Deck 8: Organization Structure

Question 1

Anita is one of three managers at Lovely Landscaping, and she supervises 32 full- and part-time employees who perform landscaping maintenance services. She reports to the owner. Lovely Landscaping would be considered a _____ organization.

A)flat
B)narrow
C)centralized
D)departmentalized
E)specialized

Answer 1

A
Explanation: A narrow span of control is associated with tall organizations that have many reporting levels. Wide spans create flat organizations with fewer reporting levels. Anita is in a flat organization since she reports directly to the owner and supervises frontline employees.

Question 2

Which of the following provides a clear picture of the reporting structure of a firm and the various activities carried out by individuals?

A)Matrix organization
B)Span of control
C)Division of labor
D)Organization chart
E)Corporate governance

Answer 2

D
Explanation: The organization chart depicts the positions in the firm and the way they are arranged. The chart provides a picture of the reporting structure (who reports to whom) and the various activities that are carried out by different individuals.

Question 3

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

A)integration
B)standardization
C)specialization
D)formulization
E)hierarchy

Answer 3

C
Explanation: The many tasks that must be carried out in an organization make specialization and division of labor necessities. Otherwise, the complexity of the overall work of the organization would be too much for any individual.

Question 4

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

Question 5

Bond Incorporated has developed a set of procedures to link the various subunits and departments of the corporation in order to carry out the organization's overall mission. The procedures that fulfill this function are referred to as _____.

A)alignment
B)integration
C)formalization
D)standardization
E)coordination

Question 6

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

Question 7

If Svetlana, a manager at Texas Two-Step Cowboy Boots, delegates responsibility for reorganizing the stockroom to a subordinate, she is relieved of the responsibility and accountability for that task. Svetlana's manager has no right to hold her accountable for her subordinate's actions.

Question 8

Madison wants to open a restaurant and plans to employ a staff of about 10 people, including wait staff and cooks. What type of organization is Madison planning to create?

A)Flat
B)Narrow
C)Centralized
D)Departmentalized
E)Specialized

Question 9

Reporting relationships between bosses and subordinates is a function that relates to the _____ dimension of a firm's structure.

A)horizontal
B)vertical
C)circular
D)external
E)flexible

Question 10

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

Question 11

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

Question 12

A disadvantage of the functional form of departmentalization is that technical specialists spend too much time on administrative work.

Question 13

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

Question 14

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 15

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

Question 16

If an organization is composed of many separate units that work on different kinds of tasks by using skills and work methods that vary from each other, that organization is characterized by _____.

A)differentiation
B)integration
C)standardization
D)hierarchy
E)delegation

Question 17

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

Question 18

Corporate governance is a term describing the oversight of a firm by its

A)executive staff and board of directors.
B)stockholders and board of directors.
C)stakeholders and board of directors.
D)executive staff and stockholders.
E)executive staff and stakeholders.

Question 19

Span of control refers to

A)how many people are on a company's board of directors.
B)the legitimate right to make decisions and to tell other people what to do.
C)the top management team, which typically includes the CEO and president.
D)the role of the executive staff in ensuring that the firm's activities meet the stakeholders' goals.
E)the number of individuals reporting directly to a manager or supervisor.

Question 20

Which of the following statements about stockholders is the most accurate?

A)Stockholders run the company because they are owners.
B)Stockholders have no stake in the company.
C)Stockholders usually receive timely information about the company.
D)Stockholders are rarely directly involved in managing the organization.
E)Stockholders have no say over the company's governance.

Question 21

Miguel and David are employed at the same company and often work on the same products. However, they are assigned to separate units, and they perform very specific, different jobs that contribute to the larger task. This process is called ____.

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

Question 22

A(n) _____ organization is a hybrid form of organization in which functional and divisional forms overlap.

A)integrated
B)dynamic
C)matrix
D)network
E)standardized

Question 23

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 24

Chuck, the operations manager of Wentworth Publishing, requires all seven branch offices to use the same type of computer and operating system. This simplifies both the communication and training processes for employees who frequently transfer between offices. Here Chuck can best be described as coordinating the offices by _____.

