Deck 11: Designing Organizational Structure

Question 1

Universal Office Supply has organized its sales department under its three main account types: wholesale,retail,and government.Universal is using ________ departmentalization.

A)product
B)customer
C)process
D)functional

Answer 1

B

Question 2

The degree to which tasks in an organization are divided into separate jobs is called ________.

A)work specialization
B)departmentalization
C)chain of command
D)job differentiation

Answer 2

A

Question 3

Johnson & Johnson makes many well-known brands,including Band-Aids,Tylenol,and ACUVUE contact lenses.Their structure is organized under three sectors: consumer health,medical devices,and pharmaceuticals.They use ________ departmentalization.

A)customer
B)process
C)product
D)functional

Answer 3

C

Question 4

Grouping activities on the basis of production flow is called ________ departmentalization.

A)functional
B)product
C)geographical
D)process

Question 5

The basis on which jobs are grouped together is called ________.

A)specialization
B)formalization
C)coordination
D)departmentalization

Question 6

A public service agency that has different representatives to assist businesses,families,and people with disabilities is organized by ________ departmentalization.

A)geographical
B)process
C)customer
D)functional

Question 7

________ departmentalization groups jobs on the basis of product flow through the organization.

A)Product
B)Functional
C)Process
D)Customer

Question 8

Assigning designers,production workers,and salespeople to a common work group to develop a new product is called a ________ team.

A)diversified skill
B)product innovation
C)cross-functional
D)developmental project

Question 9

A disadvantage of ________ departmentalization is poor communication across the different groups.

A)geographic
B)functional
C)process
D)customer

Question 10

One purpose of organizing is to ________.

A)know what kinds of employees to hire in the future
B)establish relationships among employees,teams and departments
C)ensure the best and most specific job descriptions for each position
D)allow executives to better get to know their employees

Question 11

Work specialization is ________.

A)the degree to which tasks are divided into separate jobs
B)the basis on which jobs are grouped together
C)the basis on which jobs are ranked relative to their value to the businesses
D)the degree to which activities require highly specialized skills

Question 12

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

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

Question 13

An organization that divides its sales responsibilities for pharmaceutical products into Ontario,Quebec,the Maritimes,and Western Canada is using ________ departmentalization.

A)product
B)geographical
C)customer
D)functional

Question 14

Work teams composed of individuals from various departments are known as ________ teams.

A)cross-control
B)cross-functional
C)virtual
D)self-managed work

Question 15

Two popular trends in departmentalization are the increasing use of ________ departmentalization and the use of ________ teams.

A)product; trans-departmental
B)functional; product innovation
C)process; diversified skill
D)customer; cross-functional

Question 16

Galaxy Corporation is organized into five departments: human resources,finance,marketing,production,and engineering.Galaxy uses ________ departmentalization.

A)specialization
B)product
C)process
D)functional

Question 17

Functional departmentalization groups jobs by ________.

A)tasks performed
B)territories served
C)products manufactured
D)type of customer served

Question 18

Organizational structure is defined as ________.

A)a formal arrangement of jobs within an organization
B)a process that involves decisions about departmentalization
C)a process that involves decisions about span of control and formalization
D)the basis on which jobs are grouped together within an organization

Question 19

Procter & Gamble organizes its 300 brands into five main categories: family care,fabric care,beauty care,health care,and food and beverage.They use ________ departmentalization.

A)customer
B)product
C)process
D)functional

Question 20

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

A)hierarchy of responsibility
B)unity of command
C)organizational chart
D)chain of command

Question 21

The degree to which decision making is concentrated at a single point in an organization is called ________.

A)unity of command
B)chain of command
C)span of control
D)centralization

Question 22

Although Eric's job gives him the right to delegate work to others,if the work performance is unsatisfactory,it is Eric who will have to explain and justify the outcome to his superiors.This is called ________.

A)responsibility
B)staff authority
C)span of control
D)line authority

Question 23

Pierre has just been promoted to line manager in the manufacturing plant.Which of the following should automatically accompany his new title of manager?

