Deck 14: Foundations of Organisational Structure

Question 1

The right inherent in a managerial position to give orders and expect orders to be obeyed is termed:

A)chain of command.
B)unity of command.
C)power.
D)authority.

Answer 1

D

Question 2

Grouping jobs on the basis of function,product,geography,process or customer is a form of:

A)chain of command.
B)span of control.
C)departmentalisation.
D)work specialisation.

Answer 2

C

Question 3

________ departmentalisation achieves economies of scale by placing people with common skills and orientations into common units.

A)Functional
B)Product
C)Geographic
D)Process

Answer 3

A

Question 4

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

A)span of control
B)unity of command
C)power
D)decentralisation

Question 5

The unbroken line of authority that extends from the top of the organisation to the lowest echelon and clarifies who reports to whom is called:

A)authority.
B)chain of command.
C)power.
D)unity of command.

Question 6

At an Alcoa aluminium tubing plant,production is organised into five departments: casting;press;tubing;finishing;and inspecting,packing and shipping.This is an example of ________.departmentalisation.

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

Question 7

The __________ principle states that a person should have one and only one superior to whom he or she is directly responsible.

A)unity of command
B)power
C)chain of command
D)span of control

Question 8

Work specialisation is the same as:

A)unity of command.
B)span of control.
C)job grouping.
D)division of labour.

Question 9

The basis by which jobs are grouped together is termed:

A)formalisation.
B)departmentalisation.
C)work specialisation.
D)centralisation.

Question 10

The __________ refers to the number of subordinates a manager can efficiently and effectively direct.

A)organisational chart
B)unity of command
C)span of control
D)chain of command

Question 11

The degree to which tasks are subdivided into separate jobs is termed:

A)departmentalisation.
B)formalisation.
C)span of control.
D)work specialisation.

Question 12

A manufacturing manager who organises the plant by separating engineering,accounting,manufacturing,personnel and purchasing into departments is practicing ________ departmentalisation.

A)target customer
B)geographic
C)functional
D)product

Question 13

One of the most popular ways to group activities is by:

A)function.
B)geography.
C)process.
D)product.

Question 14

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

A)span of control
B)unity of command
C)power
D)decentralisation

Question 15

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

A)It encourages overly tight supervision and discourages employee autonomy.
B)It is inexpensive.
C)Managers maintain closer control.
D)It empowers employees.

Question 16

__________ defines how job tasks are formally divided,grouped and coordinated.

A)Organisational behaviour
B)Organisational structure
C)Span of control
D)Formalisation

Question 17

We-Train-Em has hired you to develop training materials for its seminars.Your first assignment is to write a training manual that will assist new managers in designing an appropriate structure for their part of an organisation.Included in the manual will be information about the key questions that they must answer in deciding about the best organisational structure. One of the questions included in the training manual is 'To what degree are tasks subdivided into separate jobs?' This question addresses the issue of:

A)formalisation
B)work specialisation
C)chain of command
D)span of control

Question 18

All of the following are elements of organisational structure EXCEPT:

A)coordination.
B)formalisation.
C)departmentalisation.
D)centralisation.

Question 19

Which of the following components of organisational structure specifically defines where decisions are made?

A)centralisation
B)technology
C)formalisation
D)complexity

Question 20

All of the following are drawbacks of a narrow span of control EXCEPT:

A)They encourage overly tight supervision.
B)They are expensive.
C)They make vertical communication in the organisation more complex.
D)They encourage employee autonomy.

Question 21

We-Train-Em has hired you to develop training materials for its seminars.Your first assignment is to write a training manual that will assist new managers in designing an appropriate structure for their part of an organisation.Included in the manual will be information about the key questions that they must answer in deciding about the best organisational structure. The degree of rules and regulations that direct employees and managers is termed:

A)chain of command.
B)span of control.
C)formalisation.
D)departmentalisation.

Question 22

A primary strength of bureaucracy is its:

A)ability to perform standardised activities in a highly efficient manner.
B)ability to operate consistently through global rules and regulations.
C)effective and efficient use of resources.
D)tolerance for ambiguity.

Question 23

You have just described a structure that is flat;has little formalisation;and is fast,flexible and inexpensive to maintain.This describes the:

A)bureaucracy.
B)team structure.
C)simple structure.
D)matrix structure.

Question 24

Specialisation creates subunit conflicts in the:

A)matrix structure.
B)simple structure.
C)centralised structure.
D)bureaucracy.

Question 25

The structure that creates dual lines of authority and combines functional and product departmentalisation is the:

A)bureaucracy.
B)matrix structure.
C)virtual organisation.
D)simple structure.

Question 26

The ________ is characterised by a low degree of departmentalisation,wide spans of control,authority centralised in a single person and little formalisation.

A)matrix organisation
B)team structure
C)simple structure
D)bureaucracy

Question 27

The ________ is most widely practised in small businesses in which the manager and owner are one and the same.

