Deck 8: Organization Structure

Question 1

There is no specific ideal number of subordinates that a manager should supervise.

Answer 1

True
Explanation: The optimal span of control maximizes effectiveness by balancing two considerations: (1)it must be narrow enough to permit managers to maintain control over subordinates;and (2)it must not be so narrow that it leads to overcontrol and excessive numbers of managers overseeing a few subordinates.

Question 2

It is generally accepted that fewer hierarchical levels create greater operating efficiency.

Answer 2

True
Explanation: A powerful trend for U.S.businesses over the past few decades has been to reduce the number of hierarchical layers.Most executives today believe that fewer layers create a more efficient,fast-acting,and cost-effective organization.

Question 3

The number of subordinates who report directly to an executive or supervisor is called the span of control.

Answer 3

True
Explanation: The number of people under a manager is an important feature of an organization's structure.The number of subordinates who report directly to an executive or supervisor is called the span of control.

Question 4

Delegation is found at all hierarchical levels.

Question 5

Traditionally,authority resides in people and not in positions.

Question 6

Alignment refers to the procedures that link the various parts of the organization to achieve the organization's overall mission.

Question 7

Corporate governance is a term describing the oversight of a firm by its executive staff and board of directors.

Question 8

Mallory wants to open a retail bakery and plans to employ a staff of about 10 people including bakers and clerks.Mallory should attempt to create a tall rather than a flat organization.

Question 9

In corporations,few stockholders are directly involved in managing the organization.

Question 10

When there are many subunits and many kinds of specialists who think differently in an organization,differentiation is high.

Question 11

Angela is one of three managers at Sensible Cleaning,and she supervises 32 full- and part-time employees who perform cleaning services.She reports to the owner.Sensible Cleaning would be considered a flat organization.

Question 12

Integration is achieved through division of labor.

Question 13

The three broad authority levels of the organizational pyramid are commonly called corporate governance.

Question 14

Ben works on a television assembly line.His job is to complete the final assembly of the screen for each television that is on the line.The job is quite defined,and he has been highly trained.Ben is most likely supervised using a wide span of control.

Question 15

Delegation is the assignment of authority and responsibility to another employee who holds an equivalent position within the firm.

Question 16

The numerous tasks that must be carried out in a large organization make specialization a necessity.

Question 17

The board of directors selects and assesses the CEO.

Question 18

The organization chart depicts the types of products the company sells and to which customers they are sold.

Question 19

Differentiation means that the organization is composed of many different units that work on different kinds of tasks,using different skills and work methods.

Question 20

A narrow span of control will be appropriate when jobs are similar and performance measures are comparable.

Question 21

The divisional organization has departmentalization that groups units around products,customer,or geographic regions.

Question 22

The unity-of-command principle states that a person should make decisions based on personal ethics,regardless of contradictory messages from managers.

Question 23

Robin is a new product designer for a furniture manufacturer.Therefore,Robin works in a line department rather than a staff department.

Question 24

An advantage of delegation is that it helps develop effective subordinates.

Question 25

In times of rapid growth,organizations may respond by decentralizing decision making.

Question 26

The three basic approaches to departmentalization are line,staff,and matrix.

Question 27

The first step in effective delegation involves the manager selecting a person to whom he or she will delegate.

Question 28

The primary advantage of both product and customer / regional approaches to departmentalization is the ability to focus on customer needs and provide faster,better service.

Question 29

One advantage of the product form of departmentalization is that task responsibilities are clear,leading to more independence and accountability among managers.

Question 30

A basic characteristic of decentralized organizations is the delegation of authority to people at lower hierarchical levels to make decisions and take action.

Question 31

The functional structure would be most appropriate in complex and changing environments.

Question 32

One disadvantage of delegation is that it usually results in the manager losing touch with the status of the work to be accomplished.

Question 33

In a centralized organization,most of the decisions are made at lower levels.

Question 34

If Tatiana,a manager at Rockway Shoes,delegates responsibility for reorganizing the stockroom to a subordinate,she is relieved of the responsibility and accountability for that task.Tatiana's manager has no right to hold her accountable for her subordinate's actions.

Question 35

Line departments include research,accounting,and human resources departments.

Question 36

Functional departmentalization is common in both large and small organizations.

Question 37

Accountability means the subordinate's manager has the right to expect the subordinate to perform the job and the right to take corrective action if the subordinate fails to do so.

Question 38

A clear advantage of the functional form of departmentalization is that technical specialists are relatively free of administrative work.

Question 39

A matrix organization is a hybrid form of organization in which functional and divisional forms overlap.

Question 40

Oxford Networking Solutions has its global headquarters in North Carolina,where companywide departments such as marketing,accounting,and research are housed.Oxford is thus a divisional organization.

Question 41

Carlos,the operations manager of Douglas Architecture,requires all seven branch offices to use the same type of computers and operating systems.This simplifies both the communication and training processes for employees who frequently transfer between offices.Here Carlos can best be described as coordinating the offices using plans.

Question 42

To cope with high uncertainty and heavy information demands,managers can act to reduce the need for information.

Question 43

A modular corporation is also known as a dynamic network.

Question 44

_____ is most closely related to the division of labor within an organization.

A) Integration
B) Specialization
C) Centralization
D) Coordination
E) Formalization

Question 45

In a network,the role of a manager becomes more like that of a broker,someone who assembles and coordinates participants.

Question 46

Employees who function poorly in ambiguous,and sometimes conflict-ridden,circumstances may not thrive in a matrix organization.

Question 47

A written dress code for the workplace is an example of formalization.

Question 48

Coordination by mutual adjustment involves feedback and discussions to jointly figure out how to approach problems and devise solutions that are agreeable to everyone.

