Deck 15: Foundations of Organization Structure

Question 1

The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom is termed ________.

A) line of responsibility
B) path of power
C) span of control
D) web of authority
E) chain of command

Answer 1

E

Question 2

Which of the following terms refers to the rights inherent in a managerial position to give orders and expect them to be obeyed?

A) leadership
B) power
C) span of control
D) chain of command
E) authority

Answer 2

E

Question 3

The degree to which tasks in an organization are subdivided into separate jobs, is called ________.

A) work specialization
B) bureaucracy
C) centralization
D) departmentalization
E) social clustering

Answer 3

A

Question 4

A plant manager organizes a plant by separating engineering, accounting, manufacturing, personnel, and purchasing into departments. The plant is departmentalized on the basis of ________.

A) geography
B) function
C) target customer
D) service
E) product

Question 5

A narrow span of control ________.

A) simplifies vertical communication
B) discourages overly tight supervision
C) encourages employee autonomy
D) increases the speed of decision making
E) is expensive because it adds levels of management

Question 6

Anna's company needs to dramatically cut costs, speed decision making, and increase flexibility. Which of the following structural decisions will help her achieve the desired objectives?

A) increasing the span of control
B) departmentalizing the company on the basis of products
C) decreasing the unity of command
D) decentralizing management decisions
E) increasing the degree of formalization

Question 7

Mike Morrell is a production supervisor in Porco Rosso, an aircraft manufacturing firm. After evaluating Mike's managerial capabilities, some members of the senior management feel that average productivity would improve if more workers are assigned to him. However, some managers are skeptical about Mike's ability to handle more workers.
Which of the following statements, if true, would support the argument favoring increased span of control?

A) Mike's team consists of highly experienced and skilled labor.
B) Mike's team is highly dependent on his guidance, even on minor issues.
C) Porco Rosso recently became the world's leading aircraft manufacturer.
D) Mike is receiving increasing complaints about interpersonal conflicts within the team.
E) When additional workers were assigned to Mike on a previous occasion, it had led to unfavorable results.

Question 8

Span of control is a key element of an organization's structure. Which of the following key questions is addressed by this element?

A) On what basis will jobs be grouped together?
B) To what degree are activities subdivided into separate jobs?
C) How many individuals can a manager efficiently and effectively direct?
D) To what degree will there be rules and regulations to direct employees and managers?
E) To whom do individuals and groups report?

Question 9

Proctor & Gamble has separate departments for Tide, Pampers, Charmin, and Pringles. This is an example of departmentalization by ________.

A) geography
B) function
C) interest
D) process
E) product

Question 10

The ________ refers to the number of subordinates that a manager directs.

A) line of responsibility
B) leadership web
C) span of control
D) chain of command
E) unity of command

Question 11

AgriProducers has customers all over the United States that need their soil and crops tested in their labs. The crops and soil are different in the various large areas of the nation, such as the West Coast and the Midwest. Which type of departmentalization would be best for AgriProducers?

A) process
B) functional
C) geographic
D) temporal
E) product

Question 12

The basis by which jobs are grouped is called ________.

A) departmentalization
B) span of control
C) social clustering
D) work specialization
E) centralization

Question 13

For much of the first half of the twentieth century, managers viewed work specialization as ________.

A) a frustrating cause of reduced efficiency
B) difficult to implement without automation technology
C) an effective solution to over-centralization
D) a means to encourage employee satisfaction
E) an unending source of increased productivity

Question 14

According to the principle of unity of command, ________.

A) managers should oversee 1-4 employees on average
B) an individual should be directly responsible to only one supervisor
C) managers should limit their oversight to a maximum of 12 employees
D) an organization should be departmentalized on the basis of functions
E) employees should report directly to two supervisors to maintain task balance

Question 15

Mike Morrell is a production supervisor in Porco Rosso, an aircraft manufacturing firm. After evaluating Mike's managerial capabilities, some members of the senior management feel that average productivity would improve if more workers are assigned to him. However, some managers are skeptical about Mike's ability to handle more workers.
Which of the following statements, if true, would weaken the argument favoring increased span of control?

A) Market trends indicate that the demand for aircraft is expected to increase substantially over the next few years.
B) Performance reports from the last few years show that teams that were monitored closely had higher productivity.
C) Porco Rosso recently launched its latest engine model, the PR-4.
D) When additional workers were assigned to Mike on a previous occasion, it had led to favorable and productive results.
E) Mike has a reputation of handling interpersonal conflicts effectively.

