Organizational Behavior, Version 1.1
Bauer & Erdogan
FWK Test Item File
Chapter 14
TRUE/FALSE
1. Toyota employees feel a sense of ownership in their company, which is supported by the firm’s matrix structure.
(True)
2. Toyota employees are expected to be experts in what they do.
(True)
3. Toyota uses a system of continuous improvement and learning.
(True)
4. Just-in-time production leads to antagonistic relations between Toyota and its suppliers.
(False)
5. Decentralization is the concentration of decision making at higher levels in the organization.
(False)
6. Employees feel that decentralized organizations provide greater levels of procedural fairness.
(True)
7. If a firm is operating in a stable environment, the centralized organizational structure may lead to the most efficient operations.
(True)
8. A unionized firm has very formalized structures.
(True)
9. A formalized structure leads to faster decision making.
(False)
10. Tall structures have wider span of control than flat structures.
(False)
11. Flat structures are better at satisfying employee self-actualization needs while tall structures are better at satisfying employee security needs.
(True)
12. In divisional structures, employees tend to be more specialists than generalists.
(False)
13. Functional structures are most effective for companies with large product lines.
(False)
14. Employees working in dynamic environments depend on their general mental abilities for good performance.
(True)
15. Organic structures are highly formalized and centralized.
(False)
16. The biggest advantage of a mechanistic structure, especially in a stable environment, is its efficiency.
(True)
17. Organic structures are related to higher levels of job satisfaction.
(True)
18. Matrix organizations violate the unity of command principle.
(True)
19. Conflict at various levels is a potential issue for matrix organizations.
(True)
20. A strategic alliance is a type of boundaryless organization where all nonessential functions are outsourced.
(False)
21. A learning organization is one where acquiring knowledge and changing behavior as a result of the newly acquired knowledge is part of the organization’s design.
(True)
22. Organizational change can be either radical or incremental.
(True)
23. Moore’s law says the overall complexity of computer circuits will double every 18 months with no increase in costs, so firms will rapidly change their technology.
(True)
24. While manufacturing jobs have been outsourced, knowledge-based jobs are safe from outsourcing.
(False)
25. Change is more likely to occur in firms that are performing poorly because successful firms keep doing what they have done to make them successful.
(True)
26. Surveys indicate that resistance to change is one of the top two reasons why change efforts within organizations fail.
(True)
27. Passive resistance refers to sabotaging the change effort and being outspoken about the negative effects of change.
(False)
28. When people react to organizational change negatively, they are absent more often and are more likely to voluntarily leave the company.
(True)
29. Employees with a positive self-concept are better at coping with change.
(True)
30. Those employees who feel they can perform well under a new system will be more committed to change.
(True)
31. People do not welcome change whether it is favorable or not to them.
(False)
32. Resistance to change is never a positive force for an organization.
(False)
33. The first stage in Lewin’s Model of planned change is unfreezing.
(True)
34. Employees with more complete information are no more committed to the change effort than those who have less than complete information.
(False)
35. Convincing the opinion leaders in your organization of the need for organizational change is a more successful technique to ensure change than trying to get everyone on board at the same time.
(True)
36. During the change efforts, the organization should focus on big wins to demonstrate the success of the effort.
(False)
37. Cultures low in uncertainty avoidance are comfortable with change.
(True)
MULTIPLE CHOICE
Opening Section: Organizational Structure: The Case of Toyota
|
38. The lean manufacturing system employs all of the following human resource strategies EXCEPT
a. high bonuses.
b. high investment in training.
c. internal promotions.
d. employment stability.
(a) Medium/Comprehension
39. Which of the following statements regarding Toyota’s structure is INCORRECT?
a. Toyota’s structure facilitates communication among functions.
b. Toyota uses cross-functional module development teams.
c. Toyota’s production system has led it to be structured as a matrix organization.
d. Toyota requires all its employees to be generalists.
(d) Difficult/Evaluation
40. Which of the following statements regarding Toyota’s just-in-time production and suppliers is INCORRECT?
a. Around 75% of the final Toyota vehicle is produced by its suppliers.
b. Long-term relationships are established with Toyota suppliers.
c. Toyota work goes to the lowest bidding supplier.
d. Toyota sends engineers to supplier firms to assess and improve their production processes.
