Deck 14: Organisation Structure and Design

Question 1

Efficient use of labour is one of the advantages of division of labour.

Answer 1

True

Question 2

When a manager has a large span of control, she can maintain close control over workers and stay in contact with daily operations.

Answer 2

False

Question 3

Implicit rules are set down in job descriptions, policy and procedure manuals, and office memos.

Answer 3

False

Question 4

Departmentalisation by customer is based heavily on geography.

Question 5

Span of control is the degree to which rules and procedures shape employees' jobs and activities.

Question 6

A virtual organisation may not even have a permanent office.

Question 7

Most organisational problems can be fixed with restructuring.

Question 8

Division of labour is the separation of work into different jobs to be done by different people.

Question 9

It is impossible for a large organisation to retain elements of an organic structure.

Question 10

A centralised organisation concentrates decision making at the top of its hierarchy.

Question 11

The purpose of organisational structure is to appeal to external competitors.

Question 12

A company's pre-structural characteristics, which are determined largely by the founder's personality and values, often stay with the company even after it grows.

Question 13

An organisational chart illustrates the chain of command and reporting relationships in a company.

Question 14

Formalisation tends to delineate rules and procedures for employees' jobs.

Question 15

If there is much employee participation in decision making, the organisation structure is decentralised, regardless of the nature of the decisions being made.

Question 16

One downside of a high division of labour is that it tends to isolate employees.

Question 17

It's impossible for managers to create effective communities of practice, only the conditions necessary for them to exist.

Question 18

Responsibility cannot be delegated to others, but authority can.

Question 19

Centralisation is the system of reporting relationships in the organisation.

Question 20

Although it is difficult to determine, there exists an optimal organisational size.

Question 21

In Jabu's organisation, the span of control is very wide.In Pam's organisation, the span of control is rather narrow.The number of levels of managers in Jabu's organisation is likely to be ____ in Pam's organisation.

A) greater than
B) smaller than
C) the same as that
D) narrower than
E) wider than

Question 22

Dividing an organisation's manufacturing jobs into drill press, milling, heat treat and assembly areas is an example of grouping employees by

A) work process.
B) employee knowledge and skills.
C) business function.
D) client.
E) location.

Question 23

Division of labour is often referred to as

A) departmentalisation.
B) the organisational chart.
C) specialisation.
D) configuration.
E) the administrative hierarchy.

Question 24

In Tom's company, employees are given an opportunity to participate in decision making related to policy development, which is known as

A) formalised centralisation.
B) formalised concentration.
C) decentralisation.
D) formalisation.
E) centralisation.

Question 25

Organisational structure can be analysed by examining all of the following EXCEPT

A) division of labour.
B) span of control.
C) hierarchy.
D) centralisation.
E) All of these can be examined.

Question 26

Grouping employees by ___________ is similar to grouping them by output, except that the focus is on specific job tasks rather than on what the final product is.

A) work process
B) employee knowledge and skills
C) business function
D) client
E) location

Question 27

____ is the extent to which workers in an organisation specialise as opposed to performing a variety of tasks as generalists.

A) Segregation
B) Departmentalisation
C) Differentiation
D) Administrative component
E) Division of labour

Question 28

The main advantage of division of labour is that it promotes

A) worker satisfaction.
B) worker autonomy.
C) the creation of stimulating jobs.
D) efficient use of labour.
E) increased employee motivation.

Question 29

Grouping employees by ___________ means that groups are organised according to a region of the country or world.

A) business function
B) location
C) output
D) work process
E) client

Question 30

The organisational ____ is defined as the system of task, reporting and authority relationships within which the work of the organisation is done.

A) goal system
B) management
C) structure
D) community
E) matrix

Question 31

The system of reporting relationships in the organisation, from the first level up through to the president or CEO, is known as

A) informal communication channels.
B) hierarchy.
C) bureaucracy.
D) administrative interdependence.
E) formal communication channels.

Question 32

When individuals or groups throughout the hierarchy are not given an opportunity to participate in decision making, authority is

A) centralised.
B) efficient.
C) specialised.
D) flexible.
E) decentralised.

Question 33

Formalisation reflects the extent to which organisational rules, procedures and communications are

A) ethical.
B) fair.
C) written down.
D) comprehensive.
E) top-down.

Question 34

____ is the number of people reporting to a manager.

A) Administrative intensity
B) Span of control
C) Work group size
D) Organisational control
E) Organisational management

Question 35

Communities of practice are not an official part of organisational structure, but they can make money for the organisation.

Question 36

Which of the following is a potential disadvantage of division of labour?

A) Slower response to environmental changes
B) Organisational flexibility
C) Decreased potential for conflict, both constructive and destructive
D) Greater isolation of employees
E) All of these are potential disadvantages of division of labour.