Question 16

Chain of command is a key element of an organization's structure. Which of the following key questions is addressed by this element?

A) On what basis will jobs be grouped together?
B) How many individuals can a manager efficiently and effectively direct?
C) To what degree will there be rules and regulations to direct employees and managers?
D) To what degree are activities subdivided into separate jobs?
E) To whom do individuals and groups report?

Question 17

A ________ is consistent with recent efforts by companies to reduce costs, cut overhead, speed up decision making, increase flexibility, get closer to customers, and empower employees.

A) wider span of control
B) longer chain of command
C) lack of work specialization
D) high degree of formalization
E) high degree of centralization

Question 18

The principle of ________ helps preserve the concept of an unbroken line of authority.

A) unity of command
B) departmentalization
C) span of control
D) centralization
E) cross-functionality

Question 19

Wiper Inc., a parts supplier, has separate departments for government aircraft and contracts, large commercial aircraft clients, and small personal aircraft clients. This is an example of departmentalization on the basis of ________.

A) function
B) service
C) geography
D) product
E) customer

Question 20

Which of the following statements is true regarding work specialization?

A) Work specialization decreases the time spent in changing tasks.
B) Work specialization indicates to what degree will there be rules and formalized regulations to direct employees and managers.
C) Work specialization increases the cost of finding and training workers to do specific and repetitive tasks.
D) Work specialization hinders efficient use of employee skills.
E) Work specialization decreases efficiency and productivity.

Question 21

Elena is the senior manager of a scientific operations team at a well-known clinical research organization. The organization delivers more than 4,000 solutions across more than 18 therapeutic areas. Being a perfectionist, Elena has reached her present position through hard work and dedication. Given that she has also worked effectively with teams in the past, she has recently been assigned to lead a team working on a new project which is critical to the company. Elena refuses to allocate any tasks to her team and decides to put in extra hours and weekends to complete the groundwork herself. Based on the information presented here, which of the following would best explain this contradiction?

A) Elena feels that by delegating work, she will complicate her working relationship with the team.
B) Elena feels she will not be able to guide her team well on the project.
C) Elena is reluctant to delegate work as she lacks confidence in her team's abilities.
D) Elena is not very sociable with her colleagues.
E) Elena feels that this project is vital to the team's success.

Question 22

Which of the following types of organizational designs combines two forms of departmentalization, functional and product?

A) boundaryless structure
B) matrix structure
C) simple structure
D) virtual structure
E) bureaucracy

Question 23

The key concept that underlies all bureaucracies is ________.

A) standardization
B) decentralization
C) increased flexibility
D) specialization
E) efficiency

Question 24

Gordon is a new divisional manager at AskSocrates.com. In reorganizing his division, he must make some decisions regarding the span of control for management within his division.
While observing the departments in his division, Gordon notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly sized spans of control. Which of the following statements is most likely to be true regarding the high-performing managers?

A) The employees within their departments tend to compete to reach productivity goals, which boosts performance.
B) The employees within their departments are highly skilled and very knowledgeable about their jobs.
C) These managers have external locus of control.
D) These managers are paid higher salaries than the low-performing managers.
E) The employees within their departments score high on agreeableness.

Question 25

A ________ is characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.

A) hierarchical organization
B) matrix organization
C) bureaucracy
D) simple structure
E) networked organizational structure

Question 26

Which of the following statements is true about the simple structure?

A) It is characterized by a narrow span of control.
B) It is characterized by a high degree of formalization.
C) It is very expensive to operate.
D) It becomes increasingly inadequate as an organization grows.
E) It is most widely adopted in large businesses in which the manager and owner are different.

Question 27

Publishing representatives who call on college professors to inform them of their company's new publications have a great deal of freedom in their jobs. They have only a general sales pitch, which they tailor as needed. Based on this information, we can say that the job of these publishing representatives ________.

A) scores low on the degree of work specialization
B) scores low on the degree of decentralization
C) scores low on the degree of formalization
D) scores high on the degree of departmentalization
E) scores high on the degree of centralization

Question 28

Which of the following is a drawback of a narrow span of control?

A) It is more expensive.
B) It increases participatory decision making.
C) It reduces effectiveness.
D) It decreases the number levels in the organizational hierarchy.
E) It encourages employee autonomy.