A)plan
B)network
C)formalization
D)mutual adjustment
E)standardization

Question 25

What is the first step in effective delegation?

A)Select the person to delegate to.
B)Define the goal of the task to be delegated.
C)Provide the person the resources to do the task.
D)Check up on the status throughout the task.
E)Explain the task to be delegated.

Question 26

The assignment of authority and responsibility to a subordinate at a lower level is known as _____.

A)delegation
B)appropriation
C)centralization
D)hierarchy
E)initiative

Question 27

The functional structure may be most appropriate in _____ environments.

A)simple, stable
B)simple, changing
C)complex, integrated
D)complex, stable
E)complex, changing

Question 28

_____ 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 29

Enrique delegates an important project to Harriet, but he tells her that he expects regular reports and that he will take over the work if she falls behind or does not produce quality results. Enrique is referring to the principle known as _____.

A)hierarchy
B)authority
C)subordination
D)differentiation
E)accountability

Question 30

What are the three basic approaches to departmentalization?

A)Line, staff, and matrix
B)Functional, divisional, and matrix
C)Line, staff, and functional
D)Divisional, staff, and matrix
E)Line, staff, and divisional

Question 31

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

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

Question 32

Research, accounting, and human resources are considered _____ departments.

A)staff
B)line
C)functional
D)matrix
E)service

Question 33

Patrick is a new product designer for a cookware manufacturer. Patrick therefore works in a _____ department.

A)staff
B)line
C)functional
D)matrix
E)service

Question 34

Which principle states that a person should have only one boss to avoid confusion?

A)Mutual adjustment
B)Division of labor
C)Dynamic network
D)Coordination by plan
E)Unity-of-command

Question 35

Which of the following is an advantage of delegation?

A)It helps subordinates develop new skills.
B)It absolves the delegating manager of responsibility.
C)It reduces accountability for the job.
D)It formalizes power in the company.
E)It reduces the subordinate's workload.

Question 36

A(n) _____ organization is a collection of independent, mostly single-function firms that collaborate to produce a good or service.

A)integrated
B)dynamic
C)matrix
D)network
E)standardized

Question 37

A narrow span of control will be appropriate when

A)jobs are similar.
B)performance measures are comparable.
C)the organization is flat.
D)many reporting levels exist.
E)the manager can easily control many subordinates.

Question 38

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 39

In a decentralized organization, more of the decisions are made by

A)the board of directors.
B)the stockholders.
C)the lower levels of the organization.
D)the upper levels of the organization.
E)the CEO or president.

Question 40

Even though the production department and the advertising department have completely different tasks, they must work together and coordinate their efforts to make sure the marketing campaign is ready for each new product launch. The degree to which they do this is known as

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

Question 41

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 42

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 43

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 44

A _____ span of control creates a flat organization.

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

Question 45

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 46

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 47

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 48

Narrow spans of control build _____ organizations.

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

Question 49

Several top executives of Burns 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 50

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 51

Corporations have boards of directors elected by

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

Question 52

Which of the following is a job position found on the bottom tier of the organizational pyramid?

A)President
B)CEO
C)Vice president
D)First-line manager
E)Strategic manager

Question 53

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 54

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 55

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 56

Who selects the CEO of a corporation?

A)Board of directors
B)Stockholders
C)Operational managers
D)Employees
E)Middle managers

Question 57

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

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

Question 58

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 59

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 60

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 61

Ideally, decision making should be done by the

A)board of directors.
B)top management of the organization.
C)customers of the organization.
D)supervisory-level employees.
E)people who are most affected by the issue.

Question 62

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.

Question 63

Integral Insurance has strictly defined job responsibilities and lines of communication. In this formal atmosphere, approval for any changes to standing procedures must be made by upper management. Here, the insurance firm has a

A)wide span of control.
B)high degree of centralization.
C)decentralized authority.
D)matrix design.
E)flat structure.