Question 37

The structure of an organisation is defined as

A) the basic purpose of the organisation.
B) the sum of the individual working arrangements in place in an organisation.
C) a system of task, reporting and authority relationships.
D) a system of relationships that provides a framework of people.
E) the basis through which individual activities are monitored.

Question 38

When there is a small span of control, there is likely to be

A) an increase in the number of workers.
B) less control over production workers.
C) more administrative levels.
D) less bureaucracy.
E) looser managerial control.

Question 39

Jobs grouped according to traditional business tasks such as marketing and human resources are grouped by

A) work process.
B) employee knowledge and skills.
C) business function.
D) client.
E) location.

Question 40

The ____ shows all people, positions, reporting relationships and lines of formal communication in the organisation.

A) objectives chart
B) organisational chart
C) position chart
D) PERT chart
E) activities chart

Question 41

If an organisation uses unit production and makes custom products, it should have a _________ structure with a _________ managerial span of control.

A) flatter, smaller
B) flatter, larger
C) taller, smaller
D) taller, larger
E) none of these

Question 42

Large organisations tend to be _________ than small organisations.

A) more flexible
B) less centralised
C) less bureaucratic
D) more bureaucratic
E) None of these are correct.

Question 43

When an organisation uses _________, it makes large volumes of identical products, typically using assembly lines and machines.

A) unit production
B) mass production
C) continuous production
D) a primary production system
E) a matrix structure

Question 44

Which type of production relies the most heavily on employee talent?

A) Unit production
B) Mass production
C) Continuous production
D) A primary production system
E) A matrix structure

Question 45

Which type of production requires low levels of supervision because machines do most of the work?

A) Unit production
B) Mass production
C) Continuous production
D) A primary production system
E) A matrix structure

Question 46

A mechanistic structure can be characterised by all of the following EXCEPT

A) it is primarily hierarchical.
B) communication is typically vertical.
C) knowledge is concentrated at the top.
D) instructions come from the boss.
E) a high focus on adaptability.

Question 47

Smaller organisations with low standardisation, total centralisation and mostly one-on-one communication have a

A) matrix structure.
B) functional structure.
C) bureaucratic structure.
D) pre-bureaucratic structure.
E) lattice structure.

Question 48

When an organisation uses _________, it produces in small batches or makes one-of-a-kind custom products.

A) unit production
B) mass production
C) continuous production
D) a primary production system
E) a matrix structure

Question 49

To succeed in a rapidly changing environment, an organisation needs to have a more _________ structure.

A) centralised
B) formalised
C) bureaucratic
D) mechanistic
E) flexible

Question 50

If employees are to be encouraged to make decisions and work collaboratively, a more _________ and _________ structure is appropriate.

A) centralised, narrower
B) centralised, flatter
C) decentralised, narrower
D) decentralised, flatter
E) none of these

Question 51

_________ organisations are flexible and decentralised, have open communication channels, and focus on adaptability in helping employees accomplish their goals.

A) Organic
B) Mechanistic
C) Matrix
D) Simple
E) Bureaucratic

Question 52

Which of the following is NOT a factor that influences organisational structure?

A) External environment
B) Organisation's production technology
C) Organisational age
D) Organisational size
E) Business strategy

Question 53

As organisation size increases, each of the following increases as well EXCEPT

A) centralisation.
B) the number of rules.
C) the number of levels in the hierarchy.
D) flexibility.
E) specialisation of labour.

Question 54

Large organisations tend to have a _________ hierarchy and _________ specialisation than small organisations.

A) smaller, more
B) smaller, less
C) greater, more
D) greater, less
E) none of these

Question 55

Delegation is the transfer of ____ to make decisions and use organisational resources.

A) responsibility
B) authority
C) leadership
D) operational control
E) None of these are correct.

Question 56

A flatter, team-based structure is appropriate for organisations that rely on

A) unskilled workers.
B) highly skilled workers.
C) mass production.
D) continuous production.
E) None of these are correct.

Question 57

The benefits of a matrix organisation include all of the following EXCEPT

A) it is flexible.
B) it can provide coordinated responses to pressures.
C) it is cheaper.
D) it improves project coordination.
E) it improves communication.

Question 58

When an organisation uses _________, machines constantly make the product while employees monitor the machines and plan changes.

A) unit production
B) mass production
C) continuous production
D) a primary production system
E) a matrix structure

Question 59

Which element of organisational structure would an organisation pursuing an innovation strategy be most likely to have?

A) Centralisation
B) Decentralisation
C) Low specialisation
D) High formalisation
E) None of these are correct.

