Deck 9: Organisational Structure and Design

Question 1

Large organizations, such as Aramco, tend to have more specialization and centralization compared to small organizations.

Answer 1

True

Question 2

A term for increased decentralization is employee empowerment, which is giving employees more authority to make decisions.

Answer 2

True

Question 3

Today, most managers see work specialization as a source of ever- increasing productivity.

Answer 3

False

Question 4

Since Woodward's initial work, numerous studies have demonstrated that organizations adapt their structures to their technology.

Question 5

The concept of work specialization can be traced back a couple of centuries to Adam Smith's discussion of division of labor.

Question 6

A simple structure is an organizational design that groups similar or related occupational specialties together.

Question 7

Grouping jobs on the basis of product or customer flow is termed 'customer departmentalization'.

Question 8

The relationship between organizational size and structure tends to be linear.

Question 9

The strength of the functional structure is that it focuses on results.

Question 10

An organic organization would likely be very flexible.

Question 11

Organizational design is the organization's formal framework by which job tasks are divided, grouped, and coordinated.

Question 12

Organizational structure is the degree to which tasks in an organization are divided into separate jobs.

Question 13

When decisions tend to be made at lower levels in an organization, the organization is said to be decentralized.

Question 14

When effective implementation of company strategies depends on managers having involvement and flexibility to make decisions, the company is probably more decentralized.

Question 15

An organic organization tends to be characterized by high specialization, extensive departmentalization, narrow spans of control, high formalization, a limited information network, and little participation in decision making by low- level employees.

Question 16

Innovators need the efficiency, stability, and tight controls of the mechanistic structure.

Question 17

The concept of centralization- decentralization is absolute.

Question 18

Joan Woodward attempted to view organizational structure from a technological perspective.

Question 19

Many of today's organizations are extremely reliant on strict rules and standardization to guide and regulate employee behavior.

Question 20

Woodward's findings support that there is "one best way" to organize a manufacturing firm.

Question 21

Work teams composed of individuals from various functional specialties are known as teams.

A) weak
B) differentiated
C) product
D) cross- functional

Question 22

Which statement accurately defines work specialization?

A) It clarifies who reports to whom.
B) Individual employees specialize in doing part of an activity rather than the entire activity.
C) Jobs are ranked relative only to their worth or value to the businesses.
D) The degree to which tasks are grouped together.

Question 23

Employee empowerment is a crucial aspect of team structure because there is no line of managerial authority from top to bottom.

Question 24

Project structures tend to be rigid and inflexible organizational designs.

Question 25

Departmentalization based on groups' jobs is based on the territory or physical location.

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

Question 26

The inspiration of the virtual organization structural approach is the film industry.

Question 27

Organizational design is based on decisions about .

A) chain of command and span of control
B) strategy and structure
C) centralization and matrices
D) work specialization and mechanisms

Question 28

In divisional structures, the parent corporation typically acts as an external overseer to coordinate and control the various divisions.

Question 29

A matrix design creates a dual chain of demand.

Question 30

In describing the degree to which tasks in an organization are divided into separate jobs, managers use the term .

A) work specialization
B) departmentalization
C) span of control
D) chain of command

Question 31

is the formal arrangement of jobs within an organization.

A) Organizational structure
B) Organizational design
C) Departmentalization
D) Work specialization

Question 32

It is critical for members in a virtual organization to collaborate on work activities throughout the entire organization.

Question 33

Many organizational design concepts are not applicable to twenty- first century companies.

Question 34

On what basis are jobs grouped in order to accomplish organizational goals?

A) Formalization
B) Departmentalization
C) Coordination
D) Centralization

Question 35

Structures of organizations in the Arab world differ remarkably from those in other countries.

Question 36

To minimize or eliminate boundaries, managers might use virtual or network structural designs.

Question 37

Functional departmentalization groups jobs by .

A) products or services they manufacture or produce
B) tasks they perform
C) territories they serve
D) type of customer they serve

Question 38

At a company like Eldiar Furniture Manufacturing Company, workers may be assigned specific duties in order to meet the requirements of quality conscious clients. This is called _.

A) labor intensification
B) job anhancement
C) work specialization
D) work specialization

Question 39

The line of authority that extends from the upper levels of management to the lowest levels of the organization is called the .

A) unity of command
B) authorized line of responsibility
C) chain of command
D) responsibility factor

Question 40

Internal boundaries are boundaries that separate the organization from its customers, suppliers, and other stakeholders.

Question 41

An example of _ is when a hotel, such as Renaissance Dubai Hotel, conducts meetings with employees to gather their suggestions and ideas for implementation.

A) staff stimulation
B) employee inspiration
C) employee empowerment
D) employee incentive scheme

Question 42

The degree to which jobs are standardized and guided by rules and procedures is called .

A) work specialization
B) formalization
C) decentralization
D) centralization

Question 43

In recent years, there has been a movement to make organizations more flexible and responsive through .

A) centralization
B) customer- based structure
C) decentralization
D) alternative organizational structure

Question 44

is the obligation or expectation to perform a duty.

A) Chain of command
B) Unity of command
C) Responsibility
D) Span of control

Question 45

The concept that defines the number of subordinates that report to a manager and that indirectly specifies the number of levels of management in an organization, is called _ .

A) authorized line of responsibility
B) responsibility factor
C) span of control
D) unity of command

Question 46

When managers standardize employee behavior through rules and procedures, the jobs are becoming more .

A) formalized
B) horizontal
C) diversified
D) vertical

Question 47

A(n) organization is able to change rapidly as needs require.

A) mechanistic
B) organic
C) horizontal
D) vertical

Question 48

What factor influences the amount of decentralization an organization uses?

