Work Specialization Is Also Known As - A. Departmentalization. B. Centralization. C. Span of Control. D. Formalization. E. Division of Labor. (Easy)

Chapter 10 – Organizational Structure and Design
Multiple Choice
A MANAGER’S DILEMMA
31. According to the company profile in “A Manager’s Dilemma,” the organizational structure of
Nokia is best described as ______________.
a. mechanistic
b. organic (moderate)
c. centralized
d. formalized
32. The factor contributing the most to Nokia’s success in the mobile phone industry according
to the company profile in “A Manager’s Dilemma” is ______________.
a. new product development (moderate)
b. government subsidies
c. national trade barriers
d. weak competition
33. ______________ is the process of creating an organization's structure.

a. Human resource management
b. Leading
c. Organizing (moderate)
d. Planning
e. Departmentalization
DEFINING ORGANIZATIONAL STRUCTURE
34. According to the text, a(n) ______________ is the formal framework by which job tasks are
divided, grouped, and coordinated.
a. mission statement
b. environmental scan
c. internal resource analysis
d. organizational structure (moderate)
35. Which of the following is not one of the six key elements in organizational design?
a. work specialization
b. departmentalization
c. chain of command
d. bureaucratic design (difficult)
e. span of control
36. Work specialization is also known as ______________.

a. departmentalization.
b. centralization.
c. span of control.
d. formalization.
e. division of labor. (easy)
37. The term ______________ is used to describe the degree to which tasks in an organization
are divided into separate jobs.
a. work ethics
b. managerial capitalism
c. social responsibility
d. work specialization (moderate)
38. When did the idea of enlarging, rather than narrowing, job scope begin?
a. 1950s
b. 1960s (moderate)
c. 1970s
d. 1980s
e. 1990s
39. Which of the following is not an example of the classical view of division of labor?
a. assembly-line production
b. Burger King
c. Taco Bell
d. TQM (moderate)
e. Kentucky Fried Chicken
40. ______________ is the basis on which jobs are grouped in order to accomplish
organizational goals.
a. Departmentalization (moderate)
b. Centralization
c. Formalization
d. Coordination
e. Efficiency
41. A local manufacturing organization has groups of employees who are responsible for sales,
marketing, accounting, human resources, etc. These are examples of what concept?
a. authority
b. chain of command
c. empowerment
d. departmentalization (moderate)
e. social grouping
42. Grouping sporting equipment in one area, men's clothing in another area, and cosmetics in
a third area, is an example of what kind departmentalization?
a. customer
b. product (easy)
c. geographic
d. process
e. outcome
43. Sales responsibilities divided into the southwest, midwest, southern, northern, and western
regions would be an example of ______________ departmentalization.
a. product
b. geographic (easy)
c. process
d. outcome
e. customer
44. Grouping activities on the basis of customer flow is ______________.
a. functional departmentalization.
b. product departmentalization.
c. geographical departmentalization.
d. process departmentalization. (moderate)
e. technological departmentalization.
45. What type of departmentalization expects that each department will specialize in one
specific phase of the process or product production?
a. product
b. geographic
c. process (easy)
d. outcome
e. customer
46. What kind of departmentalization would be in place in a government organization where

different public service responsibilities are divided into activities for employers, children, and
the disabled?
a. product
b. geographic
c. process
d. outcome
e. customer (moderate)
47. Which of the following is not a form of departmentalization suggested by your text?
a. functional departmentalization
b. product departmentalization
c. geographical departmentalization
d. process departmentalization
e. technological departmentalization (difficult)
48. Today's competitive business environment has greatly increased the importance of what
type of departmentalization?
a. geographic
b. customer (difficult)
c. product
d. process
e. outcome
49. According to the text, managers are using ______________, which are groups of individuals
who are experts in various specialties and who work together.
a. specialized teams
b. cross-demanded teams
c. cross-functional teams (moderate)
d. simple structured teams
50. Which of the following is a contemporary addition to the historical view of

departmentalization?
a. increased rigidity
b. cross-functional teams (moderate)
c. enhanced centralization
d. elimination of product departmentalization
e. addition of sales departmentalization
51. Bringing together the company's legal counsel, research engineer, and marketing specialist
for a project is an example of a(n) ______________.
a. empowered team.
b. process departmentalization.
c. product departmentalization.
d. cross-functional team. (moderate)
e. continuous improvement team.
52. The ______________ is the continuous line of authority that extends from upper
organizational levels to the lowest levels and clarifies who reports to whom.
a. chain of demand
b. chain of command (easy)
c. demand hierarchy
d. continuous design structure
53. To whom a worker reports concerns which aspect of organizational structure?

a. chain of command (moderate)
b. departmentalization
c. pay structure
d. line of command
e. authority framework
54. ______________ entitles a manager to direct the work of a subordinate.
a. Responsibility
b. Legitimate power
c. Rank
d. Operating responsibility
e. Authority (moderate)
55. ______________ is the obligation to perform assigned activities.

a. Authority
b. Responsibility (easy)
c. Chain of command
d. Unity of command
e. Formalization
56. The ______________ principle (one of Fayol’s 14 principles of management) helps

preserve the concept of a continuous line of authority.
a. unity of demand
b. unity of command (moderate)
c. demand structure
d. continuous demand
57. Span of control refers to which of the following concepts?

a. how much power a manager has in the organization
b. the geographic dispersion of a manager's subunits of responsibility
c. how many subordinates a manager can effectively and efficiently supervise (moderate)
d. the number of subordinates affected by a single managerial order
e. the amount of time it takes to pass information down through a manager's line of
command
58. Other things being equal, the wider or larger the span of control, the more ______________
the organizational design.
a. bureaucratic
b. democratic
c. effective
d. efficient (difficult)
e. classical
59. Wider spans of control may be viewed as more efficient, but eventually, wider spans tend to
have what effect on organizations?
a. reduced effectiveness (difficult)
b. increased turnover
c. loss of managerial power
d. customer dissatisfaction
e. rigid chains of command
60. An organization that spends money on maintaining a well-trained work force can expect
which of the following span-of-control outcomes?
a. increased contempt for management
b. increased voluntary turnover
c. centralized authority
d. less direct supervision (moderate)
e. increased need for managerial-level employees
61. A high-tech manager who supervises the development of a new computer chip needs
______________ compared to a manager who supervises the mailing of unemployment
insurance checks at the local government office.
a. about the same span of control
b. a narrower span of control (difficult)
c. a wider span of control
d. a more informal span of control
e. elimination of the span of control
62. In general, span of control is ______________ for managers.

a. increasing (easy)
b. decreasing
c. staying the same
d. significantly decreasing
e. no longer important
63. ______________ describes the degree to which decision making is concentrated at a single
point in the organization.
a. Decentralization
b. Centralization (moderate)
c. Transnationalism
d. Cross sectional analysis
64. If lower-level employees provide input or are actually given the discretion to make decisions,
the organization is ______________.
a. formalized.
b. centralized.
c. decentralized. (easy)
d. mechanistic.
e. organic.
65. Recently, there has been a distinct trend toward ______________.

a. smaller spans of control.
b. decentralized decision-making. (moderate)
c. decreased flexibility.
d. emphasis on chain of command.
e. mechanistic organizations.
66. Which of the following factors WOULD NOT influence an organization to have a higher
degree of centralization?
a. Environment is stable.
b. Company is geographically dispersed. (difficult)
c. Company is large.
d. Decisions are significant.
e. Organization is facing a crisis.
67. ______________ refers to the degree to which jobs within the organization are standardized
and the extent to which employee behavior is guided by rules and procedures.
a. Standardization
b. Centralization
c. Chain of command
d. Strategy
e. Formalization (moderate)
68. All of the following factors indicate that a decentralized organization would be most effective
EXCEPT when ______________.
a. the environment is complex.
b. decisions are relatively minor.
c. the organization is facing a crisis. (difficult)
d. the company is geographically dispersed.
e. effective implementation of strategies depends on managers having involvement and
flexibility
to make decisions.
69. Which of the following factors describes an environment in which a high degree of
decentralization is desired?
a. Environment is complex, uncertain. (moderate)
b. Lower-level managers do not want to have a say in decisions.
c. Decisions are significant.
d. Company is large.
e. Organization is facing a crisis or the risk of company failure.
70. The ______________ organizational structure is characterized by high specialization,

extensive departmentalization, narrow spans of control and high formalization.
a. mechanistic (easy)
b. organic
c. contingency
d. adhocracy
e. functional
71. Which of the following is NOT a characteristic of a mechanistic organization?

a. high specialization
b. wide spans of control (moderate)
c. high formalization
d. limited information network
e. extensive departmentalization
72. What type of organizational form follows classical principles such as unity of command?
a. organic
b. linear
c. decentralized
d. mechanistic (moderate)
e. adhocracy
ORGANIZATIONAL DESIGN DECISIONS
73. Which of the following would likely be found in mechanistic organizations?

a. wide span of control
b. empowered employees
c. decentralized responsibility
d. few rules and/or regulations
e. standardized job specialties (difficult)
74. All of the following are characteristics of an organic organization EXCEPT:

a. narrow spans of control. (moderate)
b. cross-hierarchical teams.
c. free flow of information.
d. low formalization.
e. cross-functional teams.
75. In the early years of Apple Computers, its desire for highly proficient and creative employees
who operated with few work rules was an example of what type of organization?
a. bureaucratic
b. mechanistic
c. volatile
d. nouvelle
e. organic (difficult)
76. Which of the following is true concerning an organic organization's problem-response time?
a. It requires strict adherence to efficiently developed rules.
b. Its speed demands clear lines of command.
c. Response times are slower than mechanistic organizations, but answers tend to be
more
accurate.
d. Professional standards guide behavior. (difficult)
e. The response time is quick due to the centralized design.
77. Which of the following is not one of the four contingency variables that help determine
appropriate organizational structure?
a. organizational size
b. organizational strategy
c. organizational technology
d. organizational age (moderate)
e. degree of environmental uncertainty
78. Which of the following is an accurate statement?

a. Strategy follows structure.
b. Strategy and structure are equal in temporal importance.
c. Strategy and structure are not linked.
d. Structure follows strategy. (moderate)
e. Mechanistic and organic organizations have distinct differences in the application of the
relationship between strategy and structure.
79. Most current strategy-structure contingency frameworks tend to focus on three strategy
dimensions. These dimensions are ______________.
a. revenue maximization, customer satisfaction, and visibility.
b. customer satisfaction, employee satisfaction, and ethics.
c. innovation, cost minimization, and imitation. (difficult)
d. legal considerations, profit maximization, and innovation.
e. long-term survival, profit maximization, and customer satisfaction.
80. What kind of relationship is there between organizational size and degree of mechanistic
structure?
a. -1.0
b. unclear
c. positive (moderate)
d. bimodal
e. exponential
81. Joan Woodward's research was the first major attempt to view organizational structure from
a ______________ perspective.
a. strategic
b. contingency
c. size
d. departmental
e. technological (easy)
82. The three production categories that Joan Woodward divided organizations into in order to
uncover relationships between organizational structure and technology are
______________.
a. unit, mass, process (difficult)
b. unit, product, cost
c. product, cost, customer
d. mass, process, cost
e. process, unit, product
83. According to Woodward's studies, what type of production works best with a mechanistic
structure?
a. unit
b. process
c. product
d. mass (moderate)
e. just-in-time
84. Which of the following is not a characteristic that would suggest unit production would be a
best "fit"?
a. low horizontal differentiation
b. low vertical differentiation
c. small-batch, custom products
d. low formalization
e. mechanistic structure (difficult)
85. A characteristic that both unit production and process production have is that the most
effective organizational structure for both technologies is ______________.
a. organic. (difficult)
b. mechanistic.
c. adhocracy.
d. matrix.
e. team.
86. Woodward's studies generally demonstrate that organization ______________ should
adapt to their ______________.
a. processes; environment
b. employees; leaders
c. technologies; legal constraints
d. structures; technology (moderate)
e. outputs; resources
87. Which type of environment is best suited for mechanistic organizations?

a. dynamic
b. manufacturing
c. service
d. combination
e. stable (moderate)
88. According to the text, all of the following are examples of the more traditional organizational
designs EXCEPT:
a. the simple structure.
b. the functional structure
c. the matrix structure (moderate)
d. the divisional structure
89. Which of the following is not characteristic of a simple organizational structure?

a. narrow spans of control (moderate)
b. low degree of departmentalization
c. centralized decision-making
d. little formalization
e. information arrangement of employees
COMMON ORGANIZATIONAL DESIGNS
90. Which of the following terms is associated with a simple organizational structure?
a. elaborate
b. high-complexity
c. formal
d. decentralized
e. flat (moderate)
91. A wine store that employs six people most likely has what kind of organizational structure?
a. bureaucracy
b. simple (difficult)
c. functional
d. divisional
e. team-based
92. All of the following are strengths of a simple organizational structure EXCEPT:
a. It's fast.
b. It's inexpensive to maintain.
c. It's less risky. (moderate)
d. Accountability is clear.
e. It's flexible.
93. A bureaucratic or mechanistic design may use a ______________ structure which groups
similar or related occupational specialties together.
a. matrix
b. functional (moderate)
c. divisional
d. geographic
e. team-based
94. A ______________ structure creates strategic business units.

a. matrix
b. functional
c. divisional (difficult)
d. geographic
e. team-based
95. What type of organizational structure is made up of autonomous, self-contained units?

a. bureaucracy
b. simple
c. functional
d. divisional (moderate)
e. team-based
96. In what type of organizational structure is empowerment most crucial?

a. bureaucracy
b. simple
c. functional
d. divisional
e. team-based (easy)
97. The ______________ is an organizational structure that assigns specialists from different
functional departments to work on one or more projects being led by project managers.
a. functional structure
b. simple structure
c. matrix structure (moderate)
d. divisional structure
98. The matrix approach violates what classical principle?

