Deck 7: Designing Organizational Structure

Question 1

It is easier for managers to monitor and evaluate subordinates' performance in a functional structure than a divisional structure.

Answer 1

True
Explanation: When people who perform similar jobs are grouped together, it is easier for managers to monitor and evaluate their performance. A functional structure allows workers to evaluate how well coworkers are performing their jobs, and if some workers are performing poorly, more experienced workers can help them develop new skills.

Question 2

Organizational ________ is the formal system of task and job reporting relationships that determines how employees use resources to achieve organizational goals.

A) structure
B) culture
C) design
D) goals

Answer 2

A
Explanation: Organizational structure is the formal system of task and job reporting relationships that determines how employees use resources to achieve organizational goals.

Question 3

The idea that top management should design an organization with as few levels of authority as is needed to conduct the business of the organization in an efficient and effective manner is known as the minimum chain of command.

Answer 3

True
Explanation: Top managers follow a basic organizing principle, the principle of the minimum chain of command, which states that top managers should always construct a hierarchy with the fewest levels of authority necessary to efficiently and effectively use organizational resources.

Question 4

Team members in a market structure are known as two-boss employees.

Question 5

Business-to-business (B2B) network is a company-specific virtual information system that allows workers to share their knowledge and expertise and find others to help solve ongoing problems.

Question 6

When managers organize divisions according to the types of customer to whom they market their products, they are focusing on a product structure.

Question 7

The "chain of command" of an organization is the hierarchy of authority for that organization.

Question 8

Division of labor among employees is the result of the differentiation process.

Question 9

A differentiation strategy aimed at increasing the customer's perception of an organization services usually succeeds even with an inflexible structure.

Question 10

The process by which managers establish the structure of working relationships among workers of the organization is known as ________.

A) planning
B) leading
C) organizing
D) controlling

Question 11

Too much decentralization has disadvantages for an organization.

Question 12

Organizational ________ is the process by which managers create an organizational structure and culture that helps a company operate in the most efficient and effective way.

A) structure
B) culture
C) design
D) goals

Question 13

According to ________ theory, managers should choose a structure that fits the circumstances affecting their organization the most.

A) contingency
B) design
C) agency
D) equity

Question 14

The more complex an organization, the less important the use of cross-functional teams becomes to the organization.

Question 15

Which of the following is a characteristic of a stable external environment?

A) Inflexible structure
B) Change is constant
C) Decentralized authority
D) Uncertainty is low

Question 16

The degree to which a job design gives a worker the freedom to schedule his/her tasks and to decide how to carry them out is known as the task identity.

Question 17

The nature of an organization's human resources is an important determinant of the organization's structure.

Question 18

Organizational design reflects the organization's mission statement irrespective of the situation.

Question 19

The job characteristics model explains how managers can make jobs more interesting and motivating.
G. R. Oldham's job characteristics model is an influential model of job design that explains in detail how managers can make jobs more interesting and motivating.

Question 20

A network structure is a series of global strategic alliances that one or several organizations create with suppliers, manufacturers, and/or distributors to produce and market a product.

Question 21

The degree to which a job allows the worker to schedule the tasks of the job and to decide how to carry out these tasks is known as ________.

A) autonomy
B) task identity
C) task significance
D) skill variety

Question 22

The extent to which a job requires the worker to use a wide range of knowledge and abilities is known as ________.

A) task identity
B) task significance
C) autonomy
D) skill variety

Question 23

Managers should design flexible structures, characterized by decentralized authority and empowered employees, for their organization when its ________.

A) environment is stable
B) technology is simple
C) workforce is highly skilled
D) strategy is well understood

Question 24

The degree to which programmed solutions are available to people or functions to solve the problems they encounter is task ________.

A) uncertainty
B) stability
C) analyzability
D) creativity

Question 25

The greater the level of uncertainty in the organization's environment, the ________.

A) less likely managers are to design a structure and a culture that is innovative
B) less likely managers are to design a structure and a culture that changes quickly
C) more likely managers are to design an organizational structure that is formal and controlling
D) more likely managers are to design a structure and a culture that are flexible

Question 26

According to Charles Perrow, the routineness of technology is determined by task ________.

A) stability
B) analyzability
C) creativity
D) certainty

Question 27

Mr. Pierson reads an article in the newspaper about one of his students who has been appointed to CEO of a multinational corporation. At this moment, Mr. Pierson is experiencing ________.

A) autonomy
B) task identity
C) task significance
D) skill variety

Question 28

The Pizza Man combined the jobs of "chef" and "food server" into a single job description. The Pizza Man implemented ________.

A) a functional structure
B) a divisional structure
C) a product structure
D) job design

Question 29

The goal of job enlargement is to ________.

A) increase the quantity of work assigned and thus reduce manpower
B) increase both the scope of a job and salaries
C) increase quality assurance measures, thereby reducing mistakes
D) increase the range of tasks, and thus reduce boredom

Question 30

A manager increases the number of tasks that a subordinate has to do in order to make the job more interesting for the subordinate. This is known as ________.