(c) Difficult/Evaluation
| Section I: Organizational Structure |
41. Organization structure is
a. the degree to which decision-making authority is concentrated at higher levels in the organization.
b. how the individual and team work within an organization is coordinated.
c. the degree to which policies, procedures, job descriptions and rules are written and explicitly articulated.
d. the number of employees reporting to a single manager.
(b) Easy/Knowledge
42. The degree to which decision-making authority is concentrated at higher levels in an organization is
a. formalization
b. centralization
c. hierarchical levels
d. departmentalization
(b) Easy/Knowledge
43. In an organization, the union contract is very explicit as to employee work rules, the tasks each individual employee will perform, the pay each individual will receive, how each individual can move from one position to another and so on. This organization’s structure is an example of a ____________ structure in the organization.
a. centralized
b. departmentalized
c. hierarchical
d. formalized
(d) Medium/Application
44. _________ is the number of levels an organization has.
a. Hierarchy
b. Departments
c. Structure
d. Centralization
(a) Easy/Knowledge
45. The company is organized into accounting, marketing, human resource management, and production departments. This firm has a
a. divisional structure.
b. functional structure.
c. product structure.
d. matrix structure.
(b) Easy/Application
46. The company was organized into the detergent area, the dishwashing soap area, and the health and beauty aid area. This firm has a
a. divisional structure.
b. functional structure.
c. mechanistic structure.
d. matrix structure.
(a) Easy/Application
47. Centralized organizations
a. tend to have faster, more efficient decision making.
b. attract more job candidates.
c. put less pressure on higher level managers.
d. can lead to large cost savings in purchasing operations.
(d) Medium/Analysis
48. Formalization
a. can lead to greater innovativeness.
b. enhances employee motivation.
c. provides for quicker decision making.
d. makes employee behavior predictable.
(d) Medium/Analysis
49. In which of the following firms is formalization likely to occur?
a. small, local pizza shop
b. advertising agency
c. unionized manufacturing firm
d. nonunion heavy construction firm
(c) Difficult/Synthesis
50. Tall structures provide
a. employees greater levels of role ambiguity.
b. employees with greater self-actualization need satisfaction.
c. employees with greater security need satisfaction.
d. managers with a greater span of control.
(c) Difficult/Evaluation
51. Flat structures
a. have narrow spans of control.
b. provide lower levels of self-actualization than tall structures.
c. provide opportunities for greater role clarity for employees.
d. provide limited advancement opportunities.
(d) Medium/Analysis
52. Functional structures
a. are most effective when an organization has a large number of products.
b. are most effective in dynamic environments.
c. tend to facilitate the effective performance of employees with general mental abilities.
d. are cost-effective structures for the human resource and information technology departments of most companies.
(d) Medium/Analysis
53. Highly formalized and centralized structures similar to bureaucracies are
a. mechanistic structures.
b. organic structures.
c. matrix structures.
d. product structures.
(a) Easy/Knowledge
54. Organic structures
a. are those that resemble a bureaucracy and are highly formalized and centralized.
b. cross a functional structure with a product structure.
c. are flexible and decentralized structures with low levels of formalization where communication lines are more fluid.
d. are how individual and team work within an organization are coordinated.
(c) Easy/Knowledge
55. Mechanistic structures
a. are conducive to entrepreneurial activity and general innovativeness.
b. maximize efficiency and minimize costs.
c. enhance intrinsic motivation on the job.
d. are flexible and react well to change.
(b) Medium/Analysis
56. Organic structures
a. are related to lower job satisfaction.
b. have formal communication channels.
c. maximize efficiency and minimize costs.
d. are conducive to entrepreneurial activity and general innovativeness.
(d) Medium/Analysis
57. All of the following statements regarding the matrix structure are correct EXCEPT
a. The matrix structure increases the frequency of informal communication but decreases the frequency of formal communication.
b. The matrix structure is a response to uncertainty and dynamism in the environment.
c. Matrix structures violate the unity of command principle.
d. Matrix structures require managers to be more interdependent than in traditional structures and thus more of their time must be spent coordinating their work.