a. unity of command (moderate)
b. decentralization
c. customer focus
d. linear lines of responsibility
e. large spans of control
99. What type of organization assigns specialists from different functional departments to work
on one or more projects led by a project manager?
a. classical
b. contemporary
c. matrix (easy)
d. evolutionary
e. product-based
100. A ______________ organization is not defined by, or limited to, the horizontal, vertical, or
external boundaries imposed by a predefined structure.
a. team-based
b. boundaryless
c. mechanistic
d. project (moderate)
e. simple
101. A ______________ organization has developed the continuous capacity to adapt and
change.
a. simple
b. mechanistic
c. bureaucratic
d. team-based
e. learning (moderate)
MANAGING IN AN E-BUSINESS WORLD
102. According to the boxed feature, “Managing in an E-Business World,” all of the following are
needed for E-business to achieve the characteristic necessary for success in the digital
world EXCEPT:
a. high vertical, horizontal, and lateral communication.
b. cross-hierarchical and cross-functional teams.
c. extensive employee empowerment.
d. high formalization. (moderate)
103. According to the boxed feature, “Managing in an E-Business World,” Amazon.com’s

organizational structure is best described as ______________.
a. mechanistic
b. organic (moderate)
c. formal
d. diagonal
104. According to the boxed feature, “Managing in an E-Business World,” the ______________
organization is the concept that describes an E-business organization.
a. mechanistic
b. boundaryless (moderate)
c. functional
d. diagonal
105. The important characteristics of a learning organization revolve around all of the following
EXCEPT:
a. organizational design.
b. market capitalization (moderate)
c. information sharing.
d. leadership.
e. culture.
Scenarios
Organizational Structure (Scenario)
Michelle is a registered nurse in charge of a new unit in her hospital. She would like to have a
more laid-back approach to dealing with her new staff, but the hospital demands that there are
strict hierarchical levels and that all decisions must be signed off by Michelle. Sometimes this
drives Michelle nuts; the constant filling out of forms, etc. She also feels that the numerous
levels of hierarchy are unnecessary and place barriers between her and her staff. She isn't sure
why things have to be so "organized" and is thinking about speaking with her boss to attempt
changing her unit to have more flexibility and fewer rules.
106. Michelle is concerned about her unit's ______________, the unit's formal framework by
which job tasks are divided, grouped and coordinated.
a. formal organizational chart
b. organizational structure (moderate)
c. staff
d. span of control
e. communication lines
107. Michelle is required to sign off on all decisions, suggesting that they have a
______________ form of decision-making authority.
a. centralized (moderate)
b. formal
c. autocratic
d. policy
e. strict
108. Michelle has noticed that everyone is very concerned about the ______________, the line
of authority within the organization.
a. responsibility
b. chain of command (easy)
c. span of control
d. organizational strategy
e. environment
Consultants R Us (Scenario)
Beth Ann has been hired as a consultant for XYZ Consulting, and her first assignment is to
apply the work of Joan Woodward to her client, Custom Leather, Inc. Custom Leather makes
expensive leather furniture.
109. Woodward felt that the effectiveness of the organization would be related to the
______________ fit.
a. employee/product
b. technology/structure (moderate)
c. environment/process
d. process/employee
e. employee/environment
110. If Custom Leather produces couches for individual orders, this is termed ______________
production.
a. mass
b. process
c. unit (moderate)
d. environmental
e. procedural
111. If Custom Leather produces in large batches, this is termed ______________ production.
a. mass (moderate)
b. process
c. unit
d. environmental
e. procedural
112. Custom Leather is unable to use a continuous process, or ______________ production,

because leather is a unique item.
a. mass
b. process (moderate)
c. unit
d. environmental
e. procedural
You Can Bank on It (Scenario)
Susan's employer, Western Bank, like many others, had recently undergone decruitment in
order to "right size" the organization. The Board of Directors felt that their sagging stock price
could be improved with some labor cost cutting. Along with other new challenges, a problem
now existed with span of control and decision-making authority. In the past, her bank's policy
was that no manager should supervise more than six subordinates and only managers should
make decisions for their individual units. But now, with the cuts in middle management, upper
management had increased the span of control but still insisted on managerial-only decision-
making. The result was that managers spent all of their time putting out fires and subordinates
felt they were getting answers too slowly and wanted to start having the authority to make
decisions on their own. Clearly, something had to change.
113. Of the following, which is not a reason that would be consistent with Western Bank's wanting
to maintain a centralized form of decision-making?
a. Environment is uncertain. (moderate)
b. Environment is stable.
c. Company is large.
d. Decisions are more significant.
e. Organization is facing a crisis.
114. Of the following which is not a reason Western Bank would not change to a more
decentralized form of decision-making?
a. lower-level managers are capable of decision-making
b. company is geographically dispersed
c. decisions are relatively minor
d. organization is in risk of failure (easy)
e. lower-level managers want a voice in decisions
115. Susan believes that Western Bank should be highly adaptive and flexible. She would like
for Western Bank to be a(n) ______________ structure.
a. organic (easy)
b. mechanistic
c. formalized
d. technological
e. strategic
116. The contingency approach would consider all of the following variables EXCEPT the
______________.
a. organization's strategy.
b. organization's size.
c. organization's age. (moderate)
d. orga nization's technology.
e. degree of environmental uncertainty.
Food for Thought (Scenario)
Burgess owned a ToutLeMart, a store that sold food and nonfood items in a warehouse
environment. He employed 350 people and had them work in very specialized areas. Some
people only unloaded the pallets from the trucks or drove the pallets onto the floor, while still
others unloaded the pallets in their specific area of responsibility. He had managers controlling
each specific area. For example, the automotive manager was in charge of all functions;
accounting, purchasing, sales, etc. This arrangement had generally worked well, but recently, he
noticed that employees seemed bored and turnover and absenteeism had risen. In addition, he
found that attempting to get special projects completed, such as creating their new "First-Class
Customer" card, had turned into a nightmare due to the lack of cooperation and misunderstanding
between the groups.
117. ToutLeMart currently operates under the classical view of the division of labor. This is
characterized by which of the following?
a. You only report to one manager.
b. Employees specialize in doing part of a task. (easy)
c. Employees specialize in doing one complete task.
d. People are divided according to their work interest.
e. Employees are trained to do many tasks to increase flexibility.
118. The type of departmentalization practiced by ToutLeMart is best described as

______________.
a. product. (moderate)
b. function.
c. customer.
d. geographic.
e. process.
119. If ToutLeMart decided to reorganize their departmentalization so that one manager was in
charge of accounting, one manager in charge of food stuffs, one manager in charge of
nonfood items, etc., this would be described as ______________ departmentalization.
a. product
b. function (moderate)
c. customer
d. geographic
e. process
120. If Burgess regularly put together teams made up of specialists from different areas to tackle
new projects, like the "First-Class Customer" card project, these would be called
______________.
a. cross-functional teams. (easy)
b. quality circles.
c. total quality management.
d. special project teams.
e. specialty teams.
ESSAY QUESTIONS
121. In a short essay, list and explain the six key elements in designing an organization’s
structure.
Answer
a. Work specialization – this concept describes the degree to which tasks in an
organization are divided into separate jobs. The essence of work specialization is that
an entire job is not done by one individual but instead is broken down into steps, and
each step is completed by a different person.
b. Departmentalization – the basis by which jobs are grouped together is called
departmentalization. The five common forms of departmentalization include functional,
product, geographical, process, and customer departmentalization.
c. Chain of command – this is the continuous line of authority that extends from upper
organizational levels to the lowest levels and clarifies who reports to whom. It helps
employees answer questions such as “Who do I go to if I have a problem?” or “To whom
am I responsible?”
d. Span of control – this concept is important because, to a large degree, it determines the
number of levels and managers an organization has. All things being equal, the wider
or larger the span, the more efficient the organization.
e. Centralization and decentralization – centralization describes the degree to which
decision making is concentrated at a single point in the organization. If top managers
make the organization’s key decisions with little or no input from below, then the
organization is centralized. In contrast, the more that lower-level employees provide
input or actually make decisions, the more decentralization there is.
f. Formalization – this refers to the degree to which jobs within the organization are
standardized and the extent to which employee behavior is guided by rules and
procedures. If a job is highly formalized, then the person doing that job has a minimum
amount of discretion over what is to be done, when it’s to be done, and how he or she
could do it.
(difficult)
122. In a short essay, list and discuss the five common forms of departmentalization.
Answer
a. Functional departmentalization – jobs are grouped by functions (i.e. marketing, finance,
human resources) performed. This approach can be used in all types of organizations,
although the functions change to reflect the organization’s objectives and work activities.
b. Product departmentalization – jobs are groups by product line. In this approach, each
major product area is placed under the authority of a manager who’s a specialist in, and
is responsible for, everything having to do with that product line.
c. Geographical departmentalization – jobs are grouped on the basis of territory or
geography such as southern, mid-western, or north-western regions for an organization
operating only in the United States; or for a global company, maybe a U.S., European,
Canadian, and Asian-Pacific regions.
d. Process departmentalization – groups jobs on the basis of product or customer flow. In
this approach, work activities follow a natural processing flow of product or even
customers.
e. Customer departmentalization – jobs are grouped on the basis of common customers
who have common needs or problems that can best be met by having specialists for
each.
(moderate)
123. In a short essay, explain the concepts of authority, responsibility, and unity of command.
Answer
Authority refers to the rights inherent in a managerial position to tell people what to do and
to expect them to do it. To facilitate decision making and coordination, an organization’s
managers are part of the chain of command and are granted a certain degree of authority
to meet their responsibilities. As managers coordinate and integrate the work of employees,
those employees assume an obligation to perform any assigned duties. This obligation or
expectation to perform is known as responsibility. Finally, the unity of command principle
helps preserve the concepts of a continuous line of authority. It states that a person should
report to only one manager. Without unity of command, conflicting demands and priorities
from multiple bosses can create problems.
(easy)
124. In a short essay, list six factors that influence the amount of centralization and six factors
influence the amount of decentralization in an organization.
Answer
More Centralization
a. Environment is stable.
b. Lower-level managers are not as capable or experienced at making decisions as upper-
level managers.
c. Lower-level managers do not want to have a say in decisions.
d. Decisions are significant.
e. Organization is facing a crisis or the risk of company failure.
f. Company is large.
g. Effective implementation of company strategies depends on managers’ retaining say
over what happens.
More Decentralization
a. Environment is complex, uncertain.
b. Lower-level managers are capable and experienced at making decisions.
c. Lower-level managers want a voice in decisions.
d. Decisions are relatively minor.
e. Corporate culture is open to allowing managers to have a say in what happens.
f. Company is geographically dispersed.
g. Effective implementation of company strategies depends on managers’ having
involvement and flexibility to make decisions.
(moderate)
125. In a short essay, discuss the characteristics of mechanistic and organic organizations.
Answer
a. The mechanistic organization is a rigid and tightly controlled structure. It is
characterized by high specialization, rigid departmentalization, narrow spans of control,
high formalization, a limited information network (mostly downward communication),
and little participation. Mechanistic types of organizational structures tend to be
efficiency machines, well oiled by rules, regulations, standardized tasks, and similar
controls. This organizational design tries to minimize the impact of differing
personalities, judgments, and ambiguity because these human traits are seen as
inefficient and inconsistent.
b. In direct contrast to the mechanistic form of organization is the organic organization,
which is as highly adaptive and flexible structure a structure as the mechanistic
organization is rigid and stable. Rather than having standardized jobs and regulations,
the organic organization is flexible, which allows it to change rapidly as needs require.
Organic organizations have division of labor, but the jobs people do are not
standardized. Employees are highly trained and empowered to handle diverse job
activities and problems, and these organizations frequently use employee teams.
Employees in organic type organizations require minimal formal rules and little direct
supervision.
(easy)
126. In a short essay, list and discuss the four contingency variables that should be considered
in determining an appropriate structure in organizational design.
Answer
a. Strategy and structure – an organization’s structure should facilitate the achievement of
goals. Because goals are influenced by the organization’s strategies, it’s only logical
that strategy and structure should be closely linked. More specifically, structure should
follow strategy. If managers significantly change the organization’s strategy, they will
need to modify structure to accommodate and support the change.
b. Size and structure – there’s considerable evidence that an organization’s size
significantly affects its structure. For instance, large organizations—those with 2,000 or
more employees—tend to have more specialization, departmentalization, centralization,
and rules and regulations than do small organizations. However, the relationship isn’t
linear. Rather, size affects structure at a decreasing rate; that is, size becomes less
important as an organization grows.
c. Technology and structure – every organization has at least one form of technology to
convert its inputs into outputs. The processes or methods that transform an
organization’s inputs into outputs differ by their degree of routineness. In general, the
more routine the technology, the more standardized and mechanistic the structure can
be. Organizations with more nonroutine technology are more likely to have organic
structures.
d. Environmental uncertainty and structure – because uncertainty threatens an
organization’s effectiveness, managers will try to minimize it. One way to reduce
environmental uncertainty is through adjustments in the organization’s structure. The
greater the uncertainty, the greater the need for the flexibility offered by an organic
design. On the other hand, in stable, simple environments, mechanistic designs tend
to be most effective.
(difficult)
127. In a short essay, list and discuss the three types of traditional organizational designs and
the strengths and weaknesses of each of these designs.
Answer
a. Simple structure – this is an organizational design with low departmentalization, wide
spans of control, authority centralized in a single person, and little formalization. This
structure is most commonly used by small businesses in which the owner and manager
are one and the same. Strengths of this type of organizational structure are that it is
fast, flexible, inexpensive to maintain, and has clear accountability. Weaknesses are
that it becomes inappropriate as the organization grows and the reliance on one person
is risky.
b. Functional structure – this is an organizational design that groups similar or related
occupational specialties together. It’s the functional approach to departmentalization
applied to the entire organization. Strengths of this types of organizational structure are
cost-saving advantages from specialization and employees are grouped with other who
have similar tasks. Weaknesses are pursuit of functional goals can cause managers to
lose sight of what’s best for the overall organization and that functional specialists may
become insulated and have little understanding of what other units are doing.
c. Divisional structure – this is an organizational structure made up of separate units or
divisions. In this design, each unit or division has relatively limited autonomy, with a
division manager responsible for performance and who have strategic operational
authority over his or her unit. A main strength of this type of organizational structure is
that it focuses on results where division managers are responsible for what happens to
their products and services. A weakness is duplication of activities and resources
increases costs and reduces efficiency.
(moderate)
COMMON ORGANIZATIONAL DESIGNS
128. In a short essay, discuss the matrix organizational structure.
Answer
The matrix structure is an organizational structure that assigns specialists from different
functional departments to work on one or more projects being led by project managers. One
unique aspect of the matrix design is that it creates a dual chain of command and explicitly
violates the classical organizing principle of unity of command. Employees in a matrix
organization have two managers: their functional department manager and their product or
project manager, who share authority. The project managers have authority over the
functional members who are part of their project team in areas relative to the project’s goals.
However, decisions such as promotions, salary recommendations, and annual reviews
remain the functional manager’s responsibility. To work effectively, project and functional
managers have to communicate regularly, coordinate work demands on employees, and
resolve conflicts together.
(moderate)
129. In a short essay, explain the concept of a boundaryless organization.
Answer
The boundaryless organization is an organization whose design is not defined by, or limited
to, the horizontal, vertical, or external boundaries imposed by a predefined structure. This
idea may sound odd, yet many of today’s most successful organizations are finding that
they can most effectively operate in today’s environment by remaining flexible and
unstructured: that the ideal structure for them is not having a rigid, predefined structure.
Instead, the boundaryless organization seeks to eliminate the chain of command, to have
limitless spans of control, and to replace departments with empowered teams.
(easy)
130. In a short essay, describe a learning organization and list and discuss the four elements
which the important characteristics of a learning organization revolves around.
Answer
A learning organization is an organization that has developed the capacity to continuously
adapt and change because all members take an active role in identifying and resolving work-
related issues. In a learning organization, employees are practicing knowledge
management by continually acquiring and sharing new knowledge and are willing to apply
that knowledge in making decisions or performing their work.
a. Organizational design - in a learning organization, the organizational structure needs to

