Deck 12: Foundations of Organizational Structure

Question 1

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

A) capability
B) potential
C) permeability
D) capacity
E) qualifications

Answer 1

capacity

Question 2

Which one of the following is not one of the primary ways to group jobs?

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

Answer 2

E

Question 3

If you have a narrow span of control, you have a(n) _______organization.

A) short
B) fat
C) efficient
D) matrix
E) tall

Answer 3

tall

Question 4

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) unity of command
B) authority
C) span of control.
D) web of authority
E) chain of command

Question 5

has hired you to develop training materials for their consultants. Your first assignment is to develop a training program that helps their consultants to analyze and understand the organizational structure of the company that they are assisting. CE believes that in order to adequately evaluate and understand a client company, consultants need to understand the basic organizational structure of the company. Consultants are then able to recommend actions and changes based on the company's structure.
The Acme Products case study notes that the senior management at Acme is concerned because the company takes so long to bring new products to market. Which of the following approaches would your trainees identify as most likely to help resolve this problem?

A) decreased work specialization
B) decentralization of the decision-making process
C) reduced diversity within the company's work force
D) reduction of cross-functional work teams
E) decreased formalization of policies and procedures

Question 6

_______are 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) Matrix structures
B) Simple structures
C) Wider spans of control
D) Narrower spans of control
E) none of the above

Question 7

Several key dimensions to any organization's environment have been found. Which of the following is one of these key dimensions?

A) collaboration
B) complexity
C) interdependence
D) productivity
E) alignment

Question 8

The prototype of the virtual structure is today's_______ .

A) architecture firms
B) fast-food restaurants
C) appliance manufacturers
D) movie-making organizations
E) simple organization

Question 9

The simple structure is most widely practiced in small businesses in which_______.

A) managers are hired directly by the company's owner
B) the owner also manages the company
C) management is limited to one individual
D) training budgets are limited
E) managers have a high degree of influence with the company's owner

Question 10

The virtual organization is also called the_______ or_______ organization.

A) network; modular
B) simple; unitary
C) pyramid; multi-level
D) boundaryless; global
E) team; social

Question 11

All of the following are characteristics of the organic model except .

A) cross-hierarchical teams
B) high employee participation in decision making
C) cross-functional teams
D) flatness
E) narrow spans of control

Question 12

In the late 1940s, most manufacturing jobs in industrialized countries were being done with high _______.

A) departmentalization
B) generalized structure
C) decentralization
D) structuralization
E) work specialization

Question 13

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 probably best meets the definition of the _______.

A) expert structure
B) matrix structure
C) organizational pyramid
D) boundaryless structure
E) virtual structure

Question 14

You have divided the jobs performed by your department through work specialization and are now trying to decide how to best group these jobs to improve efficiency and customer service. You are considering whether to group activities by function, product, process, geography, or customer.

-You have decided that since you are a novice at departmentalization, you will go with the most popular method. You will probably choose _______.

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

Question 15

Proctor & Gamble departmentalizes by Tide, Pampers, Charmin, and Pringles. This is an example of departmentalization by _ _.

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

Question 16

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

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

Question 17

You have divided the jobs performed by your department through work specialization and are now trying to decide how to best group these jobs to improve efficiency and customer service. You are considering whether to group activities by function, product, process, geography, or customer.

-You discover that your market is clearly divided between very different types of clients, with different support needs. To respond to this market diversity, you will probably choose to departmentalize by_______ .

A) customer
B) matrix
C) clients
D) requirements
E) support

Question 18

The structure that creates dual lines of authority is the_______ .

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

Question 19

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) authority
D) leadership
E) power

Question 20

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 assign your students a project that involves developing a business plan for a retail store. The store will have 200 employees and will serve customers both locally and internationally via a storefront and an Internet catalogue. Which of the following organizational designs is least likely to benefit the goals of this retail store?

A) virtual
B) simple
C) team
D) matrix
E) bureaucracy

Question 21

If there is low formalization, a comprehensive information network, and high participation in decision making, one would expect a(n)_______ structure.

