Exam 16: Organizational Design and Structure

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Members of an ordinary team are full-time members of the same function or organization.

(True/False)
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When the business environment is ________, an organization is MOST LIKELY to decentralize authority and empower its employees to make operating decisions.

(Multiple Choice)
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In a(n)________, employees working in empowered teams assume the responsibility to make decisions as organizational needs dictate.

(Multiple Choice)
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A regional marketing structure allows organizations to customize products to meet the needs of customers in different world regions.

(True/False)
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In a ________ employees are linked to an organization's centralized databases via computers, faxes, and videoconferencing.

(Multiple Choice)
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In a ________, fewer managers are needed because their role is not to make decisions; instead, they act as coaches or facilitators and help other employees make decisions.

(Multiple Choice)
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Decentralizing authority allows an organization and its employees to behave in a flexible way, even as the organization grows.

(True/False)
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When an organization chooses to group people and functions so that it can produce a wide variety of different products, it moves to a market structure.

(True/False)
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An organic structure is designed to promote flexibility so that employees can initiate change and adapt quickly to changing conditions.

(True/False)
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The principle of the minimum chain of command states that an organization should operate with the fewest levels possible.

(True/False)
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When Dell groups all employees who perform tasks related to assembling personal computers into the manufacturing function and all employees who handle Dell's telephone sales into the sales function, it is using functional structure.

(True/False)
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________ organizations have ________ hierarchical levels relative to their size.

(Multiple Choice)
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Formalization is the use of rules and standard operating procedures to control an organization's activities.

(True/False)
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A company interested in using a network structure would be spending time ________.

(Multiple Choice)
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Which of the following does NOT occur when an organization's hierarchy becomes too tall?

(Multiple Choice)
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Employees in matrix-structure product teams are permanent members of two-boss teams.

(True/False)
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In a matrix structure, managers group people and resources by function and by product.

(True/False)
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Which of the following is a disadvantage of a divisional structure?

(Multiple Choice)
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If an organization operates in a stable environment using well-understood technology, then there is no pressing need to decentralize decision-making authority.

(True/False)
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Nonroutine or complicated technologies are characterized by low task variety and high task analyzability.

(True/False)
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