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Exam 15: Organizational Design, Effectiveness, and Innovation

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Question 21

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A major pharmaceutical firm is developing a new medical drug for the market. Stockholders are pressing for an early release date, as the drug is expected to generate significant profits. Unions representing production workers are pressing for wage increases, which would reduce the resources available for development and marketing, thus delaying the release date. Consumer activists are pressing for increased testing which would both increase costs and delay the release date. Which organizational effectiveness criterion is most applicable in this situation?

A) Resource allocation
B) Internal processes
C) External processes
D) Goal accomplishment
E) Strategic constituencies satisfaction

F) B) and D)
G) A) and E)

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Question 22

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When organizations need stronger horizontal alignment or cooperation in order to meet their goals, a ________ structure is appropriate.

A) Divisional
B) Hollow
C) Matrix
D) Functional
E) Horizontal

F) None of the above
G) All of the above

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Question 23

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Innovation emerges incrementally, in bits and pieces, forged by multiple people working interactively.

There is only one way to assess an organization's effectiveness: goal accomplishment.

Define mechanistic and organic organizations. For which type of environment is each most appropriate? G. M. Stalker. In the course of their research, they drew a very instructive distinction between what they called mechanistic and organic organizations. Mechanistic organizations are rigid bureaucracies with strict rules, narrowly defined tasks, and top-down communication. A mechanistic organization generally would have one of the traditional organization designs described earlier in this chapter and a hierarchical culture. The "orderliness" of this structure is expected to produce reliability and consistency in internal processes, thereby resulting in higher efficiency, quality, and timeliness. When environment was relatively stable and certain, the successful organizations tended to be mechanistic. Organic organizations are flexible networks of multitalented individuals who perform a variety of tasks. Organic organizations are more likely to use horizontal designs or those that open boundaries between organizations. Organic organizations tend to be successful when the environment is unstable and uncertain.

An organization that proactively creates, acquires, and transfers knowledge and that changes its behavior on the basis of that knowledge is called a(n) :

The approach to assessing organizational effectiveness that focuses on what the organization must excel at is:

An open system depends on constant interaction with its environment for survival.

Staff personnel generally have the authority to make decisions for line units.

One of the "cons" of _________ organizations is coordination and communication across "silos."

Define the term "organization." Explain the common denominators of all organizations.

In the ___________ subprocess, a learning organization shares information among its people, groups, or organizational units.

Which of the following cannot be viewed in an organizational chart?

What is innovation? How does it differ from invention, creativity, and integration?

The organization structure that is best for situations where the nature of product modules and design interfaces can be specified is:

The category of organizational design that was/is able to achieve great economies of scale by specializing the application of labor to specific and standardized functions is the:

Today, the optimal span of control is considered to be 7 to 10 people.

What is an organization chart, and what can be observed from an organization chart?

When they need stronger horizontal alignment or cooperation to meet goals, functionally designed organizations should adopt a ________ structure.

Organic organizations are flexible networks of multitalented individuals who perform a variety of tasks.