A) organic
B) mechanistic
C) matrix
D) simple
E) stable

Question 22

Muhammad is a new divisional manager. In reorganizing his division, he must make some decisions regarding the span of control for management within his division.
Which of the following is a benefit of keeping the span of control to 5 or 6 employees?

A) Vertical communication is more complex.
B) Upper management is more available and in-touch.
C) It is expensive.
D) Decision making is slowed down.
E) none of the above

Question 23

has hired you to develop training materials for their consultants. Your first assignment is to develop a training program that helps their consultants to analyze and understand the organizational structure of the company that they are assisting. CE believes that in order to adequately evaluate and understand a client company, consultants need to understand the basic organizational structure of the company. Consultants are then able to recommend actions and changes based on the company's structure.

-Your trainees are given a case study concerning a local manufacturing firm called Acme Products. In assessing Acme's organizational structure, your trainees notice that all of the company's decisions are made by top management, with little or no input from lower-level personnel. The trainees most likely identify Acme as a(n)_______ organization.

A) decentralized
B) highly formalized
C) informally structured
D) highly centralized
E) aggressively managed

Question 24

The question of span of control determines_______ .

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

Question 25

Work specialization is the same as_______ .

A) job grouping
B) chain command
C) division of labor
D) departmentalization
E) decentralization

Question 26

The _______refers to the number of subordinates that a manager directs.

A) decentralization principle
B) leadership web
C) span of control
D) unity of command
E) chain of command

Question 27

A task that is subdivided into many separate jobs is considered to have _______ .

A) a low degree of decentralization
B) a low degree of structure
C) a high degree of departmentalization
D) a high degree of work specialization
E) a high degree of matrix structuring

Question 28

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 probably promoting the _ _.

A) organizational pyramid
B) matrix structure
C) team structure
D) bureaucracy
E) simple structure

Question 29

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 describe a structure that is flat, has little formalization, and is fast, flexible, and inexpensive to maintain. You are describing the _______ .

A) bureaucracy
B) team structure
C) organizational pyramid
D) matrix structure
E) simple structure

Question 30

You have divided the jobs performed by your department through work specialization and are now trying to decide how to best group these jobs to improve efficiency and customer service. You are considering whether to group activities by function, product, process, geography, or customer.

-Your products fall into several categories with very different production methods for each category. Because of this, you might consider departmentalizing by_______ .

A) implementation
B) process
C) matrix
D) production
E) method

Question 31

The key component underlying bureaucracies is_______ .

A) flexibility
B) the organizational pyramid
C) wide span of control
D) dual lines of authority
E) standardization

Question 32

Which of the following is not a drawback of a narrow span of control?

A) It makes vertical communication in the organization more complex.
B) It is expensive.
C) It encourages overly tight supervision.
D) It helps increase organizational efficiency.
E) Supervisors may lose control of their employees.

Question 33

Which one 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) increases in groupthink
E) decreased employee motivation

Question 34

The unity-of-command principle states which of the following?

A) Managers should provide direction to their employees in a unified fashion.
B) Managers should limit their oversight to a maximum of 12 employees.
C) An individual should be directly responsible to only one supervisor.
D) Employees should report directly to two supervisors to maintain task balance.
E) Managers should oversee 1 - 4 employees on average.

Question 35

has hired you to develop training materials for their consultants. Your first assignment is to develop a training program that helps their consultants to analyze and understand the organizational structure of the company that they are assisting. CE believes that in order to adequately evaluate and understand a client company, consultants need to understand the basic organizational structure of the company. Consultants are then able to recommend actions and changes based on the company's structure.

-_______is addressed by asking the question "On what basis are jobs grouped together?"

A) Centralization and decentralization
B) Departmentalization
C) Matrix restructuring
D) Work specialization
E) Formalization

Question 36

The basis by which jobs are grouped together is termed_______ .

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

Question 37

Employee discretion is inversely related to_______ .

A) standardization
B) complexity
C) empowerment
D) departmentalization
E) specialization

Question 38

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

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

Question 39

A plant manager who organizes the plant by separating engineering, accounting, manufacturing, personnel, and purchasing into departments is practicing _______departmentalization.

