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Organization Theory and Design 13th Edition Daft Test Bank
Chapter 01: Organizations and Organization Design
True / False
1. The growing global interdependence means that the environment for companies has become less complex and
competitive.
a. True
b. False
ANSWER: False
2. Organizations are social entities that are only linked to the internal environment.
a. True
b. False
ANSWER: False
3. An organization exists when people interact with one another to perform essential functions that help attain goals.
a. True
b. False
ANSWER: True
4. An organization obtains inputs from the external environment, adds value through a transformation process, and
discharges products and services back to the environment.
a. True
b. False
ANSWER: True
5. Financial resources for government and charity nonprofits typically come from the sale of products or services to
customers rather than from government appropriations, grants, and donations.
a. True
b. False
ANSWER: False
6. If specialization is low, each employee performs only a narrow range of tasks.
a. True
b. False
ANSWER: False
7. Vertical complexity is the number of departments or occupational specialties existing horizontally across an
organization.
a. True
b. False
ANSWER: False
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Organization Theory and Design 13th Edition Daft Test Bank
Chapter 01: Organizations and Organization Design
8. Scientific management focuses primarily on design and functioning of an organization as a whole.
a. True
b. False
ANSWER: False
9. With decentralization, decision-making authority is pushed up to higher organizational levels.
a. True
b. False
ANSWER: False
10. Organizational behavior is concerned with people aggregated into departments and organizations and with the
differences in structure and behavior at the organization level of analysis.
a. True
b. False
ANSWER: False
Multiple Choice
11. 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
12. 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
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Organization Theory and Design 13th Edition Daft Test Bank
Chapter 01: Organizations and Organization Design
13. 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
14. 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
15. 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
16. provide labels to describe the internal characteristics of an organization.
a. Functional dimensions
b. Administrative principles
c. Contingency factors
d. Structural dimensions
ANSWER: d
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Organization Theory and Design 13th Edition Daft Test Bank
Chapter 01: Organizations and Organization Design
17. 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
18. 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
19. pertains to the amount of written documentation in an organization.
a. Centralization
b. Specialization
c. Decentralization
d. Formalization
ANSWER: d
20. is the degree to which organizational tasks are subdivided into separate jobs.
a. Centralization
b. Specialization
c. Decentralization
d. Formalization
ANSWER: b
21. describes who reports to whom and the span of control for each manager.
a. Organizational technology
b. Scientific management
c. Hierarchy of authority
d. Administrative principles
ANSWER: c
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Organization Theory and Design 13th Edition Daft Test Bank
Chapter 01: Organizations and Organization Design
True / False
1. The growing global interdependence means that the environment for companies has become less complex and
competitive.
a. True
b. False
ANSWER: False
2. Organizations are social entities that are only linked to the internal environment.
a. True
b. False
ANSWER: False
3. An organization exists when people interact with one another to perform essential functions that help attain goals.
a. True
b. False
ANSWER: True
4. An organization obtains inputs from the external environment, adds value through a transformation process, and
discharges products and services back to the environment.
a. True
b. False
ANSWER: True
5. Financial resources for government and charity nonprofits typically come from the sale of products or services to
customers rather than from government appropriations, grants, and donations.
a. True
b. False
ANSWER: False
6. If specialization is low, each employee performs only a narrow range of tasks.
a. True
b. False
ANSWER: False
7. Vertical complexity is the number of departments or occupational specialties existing horizontally across an
organization.
a. True
b. False
ANSWER: False
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Organization Theory and Design 13th Edition Daft Test Bank
Chapter 01: Organizations and Organization Design
8. Scientific management focuses primarily on design and functioning of an organization as a whole.
a. True
b. False
ANSWER: False
9. With decentralization, decision-making authority is pushed up to higher organizational levels.
a. True
b. False
ANSWER: False
10. Organizational behavior is concerned with people aggregated into departments and organizations and with the
differences in structure and behavior at the organization level of analysis.
a. True
b. False
ANSWER: False
Multiple Choice
11. 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
12. 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
Page 2
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Organization Theory and Design 13th Edition Daft Test Bank
Chapter 01: Organizations and Organization Design
13. 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
14. 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
15. 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
16. provide labels to describe the internal characteristics of an organization.
a. Functional dimensions
b. Administrative principles
c. Contingency factors
d. Structural dimensions
ANSWER: d
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Organization Theory and Design 13th Edition Daft Test Bank
Chapter 01: Organizations and Organization Design
17. 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
18. 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
19. pertains to the amount of written documentation in an organization.
a. Centralization
b. Specialization
c. Decentralization
d. Formalization
ANSWER: d
20. is the degree to which organizational tasks are subdivided into separate jobs.
a. Centralization
b. Specialization
c. Decentralization
d. Formalization
ANSWER: b
21. describes who reports to whom and the span of control for each manager.
a. Organizational technology
b. Scientific management
c. Hierarchy of authority
d. Administrative principles
ANSWER: c
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