Test Bank –
Organization Theory & Design
Richard Daft 13th Edition
,1. Organization design:
a. encompasses larger elements that influence structural dimensions, including the organization’s size,
technology, environment, culture, and goals.
b. gives us the tools to evaluate and understand how and why some organizations grow and succeed while others
do not.
c. obtains inputs from the external environment, adds value through a transformation process, and discharges
products and services back to the environment.
d. provides labels to describe the internal characteristics of an organization.
ANSWER: b
RATIONALE: Feedback: Organization design gives us the tools to evaluate and understand how and why
some organizations grow and succeed while others do not. It helps us explain what
happened in the past, as well as what might happen in the future, so that we can manage
organizations more effectively.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-03 - 01-03
NATIONAL STANDARDS: United States - AACSB: Analytic
TOPICS: Organization Design in Action
KEYWORDS: Bloom’s: Understand
2. _____ refers to economic development that generates wealth and meets the needs of the current generation while saving
the environment so future generations can meet their needs as well.
a. Centralization
b. Formalization
c. Contingency
d. Sustainability
ANSWER: d
RATIONALE: Feedback: Many companies are embracing the philosophy of sustainability, which refers to
economic development that generates wealth and meets the needs of the current generation
while saving the environment so future generations can meet their needs as well.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-02 - 01-02
NATIONAL STANDARDS: United States - AACSB: Analytic
TOPICS: Organization Design in Action
KEYWORDS: Bloom’s: Understand
3. Pendant Inc., a retail chain based in England, has implemented an energy-efficient trucking fleet. It is increasing its use
of green materials in buildings, and aims to dispose all the waste of the company by 2025. Which of the following
measures is Pendant Inc. focusing its efforts on?
a. Going green
b. Scientific management
c. Contingency
d. Centralization
ANSWER: a
RATIONALE: Feedback: Pendant Inc. is focusing its efforts on going green. Going green has become a
new business imperative, driven by shifting social attitudes, new government policies, climate
changes, and the information technology that quickly spreads news of a corporation’s
negative impact on the environment.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-02 - 01-02
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,NATIONAL STANDARDS: United States - AACSB: Reflective Thinking
TOPICS: Organization Design in Action
KEYWORDS: Bloom’s: Apply
4. _____ refers to technologies, skills, and processes for searching and examining massive sets of data to uncover hidden
patterns and correlations.
a. Scientific management
b. Social business
c. A social media program
d. Big data analytics
ANSWER: d
RATIONALE: Feedback: Big data analytics refers to technologies, skills, and processes for searching and
examining massive sets of data to uncover hidden patterns and correlations. Big data is not
just for online companies.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-02 - 01-02
NATIONAL STANDARDS: United States - AACSB: Analytic
TOPICS: Organization Design in Action
KEYWORDS: Bloom’s: Remember
5. Which of the following is a difference between for-profit businesses and nonprofit organizations?
a. Financial resources for for-profit businesses come from government appropriations, grants, and donations,
while nonprofit organizations are funded by the sale of products or services to customers.
b. In for-profit businesses, managers focus on improving an organization’s products and services to increase
sales revenues, while in nonprofit organizations, however, services are typically provided to nonpaying clients.
c. For-profit businesses are committed to servicing clients with limited funds, while nonprofit organizations have
access to unlimited funds to service clients.
d. In for-profit businesses, services are typically provided to nonpaying clients, while in nonprofit organizations,
services are typically provided to paying clients.
ANSWER: b
RATIONALE: Feedback: In for-profit businesses, managers focus on improving an organization’s products
and services to increase sales revenues. In nonprofits, however, services are typically
provided to nonpaying clients, and a major problem for many organizations is securing a
steady stream of funds to continue operating.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-01 - 01-01
NATIONAL STANDARDS: United States - AACSB: Analytic
TOPICS: What is an Organization?
