Deck 15: Organizational Design and Structure

Question 1

The process of coordinating the different parts on an organization is:

A)horizontal differentiation
B)integration
C)horizontal complexity
D)known as the hierarchy of authority

Answer 1

B

Question 2

Complexity refers to:

A)the number of activities, subunits, or subsystems within the organization
B)the process of coordinating the different parts of an organization
C)the number of employees in the organization
D)the number of levels within the organization

Answer 2

A

Question 3

Lawrence and Lorsch suggest that an organization's complexity should mirror:

A)its strategy
B)the degree of specialization within the organization
C)the amount of integration within an organization
D)the complexity of the environment

Answer 3

D

Question 4

Flat organization structures are characterized by:

A)narrow spans of control
B)close supervision
C)long communication channels
D)high ratios of employees to supervisors

Question 5

The thousands of State Farm Insurance Company agents' offices scattered throughout the United States are an example of:

A)vertical differentiation
B)spatial differentiation
C)a tall structure with narrow spans of control
D)departmentation by product

Question 6

The process of constructing and adjusting an organization's structure to achieve its goals is:

A)strategic management
B)strategy-structure fit
C)organizational design
D)organizational reconfiguration

Question 7

An organization chart shows:

A)formal lines of authority and supervisor-employee reporting relationships
B)how many people are employed by an organization
C)the tasks for each job
D)the number of positions in each department

Question 8

The difference between the authority and responsibility in the organizational hierarchy is called:

A)horizontal differentiation
B)spatial differentiation
C)gap of accountability
D)vertical differentiation

Question 9

A highly bureaucratized organization, such as the Social Security Administration, exhibits all of the following characteristics except:

A)specialization
B)standardization
C)formalization
D)loose controls

Question 10

Organization complexity would be considered greatest in which of the following organizations?

A)a university
B)a high school basketball team
C)an office of a car rental agency at a busy airport
D)an auto repair shop of an auto dealership

Question 11

The extent to which work activities are defined and routinely performed the same way is known as:

A)centralization of decisional authority
B)standardization
C)complexity
D)formalization

Question 12

In general, the flatter an organization the more necessary are:

A)vertical integrators
B)higher degrees of formalization
C)differentiation activities
D)integration mechanisms

Question 13

The process of breaking organizational goals into tasks and dividing work is:

A)integration
B)coordination
C)differentiation
D)organization charting

Question 14

The strongest method of horizontal integration is through:

A)liaison roles
B)a designated integrator
C)task forces
D)teams

Question 15

As an organization increases differentiation in response to external complexity, it will need to increase efforts to:

A)clarify roles
B)train employees in communication
C)develop teams
D)improve and/or increase integration

Question 16

Cisco Systems' organizational structure is so complex that it can take 15 minutes and a whiteboard to fully explain. John Chambers describes the benefits simply: speed, skill, and flexibility. The core "structural" unit at the heart of Chambers concept is the:

A)circle structure
B)management team
C)network structure
D)virtual team

Question 17

Organizational design is a process of specifying structural features of an organization. This process begins with:

A)the organization's goals
B)task specifications of each job
C)arranging jobs into departments
D)diagramming formal channels of communication

Question 18

In their research on differentiation, Lawrence and Lorsch found all of the following dimensions reflected differentiation except:

A)goal orientation
B)interpersonal orientation
C)formality of structure
D)hierarchical control

Question 19

The degree of differentiation most affected by employee's specialized knowledge, education, or training is:

A)spatial differentiation
B)vertical differentiation
C)horizontal differentiation
D)departmental differentiation

Question 20

Which of the following can function as a vertical and horizontal integrating device?

A)a well-defined chain of command
B)cross-functional teams
C)an assistant to the president
D)management information systems

Question 21

An automobile plant with routinized operating tasks should probably use what type of complementary structure?

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

Question 22

A tall hierarchy of authority is usually associated with:

A)decentralization
B)informal and unofficial work roles
C)a loose chain of command
D)centralization

Question 23

Of the following, which is NOT a major contextual variable of organizational design?

A)external environment
B)leadership style
C)strategy and goals
D)technology

Question 24

The faculty of a university comprises which of Mintzberg's fundamental elements of the organization?

A)support staff
B)technical staff
C)middle level
D)operating core

Question 25

For an organization to take advantage of its larger size into the 21st century, it must become:

A)centerless with a global core
B)centralized with a technology critical mass
C)cellular with strong elements of the horizontal form
D)more like an adhocracy

Question 26

In a small organization (cafe, service station, or real estate office), supervision of employees and management control are most commonly done through:

A)detailed descriptions
B)personal observation by the manager
C)written policies and procedures
D)rule books

Question 27

The particular grouping of activities performed by an individual or the division of labor refers to:

A)horizontal differentiation
B)vertical differentiation
C)standardization
D)specialization

Question 28

When examining the relationship between size and basic design dimensions, small organizations have more _____ than large organizations?

