeze b. unfreeze c. assess d. change

(b) Easy/Comprehension

  1. All of the following factors are important when unfreezing for planned change EXCEPT a. taking things slowly; do not suggest a crisis is imminent b. create a vision for change c. communicate the plan for change d. provide support (a) Medium/Analysis
  2. Which of the following statements related to the unfreezing stage of planned change is INCORRECT? a. Allow employee participation in planning for change efforts. b. Get everyone on board as soon as the change is initiated. c. Make sure management provides emotional and instrumental support. d. Make sure employees hear about planned changes via official channels, not the grapevine. (b) Medium/Evaluation
  3. Which of the following statements regarding the second stage of planned change is INCORRECT? a. Early success gives change planners credibility. b. Employees will be stressed; support them. c. Create big wins because people need to see that things are happening. d. Ensure that management keeps alert to and deals with obstacles that arise. (c) Medium/Evaluation
  4. Which of the following statements regarding the final stage of planned change is INCORRECT? a. Employees should be informed regularly of the results of the change. b. Declare victory early in making the change and get into a routine. c. Reward those who embraced the change effort. d. Change the mindset of people so change becomes a regular part of the corporate culture. (b) Medium/Evaluation
  5. Which of the following statements regarding overcoming resistance to your proposals is INCORRECT? a. Do not listen to naysayers. b. Involve those around you in the change. c. Understand the reasons for resistance. d. Present data to your audience. (a) Medium/Analysis Section III: The Role of Ethics and National Culture
  6. All of the following alternatives to downsizing are more ethical actions EXCEPT a. early retirement programs. b. outsourcing. c. job sharing. d. hiring freezes. (b) Medium/Analysis
  7. The system where proposals at lower levels are signed and passed along to higher level management in an effort to build consensus is the a. boundaryless organization. b. modular organization. c. ringi system.

(divisional or product)

  1. _________ structures are most effective for organizations that do not have large numbers of products. (Functional)
  2. ___________ structures are highly formalized and centralized. (Mechanistic)
  3. A flexible, decentralized structure with low levels of formalization where communication lines are more fluid is a(n) __________ structure. (organic)
  4. __________ organizations, which combine functional structures with product structures, violate the unity of command principle. (Matrix)
  5. A ___________organization is a type of boundaryless organization where all nonessential functions are outsourced. Toyota is one such organization. (modular)
  6. ____________ organizations are organizations that eliminate traditional barriers between departments as well as barriers between the organization and external environment. (Boundaryless)
  7. A form of boundaryless organization where two or more companies find an area of collaboration and combine their efforts to create a partnership that is beneficial to both parties is a ________ _________. (strategic alliance)
  8. In ________ ________ experimenting, learning new things and reflecting on new knowledge are the norms. (learning organizations)
  9. The most negative reaction to a proposed change attempt is ___________ ___________. (active resistance)
  10. Going along with proposed changes with little enthusiasm is ___________. (compliance)
  11. Michael defends the new change in company healthcare registration as helping the firm be more efficient. He says, “After all, we have healthcare. Let’s learn how to do this since it will help us.” Michael is reacting to the change using the _______ __________ form. (enthusiastic support)
  12. The first stage of Lewin’s process of change model is ___________, which ensures that employees are ready for change. (unfreezing)
  13. _______ is the final stage of Lewin’s process of change model which ensures that the change becomes permanent. (Refreezing)
  1. The ________ ____ is used in Japan to build consensus by having proposals signed at lower levels and passed along to higher level management. (ringi system) SHORT ANSWERS
  2. What are the four building blocks of a company’s structure? Centralization, departmentalization, formalization and hierarchical levels.
  3. In what type of firms does centralization seem to work best? Centralization is the concentration of decision making at higher levels in the organization. Centralization works well with organizations that need efficiency in their operations and works especially well in stable environments.
  4. Formalization works well in what type of organization? Formalization works best where explicitly articulated, clearly written rules, procedures, plans and programs are needed. Unionized settings are one such organization where such specificity is needed.
  5. Provide an example of an organization that has a functional structure. A company organized into human resource, finance, manufacturing, marketing and information technology departments would be a functional organization. Manufacturing firms are often organized in this manner.
  6. Give an example of a company that is organized along divisional lines. A firm organized along divisional lines may be organized based upon the products it produces. For example, a consumer snack food company like Frito-Lay might have its beverage division, its snack foods division, its restaurant division, etc.
  7. Compare and contrast mechanistic and organic structures. Mechanistic structures resemble a bureaucracy and are highly formalized and centralized. Organic structures are flexible and decentralized with low formalization.
  8. What is a matrix organization? A matrix organization is a cross between a functional structure and a product structure. Thus, employees report to department managers and project or team managers. Such an arrangement violates the unity of command principle but is effective in uncertain and dynamic environments.
  9. What is a boundaryless organization? A boundaryless organization is a term coined by GE’s Jack Welch to refer to an organization that has eliminated traditional barriers between departments as well as barriers between the organization and external environment. There are two forms of the boundaryless organization: the modular organization and the strategic alliance.
  1. Name two reasons why people resist change. People resist change for a variety of reasons including: it disrupts their habits; because of their personality, feelings of uncertainty, fear of failure, the personal impact of the change, the prevalence of change and the perceived loss of power.
  2. Is resistance to change always bad? No, resistance to change can be a positive force. When resistance provides feedback to assess the changes and the methods to achieve such change it can be serving a constructive purpose. When people provide constructive criticism, those suggestions can be integrated into the change process for better implementation.
  3. Briefly describe the Lewin process of change model. Lewin’s model is comprised of three stages: unfreezing, change and refreezing. The first stage ensures that employees are ready for change. The second stage executes the intended change and the third stage ensures the change is permanent.
  4. What are two key steps to take in ensuring success in unfreezing for change? The steps include: creating a vision for change, communicating a plan for change, developing a sense of urgency for change, building a coalition, providing support and allowing employees to participate.
  5. What are two key steps to take to ensure change is appropriately executed? The steps include: continue to provide support, create small wins, and eliminate obstacles.
  6. What are two key steps in refreezing for change? The steps include: publicizing success, building on prior change, rewarding change adoption, and making change a part of the organizational culture.
  7. What impact does organizational structure have on ethics? If the organizational structure is too rigid or hierarchical, employees are not provided opportunities to develop moral intelligence. This moral intelligence is key in assessing what is ethical or not in the business setting. Similarly, when the structure prohibits an employee from making decisions with some degree of autonomy, ethical behaviors fail to develop.
  8. Do organizational structures differ around the world? The answer is very simply, yes. The student may choose to cite specific countries and their structures but generally they will be noting the nature of centralization or decentralization of organizations in each country. In addition, the student may note the culture’s level of uncertainty avoidance in noting structure. ESSAY
  9. What impact does structure have on Toyota Company’s success in the automobile industry?

