1
Test Bank for Organization Theory and Design 12th
Edition by Richard L. Daft.
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
Page 1 of 348
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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
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.
Page 2 of 348
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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.
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
Page 3 of 348
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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
LEARNING OBJECTIVES: ORGT.DAFT.16.01-04 - 01-04
NATIONAL STANDARDS: United States - AACSB: Analytic
Page 4 of 348
Test Bank for Organization Theory and Design 12th
Edition by Richard L. Daft.
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
Page 1 of 348
,2
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
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.
Page 2 of 348
,3
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.
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
Page 3 of 348
, 4
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
LEARNING OBJECTIVES: ORGT.DAFT.16.01-04 - 01-04
NATIONAL STANDARDS: United States - AACSB: Analytic
Page 4 of 348