(a) Difficult/Synthesis
58. Unity of command is NOT found in what type of organizational structure?
a. functional structure
b. divisional structure
c. boundaryless structure
d. matrix structure
(d) Easy/Comprehension
59. Which of the following is NOT a good piece of advice to give to individuals who have multiple bosses in a matrix structured organization?
a. Make an effort to establish a good relationship with each manager.
b. Keep conflicts you are experiencing to yourself.
c. Make sure all managers are familiar with your overall workload.
d. Do not assume that having multiple bosses is a bad thing.
(b) Medium/Evaluation
60. An organization that eliminates traditional barriers between departments as well as barriers between the organization and the external environment is a
a. matrix organization.
b. functional organization.
c. boundaryless organization.
d. divisional organization.
(c) Easy/Knowledge
61. Learning organizations use all of the following approaches to acquire knowledge that they can use to change behavior EXCEPT
a. conducting formal retrospective meetings.
b. studying customer habits.
c. benchmarking against best industry practices.
d. acquiring a firm to gain its research and development area.
(d) Medium/Evaluation
62. Two or more companies that find an area of collaboration and combine their efforts to create a partnership beneficial to both parties is a
a. strategic alliance.
b. modular organization.
c. matrix organization.
d. learning organization.
(a) Easy/Comprehension
63. An organization where all the nonessential functions are outsourced is a
a. strategic alliance.
b. modular organization.
c. matrix organization.
d. learning organization.
(b) Easy/Comprehension
| Section II: Organizational Change |
64. Which of the following statements regarding change is INCORRECT?
a. Organizational change is the movement of an organization from one state of affairs to another.
b. Organizational change takes on limited forms.
c. Organizational change, at its most basic, involves effective people management.
d. Organizational change can be forced or planned.
(b) Medium/Comprehension
65. All of the following are external forces that are creating change for organizations EXCEPT
a. technology.
b. workforce demographics.
c. market conditions.
d. growth of unions.
(d) Easy/Knowledge
66. All of the statements regarding workplace demographics and their impact on change are correct EXCEPT an older workforce
a. that chooses retirement may cause a loss of valuable knowledge for firms.
b. will create a need for new types of benefits.
c. will likely cause flexible work hours and job sharing to diminish as older people like the structure of set hours of work.
d. will create a need to train managers so that they are not using age-related stereotypes in managing those employees.
(c) Medium/Evaluation
67. The practice of outsourcing as a response to the globalization of business has created all of the following changes for organizations EXCEPT a need to
a. retrain the workforce.
b. deal with employee stress.
c. understand how to compete in a global marketplace.
d. restructure employee communication channels.
(d) Medium/Analysis
68. Which of the following statements regarding factors of change in the organization is INCORRECT?
a. Rapid developments in technology force a firm to change its technology to keep up.
b. Manufacturing jobs have been outsourced, but knowledge-based jobs are largely safe from such movement.
c. Though 50% of all small businesses fail, those that succeed often evolve into large, complex organizations over time.
d. Changes in market conditions or the economy may cause companies to change the manner in which they do business.
(b) Difficult/Synthesis
69. Which of the following statements regarding performance and organizational change is INCORRECT?
a. More successful firms find it easier to change than those performing poorly.
b. Nothing fails like success is a fitting saying to describe the relationship between organizational change and performance.
c. Change in upper level management is a motivator for organizational level change.
d. Successful companies often have special practices in place to keep the organization open to change.
(a) Medium/Synthesis
70. The most negative reaction to a proposed change attempt is
a. enthusiastic support.
b. active resistance.
c. passive resistance.
d. compliance.