Toyota is successful because its structure supports its strategy. Toyota functions under just- in-time production. Such a production focus requires employees who are expert at their positions, and who are continuously learning and improving. Toyota, which is functionally structured, has aspects of a matrix organization whereby employees are placed on teams to engage in that continuous learning process. Further, Toyota has strategic alliances with a number of firms that, again, support the just in time production process. In fact, Toyota’s supplier firms are responsible for roughly 75% of the car’s production. Toyota shows the success associated with an organizational structure aligned with a firm strategy.

  1. Choose a firm and discuss the nature of its structure using the four building blocks of structure as your focus. Student responses will vary. But they should include a discussion of centralization, formalization, departmentalization and hierarchical levels. The university is generally centralized with key decisions made in the chancellor/president’s office and implemented at the college level. The university is highly formalized with explicit policies, rules, and procedures in place to guide all activities from teaching to tuition payment by students. Everyone is covered by a general employee handbook and each school has specific additional rules. The university is departmentalized into schools based on functional area. The hierarchical levels include the chancellor/president, vice presidents, deans, full professors, assistant professors, associate professors, etc.
  2. Max has just been assigned to a project team after his organization restructured to a matrix organization. What kinds of advice could be offered him to help him deal with multiple bosses? Having multiple bosses is a difficult adjustment for many individuals because we are accustomed to the unity of command structure. The potential for conflict with the multiple boss, multiple duty/obligation structure is thus obvious. Some tips to meet the challenges include: Do not assume that having multiple bosses is necessarily a bad thing. Make sure all your managers are familiar with your overall workload. Make conflicts known to your bosses. Do not be afraid to request a meeting with all your managers. Make an effort to establish effective relations with each manager. Be cognizant of the relationships among managers as well. With these tips in mind, Max should be able to make the adjustment.
  3. Describe a time when a change was made in some organization of which you were a part. Were you resistant to the change? Why or why not? Answers will vary with the student but the response should clearly delineate what the change was that was instituted. Also, the reaction to the change should be noted with the commentary on whether the student was resistant or not.
  1. Grace has been with her firm for a year and sees a number of procedures that she feels can be changed to enhance efficiency and effectiveness. She has offered those suggestions during group meetings and even through written communication to her boss. No one seems to pay any attention to the suggestions she has offered. How can she get support for her suggested changes? Grace might consider the following: Listen to the naysayers. Grace may believe she has a great idea, but maybe it is not as good as she thinks. Those who dissent may offer suggestions for change that make the original proposal, now a viable one. Assess whether your change is revolutionary. If Grace’s suggestions are dramatic changes, resistance is to be expected. Involve those around you in planning the change. Grace should not provide everyone her suggestions, but make them a part of building those suggestions into a useful plan of action. Do you have credibility? Grace has ideas for changes but how is she perceived in the organization? Grace must be honest with herself and assess whether others trust her and thus will be willing to follow through on her suggestions. Present data to the audience. Grace needs to not just say “this needs to be done”; she needs to provide rationale for that change and why it would be successful. Appeal to the audience’s ideals. What is the purpose behind the suggestion? Will the suggestion in some manner make the company employees happier? Will it improve the company’s prospects? Understand the reasons for resistance to change. Grace must understand why employees are ignoring her proposals. Do her suggestions threaten the personal influence of some members? Are employees afraid to fail if this suggestion is implemented? As Grace reviews these items, she can reshape and reword her suggestions and resubmit them for consideration.