Deck 15: Organizational Structure

Question 1

High levels of specialization are more acceptable in smaller firms in which employees must be more flexible in their job duties.

Answer 1

False

Question 2

Companies that follow a low-cost producer strategy believe that people will pay more for a product that is unique in some way.

Answer 2

False

Question 3

Organic organizations encourage lateral communication.

Answer 3

True

Question 4

Organic organizations are efficient,rigid,predictable,and standardized organizations that thrive in stable environments.

Question 5

Employees tend to be more satisfied with jobs that require them to perform a specialized kind of activity.

Question 6

Dynamic environments allow organizations to focus on efficiency and require little change over time.

Question 7

Organizational performance increases as span of control increases,but only up to a certain point.

Question 8

As companies grow larger,their organizational charts get simpler.

Question 9

As companies become larger,they need to use a combination of specialization,formalization,and centralization to control their activities,thereby becoming more mechanistic in nature.

Question 10

Decentralized organizational structures tend to concentrate power and authority within a relatively tight group of individuals in the firm.

Question 11

A simple structure makes perfect sense for a large organization,with one person as the central decision-making person.

Question 12

If technologies need to be changed often to suit consumer needs,the decisions should be centralized.

Question 13

Organizational structure does not influence employee attitudes and behavior.

Question 14

There are trade-offs when organizations make jobs highly specialized.

Question 15

Henry Ford was a strong believer in work specialization.

Question 16

Companies that focus on a differentiation strategy are more likely to take a mechanistic approach to organizational design.

Question 17

Organizations which do not proactively develop designs may be forced to change their structure to become more effective.

Question 18

The chain of command signifies the flow of authority to attain order,control,and predictable performance.

Question 19

Wide spans of control allow managers to be much more hands-on with employees.

Question 20

Every employee in a traditional organizational structure has one person to whom they report.

Question 21

Span of control:

A)is the degree to which tasks in an organization are divided into separate jobs.
B)answers the question of "who reports to whom?" and signifies formal authority relationships.
C)refers to where decisions are formally made in organizations.
D)refers to the number of employees each manager is responsible for in the organization.
E)is the degree to which rules and procedures are used to standardize behaviors and decisions in an organization.

Question 22

Although matrix structures have been around since the 1960s,the number of organizations using them has declined since organizations prefer to work in groups rather than in teams.

Question 23

Companies that have limited customers with varied needs and tastes must develop client structures to organize their business.

Question 24

Restructuring efforts typically enhance employees' trust in the organization.

Question 25

The degree to which a job requires a number of different activities involving a number of different skills and talents is referred to as:

A)task identity.
B)variety.
C)task significance.
D)autonomy.
E)feedback.

Question 26

Many small companies evolve into functionally based structures as they grow larger.

Question 27

Many restructuring efforts are designed to remove one or more organizational layers to reduce costs.

Question 28

Organizational restructuring has a significant negative effect on organizational commitment.

Question 29

The matrix structure represents a combination of a client structure and a product structure.

Question 30

_____ formally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company.

A)The span of control
B)Formalization
C)Centralization
D)An organizational structure
E)The chain of command

Question 31

The more people under the control of one manager,the _____.

A)greater the decentralization
B)wider the span of control
C)taller the organizational structure
D)shorter the chain of command
E)greater the work specialization

Question 32

Which of the following represents every job in the organization and the formal reporting relationships between those jobs?

A)Chain of command
B)Organizational chart
C)Structural map
D)Scalar chain
E)Gantt chart

Question 33

The degree to which tasks in an organization are divided into separate jobs refers to:

A)centralization.
B)chain of command.
C)span of control.
D)formalization.
E)work specialization.

Question 34

Which element of the organizational structure signifies formal authority relationships?

A)Chain of command
B)Formalization
C)Centralization
D)Work specialization
E)Span of control

Question 35

Which of the following is true about work specialization?

A)It creates more problems in larger firms where flexibility is required.
B)It makes training new employees easier when replacements are needed.
C)It helps employees to upgrade their skills in multiple disciplines.
D)It improves the flexible nature of workers.
E)It implies each worker performs different tasks every day.

Question 36

To keep the stress level low and avoid two chains of command issues,Splash Hair Care managers should adopt the matrix structure.

Question 37

Product structures group business units around different products that the company produces.

Question 38

Which of the following elements of an organizational structure is also referred to as a company's division of labor?

A)Chain of command
B)Formalization
C)Centralization
D)Work specialization
E)Span of control

Question 39

The most common kind of restructuring in recent years has been a "flattening" of the organization.

Question 40

For a restructuring to be successful,mere changes in the lines on an organizational chart are not sufficient; it demands a different way of working for the employees.

Question 41

The process of creating,selecting,or changing the structure of an organization refers to:

A)formalization.
B)organizational design.
C)specialization.
D)span of control.
E)work differentiation.

Question 42

At Cool Clothes,Inc.,there is a total focus on providing care and satisfaction to each customer.In the major clients' division,each manager is assigned three employees to supervise,whereas in the product assembly division,each manager supervises about 15 employees.The major clients' division managers can be described as having _____ as opposed to _____ for the product assembly division managers.