(b) Easy/Knowledge
71. Andy is vehemently opposed to the restructuring of the jobs in his department in the manufacturing firm. He decides that since no one is listening to what he has to say he will get their attention by damaging each of the parts he is making for tomorrow’s shipment. This is an example of what kind of change reaction?
a. enthusiastic support
b. passive resistance
c. active resistance
d. compliance
(c) Medium/Application
72. Marta has been a part-time faculty member at the university for nine years. She has been teaching two to three writing courses a semester. Last month, the dean held a meeting where he announced that next academic year, part-time instructors would be limited to teaching only two classes during the entire year. Marta is very upset and tells her husband, “I may look into teaching at the community college next year but don’t let anyone at the university know.” This is an example of what kind of change reaction?
a. passive resistance
b. enthusiastic support
c. compliance
d. active resistance
(a) Medium/Application
73. The new CEO of XYZ Corporation has developed a plan that will call for the restructuring of the organization from a functional structure to a matrix one. In his meeting with his subordinates, manager Ervin says, “This will be great. You will still work for this area and me, but you will have variety in that you will also all be reporting to a second manager for various projects to which you will be assigned. This new structure will only help grow this company.” This is what kind of a reaction to change?
a. compliance
b. enthusiastic support
c. active resistance
d. passive resistance
(b) Medium/Application
74. Georgio just returned from a meeting where his boss informed everyone of the new procedures to use in requesting reimbursement for travel. Georgio says, “I just figured out how to fill the other one out and now they are changing things. Oh, well, what are you going to do?” This is what kind of a reaction to change?
a. enthusiastic support
b. active resistance
c. compliance
d. passive resistance
(c) Medium/Application
75. Being disturbed by changes without voicing your opinion is
a. active resistance.
b. passive resistance.
c. enthusiastic support.
d. compliance.
(b) Easy/Comprehension
76. Compliance is
a. going along with proposed changes with little enthusiasm.
b. the most negative reaction to a proposed change.
c. defending the change and encouraging others to give their support to the change as well.
d. being disturbed by changes without voicing those opinions.
(a) Easy/Knowledge
77. All of the following statements regarding resistance to change are correct EXCEPT
a. all change attempts have to overcome the resistance of people.
b. if resistance to change is not addressed by the firm, time and energy will be lost.
c. when people react negatively to change, they are absent more often.
d. when people react negatively to change, they experience negative emotions, but are no more likely to leave the firm than they would be in a firm that was not undergoing organizational change.
(d) Difficult/Synthesis
78. People resist change for all of the following reasons EXCEPT
a. disrupted habits.
b. personality.
c. feelings of certainty.
d. fear of failure.
(c) Easy/Comprehension
79. All of the following statements regarding reasons employees resist change are correct EXCEPT
a. those who feel they can perform well under a new system will be more committed than those who have lower confidence in their ability to perform.
b. we are creatures of habit.
c. feelings of uncertainty create stress.
d. people with a negative self-concept view change as an opportunity.
(d) Medium/Synthesis
80. Which of the following statements regarding reasons employees resist change is correct?
a. people may not welcome the change currently proposed, but they do not usually place those changes into any past context, so former unsuccessful changes have little impact on the situation.
b. people resist change even if it is personally beneficial to them.
c. people are less likely to resist a change that is big in scope and has far reaching consequences.
d. people resist change that negatively impacts their influence and power in the firm.
(d) Difficult/Synthesis
81. Abdul has been downsized. Which of the following is NOT a piece of advice to offer him?
a. Polish your resume and job hunting skills.
b. Know our rights.
c. Get help.
d. Get angry! You just lost your job, you deserve to vent.
(d) Easy/Comprehension
82. Which of the following is NOT a stage of Lewin’s model of planned change?
a. refreeze
b. unfreeze
c. assess
d. change
(c) Easy/Comprehension
83. Making sure that organizational members are ready for and receptive to change is what step of the Lewin model?
a. refreeze
b. unfreeze
c. assess
d. change
(b) Easy/Comprehension
84. Ensuring that change becomes permanent and the new procedures become the norm is what stage of Lewin’s model of planned change?
a. refreeze
b. unfreeze
c. assess
d. change
(a) Easy/Comprehension
85. What is the first step in Lewin’s model of planned change?
a. refreeze
b. unfreeze
c. assess
d. change
(b) Easy/Comprehension
86. All of the following factors are important when unfreezing for planned change EXCEPT
a. taking things slowly; do not suggest a crisis is imminent
b. create a vision for change
c. communicate the plan for change
d. provide support
(a) Medium/Analysis
87. Which of the following statements related to the unfreezing stage of planned change is INCORRECT?
a. Allow employee participation in planning for change efforts.
b. Get everyone on board as soon as the change is initiated.
c. Make sure management provides emotional and instrumental support.
d. Make sure employees hear about planned changes via official channels, not the grapevine.