A)simple structure
B)bureaucracy
C)matrix structure
D)centralised structure

Question 28

You have divided the jobs done by your department through work specialisation and are now trying to decide how to best group them for efficiency and service to the customer.You are considering grouping activities by function,product,process or customer. You have decided that since you are a novice at departmentalisation,you will go with the most popular method.You will probably choose ________ departmentalisation.

A)product
B)process
C)customer
D)function

Question 29

Which of the following is NOT a common organisational design?

A)matrix structure
B)centralised structure
C)bureaucracy
D)simple structure

Question 30

The key underlying all bureaucracies is:

A)dual lines of authority.
B)flexibility.
C)standardisation.
D)wide span of control.

Question 31

The strength of the simple structure lies in its:

A)information processing.
B)centralisation.
C)simplicity.
D)formalisation.

Question 32

The ________ is characterised by highly routine operating tasks achieved through specialisation.

A)matrix structure
B)centralised structure
C)bureaucracy
D)simple structure

Question 33

We-Train-Em has hired you to develop training materials for its seminars.Your first assignment is to write a training manual that will assist new managers in designing an appropriate structure for their part of an organisation.Included in the manual will be information about the key questions that they must answer in deciding about the best organisational structure. __________ is addressed by asking the question,'On what basis will jobs be grouped together?'

A)Formalisation
B)Work specialisation
C)Centralisation and decentralisation
D)Departmentalisation

Question 34

Putting similar specialties together and forming them into functional departments results in:

A)duplication of personnel and equipment.
B)breakdowns in communication through increased use of jargon and acronym.
C)economies of scale.
D)increased costs.

Question 35

You have divided the jobs done by your department through work specialisation and are now trying to decide how to best group them for efficiency and service to the customer.You are considering grouping activities by function,product,process or customer. You find that there seems to be a common set of problems among certain types of buyers of your product.You will probably choose:

A)process departmentalisation.
B)product departmentalisation.
C)customer departmentalisation.
D)function departmentalisation.

Question 36

The __________ is a flat organisation.

A)centralised structure
B)matrix structure
C)simple structure
D)bureaucracy

Question 37

Which of the following is consistent with a simple structure?

A)high horizontal differentiation
B)high centralisation
C)high departmentalisation
D)high formalisation

Question 38

You have divided the jobs done by your department through work specialisation and are now trying to decide how to best group them for efficiency and service to the customer.You are considering grouping activities by function,product,process or customer. You are organising into state regions.This is termed ________ departmentalisation.

A)function
B)customer
C)process
D)geographic

Question 39

Matthew is a new divisional manager.In reorganising his department he must make some decisions regarding the span of control. The question of span of control determines:

A)how jobs will be grouped.
B)who reports to whom.
C)the number of levels and managers an organisation has.
D)where decisions are made.

Question 40

The bureaucracy is characterised by all of the following EXCEPT:

A)highly routine operating tasks.
B)decentralised decision making.
C)tasks that are grouped into functional departments.
D)formalised rules and regulations.

Question 41

Downsizing is a systematic effort to make an organisation leaner by:

A)selling off business units.
B)closing locations.
C)reducing staff.
D)all of the above.

Question 42

A small,core organisation that outsources major business functions is the __________ organisation.

A)boundaryless
B)matrix
C)team
D)virtual

Question 43

The strength of the matrix structure is its:

A)predictability.
B)economies of scale.
C)adherence to chain of command.
D)ability to facilitate coordination.

Question 44

The prototype of the virtual structure is today's:

A)software companies.
B)fast food restaurants.
C)automobile manufacturers.
D)movie-making organisations.

Question 45

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

A)loss of economies of scale
B)employees receiving conflicting directives
C)decreased response to environmental change
D)decreased employee motivation

Question 46

In which organisational structure can employees have two competing lines of reporting?

A)complex structure
B)matrix structure
C)simple structure
D)bureaucratic structure

Question 47

An organisational structure that places management in the middle and radiates their vision outward is called

A)nodal
B)circular
C)temporary
D)modal

Question 48

Which of the following is NOT suggested as an effective strategy for implementing downsizing?

A)When employers make efforts to discuss downsizing with employees early,employees are less worried about the outcomes and feel that the company is taking their perspective into account.
B)Employees worry less if they can participate in the process in some way.
C)Providing severance,extended healthcare benefits and job search assistance demonstrates that a company does care about its employees.
D)Companies that downsize to focus on core competencies are more effective when they invest in low-involvement work practices afterwards.

Question 49

The ________ organisation replaces departments with highly empowered teams.

A)limitless
B)team
C)matrix
D)virtual

Question 50

The __________ structure is most commonly found in small businesses because owners often serve as managers.

A)simple
B)matrix
C)bureaucracy
D)centralised

Question 51

The __________structure is considered to be a flat organisation.

A)simple
B)matrix
C)bureaucracy
D)centralised

Question 52

The major disadvantage of the matrix structure is:

A)the stress it places on individuals.
B)the confusion it creates.
C)its propensity to foster power struggles.
D)all of the above.