A)respect
B)delegation
C)acceptance by employees
D)authority

Question 24

In less than two years,Eric is promoted to a management position with five subordinates reporting directly to him.This is an example of which of the following?

A)chain of authority
B)increased formalization
C)hierarchy of responsibility
D)span of control

Question 25

________ refers to the number of subordinates that a manager can efficiently and effectively manage.

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

Question 26

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

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

Question 27

The principle that each employee should report to only one manager is called ________.

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

Question 28

A company is planning to revise its organizational structure and one of the managers suggests increasing employee empowerment by giving them more decision-making authority.Which of the following,if TRUE,would support his stand?

A)The firm's employees are reluctant to disrupt the status quo and are apprehensive about any change in responsibility.
B)The company's front-line workers have first-hand knowledge of what can and cannot be done.
C)The company is trying to recover from an economic downturn that caused significant losses which necessitated downsizing.
D)The company culture revolves around the founder who is charismatic and in-charge kind of CEO.

Question 29

The trend in recent years has been toward ________ spans of control to help reduce costs and speed up decision making.

A)narrower
B)wider
C)flexible
D)controllable

Question 30

________ is the obligation or expectation to perform an assigned duty.

A)Responsibility
B)Delegation
C)Authority
D)Accountability

Question 31

The assembly line jobs are changed to allow each worker to perform more tasks so they don't get bored as quickly.This results in a reduction in ________.

A)work specialization
B)departmentalization
C)chain of command
D)centralization

Question 32

Under which of the following circumstances should an organization use more centralization?

A)environment is complex and uncertain
B)lower-level managers want a voice in decisions
C)decisions are relatively minor
D)organization is facing a crisis

Question 33

Eric's management position gives him the right to delegate work to others and expect them to complete it.This is called ________.

A)responsibility
B)accountability
C)authority
D)unity of command

Question 34

If top managers make key decisions with little input from below,then the organization is ________.

A)not mechanistic
B)more decentralized
C)more centralized
D)departmentalized

Question 35

All other things being equal,as the span of control grows wider,the organization becomes ________.

A)more bureaucratic
B)less effective
C)more organic
D)more efficient

Question 36

Another term for increased decentralization is ________.

A)structural delayering
B)participative delegation
C)authority distribution
D)employee empowerment

Question 37

In addition to his duties in the engineering department,Eric is also assigned to work on a team with production workers and marketing specialists to design new products for the company.This additional assignment is an example of a(n)________.

A)alternative work arrangement
B)career-building assignment
C)centralized work group
D)cross-functional team

Question 38

Under which of the following circumstances should an organization use more decentralization?

A)environment is stable
B)company is large
C)company is geographically dispersed
D)organization is facing a crisis

Question 39

As organizations become more flexible and responsive,there is a distinct trend toward ________.

A)decentralized decision making
B)increased formalization
C)narrower spans of control
D)reduced delegation

Question 40

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

A)hierarchy of responsibility
B)unity of command
C)chain of authority
D)flow of delegation

Question 41

If John organizes the new structure based on homemakers,artists,interior decorators,industrial display contractors,and art schools,they would be using ________ departmentalization.

A)product
B)process
C)functional
D)customer

Question 42

If John bases the new structure on silk flowers,art supplies,craft supplies,pottery and fabric,they would be using ________ departmentalization.

A)product
B)process
C)functional
D)customer

Question 43

Decision-making authority at Prairie is highly ________.

A)functional
B)departmentalized
C)decentralized
D)centralized

Question 44

The requirement that Joyce sign off on all decisions in her department specifically relates to which of the following elements of structure?

A)centralization
B)span of control
C)departmentalization
D)unity of command

Question 45

The degree to which activities in an organization are divided into separate jobs is called work specialization.

Question 46

If John organizes the new structure based on the provinces served across Canada they would be using ________ departmentalization.

A)process
B)functional
C)geographical
D)customer

Question 47

Joyce wants to convince her boss to adopt a more decentralized structure.Which of the following factors will support her argument?

A)environment is stable
B)lower-level staff and nurses are capable of making decisions
C)Metro is a large hospital
D)Metro is facing a crisis and must change

Question 48

The acceptance theory of authority states that it is the right of the manager to expect employees to accept his/her authority.