Question 29

The simple structure is most widely practiced in small businesses in which ________.

A) the number of employees is between 100 to 150
B) employees are highly skilled
C) the manager and owner are one and the same
D) training budgets are limited
E) managers are hired directly by the company's owner

Question 30

________ refers to the degree to which jobs within the organization are standardized.

A) Decentralization
B) Formalization
C) Empowerment
D) Work specialization
E) Departmentalization

Question 31

According to a 2011 survey, many workers in Qtopia Inc. are dissatisfied with their jobs. The survey revealed that most of the dissatisfied workers believe that they have very little control over their job assignments. Therefore, to increase workers' job satisfaction, Boris, a production manager, feels they need to only concentrate on changing the dissatisfied workers' beliefs regarding the degree of control they have over their job assignments. Which of the following, if true, would weaken the conclusion made by Boris?

A) The workers in Qtopia Inc. are more dissatisfied than workers in other companies.
B) The workers in the company who are satisfied with their jobs believe that they have sufficient control over their job assignments.
C) Many dissatisfied workers feel that their wages are too low and working conditions are unsatisfactory.
D) Qtopia Inc. was included in a popular magazine's list of 100 best companies to work for, in its 2008 edition.
E) The number of workers in Qtopia Inc. who are satisfied with their jobs is greater than the number of workers who are dissatisfied.

Question 32

In an organization, top managers make all the decisions, and lower-level managers merely carry out their directives. This organization is most likely to be characterized by ________.

A) a narrower span of control
B) a low degree of formalization
C) a high degree of departmentalization
D) a low degree of work specialization
E) a high degree of centralization

Question 33

The more the lower-level personnel provide input or are actually given the discretion to make decisions, the ________ within that organization.

A) higher is the degree of formalization
B) lower is the level of empowerment
C) higher is the degree of decentralization
D) higher is the degree of departmentalization
E) lower is the degree of work specialization

Question 34

Which of the following is a characteristic of a simple structure?

A) ambiguous accountability
B) high degree of formalization
C) narrow spans of control
D) high centralization
E) inflexibility

Question 35

Which of the following statements is true regarding a bureaucracy?

A) Bureaucracies are characterized by a low degree of formalization.
B) Typically, bureaucracies have wider spans of control.
C) Bureaucracies encourage employee empowerment.
D) Bureaucracy is an ideal organizational design for those organizations that operate under highly uncertain conditions.
E) Bureaucracies can get by with less talented middle- and lower-level managers.

Question 36

Mark is the owner of a local shoe business. He has fifteen employees who report directly to him and he makes all the decisions regarding the type and quality of shoes and looks after the shop's finances. Which type of organizational structure does Mark have?

A) matrix structure
B) bureaucracy
C) boundaryless structure
D) simple structure
E) virtual structure

Question 37

The strength of product departmentalization in the matrix structure is that it facilitates ________.

A) employee empowerment
B) standardization
C) implementation of a high degree of centralization
D) adherence to chain of command
E) coordination among specialties

Question 38

Gordon is a new divisional manager at AskSocrates.com. In reorganizing his division, he must make some decisions regarding the span of control for management within his division.
The question of span of control determines ________.

A) where decisions are made
B) the employee grievance policy of the organization
C) how employees will be compensated
D) how jobs will be grouped
E) the number of levels and managers in an organization

Question 39

________ refers to the degree to which decision making is concentrated at a single point in the organization.

A) Work specialization
B) Line of command
C) Centralization
D) Formalization
E) Departmentalization

Question 40

The clerical and editorial employees in a publishing house need to be at their desks by 8:00 AM and follow a set of precise procedures dictated by management. The jobs of these clerical and editorial employees ________.

A) lack a unity of command
B) score low on the degree of work specialization
C) have a wide span of control
D) score high on the degree of departmentalization
E) score high on the degree of formalization

Question 41

You describe to your students a new committee within the university that brings together specialists from all different departments to develop a new interdisciplinary program. The structure of the committee best meets the definition of the ________ structure.

A) bureaucratic
B) simple
C) virtual
D) matrix
E) boundaryless

Question 42

A boundaryless organization is most likely to ________.

A) discourage participative decision-making practices
B) encourage hierarchical structure
C) use 360-degree performance appraisals
D) replace empowered teams with departments
E) avoid using cross-hierarchical teams

Question 43

Who coined the term "boundaryless organization?"