be designed to allow for members to share information and collaborate on work activities
throughout the entire organization—across different functional specialties and even at
different organizational levels. This can be done by minimizing or eliminating the
existing structural and physical boundaries. In this type of boundaryless environment,
employees are free to work together and collaborate in doing the organization’s work
the best way they can and to learn from each other.
b. Information sharing - for a learning organization to “learn,” information must be shared
among members; that is, organizational employees must engage in knowledge
management. This means sharing information openly, in a timely manner, and in as
accurate a form as possible. Because there are few structural and physical barriers in
a learning organization, the environment is conducive to open communication and
extensive information sharing.
c. Leadership - leadership plays an important role as an organization moves to become a
learning organization. One of the most important functions of leaders is facilitating the
creation of a shared vision for the organization’s future and then keeping organizational
members working toward that vision. In addition, leaders should support and encourage
the collaborative environment that’s critical to learning. Without strong and committed
leadership throughout the organization, it would be extremely difficult to be a learning
organization.
d. Culture - the organizational culture is an important aspect of being a learning
organization. A learning organization’s culture is one in which everyone agrees on a
shared vision and everyone recognizes the inherent interrelationships among the
organization’s processes, activities, functions, and external environment. There is a
strong sense of community, caring for each other, and trust. In a learning organization,
employees feel free to openly communicate, share, experiment, and learn without fear
of criticism or punishment.
(difficult)
Chapter 17 - Leadership
Multiple Choice
31. According to the company profile in “A Manager’s Dilemma,” the problem facing Bob Ross
Buick is determining _______________.
a. how to attract more customers.
b. how to expand the company.
c. how to keep employees loyal. (moderate)
d. how to hire more qualified employees.
e. how to sell the business.
MANAGERS VERSUS LEADERS
32. Which of the following is NOT true concerning the difference between managers and
leaders?
a. Managers are appointed.
b. Managers influence through informal means. (easy)
c. Leaders may be appointed.
d. Leaders can influence beyond formal authority.
e. Leaders may emerge from a group.
33. Persons who are able to influence others and who possess managerial authority are termed
______________.
a. managers.
b. leaders. (easy)
c. organizers.
d. visionaries.
e. team members.
EARLY LEADERSHIP THEORIES
34. Which of the following is NOT mentioned in the text as one of the three leadership styles
explored in the University of Iowa studies?
a. cultural style (easy)
b. autocratic style
c. democratic style
d. laissez-faire style
35. Which of the following describes the leadership style in which a leader tended to
centralize authority, dictate work methods, make unilateral decisions, and limit employee
participation?
a. cultural style
b. autocratic style (moderate)
c. democratic style
36. The _______________ style of leadership describes a leader who tends to involve
employees in decision making, delegate authority, encourage participation in deciding work
methods and goals, and use feedback as an opportunity for coaching employees.
a. cultural style
b. autocratic style
c. democratic style (moderate)
37. Which of the following describes the leadership style in which the leader generally gives the
group complete freedom to make decisions and complete the work in whatever way it saw
fit?
a. cultural style
b. autocratic style
c. democratic style
d. laissez-faire style (moderate)
38. According to the Ohio State studies, which of the following dimensions of leader behavior
refers to the extent to which a leader is likely to define and structure his or her role and the
roles of group members in the search for goal attainment?
a. intelligence structure
b. psychological structure
c. initiating structure (easy)
d. consideration structure
39. According to the Ohio State studies, the dimension of leader behavior that is defined as the
extent to which a leader had job relationships characterized by mutual trust and respect for
group members’ ideas and feelings is called _______________.
a. initiation.
b. consideration. (moderate)
c. cultural.
d. physical.
CONTINGENCY THEORIES OF LEADERSHIP
40. Who developed the first contingency model for leadership?

a. Blake and Mouton
b. Fiedler (easy)
c. Adler
d. Lewin
e. Schmidt
41. Fielder's model of leadership was the first ______________ model.

a. visionary
b. path-goal
c. team
d. empowerment
e. contingency (moderate)
42. Fiedler's least-preferred co-worker questionnaire seeks to measure what leadership factor?
a. subordinate needs
b. leader's style (moderate)
c. situation
d. subordinate co-worker influence
e. leader traits
43. Which of the following is TRUE concerning Fiedler's least-preferred co-worker
questionnaire?
a. Leaders are either task or relationship oriented. (moderate)
b. Fielder assumed that leadership style was contextual.
c. Leadership style is dynamic depending on the situation.
d. A low LPC would be a task-oriented leader.
e. A high LPC would be a relationship-oriented leader.
44. The least preferred co-worker questionnaire was developed by ______________.

a. Victor Vroom
b. Robert House
c. Fred Fiedler (difficult)
d. French and Raven
e. David McClelland
45. Fiedler assumed a person's leadership style was ______________.

a. contingent.
b. relative.
c. dimensional.
d. fixed. (difficult)
e. team oriented.
46. Fiedler's dimension termed ______________ is the degree of confidence, trust, and respect
subordinates had for their leader.
a. leader-member relations (easy)
b. power relationship
c. task structure
d. authority
e. position power
47. Which of the following are two of the three key situational factors Fielder felt were important
in determining leader effectiveness?
a. leader-member relations, maturity of followers
b. organizational success, position power
c. task structure, leader-member relations (moderate)
d. maturity of organization and subordinates
e. organizational age and task structure
48. Fiedler's term ______________ refers to the degree to which the job assignments are
formalized and procedurized.
a. leader-member relations
b. power relationship
c. task structure (easy)
d. authority
e. position power
49. The degree to which the job assignments are formalized and procedurized is the
______________ contingency dimension according to Fielder.
a. position power
b. subordinate maturity
c. task structure (moderate)
d. centralization
e. leader-member relations
50. Fiedler's term ______________ refers to the degree of influence a leader has over power-
based activities.
a. leader-member relations
b. position power (moderate)
c. responsibility
d. task structure
e. respect
51. According to Fielder, in what types of situations do task-oriented leaders perform best?
a. very favorable, very unfavorable (moderate)
b. moderately favorable, moderately unfavorable
c. very favorable, unfavorable
d. very unfavorable, unfavorable
e. very favorable, favorable
52. According to Fielder, in what type of situations do relationship-oriented leaders perform

best?
a. very favorable
b. favorable
c. moderately favorable (moderate)
d. unfavorable
e. very unfavorable
53. According to Fielder, the two ways to improve leadership effectiveness are to change the
situation to fit the leader or ______________.
a. train the employees.
b. change the leader. (moderate)
c. train the leader.
d. apply systematic pressure.
e. enhance the reward system.
54. According to Fiedler, if a group situation was rated as highly unfavorable and was led by a
relationship leader, the group's performance could be improved by ______________.
a. restructuring tasks. (difficult)
b. changing the leader's style.
c. retraining followers.
d. empowering employees.
e. reducing the leader's authority.
55. Overall, the validity of the Fiedler contingency model could be described as
______________.
a. supportive. (moderate)
b. moderately supportive.
c. inconclusive.
d. unsupportive.
e. very unsupportive.
56. According to the text, the ______________theory is a contingency theory that focuses on
follower’s readiness.
a. consideration leadership
b. situational leadership (moderate)
c. passive leadership
d. active leadership
57. Which of the following leadership styles describes a leader who provides both directive and
supportive behavior?
a. telling
b. selling (moderate)
c. participating
d. delegating
e. referring
58. The main role of the leader is to facilitate and communicate in which of the following
leadership styles?
a. telling
b. selling
c. participating (moderate)
d. delegating
e. referring
59. Which of the following leadership styles describes a leader who provides little direction or
support?
a. telling
b. selling
c. participating
d. delegating (moderate)
e. referring
60. What leadership model is associated with Vroom and Yetton?

a. contingency leadership theory
b. situational leadership theory
c. path-goal model
d. leader participation model (easy)
e. leader characteristics model
61. Who developed path-goal theory?

a. Fielder
b. Blake and Mouton
c. Lewin
d. House (moderate)
e. Schmidt
62. According to path-goal theory, a leader's behavior is ______________ to subordinates to

the degree that they view it as an immediate source of satisfaction.
a. motivational
b. acceptable (moderate)
c. compatible
d. transactional
e. transformational
63. According to the path-goal theory, a leader's behavior is ______________ to the extent that
it makes the satisfaction of subordinates' needs contingent on effective performance and
provides coaching and guidance.
a. motivational
b. acceptable (moderate)
c. compatible
d. transactional
e. transformational
64. According to path-goal theory, a leader who lets subordinates know what's expected of
them, schedules work to be done, and gives specific guidance as to how to accomplish tasks is
termed ______________.
a. directive. (moderate)
b. achievement oriented.
c. participative.
d. supportive.
e. authoritative.
65. According to path-goal theory, a leader who is friendly and shows concern for the needs of
subordinates is termed ______________.
a. directive.
b. achievement oriented.
c. participative.
d. supportive. (moderate)
e. authoritative.
66. According to path-goal theory, a manager who consults with subordinates and uses their
suggestions would be exhibiting what type of leadership behavior?
a. directive
b. achievement oriented
c. participative (moderate)
d. supportive
e. authoritative
67. Which of the following is NOT a leadership behavior identified in House's path-goal theory?
a. directive leader
b. supportive leader
c. participative leader
d. transactional leader (difficult)
e. achievement-oriented leader
68. A leader who sets challenging goals and expects very high performance levels from
subordinates would be classified as what type of leader, according to path-goal theory?
a. supportive
b. participative
c. achievement oriented (moderate)
d. democratic
e. directive
69. In contrast to Fielder's contingency theory, House's path-goal theory assumes leaders are
______________.
a. trained.
b. flexible. (moderate)
c. born.
d. visionary.
e. managers.
70. The task structure a subordinate works with would be important in understanding the
______________ variable that moderates the leader behavior-outcome relationship.
a. subordinate
b. leader
c. environmental (easy)
d. work group
e. authority system
71. In the path-goal theory, which of the following is included in the class of contingency
variables termed "environment"?
a. task structure and formal authority system (difficult)
b. locus of control and experience
c. perceived ability
d. employee satisfaction
e. performance
72. Path-goal theory identifies two classes of situation variables that moderate the leadership-
behavior outcome ______________.
a. tact and relationship.
b. path and goal.
c. people and history.
d. participation and structure.
e. environment and subordinates. (moderate)
73. Which of the following is included in the class of contingency variables termed "follower"?
a. locus of control (difficult)
b. performance
c. employee satisfaction
d. formal authority system
e. task structure
74. According to the text, which of the following is NOT a hypothesis from the path-goal theory?
a. Supportive leadership results in high employee performance and satisfaction when
subordinates are performing structured tasks.
b. Directive leadership leads to greater satisfaction when tasks are high structured and
well laid out than when tasks are ambiguous or stressful. (difficult)
c. Directive leadership is likely to be perceived as redundant among subordinates with
high perceived ability or with considerable experience.
d. The clearer and more bureaucratic the formal authority relationships, the more leaders
should exhibit supportive behavior and deemphasize directive behavior.
e. Directive leadership will lead to higher employee satisfaction when there is substantive
conflict within a work group.
75. Which of the following is not one of the hypotheses that have evolved from the path-goal
theory?
a. Supportive leadership results in high employee performance and satisfaction when
subordinates are performing structured tasks.
b. Directive leadership is likely to be perceived as redundant among subordinates with
highly perceived ability or with considerable experience.
c. The more clear and bureaucratic the formal authority relationships, the more leaders
should exhibit supportive behavior and deemphasize directive behavior.
d. Directive leadership will lead to higher employee satisfaction when there is substantive
conflict within a work group.
e. Subordinates with an external locus of control will be more satisfied with a directive
style. (difficult)
76. According to the path-goal theory, directive leadership will lead to higher employee
satisfaction when there is ______________ within a work group.
a. cohesiveness
b. high structure
c. substantial conflict (moderate)
d. internal locus of control
e. a visionary leader
77. Research on path-goal theory could be summarized as ______________.
a. negative support.
b. inconclusive.
c. positive support. (easy)
d. very unsupportive.
e. varying widely as supportive and nonsupportive.
CUTTING-EDGE APPROACHES TO LEADERSHIP
78. What type of leaders guide or motivate their followers in the direction of established goals
by clarifying role and task requirements?
a. transactional (moderate)
b. charismatic
c. trait
d. transformational
e. informational
79. Which type of leaders provide individualized consideration, intellectual stimulation, and
possess charisma?
a. transactional
b. charismatic
c. trait
d. transformational (moderate)
e. informational
80. A leader, such as Bill Gates of Microsoft, who can inspire followers above their own self-
interests and can have a profound effect on their performance, are known as
______________.
a. transactional leaders.
b. directive leaders.
c. informational leaders.
d. emotional leaders.
e. transformational leaders. (difficult)
81. Which of the following is an accurate statement about transformational leaders?

a. They clarify task requirements.
b. They focus on tasks and pay little attention to followers.
c. They are poor motivators.
d. They are opposite style leaders compared to transactional leaders.
e. They exhibit more than just charisma. (difficult)
82. The evidence supporting the superiority of transformational leadership over the
transactional variety is ______________.
a. inconclusive.
b. moderately supportive.
c. moderately negative.
d. overwhelmingly impressive. (moderate)
e. difficult to interpret.
83. Which of the following nonverbal behaviors do researchers who are training charismatic
leaders NOT include?
a. leaning toward the subordinate
b. avoiding eye contact
c. having relaxed posture (easy)
d. having animated facial expressions
84. ______________ leadership is the ability to create and articulate a realistic, credible,
attractive vision of the future for an organization or organizational unit that grows out of and
improves upon the future.
a. Visionary (easy)
b. Charismatic
c. Trait
d. Transactional
e. Informational
85. The key properties of a vision include all of the following EXCEPT that they
______________.
a. are value centered.
b. are realizable.
c. have superior imagery.
d. are easily achieved. (moderate)
e. are well articulated.
86. Which of the following is NOT an important leadership role for team leaders?
a. liaison with external constituencies
b. liaison with internal constituencies (moderate)
c. troubleshooter
d. conflict manager
e. coach
CONTEMPORARY ISSUES IN LEADERSHIP
87. All of the following are sources of power identified by French and Raven EXCEPT:
a. legitimate.
b. status. (easy)
c. expert.
d. coercive.
e. reward.
88. Which of the following, according to French and Raven, is the type of power a person has
as a result of his or her position in the formal organizational hierarchy?
a. legitimate power (moderate)
b. coercive power
c. reward power
d. expert power
e. referent power
89. Examples of an organization's ______________ power include performance appraisals,

promotions, and interesting work assignments.
a. legitimate (moderate)
b. status
c. expert
d. coercive
e. reward
MANAGING YOUR CAREER
90. According to the boxed feature, “Managing Your Career,” which of the following is NOT
mentioned as a suggestion to improve an individual’s political effectiveness?
a. Frame arguments in terms of organizational goals.

b. Gain control of organizational resources.
c. Mix with everyone regardless of the reputation. (moderate)
d. Be visible.
e. Develop powerful allies.
91. ______________ is the power that rests on the leader’s ability to punish or control.
a. Reward power.
b. Coercive power. (moderate)
c. Expert power.
d. Referent power.
e. Legitimate power.
92. The power utilized when a boss threatens to dismiss an employee if he/she does not comply
with a demand is ______________.
a. reward power.
b. coercive power. (moderate)
c. expert power.
d. referent power.
e. legitimate power.
93. ______________ is the power to give positive benefit or rewards.

