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,TESTBANK FOR Organization Theory and Design,
4th Edition by Ann Armstrong
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,Name: Class: Date:

Chapter 1 - Organizations and Organization Theory
1. According to Frederick Taylor’s theory of scientific management, what should decisions about
organizations and job design be based on?
a. scientific procedures after careful study of individual situations
b. insights of practitioners
c. leadership, motivation, and human resource management
d. management theory

ANSWER: a

2. Which statement best describes scientific management?
a. It used scientifically tested methods of motivation to improve organizational
performance.
b. It is an outgrowth of the Hawthorne studies, which found that people performed best
in an environment of clearly specified, narrow job tasks.
c. It focuses on effectiveness rather than efficiency.
d. It is successful at increasing output, in part through the use of incentive systems.

ANSWER: d

3. Which of the following emphasizes designing and managing organizations on an impersonal,
rational basis through such elements as clearly defined authority and responsibility, formal
record keeping, and uniform application of standard rules?
a. administrative principles b. scientific management
c. bureaucracy d. hierarchy

ANSWER: c

4. Interpretations of which of the following concluded that positive treatment of employees
improved their motivation and productivity?
a. administrative principles b. stakeholder approaches
c. scientific management d. the Hawthorne studies

ANSWER: d

5. Today, organizations have to learn to cross lines of time, culture, and geography in order to
survive. Why is this necessary?
a. because of the need to be more socially aware
b. because of quickly shifting customer expectations and environmental changes
c. because markets, technologies, and organizations are increasingly interconnected
d. because organizations are engulfed by information technology that affects how
organizations are designed and managed

ANSWER: c

6. Which statement best characterizes an organization?
a. It is a goal-directed entity that has members who set goals and achieve them through
strategic planning.
b. It is an entity with identifiable permanent boundaries.
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Chapter 1 - Organizations and Organization Theory
c. It is goal-directed social entity that has a deliberately structured activity system and a
permeable boundary.
d. It is a business that performs work activities and contributes to its society by
employing people.

ANSWER: c

7. What is the key element that makes an organization an organization and not just a group of
individuals?
a. buildings and policies b. people and their relationships
c. profits d. facilities location

ANSWER: b

8. Managers of nonprofit organizations deal with many diverse stakeholders. To whom must they
market their services in addition to donors and clients?
a. shareholders b. volunteers
c. charitable organizations d. employees

ANSWER: b

9. According to the textbook, why are organizations important to society?
a. They create value for owners, customers, and employees.
b. They establish important relationships with the government.
c. They reduce transaction costs.
d. They divide the resources needed for achieving desired goals and outcomes.

ANSWER: a

10. Which of the following is a main function of organizations?
a. They increase the challenges of diversity and ethics.
b. They limit innovation.
c. They resist adapting to and the influence of a rapidly changing environment.
d. They produce goods and services that customers want at competitive prices.

ANSWER: d

11. Which statement best describes an open system?
a. Outputs are continuously reused in a sustainable cycle of production and consumption.
b. Inputs are received from the environment, transformed, and then returned to the
environment.
c. All the energy it needs is contained within itself.
d. Products and services are used to make inputs.

ANSWER: b

12. Which statement provides the best generic description of what an organization does?
a. It acquires inputs from the environment, transforms them, and discharges outputs back
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,Name: Class: Date:

Chapter 1 - Organizations and Organization Theory
to the environment.
b. It operates its transformation processes independently from its environment.
c. It attempts to shield its transformation processes from the environment.
d. It focuses on the efficiency of its input acquisition and its transformation processes.

ANSWER: a

13. Where do nonprofit organizations usually get their resources?
a. government grants b. selling shares
c. investment income d. selling goods and services

ANSWER: a

14. What is a characteristic of a system and its subsystem?
a. a transformation process that involves production, maintenance, adaptation, and
management
b. an input selection known for being so accurate that it can be closed
c. subjective output criteria
d. boundary spanners connect employees to products and to organizational subsystems

ANSWER: a

15. Which subsystem would the surgery department in a hospital belong to?
a. production b. boundary spanning
c. maintenance d. management

ANSWER: a

16. Which of the following is a component of an organizational subsystem?
a. boundary subsystems responsible for exchanges with the external environment
b. maintenance subsystems responsible for keeping production facilities in operating
order
c. human subsystems that serve as employees
d. technical subsystems that become the basis for information processing

ANSWER: a

17. What does the term technical core refer to?
a. computer hardware that runs information processing in the organization
b. people who do the basic work of the organization, producing product and service
outputs
c. administrators who run the organization
d. top management who have been promoted from within and thereby know the inner
core of organizational processes

ANSWER: b

18. Which one of Mintzberg’s basic parts of an organization deals with functions such as human
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,Name: Class: Date:

Chapter 1 - Organizations and Organization Theory
resources, organizational development, the employee cafeteria, and maintenance staff?
a. technical support b. human infrastructure
c. administrative support d. top management

ANSWER: c

19. Which of the following is one of Mintzberg’s five basic parts of an organization?
a. administrative core b. computer infrastructure
c. top management support d. middle management

ANSWER: d

20. Which subsystem is responsible for directing and coordinating other parts of the
organization?
a. the technical core b. management
c. human resources d. accounting

ANSWER: b

21. Which term provides a description of the internal characteristics of an organization?
a. contextual dimensions b. contingency analysis
c. organizational dynamics d. structural dimensions

ANSWER: d

22. Which structural dimension is best represented by the 385-page book McDonald’s uses to
describe all rules and procedures in each of its stores?
a. learning theory b. sequential interdependence
c. formalization d. specialization

ANSWER: c

23. What is one of the elements of organizational design?
a. cultural b. management
c. structural d. technological

ANSWER: c

24. Which term refers to the degree to which organizational tasks are subdivided into separate
jobs?
a. formalization b. specialization
c. professionalism d. centralization

ANSWER: b

25. Which term refers to the deployment of people to various functions and departments?
a. professionalization b. specialization
c. personnel ratios d. hierarchy of authority


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,Name: Class: Date:

Chapter 1 - Organizations and Organization Theory
ANSWER: c

26. Which statement best describes contextual and structural dimensions?
a. They represent only the external environment.
b. They are centralization and personnel ratios.
c. They represent only the organizational characteristics.
d. They provide a basis for the measurement and analysis of characteristics that cannot
be seen by the casual observer.