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

Question 40

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

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

Question 41

Volatility refers to the degree of_______ within an environment.

A) pressures
B) support
C) resources
D) instability
E) flexibility

Question 42

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.

-The structure that combines functional and product departmentalization is the_______ .

A) team structure
B) organizational pyramid
C) simple structure
D) bureaucracy
E) matrix structure

Question 43

For much of the first half of the 20^th century, managers viewed work specialization as _______.

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

Question 44

The trend in recent years has been toward _______.

A) wider spans of control
B) narrower spans of control
C) eliminating spans of control in favor of team structures
D) a span of control of four
E) an ideal span of control of six to eight

Question 45

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

A) Team structure
B) Matrix organization
C) Simple structure
D) Bureaucracy
E) Centralized structure

Question 46

Muhammad is a new divisional manager. In reorganizing his division, he must make some decisions regarding the span of control for management within his division.
In observing the departments in his division, Muhammad 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 true regarding the high-performing managers?

A) The employees within their departments have poor communication with each other.
B) These managers discourage employee autonomy, which produces more uniform departmental results.
C) The employees within their departments tend to compete to reach productivity goals, which boosts performance.
D) These managers are paid higher salaries than the low-performing managers.
E) The employees within their departments are highly skilled and very knowledgeable about their jobs.

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.

-Your new organization is looking for maximum flexibility. The most appropriate structure is probably the_______ .

A) virtual organization
B) network structure
C) organizational pyramid
D) team structure
E) matrix organization

Question 48

A strategy that emphasizes the introduction of major new products and services is a(n) _ _ strategy.

A) matrix
B) innovation
C) enhancement
D) progressive
E) organic

Question 49

Which of the following is a drawback of a narrow span of control? It _______.

A) reduces effectiveness
B) is more efficient
C) empowers employees
D) increases participatory decision-making
E) encourages overly tight supervision and discourages employee autonomy

Question 50

The_______ structure violates the unity of command concept.

A) matrix
B) web
C) virtual
D) team
E) simple

Question 51

A company oriented around cost minimization is best served by which type of structure?

A) virtual
B) organic
C) mechanistic
D) combination
E) targeted

Question 52

The major advantage of the virtual organization is its_______ .

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

Question 53

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

A) decentralization
B) work specialization
C) centralization
D) departmentalization
E) disempowerment

Question 54

Which of the following is not part of an organization's environment?

A) competitors
B) the media
C) public pressure groups
D) personnel
E) customers

Question 55

In an organization that has high centralization,_______ .

A) the corporate headquarters is located centrally to branch offices
B) all top level officials are located within the same geographic area
C) new employees have a great deal of legitimate authority
D) action can be taken more quickly to solve problems
E) top managers make all the decisions and lower level managers merely carry out directions

Question 56

The boundaryless organization relies heavily on_______ .

A) the simple structure
B) departmentalization
C) information technology
D) efficient chains of command
E) the matrix structure

Question 57

The _______is a structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization.

A) organic model
B) mechanistic model
C) traditional model
D) bureaucracy organization
E) simple structure

Question 58

_______refers to how an organization transfers its inputs into outputs.

A) Operations
B) Production
C) Process
D) Effectiveness
E) Technology

Question 59

Organizational structure has six key elements. Which of the following is not one of these elements?

A) centralization
B) departmentalization
C) formalization
D) location of authority
E) work specialization

Question 60

Which of the following is a common organizational design?

A) formalized structure
B) centralized structure
C) matrix structure
D) complex structure
E) administrative structure

Question 61

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) organizational pyramid
B) team structure
C) boundaryless structure
D) matrix organization
E) virtual organization

Question 62

The _______principle helps preserve the concept of an unbroken line of authority.

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

Question 63

The best definition for centralization is a situation in which decision making_______ .

A) is completed in each department and then sent to the president for review
B) depends on the situation
C) is concentrated at a single point in the organization
D) is pushed down to lower level employees
E) is diffused among a large segment of employees

Question 64

A major strength of the simple structure is that it easily adapts to any size organization.