a. Reward power. (moderate)
b. Coercive power.
c. Expert power.
d. Referent power.
94. Your firm's attorney has ______________ power when he gives legal advice.
a. legitimate
b. status
c. expert (moderate)
d. coercive
e. reward
95. ______________ is influence that’s based on expertise, special skills, or knowledge.

a. Reward power.
b. Coercive power.
c. Expert power. (moderate)
d. Referent power.
96. When a young child emulates a professional sports star's behavior, the star has what kind
of power over the child?
a. legitimate
b. expert
c. coercive
d. referent (difficult)
e. reward
97. ______________ is the power that arises because of a person’s desirable resources or
personal traits.
a. Reward power.
b. Coercive power.
c. Expert power.
d. Referent power. (moderate)
98. The most dominant component of credibility is ______________.

a. expertise.
b. status.
c. authority.
d. honesty. (moderate)
e. charisma.
99. The dimension of trust that is used to describe honesty and truthfulness is
______________.
a. integrity. (easy)
b. competence.
c. consistency.
d. loyalty.
e. openness.
100. The dimension of trust that is used to describe reliability, predictability and good judgment
in handling situations is termed ______________.
a. integrity.
b. competence.
c. consistency. (moderate)
d. loyalty.
e. openness.
101. Which of the following is an accurate statement about the differences between gender and
leadership style?
a. Males and females do not use different styles.
b. Men are more democratic than women.
c. Women encourage more participation. (moderate)
d. Men share power more than women.
e. Women rely on formal authority more than men.
102. According to the text, women tend to use ______________ leadership, motivating other by
transforming their self-interest into organizational goals.
a. transactional
b. transformational (moderate)
c. situational
d. initiating
103. According to the text, men tend to use _____________, handing out rewards for good
work and punishment for bad.
a. transactional (moderate)
b. transformational
c. situational
d. initiating
104. Which of the following is NOT mentioned as one of the three differences that seem to be
most evident when comparing leadership in e-businesses versus traditional organizations?
a. The importance of being a specialist. (moderate)

b. The speed at which decisions must be made.
c. The importance of being flexible.
d. The need to create a vision of the future.
105. Leaders in e-businesses frequently use the term ______________, which is a reference to
a rapidly speeded up working environment.
a. turbo time
b. Internet time (easy)
c. speed of light
d. rapid time
Scenarios and Questions
Jack and Jill (Scenario)
Jack Jones and Jill Smith are both managers at a medium-sized medical supply firm. Jack
emphasizes to his people that the work must be done, regardless of circumstances, and
encourages his employees to meet their sales quotas. He is generally liked, but because sales
are unstructured, sometimes his employees resent his rather heavy-handed approach. Jill has
tried hard to build a good rapport with her employees and knows each of their families. She
encourages her employees to work hard but to be certain to take time for themselves and their
families.
106. Fiedler's contingency model would classify Jack as ______________ oriented.

a. employee
b. organization
c. task (easy)
d. relationship
e. achievement
107. Fiedler's contingency model would classify Jill as ______________ oriented.

a. employee
b. organization
c. task
d. relationship (easy)
e. achievement
108. Which of the following would be assumed by Fiedler's contingency model about the
leadership styles of Jack and Jill.
a. The leadership styles can be adjusted to fit the situation.
b. The leadership styles are fixed, regardless of the situation. (moderate)
c. The leadership styles can be changed with appropriate training.
d. Jack's style is well suited for unstructured tasks.
e. Jack and Jill can be expected to be equally successful.
109. Fiedler would expect that the best leadership style was a function of ______________.
a. leader-member relations, task structure, and position power. (moderate)
b. formal authority, production process, and personality of employees.
c. chain of command, relationships, and power.
d. type of organization, personality of leader, and education of employees.
e. type of process, personality of employees, and power of leader.
110. The overall validity of the Fiedler model seems to be ______________.

a. generally negative.
b. generally positive. (moderate)
c. overwhelmingly negative.
d. overwhelmingly positive.
e. inconclusive.
The Path to Leadership (Scenario)
Brooke is a manager of the night shift in a nursing home. She has been reading information about
House's path-goal theory and would like to apply that information to becoming a better leader.
111. Brooke should understand that the path-goal theory is a(n) ______________ model of
leadership that extracts key elements from the expectancy theory of motivation.
a. fixed
b. alternative
c. contingency (moderate)
d. untested
e. charismatic
112. Brooke generally lets subordinates know what's expected of them, schedules work to be
done, and gives specific guidance as to how to accomplish tasks. Brooke would be termed
a(n) ______________ leader.
a. achievement-oriented
b. participative
c. supportive
d. directive (moderate)
e. charismatic
113. Brooke would like to become a participative leader. She should ______________.
a. let subordinates know what's expected of them, schedule work to be done, and give
specific guidance as to how to accomplish tasks.
b. be friendly and show concern for the needs of subordinates.
c. consult with subordinates and use their suggestions before making a decision. (moderate)
d. set challenging goals and expect subordinates to perform at their highest level.
e. be more concerned with tasks.
114. Lately Brooke has been setting challenging goals and expecting subordinates to perform at
their highest level. She is acting as a(n) ______________ leader.
a. achievement-oriented (moderate)
b. participative
c. supportive
d. directive
e. charismatic
115. Brooke has decided that the appropriate leadership style would be to show friendliness and
concern for the needs of her subordinates. She wishes to be a(n) ______________ leader.
a. achievement-oriented
b. participative
c. supportive (moderate)
d. directive
e. charismatic
A Leadership Junkie (Scenario)
Carrie is a leadership "junkie." She has read all of the latest popular management text on
leadership and strongly feels that it has improved her ability to manage and perform her job. She
is always eager to share her knowledge with her peers, especially emerging issues in leadership
and the differences between the ways men and women lead.
116. Carrie stopped Harry in the hall and just had to tell him about a ______________, that is,
an enthusiastic, self-confident leader whose personality and actions influence people to
behave in certain ways.
a. charismatic leadership (moderate)
b. transactional leadership
c. transformational leadership
d. attributional leadership
e. situational leadership
117. Carrie stopped Sondra in the lunchroom and just had to tell her about ______________,
whereby followers make claims about heroic or extraordinary leadership abilities when they
observe certain behaviors.
a. charismatic leadership (moderate)
118. Carrie stopped Perry in the parking lot and just had to tell him about ______________,
where leaders guide or motivate their followers in the direction of established goals by
clarifying role and task requirements.
a. charismatic leadership
b. transactional leadership (difficult)
119. Carrie stopped Steve in the parking lot and just had to tell him about ______________,
where leaders provide individualized consideration, intellectual stimulation, and possess
charisma.
a. charismatic leadership
c. transformational leadership (difficult)
120. Carrie had to tell Sharon about the findings concerning women and leadership. Sharon was
interested in the fact that all but which of the following is true concerning women and
leadership?
a. There are differences between how men and women lead.
b. Women utilize a democratic style more than men.
c. Women tend to share power less than men. (moderate)
d. Women are less likely than men to use a directive style.
e. Women tend to utilize an autocratic style when they are in male-dominated jobs.
Essay Questions
EARLY LEADERSHIP THEORIES
121. In a short essay, list and discuss the six traits associated with leadership.
Answer
a. Drive – leaders exhibit a high effort level. They have a relatively high desire for
achievement, they are ambitious, they have a lot of energy, they are tirelessly persistent
in their activities, and they show initiative.
b. Desire to lead – leaders have a strong desire to influence and lead others. They
demonstrate the willingness to take responsibility.
c. Honesty and integrity – leaders build trusting relationships between themselves and
followers by being truthful or nondeceitful and by showing high consistency between
word and deed.
d. Self-confidence – followers look to leaders for an absence of self-doubt. Leaders,
therefore, need to show self-confidence in order to convince followers of the rightness
of goals and decisions.
e. Intelligence – leaders need to be intelligent enough to gather, synthesize, and interpret
large amounts of information, and they need to be able to create visions, solve
problems, and make correct decisions.
f. Job-relevant knowledge – effective leaders have a high degree of knowledge about the
company, industry, and technical matters. In-depth knowledge allows leaders to make
well-informed decisions and to understand the implications of those decisions.
(moderate)
122. In a short essay, explain Fiedler’s contingency model for leadership. Next discuss the
least-preferred co-worker (LPC) questionnaire and the three key situational factors for
determining leader effectiveness.
Answer
The Fiedler contingency model proposed that effective group performance depended upon
the proper match between the leader’s style of interacting with his or her followers and the
degree to which the situation allowed the leader to control and influence. The model was
based on the premise that a certain leadership style would be most effective in different
types of situations. Fielder proposed that a key factor in leadership success was an
individual’s basic leadership style. To measure a leader’s style, Fiedler developed the
least-preferred co-worker (LPC) questionnaire. The questionnaire contained 16 pairs of
contrasting adjectives—for example, pleasant-unpleasant, cold-warm, boring-interesting,
and friendly-unfriendly. Respondents were asked to think of all the co-workers they had
ever had and to describe that one person they least enjoyed working with by rating him or
her on a scale of 1 to 8 (the 8 always described the positive adjective out of the pair) for
each of the 16 sets of adjectives. Fiedler believed that you could determine a person’s
basic leadership style on the basis of the responses to the LPC questionnaire. After an
individual’s basic leadership style had been assessed through the LPC, it was necessary
to evaluate the situation in order to match the leader with the situation. Fiedler’s research
uncovered three contingency dimensions that defined the key situational factors for
determining leader effectiveness. These were:
a. Leader-member relations – the degree of confidence, trust, and respect employees had
for their leader; rated as either good or poor.
b. Task structure – the degree to which job assignments were formalized and
procedurized; rated as either high or low.
c. Position power – the degree of influence a leader had over power-based activities such
as hiring, firing, discipline, promotions, and salary increases; rated as either strong or
weak.
(difficult)
123. In a short essay, discuss the situational leadership theory as developed by Paul Hersey
and Ken Blanchard. Next, list and discuss the four specific leadership styles and the four
stages of follower readiness as defined by Hersey and Blanchard.
Answer
The situational leadership theory is a contingency theory that focuses on followers’
readiness. Hersey and Blanchard argue that successful leadership is achieved by
selecting the right leadership style, which is contingent on the level of the followers’
readiness. The emphasis of the followers in leadership effectiveness reflects the reality
that it is the followers who accept or reject the leader. Regardless of what the leader
does, the effectiveness depends on the actions of his or her followers. And, readiness
refers to the extent to which people have the ability and willingness to accomplish a
specific task.
a. The four specific leadership styles are as follows:

b. Telling (high task-low relationship) – the leader defines roles and tells people what, how,
when, and where to do various tasks.
c. Selling (high task-high relationship) – the leader provides both directive and supportive
behavior.
d. Participating (low task-high relationship) – the leader and follower share in decision
making; the main role of the leader is facilitating and communicating.
e. Delegating (low task-low relationship) – the leader provides little direction or support.
The final component in the model is the four stages of follower readiness:
a. R1 – people are both unable and unwilling to take responsibility for doing something.
They’re neither competent nor confident.
b. R2 – people are unable but willing to do the necessary job tasks. They’re motivated but
currently lack the appropriate skills.
c. R3 – people are able but unwilling to do what the leader wants.
d. R4 – people are both able and willing to do what is asked of them.
(difficult)
124. In a short essay, discuss the path-goal leadership theory developed by Robert House.
Next, list and explain the four leadership behaviors based on the path-goal leadership
theory.
Answer
Developed by Robert House, path-goal theory is a contingency model of leadership that
takes key elements from the expectancy theory of motivation. According to this theory, a
leader’s behavior is acceptable to group members to the degree that they view it as an
immediate source of satisfaction or as a means of future satisfaction. A leader’s behavior
is motivational to the extent that it makes the satisfaction of subordinates’ needs
contingent on effective performance and provides the coaching, guidance, support, and
rewards that are necessary for effective performance. To test these statements, House
identified four leadership behaviors.
a. Directive leader – lets subordinates know what’s expected of them, schedules work to
be done, and gives specific guidance on how to accomplish tasks.
b. Supportive leader – is friendly and shows concern for the needs of followers.
c. Participative leader – consults with group members and uses their suggestions before
making a decision.
d. Achievement oriented leader – sets challenging goals and expects followers to perform
at their highest level.
(moderate)
125. In a short essay, discuss how visionary leadership differs from charismatic leadership.
Include a discussion of the five characteristics of charismatic leaders and three qualities
that are related to effectiveness in the visionary leader’s role.
Answer
A charismatic leader is an enthusiastic, self-confident leader whose personality and
actions influence people to behave in certain ways. The most comprehensive analysis of
personal characteristics of the charismatic leaders are charismatic leaders have a vision,
are able to articulate that vision, are willing to take risks to achieve that vision, are
sensitive to both environmental constraints and follower needs, and exhibit behaviors that
are out of the ordinary. There’s an increasing body of evidence that shows impressive
correlation between charismatic leadership and high performance and satisfaction among
followers. Although the term vision is often linked with charismatic leadership, visionary
leadership goes beyond charisma since it’s the ability to create and articulate a realistic,
credible, and attractive vision of the future that improves upon the present situation. This
vision, if properly selected and implemented, is so energizing that it “in effect jump-starts
the future by calling forth the skills, talents, and resources to make it happen. Once the
vision is identified, these visionary leaders appear to have three qualities that are related
to effectiveness in their visionary roles. First is the ability to explain the vision to others.
The visionary leader needs to make the vision clear in terms of required goals and actions
through clear oral and written communication. The second skill needed is the ability to
express the vision not just verbally but through behavior. This skill requires behaving in
ways that continually convey and reinforce the vision. The third skill visionary leaders
need is the ability to extend or apply the vision to different leadership contexts. For
instance, the vision have to be as meaningful to the people in accounting as to those in
production.
(difficult)
126. In a short essay, list and discuss the four specific leadership roles that focus on the
priorities of the leader’s job.
Answer
a. First, team leaders are liaisons with external constituencies. These may include upper
management, other organizational work teams, customers, or suppliers. The leader
represents the team to other constituencies, secures needed resources, clarifies others’
expectations of the team, gathers information from the outside, and shares that
information with team members.
b. Next, team leaders are troubleshooters. When the team has problems and asks for
assistance, team leaders sit in on meetings and try to help resolve the problems.
Troubleshooting rarely involves technical or operational issues because the team
members typically know more about the tasks being done than does the team leader.
The leader is most likely to contribute by asking penetrating questions, helping the team
talk through problems, and getting needed resources to tackle problems.
c. Third, team leaders are conflict managers. When disagreements arise, they help
process the conflict. They help identify issues such as the source of the conflict, who’s
involved, the issues, the resolution options available. and the advantages and
disadvantages of each. By getting team members to address questions such as these,
the leader minimizes the disruptive aspects of intrateam conflicts.
d. Finally, team leaders are coaches. They clarify expectations and roles, teach, offer
support, cheerlead, and do whatever else is necessary to help team members keep
their work performance levels high.
(easy)
CONTEMPORARY ISSUES IN LEADERSHIP
127. In a short essay, list and discuss five sources in which leader power has been identified.
Include specific examples of each source of power to support your answer.
Answer
a. Legitimate power – represents the power a leader has as a result of his or her position
in the organization. People in positions of authority are also likely to have reward or
coercive power, but legitimate power is broader than the power to coerce and reward.
Because of their legitimate power, when school principals, bank presidents, or army
captains ask for something to be done, teachers, tellers, and lieutenants listen and
usually comply.
b. Coercive power – the power that rests on the leader’s ability to punish or control.
Followers react to this power out of fear of the negative results that might occur if they
did not comply. As a manager, you typically have some coercive power, such as being
able to suspend or demote employees or to assign them work they find unpleasant or
undesirable.
c. Reward power – the power to give positive benefits or rewards. These rewards can be
anything that another person values. In an organizational context, that might include
money, favorable performance appraisals, promotions, interesting work assignments,
friendly colleagues, and preferred work shifts
d. Expert power – influence that’s based on expertise, special skills, or knowledge. As
jobs have become more specialized, managers have become increasingly dependent
on staff “experts” to achieve the organization’s goals. If an employee has skills,
knowledge, or expertise that’s critical to the operation of a work group, that person’s
expert power is enhanced. For instance, in many organizations, individuals who have
good computer skills and are seen as “experts” when computer problems arise have the
ability influence because of their knowledge and skills—that is, they have expert power.
e. Referent power – the power that arises because of a person’s desirable personal traits.
Referent power develops out of admiration of another and a desire to be like that person.
If you admire someone to the point of modeling your behavior and attitudes after him or
her, that person has referent power over you.
(moderate)
128. In a short essay, list and discuss six suggestions of how leaders can seek to build trust.
Answer
a. Practice openness – mistrust comes as much from what people do not know as from
what they do know. Openness leads to confidence and trust. Keep people informed,
make the criteria on how decisions are made overtly clear, explain the rationale for your
decisions, be candid about problems, and fully disclose relevant information.
b. Be fair – before making decisions or taking actions, consider how others will perceive
them in terms of objectivity and fairness. Give credit where credit is due, be objective
and impartial in performance appraisals, and pay attention to equity perceptions in
reward distributions.
c. Speak your feelings – leaders who convey only hard facts come across as cold, distant,
and uncaring. If your share your feelings, others will see you as real and human. They
will know who you are, and their respect for you will increase.
d. Tell the truth – if honesty is critical to credibility, you must be perceived as someone
who tells the truth. People are generally more tolerant of learning something negative
than of finding out that their leader lied to them.
e. Show consistency –Mistrust comes from not knowing what to expect. Take the time to
think about your values and beliefs. Then let them consistently guide your decisions
and actions.
f. Fulfill your promises. Trust requires that people believe you are dependable. Keep
your word. Promises made must be promises kept.
g. Maintain confidences – you trust people whoa re discreet and upon whom you can rely.
If people make themselves vulnerable by telling you something in confidence, they need
to feel assured that you won’t discuss it with others or betray that confidence.
h. Demonstrate competence – develop the admiration and respect of others by
demonstrating technical and professional ability. Pay particular attention to developing
and practicing effective communication, negotiation, and other interpersonal skills.
(moderate)
129. In a short essay, define trust and list and discuss the five dimensions that make up the
concept of trust.
Answer
Trust is identified as the belief in the integrity, character, and ability of a leader. Followers
who trust a leader are willing to be vulnerable to the leader’s actions because they are
confident that their rights and interests will not be abused. The five dimensions that make
up the concept of trust are as follows.
a. Integrity – honesty and truthfulness

