Deck 15: Organizational Design and Structure

Question 1

An organization chart shows:

A)formal lines of authority and responsibility.
B)the number of people working in an organization.
C)the list of tasks allotted to each person.
D)informal forms of communication among employees of an organization.

Answer 1

A

Question 2

_____ help individuals understand their roles in an organization, especially in times of crisis.

A)Vertical linkages
B)Horizontal linkages
C)Spatial linkages
D)Departmental linkages

Answer 2

A

Question 3

Which of the following is a form of differentiation?

A)Matrix differentiation
B)Spatial differentiation
C)Circular differentiation
D)Lateral differentiation

Answer 3

B

Question 4

_____ can be considered the design process of linking tasks together to form an organizational structure that supports goal accomplishment.

A)Standardization
B)Formalization
C)Differentiation
D)Integration

Question 5

_____ is the degree of differentiation between organizational subunits and is based on employees' specialized knowledge, education, or training.

A)Horizontal differentiation
B)Spatial differentiation
C)Vertical differentiation
D)Lateral differentiation

Question 6

The strongest method of horizontal integration is through:

A)liaison roles.
B)integrators.
C)task forces.
D)teams.

Question 7

Which of the following is true of a flexible organizational structure?

A)It increases a manager's span of control.
B)It enhances formalization in organizations.
C)It helps to stimulate creativity.
D)It emphasizes close supervision and tighter controls.

Question 8

In the context of Mintzberg's organizational structures, which of the following statements is true of the simple structure?

A)It emphasizes strong centralization of decision making in the upper echelon.
B)It has a big technical and support staff.
C)It has extensive middle-level management.
D)It involves maximum vertical differentiation of authority.

Question 9

In the context of structural dimensions in organizations, _____ is the number of activities within the organization and the amount of differentiation needed within the organization.

A)complexity
B)formalization
C)specialization
D)hierarchy of authority

Question 10

_____ can be described as the design process of breaking organizational goals into tasks.

A)Centralization
B)Specialization
C)Differentiation
D)Integration

Question 11

In the context of horizontal differentiation, _____ refers to the particular grouping of activities performed by an individual.

A)centralization
B)standardization
C)specialization
D)formalization

Question 12

In the context of Mintzberg's organizational structures, the simple structure achieves coordination through _____.

A)maximum vertical differentiation of authority
B)extensive empowerment of middle-level managers
C)direct supervision by the upper echelon
D)maximum formalization

Question 13

Which of the following is true of tall organizational structures?

A)They have wider spans of control than flat organizational structures.
B)They are characterized by closer supervision and tighter controls than flat organizational structures.
C)They have simpler communication chains than flat organizational structures.
D)They have reduced promotion opportunities than flat organizational structures.

Question 14

In the context of structural dimensions in organizations, _____ refers to the extent to which work activities are described and performed routinely in the same way.

A)centralization
B)standardization
C)specialization
D)formalization

Question 15

An organization that is high in formalization, centralization, specialization, standardization, and complexity and has a tall hierarchy of authority is said to be highly _____.

A)flexible
B)autocratic
C)organic
D)bureaucratic

Question 16

The geographic dispersion of an organization's offices, plants, and personnel is referred to as:

A)vertical differentiation.
B)horizontal differentiation.
C)lateral differentiation.
D)spatial differentiation.

Question 17

In the context of structural dimensions in organizations, the extent to which decision-making authority has been delegated to lower levels of an organization is called _____.

A)centralization
B)formalization
C)specialization
D)standardization

Question 18

_____ ensures that all essential organizational tasks are assigned to one or more jobs and that the tasks receive the attention they need.

A)Integration
B)Coordination
C)Differentiation
D)Standardization

Question 19

Which of the following is true of vertical differentiation in organizations?

A)It is greater in flat, wider organizations than in tall, narrow organizations.
B)It decreases with decrease in the span of control.
C)It is the degree of differentiation between organizational subunits and is based on employees' specialized knowledge.
D)It is the difference in authority and responsibility in the organizational hierarchy.

Question 20

In the context of structural dimensions in organizations, _____ is the degree to which jobs are narrowly defined and depend on unique expertise.

A)specialization
B)standardization
C)centralization
D)formalization

Question 21

Reutiko Inc., a private detective agency, has experts from different fields. These experts work in small teams on different cases based on the requirements of the case. In the context of Mintzberg's organizational structures, Reutiko Inc. is an example of a(n)_____.