A)a narrow span of control; a wide span of control
B)tall formalization; flat formalization
C)narrow centralization; tall centralization
D)a wide span of control; a narrow span of control
E)flat formalization; tall formalization

Question 43

Which of the following is associated with decentralization in decision making?

A)Moderate spans of control
B)Tall spans of control
C)Wide spans of control
D)Narrow spans of control
E)Flat spans of control

Question 44

Which of the following is a necessary coordination mechanism that organizations rely on,to get a standardized product or deliver a standardized service?

A)Formalization
B)Centralization
C)Span of control
D)Chain of command
E)Work specialization

Question 45

Ross and Tony,father and son,opened a large boutique named Tradus in Chicago.The father and son,being the owners of the business concern,decide about the important matters and all the rest of the functions like product,finance,marketing,and personnel are carried out by the department heads who have to act as per the instruction and orders of both of them.Which of the following is true about Tradus?

A)It has a very tall organizational structure.
B)It has a centralized system of decision making.
C)It has a matrix organizational structure.
D)The degree of formalization is very low in the organization.
E)It has a narrow span of control.

Question 46

Which of the following statements about a low-cost producer strategy is true?

A)They believe that people will pay more for a product that is unique in some way.
B)They rely on selling products at the lowest possible cost.
C)They often hinge on adjusting to changing environments quickly.
D)Such companies are more likely to take an organic approach to organizational design.
E)They focus on supplying high quality differentiated products to customers.

Question 47

Which of the following signifies the structure that organic organizations rely on?

A)High levels of formalization
B)A rigid and hierarchical chain of command
C)High degree of work specialization
D)Weak chains of command
E)Centralization of decision making

Question 48

_____ reflects where decisions are formally made in organizations.

A)The chain of command
B)Formalization
C)Centralization
D)Work specialization
E)The span of control

Question 49

Which of the following is one of the biggest factors of an environment's effect on structure that allows organizations to focus on efficiency?

A)Whether the outside environment is stable or dynamic
B)Whether the external culture clashes with intrinsic values
C)Whether the internal environment is stable or dynamic
D)Whether the competitor's structure matches industry needs
E)Whether the supplier's culture matches with the company

Question 50

_____ organizations are flexible,adaptive,outward-focused organizations that thrive in dynamic environments.

A)Mechanistic
B)Centralized
C)Hierarchical
D)Matrix
E)Organic

Question 51

Which of the following is a characteristic of a mechanistic organization?

A)Employees are given a very narrow view of the tasks they are to perform.
B)Employees think more broadly in terms of where their responsibilities lie.
C)Employees are encouraged to make their own decisions when appropriate.
D)Employees are encouraged to develop knowledge outside of their specialization.
E)Lateral communication is encouraged.

Question 52

At Tic-Toc Clock Manufacturing,only the top managers have the authority to make final decisions on just about everything.Tic-Toc Clock manufacturing can be described as having a _____ structure.

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

Question 53

If decision making is pushed down to lower-level employees,and these employees feel empowered to make decisions on their own,an organization has a _____ structure.

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

Question 54

Which of the following refers to the degree to which rules and procedures are used to standardize behaviors and decisions in an organization?

A)Chain of command
B)Formalization
C)Centralization
D)Work specialization
E)Span of control

Question 55

Which of the following statements is true?

A)Wide spans of control tend to be associated with centralized decision making.
B)Narrow spans of control tend to be associated with decentralized decision making.
C)A high level of work specialization tends to bring about a high level of work formalization.
D)Mechanistic organizations are typified by a structure that relies on low levels of work formalization.
E)Organic organizations are typified by a structure that relies on high degrees of work specialization.

Question 56

In Grand Stand Organization,a furniture manufacturing company,the arrival and departure times to and from work are specified to the minute,with time clocks used to control deviant behavior.It can be said that the company is high in:

A)formalization.
B)centralization.
C)decentralization.
D)work differentiation.
E)division of labor.

Question 57

Which of the following describes an organization's objectives and goals and how it tries to capitalize on its assets to make money?

A)Organizational structure
B)Company technology
C)Business environment
D)Company strategy
E)Organizational chart

Question 58

Which of the following is a characteristic of an organic organization?

A)Employees know exactly whom they report to.
B)Employees are not encouraged to make decisions without their manager's consent.
C)Information is passed through vertical communication between an employee and his/her supervisor.
D)There are very clear lines of authority.
E)Employees are encouraged to develop knowledge and expertise outside of their specialization.

Question 59

A _____ span of control creates a _____ organization structure.

A)wide; flat
B)tall; flat
C)moderate; narrow
D)narrow; flat
E)flat; moderate

Question 60

Which of the following statements about an organization's dynamic business environment is true?

A)It does not change frequently.
B)It allows organizations to primarily focus on efficiency.
C)It requires organizations to have structures that are more rigid.
D)It requires little change over time.
E)It requires organizations to have structures that are more adaptivE.Stable environments allow organizations to focus on efficiency and require little change over time.In contrast,dynamic environments change on a frequent basis and require organizations to have structures that are more adaptive.