A) The company is large.
B) Lower level managers are not as capable at making decisions as upper- level managers.
C) Lower- level managers want a voice in decisions.
D) Effective implementation of company strategies depends on managers retaining say over what happens.

Question 49

All other things being equal, as the span of control grows wider or larger, organizational design becomes more .

A) democratic
B) efficient
C) effective
D) bureaucratic

Question 50

Which one of Fayol's 14 principles of management helps preserve the concept of a continuous line of authority?

A) Unity of command.
B) Unity of demand.
C) Demand structure.
D) Continuous demand.

Question 51

Trends in the past few years have centered on a _ span of control to reduce costs and speed decision making.

A) stable
B) wider
C) deeper
D) narrower

Question 52

The traditional view was that managers could not-and should not-directly supervise more than subordinates.

A) three or four
B) seven or eight
C) nine or ten
D) five or six

Question 53

Concepts such as chain of command and authority are considerably less relevant today because of things like .

A) span of control
B) empowerment
C) information technology
D) conflicting demands of multiple bosses

Question 54

A(n) organization is rigidly controlled and efficient.

A) mechanistic
B) learning
C) horizontal
D) organic

Question 55

What factor influences the amount of centralization an organization uses?

A) The company is geographically dispersed.
B) The environment is complex.
C) The organization is facing the risk of company failure.
D) Decisions are significant.

Question 56

Organizations that work like efficient, well- oiled machines are described as .

A) intuitive
B) rational
C) organic
D) mechanistic

Question 57

refers to the rights inherent to a position that allows a manager to tell subordinates what to do and expect them to do it.

A) Responsibility
B) Chain of command
C) Unity of command
D) Authority

Question 58

Which of the following would likely be found in mechanistic organizations?

A) Empowered employees.
B) Standardized job specialties.
C) Wide span of control.
D) Decentralized responsibility.

Question 59

The theory that a person should report to only one manager is called .

A) authorized line of responsibility
B) responsibility factor
C) unity of command
D) chain of command

Question 60

When the span of control , employee performance suffers due to a lack of time, leadership, and support.

A) becomes less cost efficient
B) remains too small
C) becomes too large
D) becomes moderate

Question 61

As a type of technology, centers on large- batch production and requires moderate levels of complexity and sophistication.

A) service production
B) process production
C) unit production
D) mass production

Question 62

In describing the relationship between structure and strategy, it can be said that .

A) structure follows strategy
B) strategy follows structure in smaller organizations
C) strategy follows structure
D) strategy and structure are always handled equally

Question 63

A small business with low departmentalization, wide spans of control, centralized authority, and limited formalization can be said to possess a structure.

A) divisional
B) matrix
C) simple
D) functional

Question 64

Structure is related to the size of the organization, such that larger organizations tend to have than smaller organizations.

A) fewer rules and regulations
B) less departmentalization
C) more specialization
D) less centralization

Question 65

According to Woodward's studies, what type of production works best with a mechanistic structure?

A) Product
B) Unit
C) Process
D) Mass

Question 66

The greater the environmental uncertainty, the more an organization needs to become _ .

A) mechanistic
B) organic
C) technologically pure
D) supportive of technological change

Question 67

What is a strength of a simple structure?

A) There are cost- saving advantages from specialization.
B) It focuses on results.
C) It is inexpensive to maintain.
D) Employees are grouped with others who have similar tasks.

Question 68

The appropriate structure for an organization is based on four contingency variables: strategy, size, degree of environmental uncertainty, and _ .

A) leadership
B) technology
C) history
D) intensity of competition

Question 69

The strength of a structure is based on results of managers, but it has a weakness because duplication can occur easily within the organization.

A) simple
B) divisional
C) functional
D) matrix

Question 70

In Joan Woodward's study of the relationship between technology and structure, the structure that was the most technically complex was .

A) technological production
B) process production
C) unit production
D) mass production

Question 71

Global competition, accelerated product development by competitors, and increased demands by customers for better service have encouraged organizations to become more .

A) technologically pure
B) task oriented
C) organic
D) mechanistic

Question 72

Joan Woodward's study of the relationship between technology and structure is based upon her study of small manufacturing firms in _.

A) the northeastern United States
B) the south of Wales
C) southern England
D) France

Question 73

In what type of organizational structure is empowerment most crucial?

A) Bureaucratic
B) Team
C) Simple
D) Functional

Question 74

As the number of employees in an organization grows, structure tends to become more .

A) centralized
B) relaxed
C) specialized
D) informal

Question 75

Traditional organizational designs tend to be more mechanistic, and include _ .

A) simple, functional, and divisional structures
B) simple, functional, and corporate structures
C) functional, strategic, and business unit structures
D) simple, functional, and business unit structures

Question 76

An online Arabic sweets retailer that sells and ships sweets to customers all over the world and has a payroll of six employees, is likely to have which kind of organizational structure?

A) Functional
B) Simple
C) Bureaucratic
D) Divisional

Question 77

Managers in contemporary organizations are finding that traditional hierarchical designs for the environments they face.

A) are perfectly suitable
B) are often not appropriate
C) are somewhat suitable
D) form a foundation

Question 78

What is a weakness of a simple structure?

A) Reliance on one person is risky.
B) Pursuit of functional goals can cause managers to lose sight of what's best for the overall organization.
C) Functional specialists become insulated and have little understanding of what other units are doing.
D) Duplication of activities and resources increases costs and reduces efficiency.

Question 79

Structure is related to the size of the organization, such that larger organizations are more .

A) organic
B) structurally weak
C) decentralized
D) mechanistic

Question 80

What type of organizational structure is made up of autonomous, self- contained units?

A) Functional
B) Bureaucratic
C) Simple
D) Divisional