b. Competence – technical and interpersonal knowledge and skills
c. Consistency – reliability, predictability, and good judgment in handling situations
d. Loyalty – willingness to protect a person, physically and emotionally
e. Openness – willingness to share ideas and information freely
(easy)
MANAGING YOUR CAREER
130. In a short essay, list and discuss five suggestions that can be used to improve an
individual’s political effectiveness.
Answer
a. Frame arguments in terms of organizational goals – effective politicking requires
camouflaging your self-interests. People whose actions appear to blatantly further their
own interests at the expense of the organization are almost universally denounced, are
likely to lose influence, and may even be expelled from the organization.
b. Develop the right image – know your organization’s culture; understand what the
organization wants and values from its employees. Because the assessment of your
performance is not a fully objective process, your must pay attention to style as well as
substance.
c. Gain control of organizational resources – the control of scarce and important
organizational resources is a source of power. Knowledge and expertise are particularly
effective resources to control.
d. Make yourself appear indispensable – if the organization’s key decision makers believe
that there is no ready substitute for what you bring to the organization, they are likely to
go to great lengths to ensure that your desires are satisfied.
e. Be visible – make your boss and those in power aware of your contributions. Routinely
highlight your successes in reports, have satisfied customers express their satisfaction
to your managers, be seen at company social functions, be active in your professional
associations, and develop powerful allies who speak positively about your
accomplishments.
f. Develop powerful allies – it helps to have powerful people on your side. Cultivate
contacts with potentially influential people above you, at your own level, and at lower
organizational levels. These allies can provide you with important information that might
not otherwise be available.
g. Avoid “tainted” members – in every organization, there are individuals whose status is
questionable. Their performance and/or loyalty is suspect. Keep your distance from
such individuals so that your own effectiveness isn’t compromised.
h. Support your boss – your immediate future is in your boss’s hands. Since he or she
evaluates your performance, try to do whatever is necessary to have your boss on your
side. Make every effort to help your boss look good and succeed, support your boss,
and find out what criteria will be used to assess your effectiveness. Don’t speak
negatively of your boss to others and definitely don’t undermine your boss.
(moderate)
Chapter 15 – Understanding Groups and Teams
Multiple Choice
31. According to the company profile in “A Manager’s Dilemma,” which of the following
describes the types of teams used to develop successful ad campaigns for clients of
StrawberryFrog?
a. functional teams
b. domestic teams
c. regional teams
d. virtual teams (moderate)
UNDERSTANDING GROUP BEHAVIOR
32. Which of the following about groups is true?

a. You need five or more people to be considered a work group.
b. The definition of groups suggests that a group is two or more people together for any
reason.
c. Groups can be either formal or informal. (moderate)
d. Formal groups are aimed at specific social agendas.
e. Informal groups are indirect benefits of strategic planning.
33. Which of the following would be considered a formal group?

a. task force for employee birthday celebrations
b. reading group
c. bowling team
d. bringing people from various functions to solve a business dilemma (moderate)
e. brown bag lunch group
34. In what type of formal group is the traditional work group determined by formal authority
relationships?
a. command groups (moderate)
b. cross-functional teams
c. self-managed teams
d. business unit alliances
e. task forces
35. Which of the following is not a formal group?

a. command groups
b. task forces
c. cross-functional teams
d. self-managed teams
e. business unit alliances (difficult)
36. Which of the following formal groups are essentially independent groups, which, in addition
to their regular job, take on tasks such as hiring, performance evaluations, etc.?
a. business unit alliances
b. command groups
c. self-managed teams (moderate)
d. cross-functional teams
e. task forces
37. Temporary groups created to accomplish a specific task are termed _____________.
a. command groups.
b. cross-functional teams.
c. self-directed teams.
d. self-managed teams.
e. task forces. (easy)
38. Which of the following is not a stage of group development?

a. performing
b. conforming (easy)
c. adjourning
d. forming
e. storming
39. In which of the following stages of group development do people join the group either
because of a work assignment, in the case of a formal group, or for some other benefit
desired, in the case of an informal group?
a. forming (moderate)
b. conforming
c. storming
d. norming
e. performing
40. The stage of group development in which you would most likely see a battle over group
leadership is _______________.
a. forming
b. conforming
c. storming (moderate)
d. norming
e. performing
41. At the completion of which of the following stages of group development would there be a
relatively clear hierarchy of leadership within the group and agreement on the group’s
direction?
a. forming
b. conforming
c. storming (moderate)
d. norming
e. performing
42. What stage of group development is complete when the group structure solidifies and the
group has assimilated a common set of expectations about behavior?
a. forming
b. storming
c. conforming
d. norming (moderate)
e. performing
43. What stage of group development follows norming?

a. forming
b. performing (easy)
c. storming
d. conforming
e. adjourning
44. Which of the following is an accurate statement about the progression of groups through
their development stages?
a. Conflict inhibits group effectiveness.
b. Groups develop in a linear manner.
c. Several stages may be happening simultaneously. (difficult)
d. Groups will always regress to previous stages, if only for a short time.
e. Groups in the conforming stage are more effective than in the norming stage.
45. A _____________ refers to a set of expected behavior patterns attributed to someone who
occupies a given position in a social unit.
a. norm
b. conformity behavior
c. role (moderate)
d. status system
e. group cohesiveness
46. An individual who is confronted by different role expectations experiences _____________.

a. role conflict. (moderate)
b. role convergence.
c. conformity pressure.
d. group cohesiveness.
e. task divergence.
47. A middle manager who is expected by his/her boss to keep performance evaluations low to
save on merit increase costs, but feels compelled to reward his/her high performing
subordinates fairly, is experiencing which of the following?
a. norm decisiveness
b. role conflict (difficult)
c. status separation
d. conformity pressure
e. cohesiveness conflict
48. The acceptable standards or expectations that are shared by the group’s members are
referred to as _______________.
a. roles
b. norms (moderate)
c. values
d. morals
e. policies
49. A new commercial bank employee who notices stares from other officers because he does
not wear conservative work attire is experiencing what aspect of groups?
a. role conflict
b. norms (difficult)
c. status separation
d. cohesiveness conflict
e. performing pressure
50. The findings of Asch's experiment utilizing lines of different lengths would relate to which of
the following?
a. job status
b. workplace conformity (moderate)
c. work group cohesiveness
d. role conflict
e. performance perceptions
51. _____________ refers to a prestige grading, position, or rank within a group.

a. Norm
b. Role
c. Status (easy)
d. Role conflict
e. Accommodation
52. Which of the following is an accurate statement regarding status systems?

a. Education is an informal status characteristic. (moderate)
b. Status is a weak motivator compared to other group issues.
c. People generally have difficulty classifying people into status categories.
d. Status is a contemporary research topic.
e. Status has cognitive but no behavioral consequences.
53. Education, age, skill, or experience are examples of which of the following?
a. formal status categories
b. informal status categories (moderate)
c. individual status categories
d. ingroup status categories
e. outgroup status categories
54. _____________ occurs when a supervisor is earning less than his subordinates.
a. Conflict
b. Role conflict
c. Group incohesiveness
d. Status incongruence (moderate)
e. Group divergence
55. In comparison to large groups, small groups _____________.

a. have shorter group tenure.
b. tend to be more homogenous.
c. are faster at completing tasks. (moderate)
d. are better at obtaining diverse input.
e. have higher status.
56. The "free rider tendency" explains which of the following?

a. why the productivity of groups is exponential
b. why there is always one person who does not work as hard as other group members
c. why, as groups get larger, the individual contribution often decreases (difficult)
d. why group productivity grows in a linear fashion
e. why groups will tend to let an unproductive outsider in the group
57. Which of the following is a potential means of limiting the free rider effect?
a. be able to identify individual responsibility (moderate)
b. reward groups collectively, not individually
c. never allow an outsider into a group once it is formed
d. provide merit pay that is proportional to group effectiveness
e. allow groups to punish poor team players
58. The degree to which members are attracted to a group and share the group’s goals is
referred to as ______________.
a. group diversity.
b. group cohesiveness (moderate)
c. group expansion.
d. group norms.
e. group continuity.
59. In which of the following situations are groups most effective?

a. a cohesive group
b. a cohesive group not in alignment with organizational goals
c. a noncohesive group in alignment with organizational goals
d. a cohesive group in alignment with organizational goals (moderate)
e. a noncohesive group
60. Perceived incompatible differences resulting in some form of interference or opposition is

known as _____________.
a. conflict. (easy)
b. trouble shooting.
c. political opposition.
d. problem creation.
e. personality differences.
61. Which view of conflict argues that conflict must be avoided?

a. human relations view
b. interactionist view
c. conservative
d. traditional (moderate)
e. contemporary
62. What view of conflict sees it as natural, inevitable, and potentially resulting in positive results
for the organization?
a. contemporary view
b. conservative view
c. human relations view (moderate)
d. traditional view
e. interactionist view
63. Which view of conflict sees it as absolutely necessary for effective organizational
performance?
a. contemporary view
b. conservative view
c. human relations view
d. traditional view
e. interactionist view (moderate)
64. The type of conflicts that the interactionist says support the goals of the organization are
known as _____________.
a. goal-oriented conflicts.
b. strategic conflicts.
c. natural conflicts.
d. functional conflicts. (moderate)
e. realistic conflicts.
65. _____________ prevent a group from achieving its goals.

a. Informal groups
b. Command groups
c. Cross-functional teams
d. Functional conflicts
e. Dysfunctional conflicts (moderate)
66. According to the text, which of the following is not identified as a type of conflict that
differentiates functional from dysfunctional conflict?
a. task conflict
b. relationship conflict
c. ethical conflict (moderate)
d. process conflict
67. Which of the following is not mentioned in the text as a conflict-resolution option?
a. avoidance
b. contradiction (moderate)
c. accommodation
d. compromise
e. collaboration
68. Withdrawing from or suppression of conflict is termed _____________.

a. collaborating.
b. forcing.
c. accommodation.
d. avoidance. (moderate)
e. compromising.
69. Which of the following is not an advantage of group decision making over individual decision
making?
a. They provide more information.
b. They generate more alternatives.
c. There is less acceptance of a solution. (easy)
d. There is increased legitimacy of the decision.
e. There is reluctance to fight a decision they helped develop.
70. Which of the following is true concerning the effectiveness of individual decision making
over group decision making?
a. Individuals tend to be more accurate.
b. Individuals are always outperformed by groups.
c. Groups are less creative than individuals.
d. Groups are more accepting of the final decision. (moderate)
e. Group effectiveness is influenced by its size.
71. Which of the following is true concerning groups?

a. Groups take more time to make a decision. (easy)
b. Groups tend to have equal participation rates.
c. There is little pressure to conform.
d. There is definite ownership of responsibility.
e. They provide less information.
72. The pressure to conform in groups is known by which of the following terms?
a. management by objectives
b. TQM
c. shirking
d. groupthink (moderate)
e. group freeloading effect
73. According to the text, all of the following are criteria for which group decision making is most
effective compared to individual decision making EXCEPT:
a. accuracy.
b. creativity.
c. speed. (easy)
d. efficiency.
74. Evidence indicates that the optimum size for a group is _____________.
a. 2-4.
b. 3-5.
c. 5-7. (easy)
d. 8-10.
e. 12-15.
75. All of the following are mentioned in the text as techniques that managers can use to make
group decisions more creative EXCEPT:
a. electronic meetings.
b. brainstorming.
c. nominal group technique.
d. quantitative analysis. (moderate)
76. Which of the following is NOT mentioned in the text as an example of an external condition
that can determine group performance and satisfaction?
a. authority structures
b. informal communication (difficult)
c. formal regulations
d. employee selection criteria
e. organization’s culture
77. Which of the following is an example of group member resources?