A) job simplification
B) job enlargement
C) job enrichment
D) task identity

Question 31

Compared to an order taker at a restaurant, a sales executive who is given the authority to choose the prospective customers he will visit on personal sales calls has ________.

A) less autonomy
B) less task significance
C) less task identity
D) more autonomy

Question 32

The number of new or unexpected problems or situations that a person or function encounters in performing tasks or jobs is task ________.

A) uncertainty
B) stability
C) analyzability
D) variety

Question 33

The degree to which a manager feels that his/her job is "meaningful" because of the way in which the job affects other people is known as ________.

A) skill variety
B) feedback
C) autonomy
D) task significance

Question 34

The extent to which a job gives the worker direct and clear information about how well the worker is performing the job is known as ________.

A) task identity
B) feedback
C) autonomy
D) task significance

Question 35

A manager redesigns the job of a subordinate so that the subordinate has more responsibility over her job. This is the process of ________.

A) job enlargement
B) job simplification
C) job enrichment
D) job reduction

Question 36

Increasing workers' responsibility and involvement in their jobs in order to increase their interest in the quality of their output is a strategy known as job ________.

A) management
B) enlargement
C) simplification
D) enrichment

Question 37

The extent to which a job requires a worker to perform all of the tasks that are required to complete the job is known as ________.

A) skill variety
B) task identity
C) task significance
D) feedback

Question 38

The process by which managers decide how to divide into specific jobs the tasks that have to be performed to provide customers with goods and services is known as job ________.

A) design
B) enlargement
C) simplification
D) rotation

Question 39

A Place for Pizza established a basic division of labor among "chefs" and "food servers" in which chefs perform all tasks involved in actual cooking and food servers carry out all tasks involved in giving food to the customers. A Place for Pizza implemented ________.

A) a functional structure
B) job design
C) a divisional structure
D) a product structure

Question 40

Compared to a salesperson of a prescription drug store, a doctor who works with people suffering from malignant diseases has ________.

A) a low degree of feedback
B) less autonomy
C) less skill variety
D) higher task significance

Question 41

Which of the following structures is implemented to use organization resources effectively?

A) Divisional
B) Transitional
C) Organic
D) Functional

Question 42

When designing an organization, if managers are grouped both by function and by product at the same time, the organizational structure being used is the ________ structure.

A) market
B) geographic
C) functional
D) matrix

Question 43

At Cosmeto & Co., Pat is assigned to a team to develop a new kind of shampoo. He reports to both the marketing manager and the personal care product manager. The organization is pursuing a ________ organizational structure.

A) matrix
B) global product
C) customer
D) geographic

Question 44

The units of Zach, Ltd. are grouped together such that the functions that work together to produce a product are grouped together. This is an example of a(n) ________ structure.

A) divisional
B) transitional
C) organic
D) functional

Question 45

Employees organized according to a matrix structure are grouped by ________.

A) functions
B) position in the company
C) skill level
D) seniority in the company

Question 46

When managers pursue a multidomestic strategy, they most likely use a ________ strategy.

A) market
B) customer
C) global geographic
D) global transitional

Question 47

Xpress Delivery Corporation organizes its managers according to the different regions of the world in which the managers work. This is an example of a ________ structure.

A) geographic
B) customer
C) product
D) matrix

Question 48

How does the product team structure differ from the matrix structure?

A) It allows dual reporting relationships.
B) It assigns employees to cross-functional teams.
C) It focuses on quality products.
D) It allows team members to work with other teams.

Question 49

The organizational design in which employees are correctly referred to as two-boss employees is a ________ structure.

A) product
B) matrix
C) geographic
D) functional

Question 50

Which of the following explains Hackman and Oldham's theory of how the job characteristics model affects three critical psychological states?

A) The more employees are given more work responsibility, the more frustrated they become because they know that they will never get additional remuneration for it.
B) The more employees feel that they are responsible for work outcomes and how it affects his/her position in the company, the less motivating work becomes.
C) The more employees feel that they are being used efficiently by the company, the more their expectation of better compensation and higher position rises.
D) The more employees feel that they are responsible for work outcomes and responsible for knowing how those outcomes affect others, the more motivating their work becomes.

Question 51

Managers are able to be responsive to the needs of their customers and maintain flexibility in making decisions regarding customers' changing needs with a ________ structure.

A) market
B) geographic
C) functional
D) matrix

Question 52

In the design of an organization, another name for "market structure" is "________ structure."

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

Question 53

At Xen, Ltd., each product line is managed within a division. In each of these divisions, the division manager is responsible for creating the business-level strategy for the product line. Xen, Ltd., is utilizing a ________ structure.

A) geographic
B) market
C) product
D) functional

Question 54

When different managers from different functional areas are brought together to work on an organizational task, they are known as a(n) ________ team.