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

Question 29

The tools, techniques, and actions used by an organization to transform inputs into outputs is called:

A)technology
B)the throughput
C)the transformation process
D)work design

Question 30

The FBI is in the process of a transformation from a compartmentalized, highly decentralized organization to an organization that fuses interdisciplinary experts into smoothly functioning teams. Which of the following configurations would be most appropriate?

A)Adhocracy
B)Professional bureaucracy
C)Machine bureaucracy
D)Simple structure

Question 31

The degree to which the organization has official rules, regulations, and procedures is called:

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

Question 32

The Royal Bank of Canada decided to move its loan-processing work from headquarters to branch banks in order to avoid bottlenecks. This is an example of:

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

Question 33

NASA, which is composed of many talented experts who work in small teams on a wide range of projects, is probably organized as a(n):

A)simple structure
B)professional bureaucracy
C)divisional form
D)adhocracy

Question 34

Which of the following contextual variables are LEAST controllable by the organization?

A)strategy
B)internal labor market
C)technology
D)environment

Question 35

Span of control defines:

A)the number of organization levels
B)vertical differentiation
C)who reports to whom in the chain of command
D)the number of employees a manager supervises

Question 36

A centralized form of organization that emphasizes the upper echelon and direct supervision under Mintzberg's configurations is:

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

Question 37

According to Woodward's classification of different technologies, the technology of custom home building is:

A)unit or small batch in nature
B)a continuous production process
C)a large batch or assembly line type of operation
D)non-sequential in nature

Question 38

A moderately decentralized form of organization that emphasizes the technical staff and standardization of work processes defines:

A)the machine bureaucracy
B)the professional bureaucracy
C)the adhocracy
D)the divisional form

Question 39

The most appropriate measure of organization size when considering alternative structural designs is:

A)number of units produced
B)total assets
C)sales volume
D)number of employees

Question 40

Woodward's classification scheme of technology led to the conclusion that the more complex the technology, the:

A)more investment capital the organization needed
B)more needed to be invested in training
C)more complex the administrative component of the organization needs to be
D)more a participative leadership style would lead to organizational effectiveness

Question 41

An organization with high task variability and unanalyzable problems should:

A)have a functional type of structure
B)use an engineering approach
C)be more craft oriented
D)have an organic approach to structuring

Question 42

The manager's role in the context of shorter life cycles becomes:

A)one of constant confusion and greater ambiguity
B)one of creating congruency among various organizational design dimensions to fit continuously changing markets and locations
C)one of a boundary spanner
D)more dependent on creativity and investment in R&D in order to develop new products

Question 43

An organization that faces considerable environmental uncertainty and rapid change is more likely to be successful with:

A)a rigid and tall structure
B)an organic structure
C)a highly defined set of policies and procedures
D)high levels of job specialization and low levels of job interdependence

Question 44

The part of an organization's external environment which the organization claims for itself with respect to how it fits into its relevant environments is known as the:

A)task environment
B)context
C)general environment
D)domain

Question 45

In contrasting structural roles of managers today with managers of the future:

A)future managers must adopt a relatively narrow functional focus
B)future managers will tend to get things done by giving employees orders
C)future managers will encourage cross-functional collaboration and team development
D)future managers will strictly adhere to boss-employee authority relationships

Question 46

Utilizing Perrow's framework of technology, problem analyzability refers to:

A)the amount and type of information needed to solve problems associated with the throughput
B)the type of technology
C)whether the solution can be reduced by quantitative methods
D)the degree of computer technology that is being used in the transformation process

Question 47

All of the following are basic design dimensions that have been affected by advanced information technologies except:

A)the hierarchy of authority has been flattened
B)the basis of centralization has been changed and decision making is now made at lower levels of the organization
C)less specialization and standardization are needed
D)complexity has decreased

Question 48

The choice of structure for managing an international business is generally based on choices concerning which set of the following three factors?

A)level of vertical differentiation; level of integration; and degree of formalization, specialization, standardization, and centralization
B)level of integration; level of horizontal differentiation; and degree of formalization, specialization, standardization, and centralization
C)hierarchy, global product, and global divisional
D)level of vertical differentiation; level of horizontal differentiation; and degree of formalization, specialization, standardization, and centralization

Question 49

Which of the following statements regarding the fit between structure and relevant contextual dimensions is NOT true?