a. expected behaviors imposed from the central office
b. group member personalities (easy)
c. the group leadership
d. the group size
e. a complex task
78. Which of the following personality traits tends to have a positive impact on group productivity
and morale?
a. self-reliance (moderate)
b. authoritarianism
c. dominance
d. unconventionality
e. judgmental
79. All of the following have a negative effect on productivity and morale of groups EXCEPT:
a. authoritarianism.
b. self-reliance.
c. dominance.
d. unconventionality.
80. Which of the following personality traits tends to have a negative impact on group
productivity and morale?
a. sociability
b. self-reliance
c. independence
d. dominance (moderate)
e. extrovertism
81. According to the group behavior model presented in your text, group size is an example of
what factor of group determination of effectiveness?
a. external conditions
b. group structure (moderate)
c. group processes
d. group tasks
e. group resources
MANAGING WORKFORCE DIVERSITY
82. According to the boxed feature, “Managing Workforce Diversity,” which of the following is
NOT mentioned as a critical interpersonal behavior needed to meet the challenge of
coordinating a diverse work team?
a. understanding
b. empathy
c. tolerance
d. communication
e. competence (difficult)
83. Group decision processes, leader behavior, and power dynamics are examples of
_____________.
a. group structure.
b. external conditions.
c. group tasks.
d. group resources.
e. group processes. (moderate)
TURNING GROUPS INTO EFFECTIVE TEAMS
84. A formal group made up of interdependent individuals responsible for attainment of goals
is a(n) _____________.
a. informal team.
b. formal team.
c. work team. (moderate)
d. social team.
e. interdependent team.
85. Which of the following is not one of the four characteristics used to categorize teams?
a. purpose
b. membership
c. industry (easy)
d. duration
e. structure
86. What team characteristic would be displayed if a team is trying to decide on a new
organizational structure?
a. purpose (difficult)
b. membership
c. industry
d. duration
e. structure
87. A functional department team that is part of the organization's formal structure fits within
which characteristic of team categorization?
a. purpose
b. industry
c. structure
d. membership (moderate)
e. duration
88. A team that is self-managed fits within which characteristic of team categorization?
a. purpose
b. structure (moderate)
c. membership
d. industry
e. duration
89. What type of team has clear issues surrounding authority and is involved in specific
problems in a particular functional area?
a. self-directed
b. functional (moderate)
c. permanent
d. temporary
e. self-managed
90. What type of team operates without a manager?

a. functional
b. self-directed (moderate)
c. cross-functional
d. temporary
e. specific
91. Bringing together organizational members from marketing, accounting, human resources,
and finance to work on a task would be an example of what type of team?
a. cross-functional (moderate)
b. temporary
c. specific
d. functional
e. self-directed
DEVELOPING AND MANAGING EFFECTIVE TEAMS
92. High performance teams tend to have _____________ goals.

a. clear (easy)
b. difficult
c. public
d. multiple
e. easy
93. Which of the following is true concerning effective teams?
a. Strong technical skills are more important than interpersonal skills.
b. Strong interpersonal skills are more important than technical skills.
c. Members must have both strong technical and interpersonal skills. (difficult)
d. Allowing the team to teach technical skills is important.
e. It is important for team members to also be close friends.
94. Believing that your co-worker is a person who will not let you down on project completion is
an example of what characteristic of effective teams?
a. clear goals
b. relevant skills
c. good communication
d. fair compensation system
e. mutual trust (easy)
95. Which of the following is not a suggestion for managers attempting to build trust?
a. communicate with members
b. be predictable
c. demonstrate competency
d. allow members to set their own goals (moderate)
e. be fair
96. What characteristic of effective teams would be evident of a team that has intense team
loyalty?
a. clear goals
b. mutual trust
c. unified commitment (easy)
d. good communication
e. relevant skills
97. Effective teams are characterized by _____________ communication.

a. lateral
b. linear
c. good (moderate)
d. team-coded
e. organic
98. On a baseball team, a shortstop who "raises his fist" as a signal indicating he will cover
second base in the event of an attempted steal is exhibiting what characteristic of effective
teams?
a. clear goals
b. mutual trust
c. unified commitment
d. good communication (moderate)
e. relevant skills
99. To be effective, team members should _____________ in order to be flexible and
continuously make adjustments.
a. have clear job descriptions
b. have formal documentation
c. have negotiating skills (difficult)
d. hold firm in their positions
e. maintain clear and static roles
100. Which role of leader is associated with effective teams?
a. salesperson
b. directive
c. controlling
d. seller
e. facilitator (moderate)
101. Providing a pay system that appropriately recognizes team activities is an example of what
characteristic of effective teams?
a. internal and external support (moderate)
b. appropriate leadership
c. negotiating skills
d. good communication
e. unified commitment
102. _____________ is an important part of the planning process in managing a team.

a. Goal determination (difficult)
b. Clarification of authority
c. Empowering members
d. Determining roles
e. Setting clear evaluation criteria
103. A team determining, "How much authority do we have?" is an example of what function in
managing a team?
a. planning
b. leading
c. organizing (moderate)
d. evaluating
e. controlling
104. Determining how to resolve conflict between group members is an important aspect of what
function in managing a team?
a. planning
b. leading (moderate)
c. controlling
d. organizing
e. evaluating
105. "Gainsharing" is an example of _____________.

a. a group incentive pay plan. (easy)
b. a method of evaluating overall organizational success.
c. a means of measuring the percent of new market share attributed to group processes.
d. an incentive plan that recognizes individual not group performance.
e. a leader impact evaluation method.
Scenarios
A New Group (Scenario)
David had been away from his old company, Control Tech, for a while. He remembered that when
he worked there ten years ago the company was very traditional and conservative. The lines of
authority and responsibility were established and clear. Now, it felt ironic that he was managing
the consulting team that was going to help bring a group orientation into being. Now in addition to
the traditional hierarchy, with a manager and subordinates, he saw a need to introduce teams
comprised of individuals from various work areas to help solve operational problems. He also felt
that for certain projects there could be groups that could function essentially independently, even
taking on traditional management responsibilities such as hiring, planning, scheduling, etc. Plus,
he also saw real potential for special, temporary projects to be handled by groups that would
disband once the task was completed.
106. David knows that groups consist of _____________ interacting and interdependent
individuals who come together to achieve particular objectives.
a. two or more (easy)
b. at least three
c. five or more
d. ten or more
e. fifteen or more
107. David recognized that _____________ are characterized with the traditional hierarchy of a
manager and subordinates.
a. self-managed teams
b. task forces
c. command groups (moderate)
e. basic groups
The Retreat (Scenario)
The first-line managers were sent on a retreat to Silver Falls for their inaugural strategic planning
retreat. Few people knew each other but their task was clear: design a new performance appraisal
system for subordinates that will be effective and usable. Their years of complaining about the
old system had landed them with this new responsibility dumped right in their lap. They had four
days to become brilliant and everyone was a little on edge. The first day, little was accomplished
except for the jockeying to see who would be the official leader. Finally, Jim seemed to wrangle
control and helped provide the first real direction for the group. By the second day the group
seemed to begin working well. They spent the morning deciding how they would make decisions
within the group and how to manage the idea-generation process. The third and fourth days saw
the new managers move amazingly quickly, with ideas flowing freely. By the end of the fourth
day, they had a workable system developed and they felt satisfied. That night they all signed the
new document to be presented to the regional manager the next day. They all felt a twinge of
regret at having to break up the group and return to normal work life.
108. The stage of group development characterized by their being at the retreat for a business
reason is known as _____________.
a. performing.
b. storming.
c. forming. (easy)
d. adjourning.
e. norming.
109. The group was in the _____________ stage when they were competing to see who would
lead the group.
a. performing
b. storming (moderate)
c. forming
d. adjourning
e. norming
110. When the management group was deciding on their decision rules they were in the
_____________ stage of group development.
a. performing
b. storming
c. forming
d. adjourning
e. norming (moderate)
111. In the third and fourth days of the retreat, the managers were in the _____________ stage
of group development.
a. performing (moderate)
b. storming
c. forming
d. adjourning
e. norming
112. When the management team left Silver Falls to return to their work place, they had just
completed the _____________ stage of group development.
a. performing
b. storming
c. forming
d. adjourning (easy)
e. norming
Conflicting Opinions (Scenario)
The two vice presidents were in heated debate. Celine feels that the old traditional form of
marketing their company isn't working any more and that loyal customers would stay regardless.
She feels the company needs to "spice it up a bit" and go after new market share. Merle disagrees
vehemently. He feels the company is doing fine; they have a good base of loyal customers and
new aggressive approaches may lose them without any guarantee of gaining new customers.
Regardless of who is right, their battle was causing a stir in the organization. Some felt that conflict
like this hurt the company and made it appear weak to employees and stockholders. Others felt
that this conflict over marketing strategies was bound to occur eventually and may even help the
company. Still others even encourage such conflict. They think it keeps the company from getting
stuck.
113. Conflict that supports the organization's goals is considered _____________.

a. accepted conflict.
b. functional conflict. (moderate)
c. inevitable conflict.
d. standard conflict.
e. strategic conflict.
114. Conflict that prevents the organization from achieving its goals is considered
_____________.
a. destructive conflict.
b. negative conflict.
c. dysfunctional conflict. (moderate)
d. nonstrategic conflict.
e. random conflict.
115. Those in the company who view the conflict over the marketing strategy as bad and harmful,
have a _____________ view of conflict.
a. human relations
b. conservative
c. strategic
d. interactionist
e. traditional (difficult)
116. Those in the company who view the conflict over the marketing strategy as natural and
inevitable, have a _____________ view of conflict.
a. human relations (difficult)
b. conservative
c. strategic
d. interactionist
e. traditional
117. Those in the company who encourage the conflict over the marketing strategy, have a
_____________ view of conflict.
a. human relations
b. conservative
c. strategic
d. interactionist (difficult)
e. traditional
118. The groups that comprise individuals from various areas working on operational problems
are best described as _____________.
a. self-managed teams.
b. task forces.
c. command groups.
d. cross-functional teams. (moderate)
e. basic groups.
119. David also saw a need for _____________ which are essentially independent groups taking
on traditional management responsibilities.
a. self-managed teams (moderate)
b. task forces
c. command groups
e. basic groups
120. Finally, the temporary groups David talked about, created to achieve a special task, then
disband, are known as _____________.
a. self-managed teams.
b. task forces. (moderate)
c. command groups.
d. cross-functional teams.
e. basic groups.
Essay Questions
121. In a short essay, list and discuss the five stages of group development.
Answer
Research shows that groups pass through a standard sequence of five stages. These five
stages are forming, storming, norming, performing, and adjourning.
a. The first stage, forming, has two aspects. First people join the group either because of
a work assignment, in the case of a formal group, or for some other benefit desired
(such as status, self-esteem, affiliation, power, or security), in the case of an informal
group. Once the group’s membership is in place, the second part of the forming stage
begins: the task of defining the groups purpose, structure, and leadership. This phase
is characterized by a great deal of uncertainty. Members are “testing the waters” to
determine what types of behavior are acceptable. This stage is complete when
members begin to think of themselves as part of a group.
b. The storming stage is one of intragroup conflict. Members accept the existence of the
group but resist the control that the group imposes on individuality. Further, there is
conflict over who will control the group. When this stage is complete, there will be a
relatively clear hierarchy of leadership within the group and agreement on the group’s
direction.
c. The third stage is one in which close relationships develop and the group demonstrates
cohesiveness. There’s now a strong sense of group identity and camaraderie. This
norming stage is complete when the group structure solidifies and the group has
assimilated a common set of expectations of what defines correct member behavior.
d. The fourth stage is performing. The group structure at this point is fully functional and
accepted. Group energy has moved from getting to know and understand each other
to performing the task at hand. Performing is the last stage in the development of
permanent work groups. Temporary groups—such as committees, task forces, and
similar groups—that have a limited task to perform have a fifth stage, adjourning.
e. In the adjourning stage, the group prepares to disband. High levels of task performance
are no longer the group’s top priority. Instead, attention is directed at wrapping-up
activities. Responses of group members vary at this stage. Some are upbeat, basking
in the group’s accomplishments. Other may be saddened by the loss of camaraderie
and friendships gained during the work group’s life.
(moderate)
122. In a short essay, define formal groups and list and describe four examples of formal groups.
Answer
Formal groups are work groups established by the organization that have designated work
assignments and specific tasks. In formal groups, appropriate behaviors are established by
and directed toward organizational goals.
Examples of formal groups

a. Command groups – these are the basic, traditional work groups determined by formal
authority relationships and depicted on the organizational chart. They typically include
a manager and those subordinates who report directly to him or her.
b. Cross-functional teams – these bring together the knowledge and skills of individuals
from various work areas in order to come up with solutions to operational problems.
Cross-functional teams also include groups whose members have been trained to do
each other’s jobs.
c. Self-managed teams – these are essentially independent groups that, in addition to
doing their operating jobs, take on traditional management responsibilities such as
hiring, planning and scheduling, and performance evaluations.
d. Task forces – these are temporary groups created to accomplish a specific task. Once
the task is complete, the group is disbanded.
(moderate)
123. In a short essay, explain the difference between the assumptions of the traditional, human
relations view and interactionist views of conflict.
Answer
Over the years, three different views have evolved regarding conflict. One view argues that
conflict must be avoided, that it indicates a problem within the group. This is called the
traditional view of conflict. A second view, the human relations view of conflict, argues that
conflict is a natural and inevitable outcome in any group and need not be negative but,
rather, has potential to be a positive force in contributing to a group’s performance. The
third and most recent perspective proposes that not only can conflict be a positive force in
a group but that some conflict is absolutely necessary for a group to perform effectively.
This third approach is called the interactionist view of conflict. The interactionist view is not
suggesting that all conflicts are good. Some conflicts are seen as supporting the goals of
the work groups and improving its performance; these are functional conflicts of a
constructive nature. Other conflicts are destructive and prevent a group from achieving its
goals. These are dysfunctional conflicts.
(easy)
124. In short essay, list and discuss four advantages and four disadvantages that group decisions
have over individual decisions.
Answer
Advantages of group decisions
a. Provide more complete information – a group brings a diversity of experience and
perspectives to the decision process that an individual cannot.
b. Generate more alternatives – because groups have a greater amount and diversity of
information, they can identify more alternatives than an individual. This advantage is
particularly evident when group members represent different areas of expertise.
c. Increase acceptance of a solution – many decisions fail after the final choice has been
made because people to not accept the solution. Group members are reluctant to fight
or undermine a decision they have helped develop.
d. Increase legitimacy – the group decision-making process is consistent with democratic
ideals, and decisions made by groups may be perceived as more legitimate than
decisions made unilaterally by one person.
Disadvantages of group decisions