A) functional
B) co-dependent
C) cross-functional
D) independent

Question 55

An organizational structure consisting of all the departments within the company is a ________ structure.

A) functional
B) provisional
C) divisional
D) transitional

Question 56

When customers around the world are willing to buy the same kind of product, or slight variations thereof, managers are more likely to pursue a ________ structure.

A) global product
B) customer
C) global geographic
D) global transitional

Question 57

Which of the following structures is an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer?

A) Divisional
B) Transitional
C) Organic
D) Functional

Question 58

What is the main problem with the matrix structure's dual reporting relationship?

A) tracking responsibilities
B) tasks are more complex
C) conflicting demands can arise
D) deciding which job will finish faster

Question 59

What structure do organizations adopt when they organize divisions according to the type of customers they focus on?

A) Market
B) Geographic
C) Product
D) Functional

Question 60

The major goals of the manufacturing function are to keep costs under control and ________.

A) prepare products on schedule
B) keep employees happy
C) develop new products
D) use the latest production methods

Question 61

An organization that allows its employees to behave in a flexible way even as the organization grows and becomes taller is utilizing ________.

A) managing as a rule
B) decentralizing authority
C) decreasing the span of control
D) decreasing autonomy

Question 62

Rusty is a project manager who has 15 employees reporting directly to him. Those 15 employees are Rusty's ________.

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

Question 63

An organization's hierarchy of authority is also known as its ________.

A) chain of command
B) span of control
C) corporate ladder
D) unity of command

Question 64

The relative authority that each manager in the organization has from the CEO down to the lowest-level manager is called the ________.

A) span of control
B) chain of command
C) corporate ladder
D) unity of direction

Question 65

Fern Motor Co. brings together senior managers from its marketing, R&D, manufacturing, accounting, and finance departments to work on a project as a team, to design a new type of sport utility vehicle. In this scenario, Fern Motor Co. creates a ________.

A) cross-functional team
B) vertically integrated team
C) mass-production team
D) standing committee

Question 66

The kitchen workers at Joe's Coffee Shop and Bakery report directly to Sue, the kitchen manager. Sue is a ________ manager.

A) line
B) product
C) staff
D) task force

Question 67

Organizations can keep their hierarchy flat by ________.

A) decreasing the span of control
B) increasing the number of levels of management
C) decentralizing authority
D) centralizing authority

Question 68

Organizing tools that managers use to increase communication among functions and divisions are known as ________ mechanisms.

A) functional
B) communication
C) integrating
D) coordinating

Question 69

CoreSol Ltd. gives one manager in each of three departments (marketing, engineering, and production) the responsibility of coordinating with each other to brainstorm new product ideas. The department managers can increase coordination by establishing ________.

A) horizontal integration
B) decentralization
C) a liaison role
D) vertical integration

Question 70

Jason has been hired by Praltiz Inc., an IT firm, to increase coordination among functions or divisions to achieve performance gains from synergies. What role is Jason hired to perform?

A) Liaison role
B) Centralization role
C) Consulting role
D) Integrating role

Question 71

A team of managers from different functions or divisions is temporarily formed to solve a specific, mutual problem. This is known as a ________.

A) standing committee
B) confederate committee
C) functional force
D) task force

Question 72

In which mechanism do senior managers provide members of a cross-functional team with relevant information from other teams and divisions?

A) Liaison roles
B) Task forces
C) Functional forces
D) Integrating roles and departments

Question 73

Which of the following is often known as an ad hoc committee?

A) Functional team
B) Cross-functional team
C) Task force
D) Managers with integrating roles

Question 74

An organizational structure becomes taller when it ________.

A) grows in size and the hierarchy of authority lengthens
B) maintains its original size and the hierarchy remains constant
C) hires more employees while keeping the same number of managers
D) expands its product base but maintains its staff size

Question 75

The manager of the human resources department of a company is a ________ manager.

A) line
B) product
C) staff
D) task force

Question 76

The number of subordinates who report directly to a manager is known as the manager's ________.

A) unity of command
B) hierarchy of authority
C) chain of command
D) span of control

Question 77

A formal agreement that commits two or more companies to exchange or share their resources in order to produce and market a product is known as a(n) ________.

A) outsourcing alliance
B) task force alliance
C) strategic alliance
D) market structure alliance

Question 78

Tot Beverages creates a series of agreements with its suppliers, manufacturers, and distributors to produce and market Zing Cola. This is an example of a ________ organizational structure.

A) decentralized
B) vertically integrated
C) network
D) diversified product

Question 79

The idea that an organization's hierarchy should be designed with as few levels of authority as are necessary to use the organization's resources in an efficient and effective manner falls under which of the following principles?

A) Span of control
B) Centralization
C) Minimum chain of command
D) The unity of command

Question 80

Allocating authority in an organization, which gives lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources, is an example of ________.

A) decentralization of authority
B) a high span of control
C) centralization of authority
D) maximum chain of command