Question 53

The ________ violates the unity of command concept.

A)complex structure
B)matrix structure
C)simple structure
D)bureaucratic structure

Question 54

The __________ is also called the network or modular organisation.

A)boundaryless organisation
B)virtual organisation
C)pyramid
D)team structure

Question 55

An effective strategy for managing downsizing is:

A)investment.
B)divestiture.
C)command and control.
D)training.

Question 56

A matrix structure can be stressful for workers who:

A)need a secure and unambiguous environment.
B)need flexibility and duplicity.
C)are ambitious.
D)need more autonomy.

Question 57

Virtual organisations can lose their cultural rigidity because of:

A)the high levels of flexibility.
B)the decentralised decision making.
C)the high levels of bureaucratic activity.
D)the low degree of interaction among members.

Question 58

The matrix structure combines which two forms of departmentalisation?

A)functional and product
B)product and organic
C)organic and mechanistic
D)simple and functional

Question 59

In simple structures,one can expect to find:

A)shared authority between employee and employer.
B)a great deal of formalisation.
C)little departmentalisation.
D)a narrow span of control.

Question 60

The major advantage of the virtual organisation is its ______ ,which allows innovative individuals with little money to successfully compete with more established organisations.

A)predictability
B)control
C)flexibility
D)empowerment

Question 61

The innovation strategy is characterised by:

A)meaningful and unique innovations.
B)avoiding unnecessary costs.
C)tight controls over current activity.
D)a mixture of loose with tight properties.

Question 62

A review of the evidence on the implications of organisational design and employee behaviour leads to a clear conclusion:

A)most people prefer an organic structure.
B)people select employers randomly.
C)you cannot generalise.
D)all of the above.

Question 63

Which of the following generalisations about organisational structures and employee performance and satisfaction is MOST true?

A)No-one wants work that makes minimal intellectual demands and is routine.
B)There is fairly strong evidence linking decentralisation and job satisfaction.
C)It is probably safe to say that no evidence supports a relationship between span of control and employee performance.
D)The evidence generally indicates that work specialisation contributes to lower employee productivity.

Question 64

John and Alex both work for large organisations.John's organisation has extensive work specialisation and everything is fairly formal.All decisions are made at the top of the hierarchy.Alex,on the other hand,works for an organisation that is low in formalisation and composed of numerous cross-functional teams.Employees in this organisation frequently get to make their own decisions. Alex is likely working for:

A)an organic organisation.
B)a mechanistic organisation.
C)a matrix organisation.
D)a virtual organisation.

Question 65

Michael is the owner of a company that specialises in gaming software.The livelihood of the company depends on its ability to create new and innovative games.However,in recent years,customer reviews of the company's products have suggested that the products are lacking in creativity.Michael has decided that the structure is inefficiently designed for innovativeness and he has decided to restructure. Michael should change the structure to a(n):

A)organic structure.
B)virtual organisation.
C)simple structure.
D)bureaucracy.

Question 66

Which of the following is NOT part of the organisation's environment?

A)customers
B)competitors
C)public pressure groups
D)technology

Question 67

__________ refers to how an organisation transfers its inputs into outputs.

A)Innovation
B)Operation
C)Technology
D)Imitation

Question 68

Describe the three common organisational designs: simple structure,bureaucracy,and matrix structure

Question 69

In a mechanistic structure one can expect NOT to find which of the following?

A)high formalisation of rules
B)extensive departmentalisation
C)flexibility
D)limited information network

Question 70

The ________ of an environment refers to the degree to which it can support growth.

A)nurturance
B)complexity
C)volatility
D)capacity

Question 71

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

A)creativity
B)complexity
C)volatility
D)capacity

Question 72

Helen's organisation has in recent years undergone a structural change.Compared to its previous structure,work specialisation,centralisation and span of control have all increased within the organisation. Helen notices that many of her employees are less satisfied now.Based on the available information,this is most likely linked to:

A)increased centralisation.
B)increased autonomy.
C)increased span of control.
D)all of the above.

Question 73

Why would people think that a bureaucracy is a 'dirty word' and what makes it differ from this impression?

Question 74

List and briefly describe six key questions that managers need to answer in designing the proper organisational structure.

Question 75

Which of the following structures has extensive departmentalisation,high formalisation,limited information network,and centralisation?

A)the mechanistic model
B)the virtual organisation
C)the organic model
D)the technology model

Question 76

What is organisational structure?

Question 77

Which of the following is NOT a characteristic of the organic model?

A)low formalisation
B)participative decision making
C)rigid departmentalisation
D)free flow of information

Question 78

Which of the following is NOT a key dimension to any organisation's environment?

A)volatility
B)capacity
C)complexity
D)capability

Question 79

_________ structures have low formalisation and high participation in decision making.

A)Bureaucratic
B)Mechanistic
C)Stable
D)Organic

Question 80

________ refers to the degree of instability of an environment.

A)Equilibrium
B)Volatility
C)Complexity
D)Capacity