KEYWORDS: Bloom’s: Understand
6. _____ provide labels to describe the internal characteristics of an organization.
a. Functional dimensions
b. Administrative principles
c. Contingency factors
d. Structural dimensions
ANSWER: d
RATIONALE: Feedback: Structural dimensions provide labels to describe the internal characteristics of an
organization. They create a basis for measuring and comparing organizations.
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, POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-04 - 01-04
NATIONAL STANDARDS: United States - AACSB: Analytic
TOPICS: Dimensions of Organization Design
KEYWORDS: Bloom’s: Remember
7. _____ encompass larger elements that influence structural dimensions, including an organization’s size, technology,
environment, culture, and goals.
a. Functional dimensions
b. Administrative principles
c. Contingency factors
d. Structural dimensions
ANSWER: c
RATIONALE: Feedback: Contingency factors encompass larger elements that influence structural
dimensions, including an organization’s size, technology, environment, culture, and goals.
They describe the organizational setting that influences and shapes the structural
dimensions.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-04 - 01-04
NATIONAL STANDARDS: United States - AACSB: Analytic
TOPICS: Dimensions of Organization Design
KEYWORDS: Bloom’s: Remember
8. Which of the following is true of contingency factors?
a. They describe the organizational setting that influences and shapes the structural dimensions.
b. They create a basis for measuring and comparing organizations.
c. They provide labels to describe the internal characteristics of an organization.
d. They describe who reports to whom and the span of control for each manager.
ANSWER: a
RATIONALE: Feedback: Contingency factors encompass larger elements that influence structural
dimensions, including the organization’s size, technology, environment, culture, and goals.
They describe the organizational setting that influences and shapes the structural
dimensions.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-04 - 01-04
NATIONAL STANDARDS: United States - AACSB: Analytic
TOPICS: Dimensions of Organization Design
KEYWORDS: Bloom’s: Understand
9. _____ pertains to the amount of written documentation in an organization.
a. Centralization
b. Specialization
c. Decentralization
d. Formalization
ANSWER: d
RATIONALE: Feedback: Formalization pertains to the amount of written documentation in an organization.
Documentation includes procedures, job descriptions, regulations, and policy manuals.
POINTS: 1
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Organization Theory & Design
Richard Daft 13th Edition
,1. Organization design:
a. encompasses larger elements that influence structural dimensions, including the organization’s size,
technology, environment, culture, and goals.
b. gives us the tools to evaluate and understand how and why some organizations grow and succeed while others
do not.
c. obtains inputs from the external environment, adds value through a transformation process, and discharges
products and services back to the environment.
d. provides labels to describe the internal characteristics of an organization.
ANSWER: b
RATIONALE: Feedback: Organization design gives us the tools to evaluate and understand how and why
some organizations grow and succeed while others do not. It helps us explain what
happened in the past, as well as what might happen in the future, so that we can manage
organizations more effectively.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-03 - 01-03
NATIONAL STANDARDS: United States - AACSB: Analytic
TOPICS: Organization Design in Action
KEYWORDS: Bloom’s: Understand
2. _____ refers to economic development that generates wealth and meets the needs of the current generation while saving
the environment so future generations can meet their needs as well.
a. Centralization
b. Formalization
c. Contingency
d. Sustainability
ANSWER: d
RATIONALE: Feedback: Many companies are embracing the philosophy of sustainability, which refers to
economic development that generates wealth and meets the needs of the current generation
while saving the environment so future generations can meet their needs as well.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-02 - 01-02
NATIONAL STANDARDS: United States - AACSB: Analytic
TOPICS: Organization Design in Action
KEYWORDS: Bloom’s: Understand
3. Pendant Inc., a retail chain based in England, has implemented an energy-efficient trucking fleet. It is increasing its use
of green materials in buildings, and aims to dispose all the waste of the company by 2025. Which of the following
measures is Pendant Inc. focusing its efforts on?