(b) Medium/Evaluation
88. Which of the following statements regarding the second stage of planned change is INCORRECT?
a. Early success gives change planners credibility.
b. Employees will be stressed; support them.
c. Create big wins because people need to see that things are happening.
d. Ensure that management keeps alert to and deals with obstacles that arise.
(c) Medium/Evaluation
89. Which of the following statements regarding the final stage of planned change is INCORRECT?
a. Employees should be informed regularly of the results of the change.
b. Declare victory early in making the change and get into a routine.
c. Reward those who embraced the change effort.
d. Change the mindset of people so change becomes a regular part of the corporate culture.
(b) Medium/Evaluation
90. Which of the following statements regarding overcoming resistance to your proposals is INCORRECT?
a. Do not listen to naysayers.
b. Involve those around you in the change.
c. Understand the reasons for resistance.
d. Present data to your audience.
(a) Medium/Analysis
| Section III: The Role of Ethics and National Culture |
91. All of the following alternatives to downsizing are more ethical actions EXCEPT
a. early retirement programs.
b. outsourcing.
c. job sharing.
d. hiring freezes.
(b) Medium/Analysis
92. The system where proposals at lower levels are signed and passed along to higher level management in an effort to build consensus is the
a. boundaryless organization.
b. modular organization.
c. ringi system.
d. strategic alliance.
(c) Easy/Knowledge
93. Which of the following statements regarding structure and change around the world is correct?
a. France is relatively comfortable with change because it is low in uncertainty avoidance.
b. The United States is more likely to use rational persuasion as an influence tactic than China.
c. The United States is characterized by higher levels of centralization than firms in Singapore and Hong Kong.
d. Japanese organizations are largely decentralized as evidenced by their ringi system.
(b) Medium/Evaluation
FILL IN THE BLANK
94. Toyota’s production system is built on principles of _____ ___ __________ production
(just-in-time)
95. A culture of “never being satisfied” and rethinking how things are done facilitates __________ _____________
(continuous improvement or learning)
96. ____________ production requires harmonious relationships between Toyota and its suppliers.
(Just-in-time)
97. ___________ ___________ refers to how individual work and team work are coordinated within an organization.
(Organization structure)
98. The degree to which decision-making authority is concentrated at higher levels in an organization is _____________.
(centralization)
99. An organization where policies, procedures, job descriptions and rules are written and explicitly articulated is ____________.
(formalized)
100. ____________structures are associated with reduced motivation and job satisfaction and a slower pace of decision making.
(Formalized)
101. A firm with several layers of management between frontline employees and the top level has a __________ structure.
(tall)
102. The number of employees reporting to a single manager is the ________ ____ ________.
(span of control)
103. A firm that has departments for finance, manufacturing, human resources, accounting, and marketing is an organization in a ___________ structure.
(functional)
104. A pharmaceutical company with medical devices, consumer products, baby care, and health supplements as its departments is organized as a _____________ structure.
(divisional or product)
105. _________ structures are most effective for organizations that do not have large numbers of products.
(Functional)
106. ___________ structures are highly formalized and centralized.
(Mechanistic)
107. A flexible, decentralized structure with low levels of formalization where communication lines are more fluid is a(n) __________ structure.
(organic)
108. __________ organizations, which combine functional structures with product structures, violate the unity of command principle.
(Matrix)
109. A ___________organization is a type of boundaryless organization where all nonessential functions are outsourced. Toyota is one such organization.
(modular)
110. ____________ organizations are organizations that eliminate traditional barriers between departments as well as barriers between the organization and external environment.
(Boundaryless)
111. A form of boundaryless organization where two or more companies find an area of collaboration and combine their efforts to create a partnership that is beneficial to both parties is a ________ _________.