A)The better the fit, the more likely that the organization will achieve its short-run goals.
B)The better the fit, the more likely the organization will process information and design appropriate organizational roles for long-term prosperity.
C)It is apparent there must be some level of fit between the structure and the contextual dimensions of the organization.
D)The better the fit, the more structure will determine the strategy and goals of the organization.

Question 50

Emerging organizational structures will emphasize all of the following except:

A)multiple competencies
B)process rather than function
C)self-managed teams
D)extensive vertical differentiation

Question 51

Which of the following statements regarding complexity and the strategic decision process is NOT true?

A)As complexity increases, the strategic decision process will become more politicized.
B)The organization will find it more difficult to recognize environmental opportunities and threats as complexity increases.
C)As complexity increases, the strategic process will be constrained by the limitations of top managers.
D)The constraints on good decision processes will be multiplied by the limitations of each individual within the organization.

Question 52

All of the following are forces causing managers to go beyond traditional frameworks except:

A)globalization
B)rapid changes in information technology
C)shorter life cycles
D)size

Question 53

Conditions that include political considerations, broad economic factors, ecological changes, sociocultural demands, and government regulation are considered to be part of the:

A)task environment
B)operational environment
C)general environment
D)immediate environment

Question 54

If an organization confronts a situation with scarce resources, large amounts of change, and many competitors, the situation would be considered one:

A)with strategic disadvantage
B)where profit will be difficult to achieve
C)of high environmental uncertainty
D)where a task oriented leadership style is necessary

Question 55

At Yahoo, CEO Carol Bartz inherited an organization with a complex matrix structure. The matrix structure resulted in delays in decision making along with a lack of accountability. To allow Yahoo to react to the environment in a quicker manner and quicken the pace of decision making she:

A)decentralized the structure
B)moved to a product structure
C)implemented the virtual structure
D)added centralization with a flatter structure

Question 56

All of the following are emerging structures discussed in your textbook except:

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

Question 57

A mechanistic structure is most reflected when:

A)specialization is high, standardization is low, and complexity is high
B)formalization is low, specialization is low, and complexity is high
C)specialization is high, formalization is high, and centralization is low
D)formalization is high, specialization is high, and centralization is high

Question 58

The construct of environmental uncertainty is typically composed or assessed using which of the following set of variables?

A)capacity, demand and supply, and economic growth
B)global GDP, domestic GDP, and local market conditions
C)volatility, capacity, and complexity
D)volatility, complexity, and analyzability

Question 59

Anything outside the boundaries of an organization is considered:

A)a contextual variable
B)its technology
C)the environment
D)the market

Question 60

In order to become dynamically stable, organizations must have managers who do all of the following, except:

A)see their roles as architects
B)combine long-term thinking with flexible and quick responses for improvement
C)follow a well-defined organizational structure
D)focus on future growth through technology

Question 61

Technical and support staffs serve the hierarchy of authority in the professional bureaucracy, such as a large hospital.

Question 62

A temporary organization consisting of independent enterprises is known as:

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

Question 63

Differentiation is the process of deciding how to divide the work in an organization.

Question 64

Generally, the taller the organization, the more vertical integration mechanisms are needed.

Question 65

Usually, the more specialized the jobs within an organization, the more departments are differentiated within that organization.

Question 66

Which of the following would NOT be a symptom of poor alignment between the structure and contextual variables of an organization?

A)delays in decision making
B)innovative responses to a changing environment do not occur
C)increased conflict between departments
D)high executive turnover

Question 67

Horizontal differentiation accounts for the difference in authority and responsibility in the organizational hierarchy.

Question 68

A job description is an example of formalization.

Question 69

The degree of vertical differentiation affects organizational effectiveness, but there is no consistent finding that flatter or tall organizations are better.

Question 70

Designing and building linkage coordination mechanisms is known as specialization.

Question 71

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

Question 72

Rules, procedures, liaison persons, and task forces are integrative devices that link organization parts and programs.

Question 73

The degree to which jobs are narrowly defined and depend on unique expertise defines standardization.

Question 74

Tall structures, those with narrow spans of control, tend to be characterized by loose supervision and weaker controls.

Question 75

The downsizing of organizations and loss of middle management has lengthened the chain of command.

Question 76

Mintzberg's adhocracy configuration would probably be closest to the matrix type of structure.

Question 77

The geographic dispersion of an organization's offices, plants, and personnel is known as spatial integration.

Question 78

The strongest method of horizontal integration is to develop a person or department designed to be an integrator.

Question 79

The organization using a weblike structure where some or all of their operating functions are contracted to other organizations would be called a:

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

Question 80

The strongest method of horizontal integration is through teams.