A)simple structure
B)professional bureaucracy
C)machine bureaucracy
D)adhocracy

Question 22

According to Mintzberg's organizational structures, the adhocracy emphasizes:

A)the support staff and mutual adjustment among people.
B)strong centralization of decision making in the upper echelon.
C)a minimal middle-level management.
D)coordination through direct supervision.

Question 23

The _____ is the appropriate definition of size when discussing the design of organizational structure.

A)number of product units produced
B)area of the building
C)sales volume
D)total number of employees

Question 24

In the context of Mintzberg's organizational structures, which of the following is a difference between a simple structure and a machine bureaucracy?

A)A simple structure is a centralized form of organization, whereas a machine bureaucracy is a moderately decentralized form of organization.
B)A simple structure emphasizes support staff differentiated from the line operations of the organization, whereas a machine bureaucracy emphasizes a small technical and support staff.
C)A simple structure has limited horizontal decentralization of decision making, whereas a machine bureaucracy has a minimum of vertical differentiation of authority and minimal formalization.
D)A simple structure achieves coordination through the standardization of work processes, whereas a machine bureaucracy achieves coordination through direct supervision by the upper echelon.

Question 25

The strength of the machine bureaucracy is:

A)its fast responsiveness to external changes.
B)its fast responsiveness to individual employee preferences.
C)efficiency of operation in stable, unchanging environments.
D)ease of coordination achieved through direct supervision by the upper echelon.

Question 26

In the context of Mintzberg's structural configurations for organizations, an automobile plant with routinized operating tasks is an example of a_____.

A)simple structure
B)machine bureaucracy
C)professional bureaucracy
D)divisionalized form

Question 27

BuiltFine is a company that manufactures kids' Halloween costumes. The costumes are custom-made based on clients' themes and ideas. According to Joan Woodward's classification schemes for technology, the technology used by BuiltFine is _____.

A)unit technology
B)process production
C)mass technology
D)large-scale production

Question 28

Magical Cloves, a cake shop, is co-owned by Sarah and Zeba. All the cake recipes are their own and they directly supervise the staff at the store. No decisions are taken by the staff without prior approval from Sarah or Zeba. In the context of Mintzberg's organizational structures, Magical Cloves has adopted a(n)_____.

A)professional bureaucracy
B)simple structure
C)machine bureaucracy
D)adhocracy

Question 29

According to Mintzberg's organizational structures, hospitals and universities are examples of a:

A)simple structure.
B)professional bureaucracy.
C)divisionalized form.
D)machine bureaucracy.

Question 30

Zaplinc is a multinational company with over 2000 employees. Communication between managers and subordinates in the company is affected as the managers at Zaplinc have a large span of control. In this scenario, which of the following strategies should Zaplinc employ to reduce their managers' span of control?

A)Defining employees' role by extensive formal documentation
B)Delegating decision-making authority to lower levels of management
C)Adding more levels to hierarchy of authority
D)Dividing organizational tasks into specialized jobs.

Question 31

_____ is a contextual variable and is defined as the tools, techniques, and actions used by an organization to transform inputs into outputs.

A)Technology
B)Throughput
C)Task environment
D)Vertical linkage

Question 32

According to Mintzberg's organizational structures, the _____ is designed to fuse interdisciplinary experts into smoothly functioning temporary project teams.

A)simple structure
B)adhocracy
C)divisionalized form
D)bureaucracy

Question 33

In the context of structural configurations proposed by Mintzberg, the _____ is a decentralized form of organization that emphasizes the expertise of the employees in the operating core of the organization.

A)professional bureaucracy
B)machine bureaucracy
C)adhocracy
D)simple structure

Question 34

Contextual variables refer to a set of four:

A)variables that decide the function of an organization.
B)characteristics that decide the norms of behavior in organizations.
C)variables that assess the performance of employees in an organization.
D)characteristics that influence the success of an organization's design.

Question 35

Which of the following is true of Woodward's classification schemes for technology?

A)Mass technology is the least complex technology.
B)Mass technology is a continuous-production process.
C)Process technology is classified as the most complex.
D)Unit technology is large-batch manufacturing technology.

Question 36

Which of the following is a planned strategy to reduce the size of an organization?

A)Merger
B)Acquisition
C)Decentralization
D)Downsizing

Question 37

In the context of structural configurations proposed by Mintzberg, the _____ is a loosely coupled, composite structural configuration composed of units, each of which may have its own structural configuration.