Question 49

In order to make the most efficient use of work specialization,employees should be assigned tasks where they would perform near their optimum skill level.

Question 50

The purpose of organizing is to arrange and structure work to accomplish organizational goals.

Question 51

The acceptance theory of authority states that subordinates are willing to accept the authority of a manager if the order does not conflict with their personal beliefs.

Question 52

Customer departmentalization groups jobs on the basis of product or customer flow.

Question 53

When cosmetics maker Estée Lauder organized its structure around its major brands,and operated each as a separate company,it was using product departmentalization.

Question 54

A cross-functional team is a group of individuals who are experts in various specialties and who work together.

Question 55

The current structure of Metro General Hospital is based on a ________ span of control and most likely ________ departmentalization.

A)wide; process
B)wide; functional
C)narrow; process
D)narrow; functional

Question 56

The many rules and policies designed to standardize jobs relates most closely to which of the following elements of structure?

A)chain of command
B)departmentalization
C)unity of command
D)formalization

Question 57

If John were able to organize their structure based on product flow they would be using ________ departmentalization.

A)product
B)process
C)functional
D)geographical

Question 58

The chain of command is a principle that states that a person should report to only one boss.

Question 59

The acceptance theory of authority says that employees are willing to accept the authority of the manager under certain conditions.

Question 60

It is possible to carry work specialization too far thus lowering the economic advantages.

Question 61

Given that other things remain unchanged,managers with well-trained and experienced employees can function well with a wider span of control than those with a less talented workforce.

Question 62

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

Question 63

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

A)organic
B)matrix
C)virtual
D)mechanistic

Question 64

Which of the following is most characteristic of mechanistic organizations?

A)wide spans of control
B)cross-functional teams
C)decentralization
D)high formalization

Question 65

A(n)________ organization is rigidly controlled and efficient.

A)organic
B)command
C)project
D)mechanistic

Question 66

Electronic Arts Canada produces popular sports and action video games.Its Vancouver studio is famous for its informal atmosphere and employee amenities.There is a division of labour,but the work is not standardized.There are few formal rules and little direct supervision.EA's structure is best described as ________.

A)mechanistic
B)virtual
C)organic
D)complex

Question 67

In a short essay,give a brief overview of the six key elements in designing an organization's structure.

Question 68

Organizations that operate as efficiency machines and rely heavily on rules,regulations,and standardized tasks are described as ________.

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

Question 69

The trend in recent years has been toward smaller spans of control,which are consistent with managers' efforts to reduce costs and increase flexibility.

Question 70

In a short essay,describe the five common forms of departmentalization with examples and samples of advantage and disadvantages of each where possible.

Question 71

In a short essay,explain centralization,decentralization,and employee empowerment.How do experts in organizational design view these concepts in today's workplace?

Question 72

Organizations that are highly flexible and adaptive are described as ________.

A)organic
B)boundaryless
C)intuitive
D)virtual

Question 73

GlaxoSmithKline would become more ________ if it starts allowing its lab scientists to set the priorities and allocate the resources.

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

Question 74

All other things unchanged,the narrower the span of control,the more efficient the organization is.

Question 75

Which of the following best describes the type of organizational design at Metro General Hospital?

A)organic
B)mechanistic
C)team
D)network

Question 76

Today's organizations mostly rely on strict rules and standardization to guide and regulate employee behavior.

Question 77

Which of the following best describes the type of organizational design at the small community hospital where Joyce previously worked as a nurse?

A)organic
B)mechanistic
C)modular
D)network

Question 78

Formalization refers to the degree to which jobs within the organization are standardized and the extent to which employee behaviour is guided by rules and procedures.

Question 79

Many of Custom Leather's 75 employees are highly skilled and experienced artisans.While there is a division of labour,the jobs of most production workers are not highly standardized.Management has found that employees take great pride in their craft,thus requiring minimal formal rules and little direct supervision.These traits are most typical of a(n)________ organization.

A)formalized
B)mechanistic
C)organic
D)network

Question 80

In highly formalized organizations,employees have more discretion in how they do their work.