(strategic alliance)
112. In ________ ________ experimenting, learning new things and reflecting on new knowledge are the norms.
(learning organizations)
113. The most negative reaction to a proposed change attempt is ___________ ___________.
(active resistance)
114. Going along with proposed changes with little enthusiasm is ___________.
(compliance)
115. Michael defends the new change in company healthcare registration as helping the firm be more efficient. He says, “After all, we have healthcare. Let’s learn how to do this since it will help us.” Michael is reacting to the change using the _______ __________ form.
(enthusiastic support)
116. The first stage of Lewin’s process of change model is ___________, which ensures that employees are ready for change.
(unfreezing)
117. _______ is the final stage of Lewin’s process of change model which ensures that the change becomes permanent.
(Refreezing)
118. The ________ ____ is used in Japan to build consensus by having proposals signed at lower levels and passed along to higher level management.
(ringi system)
SHORT ANSWERS
119. What are the four building blocks of a company’s structure?
Centralization, departmentalization, formalization and hierarchical levels.
120. In what type of firms does centralization seem to work best?
Centralization is the concentration of decision making at higher levels in the organization. Centralization works well with organizations that need efficiency in their operations and works especially well in stable environments.
121. Formalization works well in what type of organization?
Formalization works best where explicitly articulated, clearly written rules, procedures, plans and programs are needed. Unionized settings are one such organization where such specificity is needed.
122. Provide an example of an organization that has a functional structure.
A company organized into human resource, finance, manufacturing, marketing and information technology departments would be a functional organization. Manufacturing firms are often organized in this manner.
123. Give an example of a company that is organized along divisional lines.
A firm organized along divisional lines may be organized based upon the products it produces. For example, a consumer snack food company like Frito-Lay might have its beverage division, its snack foods division, its restaurant division, etc.
124. Compare and contrast mechanistic and organic structures.
Mechanistic structures resemble a bureaucracy and are highly formalized and centralized. Organic structures are flexible and decentralized with low formalization.
125. What is a matrix organization?
A matrix organization is a cross between a functional structure and a product structure. Thus, employees report to department managers and project or team managers. Such an arrangement violates the unity of command principle but is effective in uncertain and dynamic environments.
126. What is a boundaryless organization?
A boundaryless organization is a term coined by GE’s Jack Welch to refer to an organization that has eliminated traditional barriers between departments as well as barriers between the organization and external environment. There are two forms of the boundaryless organization: the modular organization and the strategic alliance.
127. What is a learning organization?
A learning organization is one where acquiring knowledge and changing behavior as a result of newly acquired knowledge is part of an organization’s design.
128. Describe some forms that organizational change takes.
Organizational change may impact a company’s strategy, structure, policies, procedures, technology or culture. The change can be radical or incremental.
129. List some issues in the external environment that might create a need for change in an organization.
Workplace demographics like the aging of that workforce, technological changes, globalization of business and market conditions are all issues that might create a need for change.
130. What impact might workforce demographics have on an organization?
A workforce demographic that might impact a firm is the aging workforce. Older people might require new or different benefits not currently offered to the existing workforce. They also might need different work arrangements and schedules.
131. What impact might technology have on an organization?
As technology rapidly changes, organizations must keep up. Firms struggle with the technology itself, funding the technology changes and training employees to keep up with those changes. The text mentioned the technological changes occurring in the music industry.
132. What impact does globalization have on an organization?
Globalization can be a threat or an opportunity for a firm. Many firms have begun to outsource much of their production to be competitive through low-cost structures. Sometimes the outsourcing is a success, sometimes the whole adaptation must be reviewed. The toy companies in the United States that outsourced to China and now deal with concerns about lead paint on those toys are doing some rethinking of the outsourcing process.
133. What impact do market conditions have on an organization?
The upheaval in the economy currently has created a dramatic need for change. Consolidations in multiple industries, ongoing corporate scandals and general uncertainty have necessitated a need to examine the way each firm does business and to look at alternatives that might help it remain viable.