A)professional bureaucracy
B)machine bureaucracy
C)divisionalized form
D)simple structure

Question 38

In the context of Mintzberg's organizational structures, the professional bureaucracy achieves coordination through:

A)direct supervision of professionals.
B)selective decentralization of professional teams.
C)the standardization of professionals' skills.
D)the standardization of professionals' work processes.

Question 39

The machine bureaucracy emphasizes:

A)loosely-defined hierarchy of authority.
B)a flexible hierarchy of authority.
C)limited horizontal decentralization of decision making.
D)strong centralization of decision making in the upper echelon.

Question 40

Which of the following statements is true of the divisionalized form of organizational structure?

A)It emphasizes the importance of middle management.
B)It achieves coordination through direct supervision by the upper echelon.
C)It is designed to fuse interdisciplinary experts into smoothly functioning ad hoc project teams.
D)It is a centralized form of organization that emphasizes a small technical and support staff.

Question 41

In the context of contextual variable for organizational design, the _____ is the part of the environment that is directly relevant to an organization.

A)internal environment
B)technical environment
C)task environment
D)general environment

Question 42

Which of the following is true of globalization?

A)Organizational diversity can be reduced.
B)Corporations can become pitted against sovereign nations.
C)Mergers and acquisitions are difficult to implement.
D)Access to technology and information is inhibited.

Question 43

For international businesses to achieve vertical differentiation, _____.

A)a hierarchy of authority must be created that clarifies the responsibilities of both domestic and foreign managers
B)foreign and domestic operations should be grouped in such a way that the company effectively serves the needs of all customers
C)the global structure must allow decisions to be made in the most appropriate area of the organization
D)top level managers must emphasize flexibility and openness in organizational structure

Question 44

_____ are a group of separate but integrated human resource (HR)practices that aim to increase employee efficiency and organizational productivity.

A)Technological interdependence
B)Process productions
C)Internal social structures
D)High-performance work systems

Question 45

The level of an organization's environment that includes stakeholders such as unions, customers, suppliers, competitors, government regulatory agencies, and trade associations is called the:

A)task environment.
B)operational environment.
C)internal environment.
D)technical environment.

Question 46

For international businesses to achieve horizontal differentiation, _____.

A)a hierarchy of authority must be created that clarifies the responsibilities of both domestic and foreign managers
B)the global structure must allow decisions to be made in the most appropriate area of the organization
C)controls must be in place that reflect the strategies and goals of the parent firm
D)foreign and domestic operations should be grouped in such a way that a company effectively serves the needs of all customers

Question 47

As the level of centralization increases in an organization, the probability of _____ also increases.

A)the upper echelon losing power
B)the strategic decision process being initiated by lower-level managers
C)dependence on middle-level management
D)the decision process being goal-oriented and rational

Question 48

_____ makes spatial differentiation even more of a reality for organizations.

A)Routineness
B)Globalization
C)Decentralization
D)Downsizing

Question 49

The _____ of an organization is most easily defined as anything outside the boundaries of that organization.

A)complexity
B)size
C)environment
D)configuration

Question 50

According to James Thompson, greater technological interdependence leads to:

A)greater organizational complexity.
B)lesser organizational standardization.
C)greater organizational specialization.
D)greater organizational decentralization.

Question 51

Which of the following statements is true of organizational strategies and goals?

A)They are independent of an organization's structure.
B)They do not influence organizational design.
C)They provide employee direction and criteria for performance.
D)They remove the scope for any environmental uncertainty.

Question 52

The area an organization claims for itself with respect to how it fits into its relevant environments is known as its _____.

A)portfolio
B)liability
C)acquisition
D)domain

Question 53

_____ is the amount and rate of change in an organization's environment.

A)Environment adaptability
B)Environmental uncertainty
C)Environment flexibility
D)Environmental ratio

Question 54

As the level of formalization increases in an organization, the probability of _____ also increases.

A)having a simple structure
B)strategic moves being incremental and precise
C)organizational flexibility and openness
D)strategic moves being proactive through opportunities

Question 55

As the level of complexity increases in an organization, the probability of _____ also increases.

A)recognizing environmental opportunities and threats
B)the upper echelon losing power
C)the strategic decision process becoming more politicized
D)the strategic process being constrained by the limitations of top managers

Question 56

Short organizational life cycles put more pressure on the organization to:

A)adopt a mechanistic structure.
B)define employees' roles by formal documentation.
C)adopt a tall organizational structure.
D)be both flexible and efficient at the same time.