a. Time consuming – putting a group together takes time as does any decision making
within the group. The result is that groups almost always take more time to reach a
solution than it would take an individual.
b. Minority domination – members of a group are never perfectly equal. They may differ
in organizational rank, experience, knowledge about the problem, influence with other
members, verbal skills, and assertiveness. This inequality creates the opportunity for
one or more members to dominate others.
c. Pressures to conform – pressures to conform in a group can lead to groupthink which
is a form of conformity in which group members withhold different or unpopular views in
order to give the appearance of agreement. Groupthink undermines critical thinking in
the group and eventually harms the quality of the final decision.
d. Ambiguous responsibility – group member share responsibility, but the person actually
responsible for the final outcome in a group decision is unclear. In an individual
decision, it’s clear who is responsible.
(difficult)
125. In a short essay, list and discuss the three types of conflict that have been found to
differentiate functional from dysfunctional conflict.
Answer
The three types of conflicts are task, relationship and process. Task conflict relates to the
content and goals of the work. Relationship conflict focuses on interpersonal relationships.
Process conflict refers to how the work gets done. Studies demonstrate that relationship
conflicts are almost always dysfunctional. It appears that the friction and interpersonal
hostilities inherent in relationship conflicts increase personality clashes and decrease
mutual understanding, thereby hindering the completion of organizational tasks. On the
other hand, low levels of process conflict and low-to-moderate levels of task conflict are
functional. For process conflict to be productive, it must be kept minimal. A low-to-moderate
level of task conflict consistently demonstrates a positive effect on group performance
because it stimulates discussion of ideas that help groups perform better.
(moderate)
126. In a short essay, list and discuss five conflict-resolution techniques managers can use to
reduce conflict.
Answer
a. Forcing – resolving conflicts by satisfying one’s own needs at the expense of another’s
b. Collaborating – resolving conflict by seeking and advantageous solution for all parties
c. compromising – resolving conflict by each party giving up something of value
d. avoiding – resolving conflicts by withdrawing from or suppressing them
e. accommodating – resolving conflicts by placing another’s needs and concerns above
your own
(easy)
MANAGING WORKFORCE DIVERSITY
127. In a short essay, list and discuss the four critical interpersonal behaviors that are important
in meeting the challenge of coordinating a diverse work team.
Answer
a. Understanding – differences such as cultural, physical, or other can cause people to
behave in different ways. Team leaders need to understand and accept these
differences. Each and every team member should be encouraged to do the same.
b. Empathy – this is closely related to understanding. As a team leader, your should try to
understand others’ perspectives. Put yourself in their place and encourage team
members to empathize as well. By putting themselves in another’s position, the existing
team members can enhance their ability to work together as an effective group.
c. Tolerance – just because you understand that people are different and you empathize
with them, doesn’t mean that it’s any easier to accept different perspectives or
behaviors. But it’s important in dealing with diverse ages, gender, and cultural
backgrounds to be tolerant—to allow team members the freedom to be themselves.
d. Communication – diversity problems may intensify if people are afraid or unwilling to
openly discuss issues that concern them. And communication within a diverse team
needs to be two-way. As long as communication exchanges in conflicting situations are
handled in a nonthreatening, low-key, and friendly manner, they generally will have a
positive outcome.
(difficult)
128. In a short essay, list and discuss four characteristics in which teams can be categorized.
Answer
a. Purpose – teams can vary in their purpose or goal. A team might be involved in product
development, problem solving, as part of a process reengineering effort, or for any other
number of work-related activities.
b. Duration – a team is either permanent or temporary. Departmental teams and others
that are part of the organization’s formal structure are types of permanent teams.
Temporary teams include task forces, project teams, problem-solving teams, and any
other type of short-term team formed to develop, analyze, or study a work-related issue.
c. Membership – team membership can either be functional or cross-functional. A
departmental team is functional because its members come from a specific functional
area. However, many organizations are using cross-functional teams as a way to foster
innovation, cooperation, and commitment.
d. Structure – teams can be either supervised or self-managed. A supervised team will be
under the direction of a manager who is responsible for guiding the team in setting goals,
performing the work activities, and evaluating performance. On the other hand, a self-
managed team assumes the responsibilities of managing itself.
(moderate)
129. In a short essay, list and describe the four most common types of teams likely to be found
in today’s organizations.
Answer
a. Functional teams – these teams are composed of a manager and his or her employees
from a particular functional area. Within this functional area, issues such as authority,
decision making, leadership, and interactions are relatively simple and clear. Functional
teams are often involved in efforts to improve work activities or to solve specific
problems within their particular functional area.
b. Self-managed teams – these teams are formal groups of employees who operate
without a manager and are responsible for a complete work process or segment. The
self-managed team is responsible for getting the work done and for managing
themselves. This usually includes planning and scheduling of work, assigning tasks to
members, collective control over the pace of work, making operating decisions, and
taking action on problems.
c. Virtual teams – these are teams that use computer technology to link physically
dispersed members in order to achieve a common goal. IN a virtual team, members
collaborate using communication links such as wide area networks, video-conferencing,
fax, e-mail, or even Web sites where the team can hold online conferences. Virtual
teams can do all the things that other teams can—share information, make decisions,
and complete tasks; however, they miss the normal give-and-take of face-to-face
discussions. Because of this omission, virtual teams tend to be more task-oriented
especially if the team members have never personally met.
d. Cross-functional teams – these teams are a hybrid grouping of individuals who are
experts in various specialties and who work together on various tasks. Many
organization are using cross-functional teams. For example, at Hallmark Cards in
Kansas City, editors, writers, artists, and production specialists join with employees from
manufacturing, graphic arts, sales, and distribution to work on everything from
developing new product ideas to improving customer deliveries.
(easy)
130. In a short essay, list and discuss five characteristics that are associated with effective
teams.
Answer
a. Clear goals – high-performance teams have both a clear understanding of the goals to
be achieved and a belief that the goal embodies a worthwhile or important result.
Moreover, the importance of these goals encourages individuals to redirect personal
concerns to these team goals. In effective teams, members are committed to the team’s
goals, know what they are expected to accomplish, and understand how they will work
together to achieve these goals.
b. Relevant skills – effective teams are composed of competent individuals. They have
the necessary technical and interpersonal skills to achieve the desired goals while
working well together. However, not everyone who is technically competent has the
skills to work well as a team member. High-performing teams have members who
possess both technical and interpersonal skills.
c. Mutual trust – effective teams are characterized by high mutual trust among members.
That is, members believe in the ability, character, and integrity of each other. The
climate of trust within a group tends to be strongly influenced by the organization’s
culture and the actions of management. Organizations that value openness, honesty,
and collaborative processes and that encourage employee involvement and autonomy
are more likely to create trusting cultures.
d. Unified commitment – members of an effective team exhibit intense loyalty and
dedication to the team. They are willing to do whatever it takes to help their team
succeed. This loyalty and dedication is called unified commitment. Unified commitment
is characterized by dedication to the team’s goals and a willingness to expend
extraordinary amount of energy to achieve them.
e. Good communication – effective teams are characterized by good communication.
Members convey messages between each other in ways that are readily and easily
understood. This includes nonverbal as well as spoken messages. Good
communication is also characterized by a healthy dose of feedback from team members
and managers. Feedback helps to guide team members and to correct
misunderstandings.
f. Negotiating skills – effective teams tend to be flexible and are continually making
adjustments in the responsibilities assigned to each member. This flexibility requires
team members to possess negotiating skills. Problems and relationships are regularly
changing in teams and members need to be able to confront and reconcile differences.
g. Appropriate leadership – effective leaders can motivate a team to follow them through
the most difficult situation. How? They help clarify goals. They demonstrate that
change is possible by overcoming inertia. And they increase the self-confidence of team
members, helping members to more fully realize their potential. Increasingly, effective
team leaders act in the roles of coach and facilitator. They help guide and support the
team, but don’t control it.
h. Internal and external support – the final condition necessary for an effective team is a
supportive climate. Internally, the team should have a sound infrastructure. This
includes proper training, a clear and reasonable measurement system that team
members can use to evaluate their overall performance, an incentive program that
recognizes and rewards team activities, and a supportive human resource system.
Externally, managers should provide the team with the resources needed to get the job
done.
(difficult)
Chapter 18 – Foundations of Control
Multiple Choice
31. According to the company profile in “A Manager’s Dilemma,” what is the problem facing
Mustafa’s Company?
a. How to motivate employees.
b. How to reduce theft in the stores.
c. How to reduce theft on the company’s website. (moderate)
d. How to hire more qualified employees.
e. How to evaluate the competition.
WHAT IS CONTROL?
32. What managers should be involved in the control process?

a. upper management
b. middle managers
c. systems managers
d. first-line managers
e. all managers (moderate)
33. Which of the following terms is associated with the definition of control?
a. monitoring (moderate)
b. motivation
c. communication
d. high tech
e. personality
34. In the control process, to what factor is actual performance compared in order to properly
assess the situation?
a. last year's performance
b. competitors' outcomes
c. desired standards (moderate)
d. last month's efforts
e. management opinion
35. The ultimate criterion to determine the control system effectiveness is how well it facilitates
______________.
a. management desires.
b. organizational goals. (moderate)
c. employee satisfaction.
d. increased market share.
e. lowering production defects.
36. Would different organizations, such as IBM, Chevrolet, and Pizza Hut, have different control
systems?
a. All organizations utilize a traditional control system design.
b. All organizations must have their own unique control system.
c. All organizations probably would not have the same control system. (difficult)
d. Organizations function with one of five different control systems, according to William
Ouchi.
e. Organizations in similar industries all use the same type of control system.
37. According to the text, which of the following is NOT mentioned as one of the three different
approaches to designing control systems?
a. market
b. domestic (easy)
c. bureaucratic
d. clan
38. ______________ control is an approach that emphasizes the use of external mechanisms,
such as price competition and market share to establish standards.
a. Market (moderate)
b. Traditional
c. Bureaucratic
d. Strategic
e. Clan
39. What type of control system is typically used when a firm's services or products are clearly
specific and distinct?
a. bureaucratic
b. strategic
c. market (moderate)
d. clan
e. traditional
40. In the ______________ control system, company divisions are turned into corporate profit
centers for evaluation.
a. market (moderate)
b. clan
c. traditional
d. bureaucratic
e. strategic
41. Which of Ouchi's control systems is used in an organization by emphasizing organizational

authority?
a. clan
b. strategic
c. market
d. bureaucratic (easy)
e. traditional
42. What type of organizational control system relies on regulations, procedures, and policies?
a. strategic
b. bureaucratic (easy)
c. traditional
d. market
e. clan
43. Standardization of activities, well-defined job descriptions, and budgets would be sources
depended on by what type of organizational control system?
a. bureaucratic (moderate)
b. strategic
c. clan
d. traditional
e. market
44. According to your text, which of the following organizations provides a good example of a
bureaucratic control system?
a. McDonald's
b. Pizza Hut
c. British Petroleum Amoco (easy)
d. Hewlett Packard
e. Ford Motor Company
45. What type of organizational control system is regulated by norms?

a. clan (moderate)
b. traditional
c. market
d. strategic
e. bureaucratic
46. You would likely find an "employee of the month" bonus plan under what type of
organizational control system?
a. market
b. traditional
c. clan (difficult)
d. strategic
e. bureaucratic
47. Which of the organizational control systems is heavily dependent on the individual, group,
and the use of teams?
a. strategic
b. clan (moderate)
c. bureaucratic
d. traditional
e. market
WHY IS CONTROL IMPORTANT?
48. Of the following, which is NOT a reason why control systems are important?
a. creation of organizational structure
b. facilitation and achievement of goals
c. employees can be directed
d. goals can be guaranteed (moderate)
e. employees can be motivated
49. Controls provide a critical link back to what organizational function?

a. employee selection
b. planning (difficult)
c. organizational culture
d. manufacturing design
e. directing
THE CONTROL PROCESS
50. In the control process, which step follows "measuring actual performance"?
a. establishing standards
b. obtaining employee input to performance gaps
c. comparing actual performance against a standard (moderate)
d. logging actual performance
e. checking performance measurement for reliability
51. What is the final step in the control process?

a. adjusting measurement standards
b. rewarding/punishing employee performance
c. benchmarking standards with a competitor
d. taking managerial action (moderate)
e. reengineering the process
52. Standards are created during the ______________ process.

a. controlling
b. leading
c. organizing
d. measuring
e. planning (moderate)
53. According to the text, which of the following is the first step in control?
a. measuring actual performance (moderate)
b. changing the standard
c. taking managerial action
d. comparing actual against the standard
54. Of the following, which is NOT a common source of information used by managers to
measure performance?
a. personal observation
b. oral reports
c. standardized tests (moderate)
d. statistical reports
e. written reports
55. To get firsthand, intimate knowledge of actual work activities, managers might use
______________.
a. personal observation (easy)
b. statistical reports
c. oral reports
d. written reports
56. What source of information used to measure performance provides information that is not
filtered through others?
a. statistical reports
b. personal observation (moderate)
c. standardized tests
d. written reports
e. oral reports
57. ______________ is a control technique in which the manager is out in the work area,
interacting directly with employees and exchanging information.
a. Management by walking around (moderate)
b. Management by objectives
c. Leadership by example
d. Feedforward control
e. Feedback control
58. Facial expression, tone of voice, and the ability to "read between the lines" are best provided
by what source of information?
a. oral reports
b. standardized tests
c. written reports
e. personal observation (easy)
59. According to the text, in a time when quantitative information suggests objectivity,
______________ is often considered an inferior information source.
a. oral reports
c. written reports
e. personal observation (easy)
60. What informational source used to measure performance has the disadvantages of being
subject to personal bias and consuming a lot of time?
a. standardized tests
b. statistical reports
c. personal observation (moderate)
d. written reports
e. oral reports
61. What type of information source used to measure performance may be construed by
employees as obtrusive and may lead to feelings of mistrust?
a. personal observation (easy)
b. written reports
c. oral reports
e. standardized tests
62. The widespread use of computers has led managers to rely increasingly on
______________ for measuring actual performance.
a. oral reports
c. written reports
d. statistical reports (moderate)
e. personal observation
63. ______________ is (are) an effective information source for showing relationships but may
ignore subjective factors.
a. Oral reports
b. Personal observation
c. Standardized tests (moderate)
d. Written reports
e. Statistical reports
64. Which of the following is the best way to keep tabs on work performance in organizations
where employees work in a virtual environment?
a. Oral reports (moderate)
b. Personal observation
c. Standardized tests
d. Written reports
e. Statistical reports
65. What type of information source allows for feedback, is fast, but historically has a problem
of being unable to document information for later reference?
a. oral reports (moderate)
b. written reports
c. statistical reports
d. personal observation
e. standardized tests
66. ______________ is (are) considered slow, easy to file and reference, and provide greater
comprehensiveness and conciseness than oral reports.
a. Personal observation
b. Standardized tests
c. Statistical reports
d. Written reports (easy)
e. Word-of-mouth reports
67. Which of the following is an accurate statement concerning utilization of different sources
of information for performance measurement?
a. In combination, personal observation and written reports are considered superior to
other methods.
b. Statistical reports are the single most effective method.
c. Managers should use as many as three different methods when possible.
d. Managers should use all four methods, if possible. (moderate)
e. It is not advised to utilize oral reports and personal observation as dual methods.
68. Regarding the control process, what is measured is ______________ than how we
measure it.
a. less important
b. equally important
c. much less important
d. more important (easy)
e. five times more important
69. Which of the following is NOT an example of what can be measured in the control process?
a. turnover
b. personal observation (moderate)
c. absenteeism
d. defects
e. employee satisfaction
70. In the control process, when a manager cannot find an objective and measurable
performance indicator he/she should ______________.
a. not measure the factor.
b. use the most appropriate objective indicator.
c. use a subjective indicator. (difficult)
d. use an objective indicator, but measure it several times to ensure reliability.
e. ignore the control function all together.
71. The ______________ step determines the degree of variation between actual performance
and the standard.
a. directing
b. comparing (moderate)
c. reliability
d. validity
e. objective
72. Range of variation is a concept that is important in what management function?
a. controlling (difficult)
b. leading
c. planning
d. organizing
e. structuring
73. The third and final step in the control process is ______________.
a. measuring actual performance
b. changing the standard
c. taking managerial action (moderate)
d. comparing actual against the standard
74. In the control process, changing strategy is an example of what course of action?
a. do nothing
b. following competitors
c. correcting actual performance (moderate)
d. changing standards
e. determining standards
75. In the control process, what type of corrective action asks questions of "why" and "how"
performance has deviated?
a. immediate corrective action
b. cognitive corrective action
c. strategic corrective action
d. planned corrective action
e. basic corrective action (moderate)
76. In the control process, constantly "putting out fires" relates to what type of corrective action?
a. planned corrective action
b. strategic corrective action
c. cognitive corrective action
d. immediate corrective action
e. basic corrective action (moderate)
77. In the control process, if "Cool Ranch" flavored Doritos chips are consistently selling more
than was predicted, what type of managerial action would be warranted?
a. immediate corrective action
b. revise the standard (difficult)
c. basic corrective action
d. increase the range of variation
e. decrease the range of variation
78. In the control process, if employees are constantly not meeting their sales quotas, what
managerial action may be warranted?
a. fire the employees
b. retrain the employees, but never lower the standard
c. lower the standard (moderate)
d. take immediate corrective action
e. increase the range of variation
79. Which of the following is NOT true concerning the control process?
a. Standards evolve out of objectives.
b. Doing nothing is an acceptable management course of action.
c. Revising the standard may be necessary when product demand changes.
d. When standards are not met, attacking the standard is typically the first employee
reaction.
e. The control process is a linear flow. (moderate)
TYPES OF CONTROL
80. Which of the following is NOT mentioned in the text as a type of control?
a. cross sectional control (moderate)
b. feedforward control
c. concurrent control
d. feedback control
81. What type of control prevents anticipated problems?