ANSWER: d

27. Which of the following refers to how the organization actually produces the products and
services it provides for customers and includes flexible manufacturing, advanced information
systems, and the Internet?
a. size of the organization b. organizational technology
c. organizational goals d. organizational culture

ANSWER: b

28. What is a contextual, rather than a structural, dimension of an organization?
a. labour force b. culture
c. professionalism d. centralization

ANSWER: b

29. Which of the following is demonstrated in the comparison of EllisDon and Tim Hortons in
the textbook’s “In Practice” activity?
a. Larger organizations need to have tight controls at the top.
b. Successful organizations can have very different strategies and goal emphases.
c. A moderate to high level of formalization is crucial to an organization’s success.
d. Centralization is necessary in organizations when they face high levels of competition.

ANSWER: b

30. What term describes the degree to which an organization achieves its goals?
a. effectiveness b. efficiency
c. organizational strategy d. stakeholder profitability

ANSWER: a

31. Which term integrates diverse organizational activities by looking at various constituents and
what they want from the organization?
a. contextual dimensions b. organizational culture
c. efficiency d. stakeholder approach

ANSWER: d

32. In today’s world, what do savvy managers recognize?

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,Name: Class: Date:

Chapter 1 - Organizations and Organization Theory
a. They cannot measure, predict, or control their environment.
b. Centralized structures help them cope with organizational demands.
c. They do the “thought” work while employees perform the labour.
d. Leadership is based on the thoroughness of written documents.

ANSWER: a

33. According to the textbook, what does the term contingency refer to?
a. Organizations should be structured loosely.
b. Management structure is determined by the era or times.
c. One thing depends on other things, such as structure depending on environment.
d. Designing and managing organizations is done on an impersonal, rational basis.

ANSWER: c

34. John Black, a management consultant, successfully implemented an MBO program on his
first consulting job. He now recommends MBO to all his clients. In so doing, what aspect of
organizational design would the textbook say he is ignoring?
a. the latest techniques for solving problems
b. the principles of contingency theory
c. the external environment of the organization
d. the internal environment of the organization

ANSWER: b

35. Which statement best describes the learning organization?
a. places a high value on problem solving
b. emphasizes training as the essential value
c. engages people in sessions focused on finding maximum organizational efficiency
d. facilitates better decision-making when the environment is unstable

ANSWER: a

36. In a learning organization, what is used to encourage openness, equality, continuous
improvement, and change?
a. empowerment b. the culture
c. strategy d. the structure

ANSWER: b

37. Which statement best describes organizational behaviour?
a. It is a micro approach to organizations, focusing on individuals.
b. It focuses on the whole organization as a unit of analysis.
c. It is an “umbrella” that encompasses the study of organizational theory.
d. It is a subset of organizational theory.

ANSWER: a

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,Name: Class: Date:

Chapter 1 - Organizations and Organization Theory
38. Which statement best describes organizational behaviour?
a. It is the same as the study of organizational theory.
b. It is a macro analysis of the whole organization.
c. It is focused on people, structure, and environment.
d. It is a micro approach focusing on the individual.

ANSWER: d

39. At what level is the primary level of analysis in organizational theory done?
a. environmental b. organizational
c. departmental d. individual

ANSWER: b

40. The classical perspective of organizational design sought to make organizations run like
learning organizations in a turbulent environment.
a. True
b. False

ANSWER: False

41. Scientific management focused on the total organization and grew from the insights of
practitioners.
a. True
b. False

ANSWER: False

42. Scientific management focused on primarily the technical core, whereas administrative
principles focused on the design and functioning of the organization as a whole.
a. True
b. False

ANSWER: True

43. A key element of an organization is a building or set of policies and procedures, not the
people and their relationships.
a. True
b. False

ANSWER: False

44. Because of the Hawthorne studies, a revolution in worker treatment took place and laid the
groundwork for subsequent work examining treatment of workers, leadership, motivation, and
human resource management.
a. True
b. False

ANSWER: True

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, Name: Class: Date:

Chapter 1 - Organizations and Organization Theory
45. A closed system would be autonomous, enclosed, and sealed off from the outside world,
whereas an open system consumes resources and exports resources to the environment.
a. True
b. False

ANSWER: True

46. Outputs of an organization include employees, raw materials and other physical resources,
information, and financial resources.
a. True
b. False

ANSWER: False

47. In the transformation process, “output” deals with financial resources.
a. True
b. False

ANSWER: False

48. The amount of written documentation in the organization is called formalization.
a. True
b. False

ANSWER: True

49. The structural dimensions of organization design are formalization, specialization, culture,
environment, hierarchy of authority, professionalism, and goals and strategy.
a. True
b. False

ANSWER: False

50. Common structural variables studied as dimensions of organizations are goals, culture, and
environment.
a. True
b. False

ANSWER: False

51. The underlying set of key values, beliefs, understandings, and norms shared by employees is
referred to as an organization’s culture.
a. True
b. False

ANSWER: True

52. The structural and contextual dimensions describe organizations in much the same way that
personality and physical traits describe people.
a. True

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