A) Jack Welch
B) Frederick Herzberg
C) Steve Jobs
D) Milton Friedman
E) John Maynard Keynes

Question 44

A boundaryless organization strives to ________.

A) create a higher level of formalization in the organization
B) outsource projects to a competent third party
C) break down barriers between the company, its customers, and suppliers
D) reduce bureaucracy costs associated with managing the projects in the organization
E) centralize power within the organization

Question 45

Which one of the following problems is most likely to occur in a matrix structure?

A) loss of economies of scale
B) decreased response to environmental change
C) increased social loafing
D) increase in groupthink
E) employees receiving conflicting directives

Question 46

Which of the following statements is true regarding a virtual organization?

A) A virtual organization is characterized by a high degree of departmentalization.
B) A virtual organization lacks flexibility.
C) A virtual organization tends to have unclear roles, goals, and responsibilities.
D) A virtual organization is sometimes called matrix organization.
E) A virtual organization is highly decentralized.

Question 47

You have learned about the traditional and new design options for organizational structures. You have decided that one of the designs developed during the last decade or two is probably the most appropriate for your newly formed organization.
You decide to eliminate horizontal, vertical, and external barriers within your organization. You want to operate as a ________ organization.

A) team structure
B) matrix
C) centralized
D) formalized
E) boundaryless

Question 48

________ is a systematic effort to make an organization leaner by selling off business units, closing locations, or reducing staff.

A) Formalizing
B) Decentralizing
C) Downsizing
D) Removing boundaries
E) Departmentalizing

Question 49

A virtual organization is also known as a(n) ________ organization.

A) modular
B) triangular
C) electronic
D) pyramidal
E) boundaryless

Question 50

A ________ organization is a small, core organization that outsources major business functions.

A) matrix
B) centralized
C) formalized
D) virtual
E) bureaucratic

Question 51

You are interested in explaining the different types of organizational designs to students of basic management. These students need to know the advantages and disadvantages of each structure as well as the structure's characteristics.
You extol the virtues and benefits of standardization. You are most likely to be promoting the ________.

A) boundaryless structure
B) simple structure
C) bureaucracy
D) virtual organization
E) matrix structure

Question 52

You are interested in explaining the different types of organizational designs to students of basic management. These students need to know the advantages and disadvantages of each structure as well as the structure's characteristics.
You explain to your students the structure of a local grocery store situated in your neighborhood. The store employs two full-time employees, a salesperson and a cashier. The owner of the store acts as its manager and makes all the decisions. Which of the following organizational structures is being described by you?

A) bureaucracy
B) matrix structure
C) virtual structure
D) simple structure
E) boundaryless structure

Question 53

You have learned about the traditional and new design options for organizational structures. You have decided that one of the designs developed during the last decade or two is probably the most appropriate for your newly formed organization.
You have recently started your business with a small capital investment. Your business needs a very high degree of flexibility so that you can quickly respond to environmental changes and you are also interested in minimizing costs. Which of the following types of organizations is best suitable for your business?

A) a formalized organization
B) a highly centralized organization
C) a hierarchical organization
D) a bureaucracy
E) a virtual organization

Question 54

Blastkrieg, a chain of audio equipment stores, uses computerized inventory control and customer self- service to eliminate the category of sales clerks from its force of employees. After diversifying into computer electronics, it now plans to employ the same concept in selling desktop PCs and laptops. Which of the following is an assumption made in Blastkrieg's strategy?

A) A self-service strategy cannot be employed without computerized inventory control.
B) Sales clerks are the only employees of Blastkrieg who could be assigned tasks related to inventory control.
C) Sales personnel are not required for selling computer electronics successfully.
D) All computer electronics stores use a similar strategy.
E) The same kind of computers will be used in inventory control for both audio equipment and electronics at Blastkrieg.

Question 55

Which of the following is a method that companies can use to break down cultural barriers in the global market?

A) limit global expansion
B) use only organic structures
C) form strategic alliances
D) increase the degree of formalization
E) increase the degree of centralization

Question 56

Which of the following is most likely to be a drawback of a virtual organization?

A) lack of flexibility and innovativeness
B) poor communication and high degree of formalization
C) lack of qualified employees and poor management
D) increased technology costs and decentralization
E) constant flux and reorganization

Question 57

The major advantage of a virtual organization is its ________.