Question 49

The most expedient approach to coordination is by mutual adjustment.

Question 50

Which of the following depicts the positions in the firm and how they are arranged?

A) Benchmarking
B) Departmentalization
C) Situational analysis
D) Organization chart
E) Value chain

Question 51

A disadvantage of coordination by plan is that it may limit flexibility and prevent timely action to address a problem.

Question 52

A network organization is a form of the traditional,hierarchical organization,within which all the business functions of the firm are performed.

Question 53

Coordination refers to the:

A) division of labor within an organization.
B) performance of specific tasks by specific people.
C) procedures that link the various parts of the organization.
D) need for specific tasks in the functional fields.
E) authority levels in the organizational pyramid.

Question 54

Which of the following is true of an organization chart?

A) It shows the reporting structure in the organization.
B) It shows the number of people that should be supervised.
C) It shows how decisions are made.
D) It shows which products appeal to particular groups of customers.
E) It shows how the organization will interact with the external environment.

Question 55

The process by which different individuals and units perform specific parts of the larger task is called ____.

A) concentration
B) integration
C) specification
D) specialization
E) centralization

Question 56

The assignment of different tasks to different people or groups in an organization is known as:

A) unity of command.
B) integration.
C) division of labor.
D) concentration.
E) centralization.

Question 57

The degree to which differentiated work units work together and coordinate their efforts is known as:

A) differentiation.
B) concentration.
C) span of control.
D) unity of command.
E) integration.

Question 58

Standardization,plans,and mutual adjustment are methods of coordination.

Question 59

Coordination by plan affords managers more latitude in accomplishing their work than does coordination by standardization.

Question 60

_____ is an aspect of an organization's internal environment created by job specialization and division of labor.

A) Integration
B) Coordination
C) Differentiation
D) Concentration
E) Diversification

Question 61

The procedures that link the various parts of the organization for the purpose of achieving the organization's overall mission is known as:

A) job specialization.
B) diversification.
C) coordination.
D) concentration.
E) delegation.

Question 62

According to Napoleon Bonaparte,the optimal number of subordinates is ____.

A) 3
B) 5
C) 10
D) 25
E) 50

Question 63

The oversight of the firm by its executive staff and board of directors is called corporate ____.

A) control
B) maintenance
C) power
D) governance
E) strategy

Question 64

The number of subordinates who report directly to an executive or supervisor is called the:

A) reporting order.
B) span of control.
C) delegation control.
D) bureaucratic span.
E) authoritative span.

Question 65

Corporate boards hire _____ directors to provide different information and perspectives and to prevent big mistakes.

A) outside
B) dual
C) cooperating
D) authoritative
E) affiliative

Question 66

The _____ of a firm's structure is the starting point in understanding the organizational issues such as reporting relationships,authority,and responsibility.

A) vertical dimension
B) vertical integration
C) concentration
D) span of control
E) diversification

Question 67

Narrow spans of control build _____ organizations.

A) flat
B) wide
C) tall
D) decentralized
E) informal

Question 68

Which of the following statements is true of the board of directors?

A) The board is responsible for selecting the CEO.
B) A board's membership usually includes some frontline executives.
C) The employees elect a board of directors to oversee the organization.
D) Today,most companies have a majority of inside directors.
E) A board of directors comprises all owners of an organization.

Question 69

The three levels of the organizational hierarchy include:

A) top,first-line,and final levels.
B) top,middle,and operational levels.
C) functional,divisional,and matrix levels.
D) top,strategic,and lower levels.
E) top,operational,and frontline levels.

Question 70

The operational level of the organization includes:

A) the CEO,president,and vice presidents.
B) the plant and departmental managers.
C) strategic managers and tactical managers.
D) frontline managers,supervisors,and employees.
E) stockholders and the board of directors.

Question 71

Of the three broad levels of the organizational pyramid,the top managerial level excludes the:

A) presidents.
B) CEO.
C) vice presidents.
D) first-line managers.
E) strategic managers.

Question 72

A _____ span of control creates a flat organization.

A) wide
B) tall
C) bureaucratic
D) formal
E) narrow

Question 73

Corporations have boards of directors elected by:

A) employees.
B) the franchisees.
C) stockholders.
D) top managers.
E) dormant partners.

Question 74

Who among the following individuals belongs to the top managerial level?

A) Chief financial officer
B) Frontline manager
C) Operational supervisor
D) Division supervisor
E) First-line manager

Question 75

Who among the following belongs to the middle managerial level?

A) Strategic manager
B) Chief financial officer
C) Departmental head
D) Sales manager
E) Office supervisor

Question 76

The organizational pyramid composed of authority levels is commonly called the:

A) tactical plan.
B) hierarchy.
C) strategic map.
D) dynamic network.
E) strategic plan.

Question 77

Several top executives of Waterton Corporation are part of the corporation's board and are called:

A) part-time directors.
B) dual directors.
C) cooperating directors.
D) authoritative directors.
E) inside directors.

Question 78

Lawrence and Lorsch found that:

A) highly differentiated firms were successful if they had low levels of integration.
B) lowly differentiated firms were successful if they had low levels of integration.
C) highly differentiated firms were successful if they had high levels of integration.
D) lowly differentiated firms were successful if they had vertical integration.
E) highly differentiated firms were successful if they had vertical integration.

Question 79

The legitimate right to make decisions and to tell other people what to do is referred to as ____.

A) hierarchy
B) delegation
C) specialization
D) legitimacy
E) authority

Question 80

The optimal span of control should be wide when:

A) the work is ambiguous.
B) subordinates are untrained and do not have access to much information.
C) the manager has just taken over the position.
D) jobs are similar.
E) subordinates prefer close supervisory control.