a. feedback control
b. projected control
c. feedforward control (moderate)
d. definitional control
e. concurrent control
82. Changing the oil and filter on your car every 3,000 miles is an example of what kind of
control?
a. concurrent control
b. feedforward control (moderate)
c. definitional control
d. feedback control
e. projected control
83. Which of the following types of control prevents anticipated problems since it takes place in
advance of the actual activity?
a. definitional control
d. feedback control
e. feedforward control (moderate)
84. What type of control is most desirable?

d. feedback control
e. feedforward control (moderate)
85. What type of control is concerned with input?

a. feedback control
d. feedforward control (moderate)
e. concurrent control
86. What type of control takes place while the activity is in progress, such as direct supervision?
a. feedforward control
b. concurrent control (moderate)
d. feedback control
87. What type of control can prevent ongoing problem situations from becoming too costly?
a. concurrent control (moderate)
b. definitional control
c. feedforward control
d. feedback control
88. According to the text, the best-known form of ______________ is direct supervision.
c. concurrent control (moderate)
d. feedback control
e. feedforward control
89. What type of control is most popular?

a. feedforward control
b. feedback control (moderate)
c. projected control
d. concurrent control
e. definitional control
90. The major drawback of ______________ is that by the time the manager has the
information, the problems have already occurred leading to waste or damage?
c. concurrent control (moderate)
d. feedback control
91. Financial statements are an example of what type of control?

c. feedback control (moderate)
d. projected control
THINKING CRITICALLY ABOUT ETHICS
92. According to the boxed feature, “Thinking Critically About Ethics,” Eric McKenzie devised
a workplace policy that employees only have to tell their supervisors about their actions if
they take home more than ______________ of office supplies in a week.
a. $3 (moderate)
b. $23
c. $53
d. $73
e. $103
93. What type of control provides information on planning effort effectiveness and can enhance
employee motivation?
c. feedforward control
d. feedback control (moderate)
94. What control system quality reflects whether the system is reliable and produces valid data?
a. timeliness
b. accuracy (easy)
c. understandability
d. flexibility
e. multiple criteria
95. If a control system can change as the times and conditions of the organization change, it
would be considered a(n) ______________ control system.
a. accurate
b. understandable
c. flexible (moderate)
d. strategic
e. corrective
96. If an organization placed a control on maintenance costs that is .01 percent of operating
costs but did not place a control on cost of raw goods that is 30 percent of costs, they would
be failing on what quality of an effective control system?
a. flexibility
b. economy
c. accuracy
d. reasonable criteria
e. strategic placement (difficult)
97. ______________ must be used as a characteristic in a control system because managers

cannot control all activities.
a. Responsible criteria
b. Multiple criteria
c. Emphasis on the exception (moderate)
d. Accuracy
e. Understandability
98. "If-then guidelines" are part of what quality of an effective control system?
a. corrective action (moderate)
b. strategic placement
c. accuracy
d. economy
e. flexibility
99. According to the text, which of the following is NOT mentioned as a contingency factor that
will affect the design of an organization’s control system?
a. The location of the organization. (moderate)

b. The size of the organization
c. One’s position and level in the organizational hierarchy.
d. Level in hierarchy.
e. Importance of an activity.
100. Which of the following is true about adjusting controls for national differences?
a. The control process should be identical across all organizational geographic areas.
b. All cultures tend to respond similarly to control systems.
c. Managers of foreign operations tend to be less closely controlled by the home office.
d. Technologically advanced nations tend to use indirect control devices. (difficult)
e. Less technologically advanced nations tend to be highly decentralized.
101. According to the boxed feature, “Managing in an E-business World,” which of the
following is NOT mentioned as important controlling issue that managers in e-businesses
have to deal with?

a. duplication of effort
b. distractions at work (moderate)
c. employee motivation
d. employee absenteeism
102. According to the text, it is estimated that ___________ of all companies use monitoring
software of some type.
a. 25 percent
b. 37 percent
c. 45 percent (moderate)
d. 57 percent
e. 75 percent
103. Which of the following forms of electronic monitoring is the most commonly used among
employers?
a. store and review employee e-mail messages

b. store and review computer files
c. track telephone calls (moderate)
d. log computer time and keystrokes entered
e. record and review telephone conversations
104. All of the following are considered examples of concurrent control measures used for
deterring or reducing employee theft or fraud EXCEPT:
a. involving employees in writing policies (moderate)

b. use video surveillance equipment if conditions warrant
c. install “lock-out” options on computers, telephones, and e-mail
d. use corporate hotlines for reporting incidences
e. set a good example
105. Which of the following control measures for deterring or reducing workplace violence is
considered a feedback control measure?
a. careful pre-hiring screening

b. never ignore threats
c. clearly communicate policies to employees
d. review company policies and change, if necessary
e. be a good role model in how you treat others
Scenarios and Questions
Types of Control (Scenario)
Sliders Ice Cream, in order to be successful, had to have polite, effective customer relations.
While they knew their product was good, the relationships their employees built with the
customers would result in repeat customers. In order to do this, they tried several options. First,
they implemented a customer suggestion box and provided customers with cards asking them for
their opinions of the service they had received. They also tried having managers closely observe
their employees' behavior and provide suggestion to employees on how to best handle difficult
situations. Finally, they decided to implement a training program during new employee orientation.
And, they had considered installing hidden cameras to observe employee behavior while
management was not around but, in the end, decided against it.
115. The customer suggestion and comment cards are considered a form of ______________
control.
a. concurrent
b. feedback (moderate)
c. anticipatory
d. covert
e. feedforward
116. The training program Sliders implemented is considered a form of ______________ control.
a. concurrent
b. feedback
c. anticipatory
d. covert
e. feedforward (moderate)
117. Having management observe and correct employee behavior when it happens is a form of
______________ control.
a. concurrent (moderate)
b. feedback
c. anticipatory
d. covert
e. feedforward
Essay Questions
121. In a short essay, define control and list and discuss the three different approaches to
designing control systems.
Answer
Control is the process of monitoring activities to ensure that they are being accomplished
as planned and or correcting any significant deviations. An effective control system
ensures that activities are completed in ways that lead to the attainment of the
organization’s goals. The criterion that determines the effectiveness of a control system is
how well it facilitates goal achievement. The more it helps managers achieve their
organization’s goals, the better the control system.
The three different approaches to designing control systems are:
a. Market control - an approach to control that emphasizes the use of external
mechanisms, such as price competition and relative market share, to establish the
standards used in the control system. This approach is typically used by organizations
in which the firm’s products or services are clearly specified and distinct and where
there’s considerable marketplace competition.
b. Bureaucratic control - emphasizes organizational authority and relies on administrative
rules, regulations, procedures, and policies. This type of control depends on
standardization of activities, well-defined job descriptions, and other administrative
mechanisms, such as budgets, to ensure that employees exhibit appropriate behaviors
and meet performance standards.
c. Clan control - employee behaviors are regulated by the shared values, norms, traditions,
rituals, beliefs, and other aspects of the organization’s culture. Whereas bureaucratic
control is based on strict hierarchical mechanisms, clan control is dependent on the
individual and the group (or clan) to identify appropriate and expected behaviors and
performance measures.
(difficult)
123. In a short essay, list and discuss the three separate and distinct steps in the control
process.
Answer
a. Measuring – to determine what actual performance is, a manager must acquire
information about it. The first step in control, then, is measuring. Most jobs and activities
can be expressed in tangible and measurable terms. When a performance indicator
can’t be stated in quantifiable terms, managers should look for and use subjective
measures. Of course, any analysis or decisions based on subjective criteria should
recognize the limitations of such information.
b. Comparing – this step determines the degree of variation between actual performance
and the standard. Some variation in performance can be expected in all activities. It is
critical, therefore, to determine the acceptable range of variation. Deviations that
exceed this range become significant and need the manager’s attention. In the
comparison stage, managers are particularly concerned with the size and direction of
the variation.
c. Taking managerial action – the third and final step in the control process is taking
managerial action. Managers can choose among three possible courses of action: they
can do nothing; they can correct the actual performance; or they can revise the
standards. If the source of the performance variation is unsatisfactory work, the
manager will want to take corrective action. It’s also possible that the variance was a
result of an unrealistic standard. In such cases, it’s the standard that needs corrective
attention, not the performance.
(moderate)
126. In a short essay, define and discuss feedforward, concurrent, and feedback controls.
Include a specific example of each to support your answer.
Answer
a. Feedforward control – the most desirable type of control that prevents anticipated
problems since it takes place in advance of the actual activity. It is future directed. For
example, when McDonald’s opened its first restaurant in Moscow, it sent company
quality control experts to help Russian farmers learn techniques for growing high-quality
potatoes and baker to learn processes for baking high-quality breads. McDonald’s
implemented these steps because the company strongly emphasizes product quality no
matter the geographical location. The key to feedforward controls is taking managerial
action before a problem occurs.
b. Concurrent control – takes place while an activity is in progress. When control is
enacted while the work is being performed, management can correct problems before
they become too costly. The best-known form of concurrent control is direct supervision.
When a manager directly oversees the actions of employees, the manager can
concurrently monitor their actions and correct problems as they occur. Problems can
usually be addressed before much resource waste or damage has been done. Many
organizational quality programs rely on concurrent controls to inform workers if their
work output is of sufficient quality to meet standards.
c. Feedback control – the most popular type of control relies on feedback. The control
takes place after the activity is done. Feedback that indicates little variance between
standard and actual performance is evidence that the planning was generally on target.
If the deviation is significant, a manager can use that information when formulating new
plans to make them more effective. Feedback control can also enhance employee
motivation. People want information on how well they have performed. Feedback
control provides that information.
(difficult)

Work Specialization Is Also Known As - A. Departmentalization. B. Centralization. C. Span of Control. D. Formalization. E. Division of Labor. (Easy)

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Chapter 10 – Organizational Structure and Design

33. ______________ is the process of creating an organization's structure.

DEFINING ORGANIZATIONAL STRUCTURE

36. Work specialization is also known as ______________.

46. What kind of departmentalization would be in place in a government organization where

50. Which of the following is a contemporary addition to the historical view of

53. To whom a worker reports concerns which aspect of organizational structure?

55. ______________ is the obligation to perform assigned activities.

56. The ______________ principle (one of Fayol’s 14 principles of management) helps

57. Span of control refers to which of the following concepts?

62. In general, span of control is ______________ for managers.

65. Recently, there has been a distinct trend toward ______________.

70. The ______________ organizational structure is characterized by high specialization,

71. Which of the following is NOT a characteristic of a mechanistic organization?

ORGANIZATIONAL DESIGN DECISIONS

73. Which of the following would likely be found in mechanistic organizations?

74. All of the following are characteristics of an organic organization EXCEPT:

78. Which of the following is an accurate statement?

87. Which type of environment is best suited for mechanistic organizations?

89. Which of the following is not characteristic of a simple organizational structure?

94. A ______________ structure creates strategic business units.

95. What type of organizational structure is made up of autonomous, self-contained units?

96. In what type of organizational structure is empowerment most crucial?

98. The matrix approach violates what classical principle?

MANAGING IN AN E-BUSINESS WORLD

103. According to the boxed feature, “Managing in an E-Business World,” Amazon.com’s

DEFINING ORGANIZATIONAL STRUCTURE

Organizational Structure (Scenario)

112. Custom Leather is unable to use a continuous process, or ______________ production,

ORGANIZATIONAL DESIGN DECISIONS

You Can Bank on It (Scenario)

ORGANIZATIONAL DESIGN DECISIONS

Food for Thought (Scenario)

118. The type of departmentalization practiced by ToutLeMart is best described as

COMMON ORGANIZATIONAL DESIGNS

128. In a short essay, discuss the matrix organizational structure.

129. In a short essay, explain the concept of a boundaryless organization.

a. Organizational design - in a learning organization, the organizational structure needs to

MANAGERS VERSUS LEADERS

EARLY LEADERSHIP THEORIES

CONTINGENCY THEORIES OF LEADERSHIP

40. Who developed the first contingency model for leadership?

41. Fielder's model of leadership was the first ______________ model.

44. The least preferred co-worker questionnaire was developed by ______________.

45. Fiedler assumed a person's leadership style was ______________.

52. According to Fielder, in what type of situations do relationship-oriented leaders perform

60. What leadership model is associated with Vroom and Yetton?

61. Who developed path-goal theory?

62. According to path-goal theory, a leader's behavior is ______________ to subordinates to

CUTTING-EDGE APPROACHES TO LEADERSHIP

81. Which of the following is an accurate statement about transformational leaders?

CONTEMPORARY ISSUES IN LEADERSHIP

89. Examples of an organization's ______________ power include performance appraisals,

MANAGING YOUR CAREER

mentioned as a suggestion to improve an individual’s political effectiveness?

a. Frame arguments in terms of organizational goals.

93. ______________ is the power to give positive benefit or rewards.

95. ______________ is influence that’s based on expertise, special skills, or knowledge.

98. The most dominant component of credibility is ______________.

most evident when comparing leadership in e-businesses versus traditional organizations?

a. The importance of being a specialist. (moderate)

Scenarios and Questions

CONTINGENCY THEORIES OF LEADERSHIP