Question 65

One of the most popular ways to group activities is by_______ .

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

Question 66

The innovation strategy is characterized by _______ .

A) high technology
B) simple structure
C) unorthodox structures
D) low specialization and low formalization
E) a mixture of loose and tight properties

Question 67

If a job is highly formalized, it would not include which of the following?

A) clearly defined procedures on work processes
B) a large number of organizational rules
C) a consistent and uniform output
D) explicit job description
E) high employee job discretion

Question 68

You have divided the jobs performed by your department through work specialization and are now trying to decide how to best group these jobs to improve efficiency and customer service. You are considering whether to group activities by function, product, process, geography, or customer.

-Your company decides to establish Gulf, Levant, and North Africa zones of operation. Based on this expansion, you decide to implement _______departmentalization.

A) customer
B) area
C) matrix
D) regional
E) geography

Question 69

The matrix structure combines which two forms of departmentalization?

A) process and functional
B) product and process
C) functional and product
D) all of the above
E) none of the above

Question 70

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 eliminated horizontal, vertical, and external barriers within your organization. You are operating as a _______.

A) team structure
B) virtual organization
C) boundaryless organization
D) matrix organization
E) organizational pyramid

Question 71

The strength of the matrix structure is its_______ .

A) adherence to chain of command
B) economies of scale
C) standardization
D) social empowerment
E) ability to facilitate coordination

Question 72

Which of the following generalizations about organizational structures and employee performance and satisfaction is most accurate?

A) Employees dislike routine work that makes minimal intellectual demands.
B) The evidence generally indicates that work specialization contributes to lower employee productivity.
C) There is fairly strong evidence linking decentralization and job satisfaction.
D) Large spans of control provide more distant supervision, thereby increasing employee productivity.
E) No evidence supports a relationship between span of control and employee performance.

Question 73

There has been a marked trend toward centralization in business decision making.

Question 74

The virtual organization stands in sharp contrast to the typical bureaucracy that has many vertical levels of management and where control is sought through_______ .

A) imposing limits
B) manipulation
C) teams
D) ownership
E) directives

Question 75

Which one of the following dichotomies of organizational structure specifically defines where decisions are made?

A) formalization/informalization
B) complexity/simplicity
C) centralization/decentralization
D) specialization/enlargement
E) affectivity/reflexivity

Question 76

has hired you to develop training materials for their consultants. Your first assignment is to develop a training program that helps their consultants to analyze and understand the organizational structure of the company that they are assisting. CE believes that in order to adequately evaluate and understand a client company, consultants need to understand the basic organizational structure of the company. Consultants are then able to recommend actions and changes based on the company's structure.

-You instruct the trainees to ask about the degree of rules and regulations that direct employees and managers. You want to help them understand the _______.

A) chain of command
B) span of control
C) degree of formalization
D) idea of matrix restructuring
E) degree of departmentalization

Question 77

A bureaucracy is characterized by all of the following except .

A) formalized rules and regulations
B) decentralized decision making
C) specialization
D) highly routine operating tasks
E) tasks that are grouped into functional departments

Question 78

_______defines how job tasks are formally divided, grouped, and coordinated.

A) Departmentalization
B) Work specialization
C) Matrix departmentation
D) Organizational structure
E) Organizational behavior

Question 79

Which one of the following is consistent with a simple structure?

A) bureaucracy
B) standardization
C) high employee discretion
D) high centralization
E) high horizontal differentiation

Question 80

has hired you to develop training materials for their consultants. Your first assignment is to develop a training program that helps their consultants to analyze and understand the organizational structure of the company that they are assisting. CE believes that in order to adequately evaluate and understand a client company, consultants need to understand the basic organizational structure of the company. Consultants are then able to recommend actions and changes based on the company's structure.

-One of the questions you tell the trainees to ask is, "To what degree are tasks subdivided into separate jobs?" This question addresses the issue of _______.

A) chain of command
B) work specialization
C) matrix restructuring
D) span of control
E) formalization