134. Name two ways in which people react to change.
People react in four ways: active resistance, passive resistance, compliance and enthusiastic support. Any change attempt must overcome resistance on the part of people and recognizing these reactions makes a manager better able to address that reaction and provide for a successful change implementation.
135. Name two reasons why people resist change.
People resist change for a variety of reasons including: it disrupts their habits; because of their personality, feelings of uncertainty, fear of failure, the personal impact of the change, the prevalence of change and the perceived loss of power.
136. Is resistance to change always bad?
No, resistance to change can be a positive force. When resistance provides feedback to assess the changes and the methods to achieve such change it can be serving a constructive purpose. When people provide constructive criticism, those suggestions can be integrated into the change process for better implementation.
137. Briefly describe the Lewin process of change model.
Lewin’s model is comprised of three stages: unfreezing, change and refreezing. The first stage ensures that employees are ready for change. The second stage executes the intended change and the third stage ensures the change is permanent.
138. What are two key steps to take in ensuring success in unfreezing for change?
The steps include: creating a vision for change, communicating a plan for change, developing a sense of urgency for change, building a coalition, providing support and allowing employees to participate.
139. What are two key steps to take to ensure change is appropriately executed?
The steps include: continue to provide support, create small wins, and eliminate obstacles.
140. What are two key steps in refreezing for change?
The steps include: publicizing success, building on prior change, rewarding change adoption, and making change a part of the organizational culture.
141. What impact does organizational structure have on ethics?
If the organizational structure is too rigid or hierarchical, employees are not provided opportunities to develop moral intelligence. This moral intelligence is key in assessing what is ethical or not in the business setting. Similarly, when the structure prohibits an employee from making decisions with some degree of autonomy, ethical behaviors fail to develop.
142. Do organizational structures differ around the world?
The answer is very simply, yes. The student may choose to cite specific countries and their structures but generally they will be noting the nature of centralization or decentralization of organizations in each country. In addition, the student may note the culture’s level of uncertainty avoidance in noting structure.
ESSAY
143. What impact does structure have on Toyota Company’s success in the automobile industry?
Toyota is successful because its structure supports its strategy. Toyota functions under just-in-time production. Such a production focus requires employees who are expert at their positions, and who are continuously learning and improving. Toyota, which is functionally structured, has aspects of a matrix organization whereby employees are placed on teams to engage in that continuous learning process. Further, Toyota has strategic alliances with a number of firms that, again, support the just in time production process. In fact, Toyota’s supplier firms are responsible for roughly 75% of the car’s production. Toyota shows the success associated with an organizational structure aligned with a firm strategy.
144. Choose a firm and discuss the nature of its structure using the four building blocks of structure as your focus.
Student responses will vary. But they should include a discussion of centralization, formalization, departmentalization and hierarchical levels.
The university is generally centralized with key decisions made in the chancellor/president’s office and implemented at the college level.
The university is highly formalized with explicit policies, rules, and procedures in place to guide all activities from teaching to tuition payment by students. Everyone is covered by a general employee handbook and each school has specific additional rules.
The university is departmentalized into schools based on functional area.
The hierarchical levels include the chancellor/president, vice presidents, deans, full professors, assistant professors, associate professors, etc.
145. Max has just been assigned to a project team after his organization restructured to a matrix organization. What kinds of advice could be offered him to help him deal with multiple bosses?
Having multiple bosses is a difficult adjustment for many individuals because we are accustomed to the unity of command structure. The potential for conflict with the multiple boss, multiple duty/obligation structure is thus obvious. Some tips to meet the challenges include:
Do not assume that having multiple bosses is necessarily a bad thing.
Make sure all your managers are familiar with your overall workload.
Make conflicts known to your bosses.
Do not be afraid to request a meeting with all your managers.
Make an effort to establish effective relations with each manager.
Be cognizant of the relationships among managers as well.
With these tips in mind, Max should be able to make the adjustment.
146. Describe a time when a change was made in some organization of which you were a part. Were you resistant to the change? Why or why not?
Answers will vary with the student but the response should clearly delineate what the change was that was instituted. Also, the reaction to the change should be noted with the commentary on whether the student was resistant or not.