Question 64

_____ exists for an employee when his or her manager has an expectation that the job will be performed and has the right to take corrective action if it is not.

A)Corporate governance
B)Accountability
C)Strategic control
D)Coordination
E)Span of control

Question 65

In a _____ organization, jobs are specialized and grouped such as marketing, finance, operations, accounting, and human resources.

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

Question 66

An organization in which lower-level managers make important decisions is a(n) _____ organization.

A)decentralized
B)horizontal
C)vertical
D)informal
E)centralized

Question 67

Which of the following is an advantage of functional departmentalization?

A)It most useful in a complex environment.
B)Employees are able to focus exclusively on creating customer satisfaction.
C)It encourages managers to become generalists.
D)Decision making and lines of communication are simple and clearly understood.
E)It is the most flexible organization form.

Question 68

Spencer is an operations manager at Levant Corp. He has been put on a big project with a tight deadline. Spencer distributes half the work to two other supervisors, taking care of the bigger aspects of the project himself. This is an example of

A)unity of command.
B)delegation.
C)specialization.
D)span of management.
E)differentiation.

Question 69

Which of the following statements is true about delegation?

A)It can be used only in organizations with flat structures.
B)It promotes subordinates to higher positions.
C)It helps develop effective subordinates.
D)It can be done only at top level of management.
E)It often sharply reduces what a manager can achieve.

Question 70

Which of the following departments is considered a line department?

A)Public relations
B)Human resource
C)Assembly
D)Accounting
E)Legal

Question 71

Which of the following is a characteristic of product organizations?

A)Duplication of effort is cheap.
B)Decision making is decentralized.
C)Functions are centralized at headquarters.
D)Multiple managers are involved in the product lines.
E)Task responsibilities are unclear.

Question 72

Julia, VP of operations, was looking for a new direction and asked Paulo to manage the reorganization of the call center, even though he was less experienced than many of the managers in that department. Paulo found that the other managers were not cooperative in giving him access to their current procedures or ideas about new ones, and he felt powerless to compel them. Julia most likely made the mistake of

A)delegating inappropriate tasks to a junior manager.
B)delegating responsibility without adequate authority to Paulo.
C)"passing the buck" by blaming Paulo's performance.
D)taking credit for Paulo's accomplishments.
E)underestimating Paulo's capabilities.

Question 73

Which of the following is true of line departments?

A)They provide specialized skills to support staff departments.
B)They deal directly with the organization's primary goods and services.
C)They include research, legal, accounting, and human resources departments.
D)They focus on safeguarding the company from risks.
E)They focus more on requirements and procedures rather than products and customers.

Question 74

Derek assigned some of his authority and responsibility to Christine, a subordinate employee. This practice is called

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

Question 75

In Valley Solutions, Inc., important decisions usually are made at the top. Valley Solutions has a _____ organization.

A)flat
B)wide
C)narrow
D)centralized
E)decentralized

Question 76

Best-Built Construction is run in a very traditional way, with experienced top managers making all the decisions and passing them down to lower levels for implementation. Best-Built can be described as a(n) _____ organization.

A)integrated
B)centralized
C)differentiated
D)decentralized
E)horizontal

Question 77

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

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

Question 78

Casa Caliente Inc. was voted producer of the best hot sauce in its city. It soon expanded and now manufactures and distributes sauces, kitchen equipment, and specialty spices nationwide, with a separate department for each. Which of the following forms of departmentalization does Casa Caliente Inc. have?

A)Conglomerate
B)Horizontal
C)Geographic
D)Customer
E)Product

Question 79

Subdividing an organization into smaller subunits is known as ____.

A)departmentalization
B)delegation
C)centralization
D)standardization
E)diversification

Question 80

An organization with departmentalization that groups units around products, customers, or geographic regions is called a

A)divisional organization.
B)centralized organization.
C)conglomerate organization.
D)functional organization.
E)virtual organization.