Question 57

According to Perrow's classification schemes for technology, problem analyzability examines the:

A)types of search procedures followed to find ways to respond to task exceptions.
B)degree of interrelatedness of an organization's various technological elements.
C)number of exceptions encountered in doing the tasks within a job.
D)total loss incurred by an organization in a particular financial year.

Question 58

In the context of structural dimensions of an organization, the organic structure emphasizes:

A)structured activities.
B)open communication.
C)specialized tasks.
D)centralized decision making.

Question 59

In the context of structural dimensions of an organization, a mechanistic structure emphasizes:

A)specialized tasks.
B)loosely-defined hierarchy of authority.
C)open communication.
D)decentralized decision making.

Question 60

In which of the following ways has the basic design dimensions of organizational structure been affected by advanced information-processing technologies?

A)The hierarchy of authority has been heightened.
B)Greater emphasis is placed on standardization.
C)The basis of centralization has been changed.
D)Greater emphasis is placed on specialization.

Question 61

As an organization's size increases, its complexity decreases.

Question 62

The adhocracy emphasizes the support staff and mutual adjustment among people.

Question 63

An organization that is low in formalization, centralization, specialization, standardization, and complexity and has a flat hierarchy of authority is said to be highly bureaucratic.

Question 64

Which of the following is a symptom that appears when an organizational structure is out of alignment with its contextual variables?

A)Employees are suspicious of each other.
B)Managers' personal, cognitive biases affect their good judgment.
C)Decision making is delayed because of the hierarchy being overloaded.
D)The chief executive fails to change the structure of the organization.

Question 65

Which of the following is most likely a reason why decision making is of poor quality in a weak or deficient organizational structure?

A)The hierarchy is overloaded with too much information.
B)Too much information is funneled through one or two channels.
C)The organization is not responding innovatively to a changing environment.
D)Information linkages do not provide the correct information to the right person.

Question 66

A temporary set of organizations designed to come together swiftly to exploit an apparent market opportunity is called a:

A)cellular organization.
B)circle organization.
C)virtual organization.
D)network organization.

Question 67

In the context of personality-organization constellations, in a _____ constellation, people are suspicious of each other, hence distrust in working relationships may interfere with effective communication and task accomplishment.

A)schizoid
B)paranoid
C)compulsive
D)depressive

Question 68

The task environment is that part of the environment that is indirectly relevant to the organization.

Question 69

In the professional bureaucracy, coordination is achieved through direct supervision by the upper echelon.

Question 70

Which of the following is true of high-performance work systems (HPWS)?

A)It includes stakeholders such as unions, customers, suppliers, and competitors.
B)It includes practices such as selection, training, performance appraisal, and compensation.
C)It emphasizes open communication, and decentralized decision making in organizations.
D)It puts pressure on organizations to adopt a bureaucratic structure.

Question 71

In the context of emerging organizational structures, _____ are weblike structures that contract some or all of their operating functions to other organizations and then coordinate their activities through managers and other employees at their headquarters.

A)cellular organizations
B)circle organizations
C)virtual organizations
D)network organizations

Question 72

Unlike managers today, managers of the future will most likely:

A)have a narrow functional focus.
B)get things done by ordering employees.
C)have broad cross-functional collaboration.
D)strictly adhere to boss-employee relationships.

Question 73

Formalization, specialization, and standardization all tend to be greater in larger organizations because they are necessary to control activities within the organization.

Question 74

Which of the following is a structural role of managers today?

A)Strictly adhering to boss-employee relationships.
B)Having hierarchical relationships subordinated to functional and peer relationships.
C)Having broad cross-functional collaboration.
D)Performing a prescribed set of tasks in in unusual and innovative ways.

Question 75

According to Mintzberg's organizational structures, the simple structure is a decentralized form of organization.

Question 76

In the context of emerging organizational structures, the three organizational parts of _____ are those that create demand, produce product, and provide support and are linked by the leadership and strategy council.

A)a network organization
B)a virtual organization
C)the simple structure
D)the circle organization

Question 77

In the context of the nature of the chief executive that affects the firm, the paranoid, the depressive, the dramatic, the compulsive, and the schizoid are:

A)types of matrix structure.
B)types of hybrid structure.
C)personality-organization constellations.
D)employee-employer constellations.

Question 78

Generally, the flatter an organization, the more vertical integration mechanisms are needed.

Question 79

Horizontal differentiation is the difference in authority and responsibility in an organizational hierarchy.

Question 80

Usually, greater the job specialization within an organization, lesser is the departmentalization.