a. Going green
b. Scientific management
c. Contingency
d. Centralization
ANSWER: a
RATIONALE: Feedback: Pendant Inc. is focusing its efforts on going green. Going green has become a
new business imperative, driven by shifting social attitudes, new government policies, climate
changes, and the information technology that quickly spreads news of a corporation’s
negative impact on the environment.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-02 - 01-02
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,NATIONAL STANDARDS: United States - AACSB: Reflective Thinking
TOPICS: Organization Design in Action
KEYWORDS: Bloom’s: Apply
4. _____ refers to technologies, skills, and processes for searching and examining massive sets of data to uncover hidden
patterns and correlations.
a. Scientific management
b. Social business
c. A social media program
d. Big data analytics
ANSWER: d
RATIONALE: Feedback: Big data analytics refers to technologies, skills, and processes for searching and
examining massive sets of data to uncover hidden patterns and correlations. Big data is not
just for online companies.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-02 - 01-02
NATIONAL STANDARDS: United States - AACSB: Analytic
TOPICS: Organization Design in Action
KEYWORDS: Bloom’s: Remember
5. Which of the following is a difference between for-profit businesses and nonprofit organizations?
a. Financial resources for for-profit businesses come from government appropriations, grants, and donations,
while nonprofit organizations are funded by the sale of products or services to customers.
b. In for-profit businesses, managers focus on improving an organization’s products and services to increase
sales revenues, while in nonprofit organizations, however, services are typically provided to nonpaying clients.
c. For-profit businesses are committed to servicing clients with limited funds, while nonprofit organizations have
access to unlimited funds to service clients.
d. In for-profit businesses, services are typically provided to nonpaying clients, while in nonprofit organizations,
services are typically provided to paying clients.
ANSWER: b
RATIONALE: Feedback: In for-profit businesses, managers focus on improving an organization’s products
and services to increase sales revenues. In nonprofits, however, services are typically
provided to nonpaying clients, and a major problem for many organizations is securing a
steady stream of funds to continue operating.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-01 - 01-01
NATIONAL STANDARDS: United States - AACSB: Analytic
TOPICS: What is an Organization?
KEYWORDS: Bloom’s: Understand
6. _____ provide labels to describe the internal characteristics of an organization.
a. Functional dimensions
b. Administrative principles
c. Contingency factors
d. Structural dimensions
ANSWER: d
RATIONALE: Feedback: Structural dimensions provide labels to describe the internal characteristics of an
organization. They create a basis for measuring and comparing organizations.
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, POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-04 - 01-04
NATIONAL STANDARDS: United States - AACSB: Analytic
TOPICS: Dimensions of Organization Design
KEYWORDS: Bloom’s: Remember
7. _____ encompass larger elements that influence structural dimensions, including an organization’s size, technology,
environment, culture, and goals.
a. Functional dimensions
b. Administrative principles
c. Contingency factors
d. Structural dimensions
ANSWER: c
RATIONALE: Feedback: Contingency factors encompass larger elements that influence structural
dimensions, including an organization’s size, technology, environment, culture, and goals.
They describe the organizational setting that influences and shapes the structural
dimensions.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-04 - 01-04
NATIONAL STANDARDS: United States - AACSB: Analytic
TOPICS: Dimensions of Organization Design
KEYWORDS: Bloom’s: Remember
8. Which of the following is true of contingency factors?
a. They describe the organizational setting that influences and shapes the structural dimensions.
b. They create a basis for measuring and comparing organizations.
c. They provide labels to describe the internal characteristics of an organization.
d. They describe who reports to whom and the span of control for each manager.
ANSWER: a
RATIONALE: Feedback: Contingency factors encompass larger elements that influence structural
dimensions, including the organization’s size, technology, environment, culture, and goals.
They describe the organizational setting that influences and shapes the structural
dimensions.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-04 - 01-04
NATIONAL STANDARDS: United States - AACSB: Analytic
TOPICS: Dimensions of Organization Design
KEYWORDS: Bloom’s: Understand
9. _____ pertains to the amount of written documentation in an organization.
a. Centralization
b. Specialization
c. Decentralization
d. Formalization
ANSWER: d
RATIONALE: Feedback: Formalization pertains to the amount of written documentation in an organization.
Documentation includes procedures, job descriptions, regulations, and policy manuals.
POINTS: 1
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