Sample: A manufacturing firm reclassified secretarial jobs. The company suggested the reclassification was necessary because the nature of jobs had changed. In this particular organization, computers had been provided to all members of the firm. Thus individuals throughout the organization were now able to type their own communication; they did not have to send work to the secretary for typing. Further, the organization had purchased a new telephone system so all organization members were able to put calls through to voice mail if they were busy. Again, secretaries had no need to answer phones. The overall result of the reclassification was that many secretarial jobs were placed at a lower level in the pay scale to reflect few duties performed. There was very vocal resistance to the plan, but that active resistance never rose to the level of sabotage. Clearly, the fact that employees’ livelihoods were impacted made the change a difficult one for the firm to implement. A number of secretaries ultimately left the firm, which likely was the intent of the company in reclassifying the jobs to begin with, as those positions were never filled when vacated.
147. Describe an organization that you believe needs to undergo a change. Describe the change that is needed and, using Lewin’s model of planned change, discuss how you would implement that change.
Answers will vary depending on the organization chosen. A family business owner of a mid-size manufacturing firm is aging and wants to leave the organization for retirement. He has two sons who are both part of the business and both desire to lead the organization. Before choosing a successor, he needs to work on stage one of change, unfreezing. He must prepare all employees of the firm and his external stakeholders for his departure. As the founder of the firm, he is the face of the firm so he must inform everyone of his desires but also of the smooth transition that will not interrupt their service. Once he informs the stakeholders of his plans, he must choose a leader. That leader must create a vision for the future. This vision must be communicated to the employees. A sense of urgency must be imparted as transitions cannot drag on but must take place. Change leaders need to be found who will serve as key supporters for the new leader. All management members must support each other and the employees as this change takes place. Clearly, stage two is the actual change. As the transition occurs, small wins must be publicized so the employees believe that the firm will continue to prosper. The final stage of the change, refreezing, will be a publicizing of the success of the transition and how the firm continues to serve its customers.
148. You have just been downsized from the firm where you have worked for nine years. What do you do to recover?
Though a painful experience, given the economic circumstances and the fact that firms now compete in a global setting, downsizing is a possibility at any time for any level employee. To recover:
Be calm. Easier said than done, but rational approaches to the incident as well as your next job search are needed at this critical time.
Do not get angry. This is not your fault, it is circumstances. Do not burn bridges because of those circumstances.
Know your rights. Make sure you understand severance packages and continued health insurance coverage.
Think about your ideal job situation. Are you in the right field? Are you in the right size firm? Now is the time to make any changes that help you realize your ideal job.
Get help. If the firm is not providing some job search assistance, find organizations that offer the resources you need including assistance on resume writing, job interview skills, etc.
Polish your resume and job-hunting skills.
Do not give up. You will find a job.
149. Grace has been with her firm for a year and sees a number of procedures that she feels can be changed to enhance efficiency and effectiveness. She has offered those suggestions during group meetings and even through written communication to her boss. No one seems to pay any attention to the suggestions she has offered. How can she get support for her suggested changes?
Grace might consider the following:
Listen to the naysayers. Grace may believe she has a great idea, but maybe it is not as good as she thinks. Those who dissent may offer suggestions for change that make the original proposal, now a viable one.
Assess whether your change is revolutionary. If Grace’s suggestions are dramatic changes, resistance is to be expected.
Involve those around you in planning the change. Grace should not provide everyone her suggestions, but make them a part of building those suggestions into a useful plan of action.
Do you have credibility? Grace has ideas for changes but how is she perceived in the organization? Grace must be honest with herself and assess whether others trust her and thus will be willing to follow through on her suggestions.
Present data to the audience. Grace needs to not just say “this needs to be done”; she needs to provide rationale for that change and why it would be successful.
Appeal to the audience’s ideals. What is the purpose behind the suggestion? Will the suggestion in some manner make the company employees happier? Will it improve the company’s prospects?
Understand the reasons for resistance to change. Grace must understand why employees are ignoring her proposals. Do her suggestions threaten the personal influence of some members? Are employees afraid to fail if this suggestion is implemented?
As Grace reviews these items, she can reshape and reword her suggestions and resubmit them for consideration.
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