Question 60

One factor influencing organisational structure is the organisation's technology, which is also called its

A) hours of operation.
B) business strategy.
C) organisational chart.
D) primary production system.
E) secondary production system.

Question 61

A _________ is a collection of autonomous units or organisations that act as a single larger entity, using social mechanisms for coordination and control.

A) division
B) lattice
C) network organisation
D) matrix
E) bureaucracy

Question 62

Which type of multinational organisational structure is appropriate when local differences are large and the benefits of global integration are small?

A) Global area division structure
B) Regional lattice structure
C) Regional headquarters structure
D) Global product division structure
E) Global transnational division structure

Question 63

Which type of structure is characterised by employees having two bosses at the same time?

A) Matrix structure
B) Functional structure
C) Bureaucratic structure
D) Pre-bureaucratic structure
E) Lattice structure

Question 64

Which type of organisational structure places a greater importance on employees higher in the structure, as reflected by centralised decision making and a strict chain of command?

A) Matrix structure
B) Functional structure
C) Bureaucratic structure
D) Pre-bureaucratic structure
E) Lattice structure

Question 65

Which type of structure do new or young organisations typically have?

A) matrix structure
B) functional structure
C) bureaucratic structure
D) pre-bureaucratic structure
E) lattice structure

Question 66

Which type of multinational organisational structure is best when a balance of global integration and local responsiveness is needed?

A) Global area division structure
B) Regional lattice structure
C) Regional headquarters structure
D) Global product division structure
E) Global transnational division structure

Question 67

In organisations with a _________, employees report to both a project or product team and to a functional manager.

A) matrix structure
B) functional structure
C) bureaucratic structure
D) pre-bureaucratic structure
E) lattice structure

Question 68

A ________ is a collection of functions organised around a particular geographic area, product or service, or market.

A) division
B) lattice
C) network organisation
D) matrix
E) bureaucracy

Question 69

A ____________ has a balanced, matrixed relationship between local managers and headquarters with a two-way flow of ideas, resources and employees between the two locations.

A) global area division structure
B) regional lattice structure
C) regional headquarters structure
D) global product division structure
E) global transnational division structure

Question 70

In organisations with a _________, cross-functional and cross-level subteams are formed and dissolved as necessary to complete specific projects and tasks.

A) matrix structure
B) functional structure
C) bureaucratic structure
D) pre-bureaucratic structure
E) lattice structure

Question 71

Which type of multinational organisational structure works best when both global integration and local responsiveness are needed?

A) Global area division structure
B) Regional lattice structure
C) Regional headquarters structure
D) Global product division structure
E) Global transnational division structure

Question 72

In a ____________, a headquarters is established in major geographical areas that works collaboratively with the product divisions to give the local units clearer operational goals and directions.

A) global area division structure
B) regional lattice structure
C) regional headquarters structure
D) global product division structure
E) global transnational division structure

Question 73

A large organisation's legal department is staffed solely with lawyers.This illustrates a

A) matrix structure.
B) functional structure.
C) bureaucratic structure.
D) pre-bureaucratic structure.
E) lattice structure.

Question 74

Which type of multinational organisational structure is appropriate when the benefits of global integration are large and local differences are small?

A) Global area division structure
B) Regional lattice structure
C) Regional headquarters structure
D) Global product division structure
E) Global transnational division structure

Question 75

In a ____________, all functional activities are controlled by a product group at headquarters; local managers do not usually provide input into product decisions and are involved only in local administrative, legal and financial affairs.

A) global area division structure
B) regional lattice structure
C) regional headquarters structure
D) global product division structure
E) global transnational division structure

Question 76

Organisations with a _________ are characterised by formal division of labour, hierarchy, and standardisation of work procedures.

A) matrix structure
B) functional structure
C) bureaucratic structure
D) pre-bureaucratic structure
E) lattice structure

Question 77

In which type of organisation do managers spend a lot of time coordinating and controlling the network of contractors and strategic alliances?

A) Multinational organisation
B) Lattice organisation
C) Network organisation
D) Matrix organisation
E) Bureaucratic organisation

Question 78

_________ is an organisational structure that groups people with the same skills, or who use similar tools or work processes, together into departments.

A) Matrix structure
B) Functional structure
C) Bureaucratic structure
D) Pre-bureaucratic structure
E) Lattice structure

Question 79

Organisations with a _________ create horizontal or vertical teams that can define part or all of the organisation.

A) division structure
B) team-based structure
C) network structure
D) virtual structure
E) centralised structure

Question 80

In a ____________, regional and/or country managers are given substantial autonomy to adapt strategies to fit local situations.

A) global area division structure
B) regional lattice structure
C) regional headquarters structure
D) global product division structure
E) global transnational division structure