Question 61

The method by which an organization transforms its inputs into outputs refers to its:

A)structure.
B)technology.
C)specialization.
D)quality.
E)projects.

Question 62

When Hyundai Motor Company groups its business units around the different lines of cars such as i10,i20,Zing,Sonata,and Verna,which of the following structures is it creating?

A)Client-based
B)Product
C)Geographic
D)Functional
E)Simple

Question 63

What is the primary reason for simple structures being perhaps the most common form of organizational design?

A)There are more small organizations than large ones.
B)Employees can come and go with no major ripple effects on the organization.
C)Changes in specialization lead to less confusion about how exactly employees are supposed to do their jobs.
D)Employees feel less emotionally attached to the firm.
E)Approval for decisions need not be authorized at every step of the hierarchy.

Question 64

Which of the following statements about companies that adopt a differentiation strategy is true?

A)They believe that people will pay more for a product that is unique in some way.
B)Their focus is on being as efficient as they can be.
C)They rely on selling products at the lowest possible cost.
D)They are more likely to take a mechanistic approach to organizational design.
E)They concentrate on developing large quantities of the same product there by providing cost advantages to their customers.

Question 65

The biggest weakness of a functional structure is that:

A)it is not efficient when the organization as a whole has a relatively narrow focus.
B)it is not efficient when the organization has fewer product lines or services.
C)it cannot operate efficiently in a stable environment.
D)employees don't communicate as well across functions as they do within functions.
E)it decreases efficiency due to a high degree of work specialization.

Question 66

As organizations become larger,they tend to become more _____ in nature.

A)simple
B)cultural
C)mechanistic
D)organic
E)flat

Question 67

The most basic bureaucratic structure is the _____ structure.

A)client-based
B)matrix
C)organic
D)functional
E)simple

Question 68

Which of the following is a bureaucratic organizational form in which employees are grouped into divisions around products,geographic regions,or clients?

A)Mechanistic structures
B)Global structures
C)Multi-divisional structures
D)Matrix structures
E)Organic structures

Question 69

TP Pencils is the low-cost producer of one type of standard pencils.Given that it operates in a fairly stable environment,the company focuses on making its product as efficiently as possible.Which of the following approaches to organizational design may be appropriate for TP Pencils?

A)Multi-divisional
B)Global
C)Mechanistic
D)Matrix
E)Organic

Question 70

_____ structures are perhaps the most common form of organizational design.

A)Simple
B)Functional
C)Client-based
D)Product
E)Matrix

Question 71

A large company recently adopted a structure in order to give its top managers more responsibility and flexibility.The company is now structured around four customer groupings: consumers,corporations,small and mid-sized businesses,and government and educational buyers.Which of the following organizational structures has this company created?

A)Client-based
B)Product
C)Geographic
D)Functional
E)Simple

Question 72

A _____ structure makes perfect sense for a small organization,because employees can come and go with no major ripple effects on the organization.

A)bureaucratic
B)matrix
C)multi-divisional
D)simple
E)geo-demographic

Question 73

Homely Furniture is a custom manufacturer of hand-crafted furniture.The company has 94 locations throughout the country and relies on decentralized decision making to meet the needs of the dynamic environment and customer needs.Which of the following approaches to organizational design may be appropriate for Homely Furniture?

A)Simple
B)Global
C)Mechanistic
D)Organic
E)Matrix

Question 74

Which of the following statements is true about functional organization structure?

A)Small companies experiencing rapid growth are the only organizations to benefit from a functional structure.
B)One of the main disadvantages of the functional structure is the lack of work specialization.
C)Functional structures are extremely efficient when the organization as a whole has a relatively wide focus.
D)One of the main advantages of the functional structure is that it encourages communication across functions.
E)Functional structures are extremely efficient when the organization has fewer product lines or services.

Question 75

A _____ structure is a flat organization with one person as the central decision-making figure.

A)functional
B)product
C)client-based
D)simple
E)matrix

Question 76

When Happy Feet Shoe,Inc.groups its business units according to where they do business such as North America division,Europe division,Asia division,and Africa division,it is creating which of the following organizational structures?

A)Client-based
B)Product
C)Geographic
D)Functional
E)Simple

Question 77

At Light Body Warmer Manufacturing,employees are grouped according to their expertise in an area.All marketing employees are in one department,all finance employees are grouped in another department and similarly,all human resources and manufacturing employees are in their respective departments.Which of the following structures does Light Body Warmer Manufacturing use?

A)Client-based
B)Product
C)Geographic
D)Functional
E)Simple

Question 78

A firm has diversified to the point that the products it sells are very different and managing them has become overwhelming.Which of the following structures would help this firm?

A)Client-based
B)Product
C)Geographic
D)Functional
E)Simple

Question 79

Which of the following structures generally develop from companies with functional structures whose interests and goals become too diverse for that structure to handle?

A)Mechanistic
B)Global
C)Multi-divisional
D)Matrix
E)Organic

Question 80

A bureaucratic structure is an organizational form that exhibits many of the facets of the _____ organization.

A)simple
B)global
C)adaptive
D)organic
E)mechanistic