A) flexibility
B) ability to minimize organizational politics
C) ability to enhance role clarity
D) decentralized structure
E) highly departmentalized structure

Question 58

You are the CEO of Achilles Incorporation. You have decided to hire other organizations to perform many of the basic functions of your business. You have hired an accounting firm to keep your records, a recruiting firm to handle human resource functions, and a computer firm to handle all records. To keep costs down, you are looking for other areas in which to outsource operations. You have chosen to operate your business as a ________.

A) highly centralized organization
B) bureaucracy
C) virtual organization
D) highly formalized organization
E) matrix organization

Question 59

Which of the following statements is true regarding a matrix structure?

A) It breaks the unity-of-command concept.
B) It cannot achieve economies of scale.
C) It prevents power struggles.
D) It reduces ambiguity about who reports to whom.
E) It avoids duplication of activities.

Question 60

Odysseus Corp. is attempting to flatten its organizational hierarchy. It is encouraging the use of cross-hierarchical teams, participative decision-making practices, and the use of 360-degree performance appraisals. Based on this information we can say that Odysseus Corp. is attempting to create a ________ organization.

A) highly departmentalized
B) highly centralized
C) virtual
D) boundaryless
E) highly formalized

Question 61

Narrow spans of control make vertical communication in the organization more complex.

Question 62

The chain of command is an unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom.

Question 63

A(n) ________ strategy emphasizes the introduction of major new products and services.

A) mechanistic
B) cost-minimization
C) organic
D) innovation
E) imitation

Question 64

Which of the following is typically a characteristic of an organic model of organization?

A) high formalization
B) inflexibility
C) centralization
D) free flow of information
E) narrow spans of control

Question 65

Which of the following is typically a characteristic of the mechanistic model of organization?

A) wide spans of control
B) rigid departmentalization
C) low formalization
D) decentralized management
E) low specialization

Question 66

Which of the following dimensions of an environment describes the degree to which the environment can support growth?

A) capacity
B) complexity
C) volatility
D) sustainability
E) flexibility

Question 67

Which of the following is most likely to be a characteristic of an organization pursuing a cost-minimization strategy?

A) low work specialization
B) lack of tight control
C) wide span of control
D) high centralization
E) low formalization

Question 68

Which of the following is most likely to be a characteristic of an organization pursuing an innovation strategy?

A) decentralized control
B) high specialization
C) narrow span of control
D) rigid departmentalization
E) high formalization

Question 69

Volatility refers to the degree of ________ within an environment.

A) diffusivity
B) heterogeneity
C) instability
D) flexibility
E) conformity

Question 70

Harald is opening a manufacturing plant with a mechanistic and centralized structure. Employees from which of the following countries will be least comfortable with this type of a structure?

A) Greece
B) Peru
C) France
D) Chile
E) Canada

Question 71

Work specialization increases the time spent in changing tasks.

Question 72

The ________ of an environment refers to the degree of heterogeneity and concentration among environmental elements.

A) simplicity
B) density
C) permeability
D) complexity
E) intricacy

Question 73

Work specialization contributes to higher employee productivity but at the price of ________.

A) reduced job satisfaction
B) increased cost
C) restricted flow of information
D) increased complexity
E) reduced economies of scale

Question 74

Narrow spans of control increase the speed of decision making.

Question 75

A(n) ________ model is generally synonymous with the bureaucracy in that it has highly standardized processes for work, high formalization, and more managerial hierarchy.

A) network
B) mechanistic
C) organic
D) boundaryless
E) pyramidal

Question 76

Some individuals want work that makes minimal intellectual demands and provides the security of routine; for them, ________ is a source of job satisfaction.

A) low formalization
B) high decentralization
C) high work specialization
D) wide span of control
E) free flow of information

Question 77

What are the key dimensions to any organization's environment?

A) criticality, volatility, diffusivity
B) conformity, criticality, and diffusivity
C) complexity, diffusivity, and criticality
D) conformity, criticality, and capacity
E) complexity, volatility, and capacity

Question 78

Organizations following a(n) ________ strategy try to both minimize risk and maximize opportunity for profit, moving into new products or new markets only after innovators have proven their viability.

A) mechanistic
B) imitation
C) organic
D) cost-cutting
E) innovation

Question 79

A(n) ________ model is a structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.

A) organic
B) pyramidal
C) mechanistic
D) network
E) boundaryless

Question 80

Which of the following terms refers to the way an organization transfers inputs into outputs?

A) environment
B) technology
C) complexity
D) formalization
E) volatility